Last chance to make BIG Super Contributions.

super contributions

In the lead-up to 30 June 2017, we want you to be aware of your Last Chance to make BIG Super Contributions.
Check out this short 2 min video produced for us that gives expert tax planning advice that can help you reduce tax and increase your wealth at the same time.

WATCH NOW

Contact us today!  The sooner we get started, the sooner we can help you save tax, well before 30 June for sufficient time to implement tax saving strategies.

Imagine what you could do with your tax saved!

  • Reduce your home loan
  • Top up your Super
  • Have a holiday
  • Deposit for an Investment Property
  • Pay for your children’s education
  • Upgrade your Car

If you would like more information contact our professional accounting team on (03) 9744 7144 today

General advice disclaimer – General advice warning: The advice provided is general advice only as, in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.

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Want to know how you could reduce your tax burden?

tax burden

Want to know about the basics of reducing your tax burden and why tax planning can be so valuable? Check out this short 2 min video produced for us that gives a quick overview of two of the most common tax planning strategies used by our clients.

WATCH NOW

If you would like more information on how to get your tax burden under control contact our professional accounting team on (03) 9744 7144.

General advice disclaimer – General advice warning: The advice provided is general advice only as, in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.

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2017-2018 Federal Budget Update

2017-2018 fed budget

The Federal Treasurer, the Hon. Scott Morrison MP, delivered his second Federal Budget on 9 May 2017.  With some considerable focus on affordable housing, there are minimal impacts on personal income taxation, superannuation and social security entitlements for most of us.

This summary provides coverage of the key issues.

Highlights

Personal income tax

  • Temporary Budget Repair Levy still to cease 30 June 2017  Read more
  • Medicare levy to increase to 2.5 per cent from 1 July 2019 Read more
  • Removal of certain residential rental property deductions Read more
  • Increase in CGT discount to 60 per cent for qualifying affordable housing – Read more

Business owners

  •  Limiting access to small business capital gains tax concessions – Read more

Superannuation

  • First home super saver scheme to commence 1 July 2017 Read more
  • Home downsizing superannuation contributions where over age 65 – Read more

Social Security

Foreign Residents

  • Lower threshold for withholding tax for residential property disposals – Read more

General advice disclaimer – General advice warning: The advice provided is general advice only as, in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.

Editorial provided by Macquarie Group Limited.  Macquarie Group accepts no obligation to correct or update the information or opinions expressed in the Articles. The information in the Articles may be based on certain assumptions or market conditions and may change without notice.  The Macquarie Group specifically disclaims any liability (whether based in contract, tort, strict liability or otherwise) for any direct, indirect, incidental or consequential damages arising out of or in any way connected with the access to or use of the Articles.

 

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Do you have your tax debts under control?

Tax debt

From 1 July 2017, a new tax measure will come into play for small businesses, and we’re here to help prepare you for this tax change.

Businesses that haven’t engaged with the Australian Taxation Office (ATO) to get their tax debts under control could have their tax debt information disclosed to credit reporting agencies by the ATO.

Initially, the ATO will be applying this new disclosure measure to businesses with a tax debt greater than $10,000 and is in default (at least 90 days overdue). If your tax debt is disclosed by the ATO, your credit rating will be adversely affected for the next 5 years.

What do you need to do?

If you have a tax debt that is 90 days or more overdue, you need to secure a payment arrangement with the ATO before 30 June 2017, regardless of how big or small the tax debt is.  We also encourage everyone who has outstanding tax payments not yet in default, to get these paid as soon as possible.

Tax debts, once disclosed to credit reporting agencies, will go on your credit rating file for 5 years which could greatly impact your chances of securing finance in the future or enter in to credit arrangements with your suppliers.

So, it is important to get your tax debts under control as soon as possible, and well before 1 July 2017.

How we can help you!

As your tax agent, we can help you negotiate an effective payment arrangement with the ATO without negatively affecting your cashflow.

Get in touch with us today to discuss your options and get control of your tax debts.

Contact our office on (03) 9744 7144

General advice disclaimer – General advice warning: The advice provided is general advice only as, in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.

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Is bullying happening in your workplace?

