Things to watch out for:

Superannuation

• On the 14th February 2012, the Minister for Financial Services and Superannuation released draft legislation which will require employers to report, on employee payslips, the: 
  • amount of superannuation contributions
  • date on which the employer expects to make them
• Currently, emloyers are required to report accrued super entitlements on payslips, however, they are not required to make the contributions until 28 days after the relevant period.
• The new measures are designed to improve employer compliance
• The Fair Work Ombudsman will be responsible for administering the new payslip measures

So whats being said this month around the ATO?

Here are some topics to keep an eye on

• Certain businesses required to report taxable payments made to contractors in the building & construction industry - from July 1, 2012
• For small business tax payers;
  • an initial deduction of $5000 for motor vehicles purchased after July 1, 2012
  • amendments to increase the small business instant asset write off to $6500
  • abolish the entrepreneurs tax offset
• Living Away From Home Allowance - having the LAFHA allowance taxed in the hands of the employees not the employers
• Abolition of upper age limit for making employee SG contributions
• Proportion of the low income tax offset delivered through salaries and wages increased from 50% to 70%
• Private health insurance rebate and the introduction of the 3 tier means testing for the offset
• Increases in the rate of SG (superannuation guarantee) contributions ? From?
• Restructuting the margin scheme provisions
• Director penalty notices (DPNs) considered to be given on the date the commissioner sent it by post - watch out for these
• Hire purchase agreements entered into after July 1, 2012 will be fully taxable, no more apporionment

The above are just items of interest, please consult us for specific advice.

It is important to review your budget, here is a list of a few starting points to think about when drafting or reviewing your budget, take a look.

• Look at your business plan (the document that lets you know which way your busines is going)
• What will change in your income next year? Are you planning to increase it? or will external factors (such as poor weather seasons) cause to decrease it?
• Do you have marketing plans that you expect will change your income?
• If you income changes, what will the effect be on your COGS (cost of goods sold)? Are your input costs changing?
• What effect will changing your income have on your salary and wages costs?
• Will you be purchasing any assets (equipment) in the next few years?
• Will you need finance (borrow money to grow the business)?
• If your budget was based on last years actuals results, where there any one-off events that were included in last years numbers that should not be taken into accuont this year?
• Is there anything happenning in the economy (such as the European crisis or a rising $A) that may affect your income or costs?
• Is there any legislation expected that will change your revenue or costs? (such as any government grants being cancelled, eg Solar Panel Rebate)
• Have you though of what your competitors are doing that may affect your business? 
• Ask us if you need help, its easy

Your budget is your guide to your business for the future - if you dont have one you should do one and if you have one make sure its current and relative to your busines today.  

MCA Business Newsletter - February 2012

In this edition the following is covered:

• Superannuation changes
• Various changes announced in Mid-Year Economic and Fiscal Outlook 2011-12
• Changes to the taxation treatment of the living away from home allowance
• Changes to the income tax law affecting consolidated groups
• Trust reform
• Changes to the tax treatment of lossess
• GST refunds

MCA Business News - February 2012.pdf (159.79 kb)

What would happen if you had to stop work tomorrow? How would you survive? Being ill or injured is difficult enough without the financial pressure of not being able to earn an income.

Have you considered how would you pay your monthly bills if your income is not supported?

Income Protection can help by replacing upto 75% of your income if you are unable to work due to sickness or injury. Income protection can help you replace lost income, meet ongoing living costs and generate savings to meet future financial goals.

Income protection eases the financial stress during traumatic times in your life allowing you to focus on more important things, likey your recovery.

Fortunately, the annual premiums for Income Protection insurance may be tax deductible for you.

We have our financial planner Loni Karebesinis of Marbella Financial Services who can help you find the right insurance solution for you so you can be financially prepared for the unexpected. If you would like to arrange an appointment with a risk specialist please call Loni on 02 96 999 171.

Please read our quarterly business newsletter - some interesting points covering areas such as:

ATOs compliance program for 2012 and its focus areas such as -  

• Employees Vs Contractors
• Personal Services Income
• Government Payments
• Cash Economy
• Internet Trading
• Work Related Expenses
• Overseas Incmoe
• Split Loans
• Refund Fraud
• Executives, directors and other highly paid individuals
• Division 7a
• Fringe Benefits Tax
• Small Business Benchmarks
• Managing Tax Debts
• Car Fringe Benefits Rules Changed
• Excess Super Contributions Tax
• ATOs new CGT Small Business Concession Tool

Its really worth a read, if you have any questions please feel free to contact Make Cents Accounting on 02 96 999 171

MCA Business News - September 2011.pdf (154.97 kb)

Have you checked to see if your numbers are in line with the ATOs benchmarks? Did you know the ATO is comparing your figures to other business in your industry?

Benchmarks are key financial ratios that can help you compare your business performance against similar businesses in your industry – some key performance benchmark ratios the ATO are focussing on are:

1.        Cost of goods sold to turnover

2.        Cost of materials to turnover

3.        Labour to turnover

4.        Rent to turnover

5.        Motor vehicle expenses to turnover

If you need help or would like to know how your business is travelling in relation to these benchmarks then call us on 02 96 999 171 and check out the link from the ATOs website