JUNE 2015

June Super Contributions - June 2015 quarter superannuation contributions are not due until 28 July, however, if you wish to claim a tax deduction for your June contributions in your 2015 Tax Return, you need to pay these before 30 June.

Stock on Hand - don't forget to do a Stocktake of your trading stock so you can give us your closing stock figures at 30 June.

Livestock - remember to do a head count of your livestock at 30 June. We will need details of any deaths, natural increases and livestock bought or sold during the year.

Superannuation Pension Payments - have you drawn your minimum pension for the 2015 financial year?

Employers - you need to have 2015 PAYG Payment Summaries to your employees by 14 July. We can reconcile and lodge your Annual Payment Summary documentation electronically with the ATO on your behalf, so contact us if you need help with this.

Back up, Back up, Back up - we cannot stress the importance of making sure you back up your computerised accounting files. If your file was ever to become unusable, you will risk losing your financial records. Even Accounts Hosted (aka Reckon Online) recommend you regularly back up your online file locally. For more information click here

$20,000 Small Business Tax Deduction - don't forget small businesses can now get access to a $20,000 tax write-off to purchase items relating to their business. Read more here

If you have any questions or need assistance with the above, please do not hesitate to contact us.

Tax cuts for small business – 1.5% tax cut for small companies and 5% discount on income tax payable for unincorporated small business activity

From the 2015/16 income year, the government will deliver a tax cut to all small businesses:

Reduction in company tax rate – The company tax rate will be reduced to 28.5% (i.e. a reduction of 1.5%) for companies with aggregated annual turnover of less than $2 million. Companies with an aggregated annual turnover of $2 million or above will continue to be subject to the current 30% rate on all their taxable income. Note the current maximum franking credit rate for a distribution will remain at 30% for all companies, maintaining the existing arrangements for investors, such as self-funded retirees.

5% discount on tax payable for other taxpayers – Individual taxpayers with business income from an unincorporated business that have an aggregated annual turnover of less than $2 million will be eligible for a small business tax discount. The discount will be 5% of the income tax payable on the business income received by an unincorporated small business entity. The discount will be capped at $1,000 per individual for each income year, and will be delivered as a tax offset.

Claiming car expense deductions – updating car expense claim methods

Currently, an individual (or a partnership which includes at least one individual partner) can claim car expense deductions in respect of a car owned or leased by using one of four methods. From the 2015/16 income year, the government will update the method of calculating work related car expense deductions, as follows: The '12 per cent of original value method' and the 'one-third of actual expenses method' (which are used by less than 2% of those who claim work related car expenses) will be removed.

The 'cents per kilometre method' will be updated by replacing the three current (cents per kilometre) rates based on engine size, with one rate set at 66 cents per kilometre (in respect of all cars). The Commissioner will be responsible for updating the rate in following years.

Better targeting of Zone Tax Offset ('ZTO') to exclude 'fly-in fly-out' and 'drive-in drive-out' workers ('FIFO/DIDO workers')

The ZTO is a concessional tax offset available to individuals in recognition of the isolation, uncongenial climate and high cost of living associated with living in identified locations. Eligibility for the ZTO is based on defined geographic zones. Currently, to be eligible for the ZTO, a taxpayer must reside or work in a specified remote area for more than 183 days in an income year. It is estimated that around 20% of all claimants do not actually live full-time in the relevant zone. Many of these are FIFO/DIDO workers who do not face the same challenges of remote living that the ZTO was designed to address.

From 1 July 2015, the government will exclude FIFO/DIDO workers whose normal residence is outside the defined remote areas from claiming the ZTO tax break.

Immediate deduction for professional expenses on commencing a new business

Currently, some professional costs associated with commencing a new business (i.e. black hole expenditure) are deducted over a five-year period. From 1 July 2015, the government will allow businesses to claim an immediate write-off for a range of professional expenses associated with starting a new business, such as professional, legal and accounting advice.

Release of superannuation for terminal medical condition – relaxing the release criteria

Broadly, before an individual with a terminal medical condition can currently access their preserved superannuation benefits (generally as a tax-free lump sum), two registered medical practitioners (including a specialist) must certify, jointly or separately, the person is likely to die within a one-year period.

From 1 July 2015, the government will extend access to superannuation for people with a terminal medical condition by extending the above certification period (i.e. the period within which the individual is likely to die) to two years. This will give terminally ill patients earlier access to their superannuation entitlements.

Source: 4U Accountants, June 2015 

The Maxcam Team are geared up for another financial year with workflow scheduling done and dusted, and planning for the new year is well underway.

By now all of our business clients should have received their allocated tax month for their 2015 work. Please contact Kyla at the office on 4928 0995 if you did not receive your tax month letter. A reminder letter and checklist will again be sent out one month prior to your tax month.

In May, Jenny and Christine moved to the highest echelon of the accounting profession and were made Fellows of CPA Australia. Congratulations to them both.

What's on the horizon??? Jenny, Rachelle and Kyla are counting down the days until the 2015 Proactive Accountants Network Conference being held again this year in Nusa Dua, Bali. They are looking forward to 5 full days of education, activities, networking and fun. Jenny and Rachelle who have been previously, describe these conferences as life changing. Stay tuned for Facebook updates and lots of photos.

At the end of July, Angela returns from maternity leave and will be working in the office Thursdays and Fridays. We also have another full time accountant starting with us in September. Lesley has over 40 years accounting and tax experience, and we are looking forward to having her join the team.

Audit Shield Insurance renewals will be going out within the next week or so. Big Brother is watching and this year will be no exception. Each year the ATO's data matching systems get more sophisticated.

Employees who make "unusually high" work-related claims are on the ATO's radar, and it says it is better equipped than ever to identify wrongdoers. Check out this edition's article called "ATO eyes work expenses and rental properties".     

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