Aggressive Businessman Shouting At Female Colleague

Everyone has a right not to be bullied or harassed at work.  A worker is bullied at work if;

  • a person or group of people repeatedly act unreasonably towards them or a group of workers
  • the behaviour creates a risk to health and safety

Unreasonable behaviour includes victimising, humiliating, intimidating or threatening.  Whether a behaviour is unreasonable can depend on whether a reasonable person might see the behaviour as unreasonable in the circumstances.
In June 2011, Victoria’s anti-bullying legislation was passed.  Known as Brodie’s Law, this law was introduced as a result of the tragic suicide death of young Brodie Panlock, who was subjected to relentless bullying in her workplace.

Case study
In September 2006, 19-year-old Brodie Panlock ended her life after enduring ongoing humiliating and intimidating bullying by her co-workers at a café in Hawthorn.

The tragedy of Brodie’s death was compounded by the fact that none of those responsible for bullying Brodie were charged with a serious criminal offence under the Crimes Act 1958. Instead, each offender was convicted and fined under provisions of the Occupational Health and Safety Act.

The introduction of Brodie’s Law means that the criminal justice systems is now able to appropriately respond to the most serious examples of bullying in our community.  The law ensures certainty in the application of the criminal law to cases of serious bullying.

Source – Victoria State Government Justice & Regulation

If you would like to learn more about this very important topic, please join us for a special breakfast seminar on Thursday 27th April 2017, where we will discuss this topic and more.


Are the tools in your toolkit sharp enough to take your business to the next level?

iStock_000020341138Small1

We see it everyday, businesses that think the unexpected won’t happen to them, but the reality is, IT CAN.  Are you up to date with the latest OH & S rules and regulations?  Does your business have the right insurances to protect you?  Is your business ready for cloud computing?

Learn how to;

  • Embrace new systems that will reduce the time you spend on your books and keep you up to date with your businesses performance.
  • Create debtor systems to manage cash flow and make it easier for customers to pay you sooner.
  • Protect your assets with the right registrations and paperwork.
  • Be aware of your legal obligations in the workplace.
  • Ensure you are taking all the necessary steps to protect you, your business and your family.
  • How to prepare yourself if injury or death occurs of a key person, including owners.  If serious illness occurs, how to protect yourself so that it does not affect your business.


Guest speakers:
Mark Hooper – Senior Account Manager Xero Accounting Software
Andrew McLellan – Director EDX (Melbourne) Pty Ltd
Richard Williams – Acting General Manager – Workplace Relations Victoria Chamber of Commerce and Industry

When: Thursday 27th April
Time: 7.30am
Where: Sunbury Football Club – Riddell Road Sunbury
Light breakfast supplied
R.S.V.P  Monday 24th April 2017
Click on the link below to book on line or call
Lynda (03) 9744 7144 or email lynda@mcmahonosborne.com.au

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What employers need to know about fringe benefits

FBT

On 31 March 2017, the Fringe Benefits Tax (FBT) year ends. With increased focus on data matching, the ATO will be reviewing whether employers who should be paying FBT are, and that they are paying the right amount.

To help you meet your fringe benefits obligations, we’ve put together a list of essentials every employer needs to know about FBT and review every year, such as:

  • Do I have to consider FBT?
  • What information do I need to give my accountant?
  • What is exempt from FBT?
  • How can I reduce my FBT liability?

These questions are all answered for you below, as well as some log book management tips.  Remember this advice is general in nature and we encourage you to discuss your specific circumstances with our accountants who are all trained in FBT matters.

1. FBT Rate change –  On 1 April 2017, the FBT rates will decrease to:

FBT Rate                       47%

Type 1 Gross Up Rate    2.0802

Type 2 Gross Up Rate    1.8868

2. Do I have to consider FBT?

Generally, if you have employees, including directors and you provide them with cars, car parking, entertainment (food and drink), employee discounts, reimburse private expenses etc, then you are likely to be providing a fringe benefit and we will need to give consideration to FBT.

It’s important you start gathering all of the details of these provided benefits as soon as possible using our annual FBT Questionnaire so we can calculate any potential FBT liability and lodge your FBT return on time if required – due 25 June 2017 with payment to be made by 28 May 2017.

3. What items are exempt from FBT? 

If you’re providing items like mobile phones, laptops, tablets, portable printers, protective clothing, tools of trade etc., or minor and infrequent benefits that are less than $300 in value, you are unlikely to have to worry about FBT.

You can fill out our short FBT Questionnaire to be 100% sure.

4. An easier way to manage your vehicle log books.

For employers with 20 or more ‘tools of trade’ cars – a car required for the job, like for a sales rep travelling extensively for the business – the ATO has a new process for validating the business use percentage of the car.

