March 2013

Well we are getting towards the end of March which means not only is the Easter Bunny visiting soon, but it is also getting to the end of the FBT year. Don't forget, if you have a motor vehicle used in your business, remember to record your odometer reading as at 31 March 2013.

Repairs or improvements? Why is this question sometimes difficult to answer? Check out our feature article for this month.

BEWARE - the Scammers are out again!! The ATO is warning people about a fraudulent email doing the rounds, so our article on ATO Email and Phishing Scams is a must read.

Don't forget if you are interested in featuring as our Business of the Month, contact Sam our friendly Receptionist now!!

Assistance We Can Offer

Did you know we offer a wide range of services, other than taxation, to assist small business owners add value to their businesses. This can include a review of:

• Gross profit rate percentages
• Debtors' Aged Analysis
• Labour to turnover percentage
• Team productivity
• Profit to turnover percentage
• Benchmarking your business against other similar businesses
• Sales growth percentage
• Examination of key ratios of the business
• Stock investment days
• Comparing your current performance ratios against ratios stipulated in bank loan agreements (bank covenants)
• Stock turn rate
• Debtors' days outstanding



If you are interested in having us undertake a business analysis and interpretation of financial results review on a quarterly basis, please contact us.

Feature Article - Repairs & Improvements?

The difference between deductible repair and maintenance costs and capital improvements can mean significant tax savings for property owners. Whether an item is a repair or improvement is a difficult question and will depend on the particular circumstances.

Repairs & maintenance

Work completed to fix damage or deterioration of a property is defined as repairs, e.g. fixing part of a damaged fence. Work completed to prevent deterioration to a property is defined as maintenance, e.g. servicing an air conditioner.

A deduction for expenses incurred because of repairs or maintenance on an investment property can be claimed completely within the current financial year.

Capital improvements

Improving the condition or value of an item beyond its original state at the time of purchase is defined as capital improvements. Capital improvements must be depreciated or claimed as capital works deductions over time. Capital improvements are classified as either capital works deductions or plant and equipment.

Capital works deductions include structural additions and renovations such as adding and extending an internal wall and also includes items fixed to the property which cannot easily be removed. Plant and equipment items include removable items such as carpet, hot water systems and stoves.

To determine how expenses on an investment property should be claimed, an investor can consider the following questions:

Has the property or item been improved beyond its original condition at the time of purchase?

If an item provides something new or changes the character of the original item in any way, it will be considered a capital improvement.

Was the asset partially replaced, or replaced entirely?

Partially replacing an item due to damage or wear and tear is classified as repairs and maintenance. If an owner decides to replace the entire item to improve the property's value, it will be considered a capital improvement.

If you have any questions about alterations, additions, repairs or improvements, and the implications they may have, please give us a call.

BEWARE "ATO" Email And Phishing Scams

A new year, a new "Australian Taxation Office" apparently as the "ATO" has suddenly become big believers in sending emails and text messages to taxpayers and tax agents, or so you would believe by the number of phishing emails and text messages being sent out. Significant numbers of tax agents and taxpayers are receiving emails that look very similar to the normal business and tax newsletters and email correspondence from the ATO, even so far as the ato.gov.au email address and letterhead.

The email being sent to taxpayers is an "increase and recalculation of your tax refund" email scam which has a form attached to it asking for personal details. The forms are often copies of electronic tax returns which have been modified to include additional information specifically credit card details. These forms are looking quite sophisticated.

The Australian Taxation Office is aware of these email scams and is attempting to educate the public via the media and a list of current ATO SMS and email activities, however many taxpayers are not even aware that these events are occurring at all. The old adage applies that if it looks to good to be true, it usually is.

If you have any concern about the legitimacy of emails claimed to be originating from the ATO please contact us urgently.

Business of the month

Our March/April client of the month is Wade Hunt Information Technology. The team at Wade Hunt IT specialise in providing complete solutions for business; from the planning and installation of new computer networks to training staff in the use of the new system.

They aim to make your business more productive, and efficient by providing sound Information Technology solutions. When the time comes for your next upgrade - whether it be a single computer, or a complete network revamp - Wade Hunt IT can take the hassle out of the planning and installation.

Their service doesn't stop at the sale; they can provide full training in the new system and offer on-call support. They service all types of business with a strong background in the medical and legal industries, and provide a full range of hardware and software solutions, and custom build each system to ensure that you receive the best possible system.

For more information visit Wade Hunt Information Technology at http://www.hunt.net.au

www.maxcamaccountants.com.au

FBT - what it means for you

2013 Key Tax & Superannuation Changes

GET THE WORD OUT!!! Maxwell & Cameron are looking for an experienced Senior Tax Accountant as well as a Junior Accountant. If you have worked in a tax environment and are looking for a change, we would love to hear from you. Or, if you are completing your accounting degree and would be interested in working while studying, you can also apply.

We offer a friendly, modern work environment with flexible working conditions. It's not just about lodging tax returns; you will also work directly with our fantastic clients, assisting them with their business, taxation and accounting needs.

If you are interested in working with a diverse range of clients across many different industries; where someone recognises and rewards your efforts and provides a fun, satisfying and safe workplace email us at kyla@maxcamaccountants.com.au. Or, if you know someone who might be interested in working with us ....spread the word.

To register for our secure area Client Login, click here.

You can keep up to date with important accounting and business dates and deadlines. More...

The Tax Facts section where you can learn more about tax requirements within Australia. More... 

Try out our new online calculators. More... 

You can also organise an appointment with one of our staff via our special online appointment form. This is particularly useful if you struggle to find the time during normal business hours to phone. Click here to book an appointment.