The MAX CAMmunicator

Welcome

Footy finals are upon us, spring is here and so is the first edition of Maxwell & Cameron's newsletter The MAX CAMmunicator. We have also launched our exciting new website at

 www.maxcamaccountants.com.au

The MAX CAMmunicator is a free monthly publication featuring topical and relevant information geared towards improving your financial position, and keeping you posted on the latest tax and business news. Our aim is to make better use of your time and keep you up to date on matters affecting your business and family life. If there are any topics you would like covered in future editions, please let us know.

In this edition our feature article is about the importance of cashflow management. We also look at how the ATO is getting tough and continuing to target businesses, individuals and Self Managed Superannuation Funds as well as recent changes to the First Home Owners Grant in the recent State Budget.

Cashflow Management Is Important

The recent comments by the Australian Taxation Commissioner, that small businesses are approximately $9B in debt on Business Activity Statements, has highlighted the significant importance of effective cashflow management for SMEs. Two years ago, the total debt for the same group of taxpayers was approximately $4B.

This level of debt, together with the debtors' outstanding figures, as disclosed by Dunn and Bradstreet, (debtors' day outstanding of approximately 53 days at present) highlights the severe cashflow problems that many small business operators are experiencing. We can assist our SME clients to manage their business affairs better by conducting a cashflow management review.  We will explain to you in laymen's terms where your money has gone and offer advice on how you can improve your numbers.

If you would like to have a discussion with us in relation to cashflow management system operating for your business, please contact us.

Australian Taxation Office "Hit List"

Every financial year, the Australian Taxation Office (ATO) releases its "hit list" or yearly compliance program. This year is no exception. Some interesting observations can be drawn from the "hit list" in regards to all levels of businesses. One of the big focuses of the program across all levels of taxpayers is the increase in 3rd party data matching for work and business related deductions, omission of income both from Australian sources and foreign sources, Fringe Benefits Tax reporting and GST treatment of property transactions.

The ATO are also increasingly conducting more site visits to Small/Medium Enterprise Operators for the review of:

• GST Transactions
• Superannuation Registration
• Compliance with Taxation Laws
• Taxation Payments

The ATO are also checking:

• Companies with loans to shareholders
• Trustees' compliance with the requirements for written agreements and trust minutes for trustee resolutions made prior to 30th June 2012
• Comparing these minutes with the trust income tax returns lodged, along with the income tax returns of all beneficiaries of the trust

All in all, this updated program seems to be focusing on ensuring people are complying with more areas of the law rather than simply Income Tax and GST, which has been a focus of the ATO for some time.

Better to be safe than sorry......click here to find out more about our audit shield service.

Changes to FHOG

The 2012-2013 Queensland State Budget has resulted in the $7000 First Home Owner Grant being replaced by the $15000 First Home Owner Construction Grant from 12 September 2012.

The $15000 grant is available to first home owners who will be buying or building a 'new' home after 12 September 2012. First home buyers may still be eligible for the $7000 grant for established home purchases if the contract is dated before 11 October 2012.

For more information regarding changes to FHOG click here

Kind Regards

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