It’s called the ‘simplified method’, and if you meet the access conditions, you can apply an average business use percentage to all ‘tools of trade’ cars in your fleet for first log book year and the next 4 years. Conditions to be met are:

  • valid log books kept for at least 75% of the cars in the log book year;
  • the employer chose the make and model of the car, not the employee;
  • each fleet car has less value than the ‘luxury car’ limit when purchased, generally $64,132 in 2016/2017;
  • the cars aren’t provided under a salary packaging arrangement / employee remuneration package; and
  • your employees can’t choose to receive additional remuneration in lieu of using the cars.

5. Ways you can reduce your FBT liability.

Here are some ways in which you can reduce your FBT liability:

  • replace your fringe benefits with cash salary;
  • provide benefits that your employees would be entitled to claim as an income tax deduction if they had to pay for the benefits themselves;
  • look at providing benefits that are exempt from FBT; and
  • use employee contributions, for example, an employee paying for some of the operating costs of car fringe benefit such as fuel that you don’t reimburse them for. Though you should note that employee contributions may be deemed assessable income to you and subject to GST.

How we can help you.

The FBT year ends on 31 March 2017, so be sure to complete and return the FBT Questionnaire as soon as possible so you don’t miss the lodgment date of 25 June 2017, and meet the payment due date of 28 May 2017.

We look forward to helping you meet your FBT obligations and are available anytime to answer any questions you have around reducing your FBT liability or creating effective salary sacrifice arrangements.

 Call us today on (03) 9744 7144.

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Avoid these common mistakes to keep your business on track

Plan icon(1)

From managing to marketing and everything in between, the world of small business can be both exciting and overwhelming. When you first start up, you have dreams of making the big time. But as time goes on, you may discover that although you have the passion, the energy runs out quickly when each day provides the next challenge.

Don’t let these common mistakes keep you down. Avoid them, and get your business back on track.

Failing to plan – The saying is true: If you fail to plan, you plan to fail. This is a big problem for many small businesses. If you don’t have goals and specific plans on how to get the business where it needs to be, you will be distracted by every detour along the road and your business may end up nowhere near the ultimate destination. Spend a day at the beginning of each year setting out your goals and plans — it doesn’t have to be pages long. In fact, try to put your goals on one page and pin it above your desk so you can refer to it regularly.

Not understanding cash flow – Remember, cash is king. Every business fails when they run out of cash. Most business owners focus on sales and profits, but cash flow is critical to the success of your business. Many profitable business still struggle with cash flow. You need to understand the difference between profit and cash, and focus on ensuring you have adequate reserves to cover the unexpected.

Believing “build it and they will come” – Don’t listen to those who say, “build it and they will come.” Of course we believe in our product or service offer to customers. Just because we feel that we have the answer to the customers’ problems does not necessarily mean they are aware of their problem — or know you have the solution. It takes more than simply opening a business to guarantee sales will happen. You need to stay on your marketing toes at all times to keep a steady stream of customers visiting your business.

Putting garbage in — and expecting to understand it later – If you put garbage in, you will get garbage out. Many small businesses use spreadsheets to keep their financial, customer and key business records. Although this might suffice at the beginning, once the business is up and running, you need specialist software that will ensure all the information you record is correct and accurate. Spreadsheets are prone to errors. There are no built-in controls over the information entered, and spreadsheets will not provide critical information in a decision-making format without an enormous amount of time and effort. Use tools that are designed for record keeping and deliver reports and key performance measures on demand — it will make your life easier and improve your business.

Have you established a solid team? – If you are going to be successful, you’re going to need a team of people to make it happen.  You are an expert in your field, and that is why you decided to start your own business, right?   Well what about other areas of the business, where specialised skills are also needed?  By putting together a team of professionals, that have the skills to benefit your business, you will give your business a higher chance of survival.

Are you thinking of starting your own business?  Cementing the right foundation from the start can help you avoid these common mistakes. We have over 27 years experience working with small business.  Success stories come from when businesses have a very clear plan from the start.  We can help you with your business plan.

Register now for our FREE small business workshops.  Held the first Tuesday of every month in The McMahon Osborne Group Boardroom, at 5.30pm.

First workshop is Tuesday 7th March 2017, at 5,30pm.

To register click on the link below

click-here

General advice disclaimer – General advice warning: The advice provided is general advice only as, in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.

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