News

Thursday, 05 May 2016 02:10

Budget 2015/2016

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As you may already be aware, the federal budget for 2016 has been announced.

Here are some excerpts from the budget that may directly affect your tax situation.  This information can be found in more detail at www.nortonrosefullbright.com

Company tax cut

The Government intends to reduce the company tax rate to 25 per cent over 10 years. Businesses with an annual aggregated turnover of less than $10 million will be taxed at 27.5 per cent from the 2016-17 income year. All companies will be taxed at 27.5 per cent in the 2023-24 income year and the company tax rate will then be progressively lowered until it reaches 25 per cent in the 2026-27 income year.

 

Friday, 12 June 2015 01:19

Budget 2014/2015

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The Federal Budget has been announced for 2015/2016 years, and there are some interesting updates to tax related matters.  As per the NTAA, here are some important developments for tax matters, mostly pertaining to small business;

 

 

1. Changes effective Budget Night – 7.30pm (AEST) 12 May 2015

1.1 Expanding accelerated depreciation for small business – immediate write-off and small business pool

The government will significantly expand accelerated depreciation for small businesses. It will do this by allowing small businesses with aggregate annual turnover of less than $2 million to immediately deduct assets they start to use or install ready for use, provided the asset costs less than $20,000 (currently, an immediate write-off is generally available for assets costing less than $1,000). This will apply for assets acquired and installed ready for use between 7.30pm (AEST) 12 May 2015 and 30 June 2017. Assets valued at $20,000 or more (which cannot be immediately deducted) can continue to be placed in the small business simplified depreciation pool (‘the pool’) and depreciated at 15% in the first income year and 30% each income year thereafter. The pool can also be immediately deducted if the balance is less than $20,000 over this period (including existing pools). The government will also suspend the current ‘lock out’ laws for the simplified depreciation rules until 30 June 2017. Currently, these ‘lock out’ rules prevent small businesses from re-entering the simplified depreciation regime for five years, if they opt out. From 1 July 2017, the thresholds for the immediate depreciation of assets and the value of the pool will revert back to existing arrangements (which are currently based on a ‘less than $1,000’ threshold).

Thursday, 29 May 2014 01:01

Budget 2013/2014

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As most of you may already be aware, the proposed changes for the federal budget were announced this month.

So what does this mean for for tax clients?

Below is a concise list of details regarding the latest updates in the budget, as given by the NTAA;

1. Changes effective 1 July 2013 (i.e., 2013/14 income year)

1.1 Medicare levy low income thresholds
For 2013/14, the Medicare Levy low income thresholds will be as follows:
• Individuals $20,542 (no increase from 2012/13)
• Families $34,367 (previously $33,693)

The families income threshold (i.e., $34,367) will be increased by $3,156 (previously $3,094) for each
dependent child or student.

Wednesday, 18 December 2013 02:44

Investing in property through a super fund smsf

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PROPERTY AND EQUITIES ARE THE MOST ATTRACTIVE ASSET CLASSES IN THE CURRENT ENVIRONMENT. 1 MILLION AUSTRALIANS, ABOUT 6 PER CENT OF THE POPULATION OWN AN INVESTMENT PROPERTY, NOT MUCH OF THIS IS HELD INSIDE A SELF MANAGED SUPERANNUATION FUND (SMSF).

 

The Australian residential property market has shown a 5.3 per cent annual growth in sales with a 4 per cent growth in the quarter ending August 2013. The historic low cash rate of 2.5 per cent has been evidently driving the current market statistics. However, other market statistics showed a 4.7 per cent fall last month in new home sales. This was the first decline since January 2013. Australian capital city dwelling values grew by 0.5 per cent in August 2013. This growth can be attributed to the increased affordability, rising demand from the increased population and decreased supply from credit-constrained property developers.

Thursday, 03 October 2013 23:35

Spike in email scams as 31 October tax deadline looms

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This information can be found on the ATO website:

With only a month left for people who prepare their own tax return to lodge, the ATO is warning taxpayers to protect their personal and financial details following a sharp spike in reports of tax-related email scams.  Since June, reports from the public of phishing scams have quadrupled to 15,441 compared with just 3,586 during the same period last year. 

“While the public is reporting scam emails to ATO in increasing numbers, scammers are also becoming more sophisticated in the way they trick taxpayers into handing over their personal details,” Tax Commissioner Chris Jordan said.

“We advise people to be vigilant of emails that mimic the ATO’s online publications. Think very carefully before clicking on links and attachments in emails or on social networking sites.

Friday, 02 August 2013 03:16

Tax information & changes video update

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Click on the link to see the video providing the latest updates to the federal budget.

http://www.videoupdate.me/industry/accountancy/generic/

 

Friday, 05 July 2013 01:06

Super News Update

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On 24 June the Senate passed legislation with respect to some key superannuation measures around contributions.

Concessional contributions
 
For the 2013/14 financial year, Australians who are 60 and over will have access to a higher concessional contribution cap of $35,000. This will be extended to people 50 and over in the following financial year. 

 

2012/2013

2013/2014

2014/2015

Less than 50 yrs

$25,000

$25,000

$25,000

50-60

$25,000

$25,000

$35,000

60+

$25,000

$35,000

$35,000

The Senate also passed legislation that effectively puts in place a 30% contributions tax rate for Australians earning over $300K, which is effective for the 2012/13 tax year.
 
This relates to individuals with combined income and concessionally taxed contributions exceeding $300K. Concessional contributions made to a complying superannuation fund will be taxed at 15% as standard inside the fund. The additional 15% tax is on the amount of combined income and contributions that exceeds $300,000.

Thursday, 16 May 2013 03:06

Federal Budget 2013 - Important changes

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Here are some of the important changes that have been announced in this year's federal budget:

 

 

Medicare Levy

As reported in the lead up to the Budget, the Medicare levy will increase to 2% from 1 July 2014 to fund the Government’s DisabilityCare Australia reforms. Revenue raised from this measure will be paid into a dedicated fund administered solely for the purpose of meeting DisabilityCare funding needs.

In addition to the Medicare Levy, higher income earners without sufficient private health cover will continue to be assessed to a further 1% surcharge.

The increase in the Medicare Levy brings the effective top marginal tax rate to 47%. A number of tax laws apply the top effective rate as a penalty rate of tax. As a consequence, the following items will also be subject to tax of 47% (currently 46.5%):

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