EMPLOYERS MAKE SURE THAT YOU PAY YOUR EMPLOYEES SUPER ON TIME!

Did you know that if a business does not pay Superannuation for its employees on-time, the superannuation cannot be claimed as a tax deduction? Further the business will be hit with interest at 10% on the non/late-payment and will also have to pay an administration fee of $20 per employee, per quarter. Note that a Super Guarantee Charge Statement must be filled out if Superannuation Obligations have not been met. Director Penalties: Company Directors have legal responsibility to ensure that their company meets its superannuation obligations. If a director fails to do so in full by the due...

Read more

BUDGET 2014

The 2014 budget has been run and won. Andresen McCarthy Partners does see the 2014 budget as economically sensible. The major budget items include: A temporary 2% levy imposed on individuals’ who have taxable income over $180,000. This should be removed in 3 years time Change in the Company Tax Rate to 28.5% starting from 1 July 2015 Drug prescriptions to cost an extra $5 $7 extra for visits to the doctors $50 billion in infrastructure spending. Road Infrastructure to be supported by the reintroduction of the fuel excise indexation $20 billion in a Medical Research Fund

Read more

DAVE'S CORNER- BUY SELL AGREEMENTS

How does a buy sell agreement operate? Buy Sell Agreements are often regarded as the ‘Will’ of a business. This enables the transfer of ownership interest from one owner to the other remaining owners, when a specific event is triggered. The most common triggers are death, long term or permanent incapacity and trauma. Under the agreement, when one business owner is impacted by such an event, they consent to sell their share of the business, while the remaining owners agree to purchase that outgoing person’s interest. Buy Sell Agreements take precedence over Wills. Agreements are generally...

Read more

DAVE'S CORNER- ESTATE PLANNING

Traditionally estate planning was viewed as having a Will which documented how a person would like their assets distributed upon death. In reality, estate planning is far more involved and the following issues are some that need to be addressed: If you become unable to care for yourself, who will care for you and make decisions on your behalf? And if you become unable to manage your business and financial affairs, who will oversee and manage these affairs on your behalf during your remaining lifetime? Powers of Attorney (POA) An Enduring Power of Attorney is a legal document whereby an...

Read more

DAVE'S CORNER - FRINGE BENEFITS TAX AND VEHICLES

It was announced yesterday that Labor's $1.8 billion Fringe Benefits Tax hit on the car industry won't proceed. During the 2013 election the Coalition pledged not to continue with Labor's Fringe Benefits Tax change that would make it harder for people to have a company or salary sacrificed vehicle. The Coalition Government today confirms it will not proceed with this measure.

Read more

DAVE'S CORNER - ATO WARNING ON EMAIL SCAMS

The ATO has warned taxpayers to protect their personal and financial details following an increase in reports of tax-related email scams. It said since June 2013, reports of phishing scams have quadrupled to 15,441 compared to 3,586 during the same period last year, with the scams becoming more sophisticated. The Commissioner urged taxpayers to be vigilant of emails that mimic the ATO's online publications especially those with links and attachments or those asking taxpayers to confirm or disclose confidential personal information.

Read more

DAVE'S CORNER - POST-ELECTION RECAP ON COALITION TAX CHANGES

With the election of a new Coalition Government on the weekend, it is important to consider the taxation law and tax-related changes the Government has announced as part of its intended tax policy. These changes range from the abolition of the Carbon Tax and Mining Tax to the implementation of income tax rate changes associated with a revised parental leave scheme. There is also a promise to ‘reserve the right’ to proceed with some or all of the proposed but unenacted tax reform measures announced by the previous Labor Government as part of the 2013 Federal Budget. The Coalition has also...

Read more

DAVE'S CORNER - COALITION PROMISES TO RESTORE PRIVATE HEALTH INSURANCE REBATE

Tony Abbot has pledged that over the next decade, a Coalition Government would restore the private health insurance rebate, as soon as they responsibly can. Labor succeeded in legislating a means testing of the rebate last year after several failed attempts. There were further cuts this year, with the rebate indexed on a fixed basis, rather than tracking the rise in health costs. The private health insurance rebate has been the fasting growing component of the health budget over the past decade, rising at an annual rate of 6.3% after inflation. Treasury estimates show the latest changes to...

Read more

DAVE'S CORNER - THE COALITION'S POLICY FOR PAID PARENTAL LEAVE

The Coalition will deliver a paid parental leave scheme to give mother’s six months leave based on their actual wage. Under the Coalition scheme, mothers will be provided with 26 weeks of paid parental leave, at their actual wage or the national minimum wage, plus Superannuation. In contrast, Labor’s parental scheme is paid at the minimum wage for 18 weeks. This means that a woman who earns $65,000 will be more than $21,000 better off under the Coalition’s scheme. The Coalition’s paid parental leave scheme will commence from 1 July 2015.

Read more

DAVE'S CORNER - LABOR TO CUT TAX BENEFITS FOR PARENTS

Prime Minister Kevin Rudd has announced recently that parents who choose not to have their children vaccinated will not receive the Family Tax Benefit A end-of-year supplement. This payment is worth $726 per child, per year and is paid when children are vaccinated at one, two and five years of age. As of last year, parents who have not immunised their children have not received the benefit, with the only exemptions being those made on religious or medical grounds. The PM has announced that this will be the single, most effective and cheapest way of keeping the community healthy.

Read more