Year End Strategies Newsletter (Bulletin April 2010)

Click here for Smith Feutrill’s Year End Strategies Newsletter which focuses on strategies for managing your business.

In this issue:

• Get a year end tax health check
• Tax arrangement deadline
• The end is near – tax year end that is!
• SMSFs remain on tax office radar
• Home is where the tax deduction is
• SMSF reserves – old wine in new bottles
• Year end tips for property owners

March 2010 Bulletin

Lodgement Reminder

With the 15th May lodgement deadline looming for 2009 tax returns, now is the time to get your accounting records to us if you haven’t already done so. If you have any queries regarding this please contact us as soon as possible to avoid possible late lodgement penalties and/or general interest charges.

Changes at the ATO

You may be aware that the ATO has undergone a major upgrade to their ICT (Information Communications and Technology) that manages all tax accounts, processing and lodgements for Australia. This occurred from December 2009 to the end of January 2010 causing delays in processing of assessments and payments up to the middle of February. The ATO informs us they are now up to date and it’s back to business as usual. Moving forward there has been a significant and noticeable change in the look of Assessments and Statements of Account. Please ensure you carefully review our covering letters which contain important information regarding due dates for payment and any variation to our estimates. Should you have any queries with regard to the new look Notices of Assessment, please do not hesitate to contact us.

World’s Greatest Shave

Staff Appointment – Rebecca Van Eeden

It is with pleasure we announce the promotion of Rebecca Van Eeden to the position of Senior Accountant effective 1 January 2010. Rebecca has been with the firm for 3 years, has been a dedicated and enthusiastic team member throughout this period and has developed strong client relationships with her professionalism and technical ability.The Directors and fellow staff members congratulate Rebecca on her promotion and are sure she will do an outstanding job in this new role.

Declare offshore income now – ATO Announcement

An important announcement from the ATO for Tax professionals for your consideration.

http://www.ato.gov.au/taxprofessionals/content.asp?doc=/content/00222632.htm

If this applies to you, don’t delay – speak with your Smith Feutrill tax adviser now – we’re ready to listen and ready to help.

The Fair Work Act Overview

Australia’s workplace relations system changed on 1 July of this year with the introduction of The Fair Work Act 2009.  This act creates a new legislative framework for workplace relations, the aim being the establishment of a strong safety net for employees’ minimum workplace standards. 

The Fair Work Act, the Rudd government’s response to the much publicised Work Choices legislation, aims to give employees clear, comprehensive and enforceable minimum protections that cannot be removed by employers.  While officially becoming law on 1 July 2009, there is a bridging period up to 31 December 2009 for many provisions contained within the act.

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Investment Tax Break

A reminder that the investment tax break, as discussed in previous Smith Feutrill bulletins, is available until 31 December 2009.  The tax break allows taxpayers in small business an additional 50% tax deduction or large business an additional 10% tax deduction, provided commitment is made to purchase a qualifying asset prior to 31 December 2009.  As commitment can take many forms, and there are certain conditions the asset must meet, we recommend you contact us to examine your particular circumstances and eligibility if you are thinking of acquiring an asset prior to 31 December.  

We note that this is a potentially great opportunity for businesses with a turnover of under $2 million to purchase plant & equipment in a tax effective way.  If this is you, don’t delay – speak with your Smith Feutrill tax adviser now – we’re ready to listen and ready to help.

Further information can be found in our previous bulletin.

Staff Appointment – Kris Necovski

It is with pleasure we announce the promotion of Kris Necovski to the position of Supervisor effective 1 July 2009. Kris joined Smith Feutrill in September 2003 as a Graduate Accountant, completed his CPA in November 2006, and has since progressed to the position of Senior Accountant. The Directors and team of Smith Feutrill congratulate Kris on his promotion, a position where we are sure he will do an outstanding job.

June Bulletin – Federal Budget 2009 Announcements

Investment Tax Break

The tax break for small business (less than $2m aggregated turnover) was increased from 30% to 50% of the cost of eligible expenditure and the last date for small business to acquire equipment to access the higher deduction has been extended from 30 June 2009 to 31 December 2009.

To be eligible for the tax break in the current financial year, the equipment acquired must generally be installed ready for use by no later than 30 June 2009. Equipment that is committed to ie ordered before this date but not installed and ready for use until after 30 June 2009 will still be eligible for the 50% tax break but the claim will be deferred until the 2010 financial year. (more…)

June Bulletin – Tax Planning for the year ended 30 June 2009

Tax planning involves arranging affairs in order to comply with the income tax legislation resulting in the lowest legal taxation liability. As such, tax planning is contrasted from tax avoidance, which is the entering into a scheme in order to obtain a tax benefit and can result in significant penalties.

As 30 June approaches taxpayers should seriously consider tax planning as many strategies require action prior to 30 June in order to be effective.

The following list is by no means exhaustive but provides a number of items for consideration:
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