Monday, 21 December 2015

REPLACING A DECEASED TRUSTEE OF A SELF MANAGED SUPERNNUATION FUND


The article on page 3 in our newsletter –Wealth Matters Issue 33 2015 on our website explores a number of options available to the surviving trustee.  Trustees should seek professional advice that is appropriate for their circumstances.

Please click on the link below to access our newsletter:

http://www.langleymckimmie.com.au/2015/12/03/issue-33-december-2015/

Please contact Andrew Marshall or Janine Orpwood at Langley McKimmie Chartered Accountants on (03) 5427 8100 to discuss further.

We provide accounting and wealth management services to clients in WoodendGisborne and Macedon Ranges areas within Victoria Australia.

 

myDeductions Tool



One of the biggest problems for our clients in submitting their annual tax records is record keeping around their deductions. Many do not keep proper records during the year and therefore spend too much time at year end putting it all together.

The ATO has created a new ‘app’ called myDeductions to assist with the collection of all your personal income tax deductions. The app will record information relating to your work related car, travel, uniform, donations and self-education deductions as well general work related expenses like union fees and the like. The app allows you to store photos to supply to your accountant when its time to prepare your tax return.

myDeductions works with Apple, Android and Windows operating systems.

See the following from the ATO for more reading:
 
 
Please contact Andrew Marshall or Janine Orpwood at Langley McKimmie Chartered Accountants on (03) 5427 8100 to discuss further.

We provide accounting and wealth management services to clients in WoodendGisborne and Macedon Ranges areas within Victoria Australia.
 

Wednesday, 16 December 2015

MOTOR VEHICLE DEDUCTIONS FOR INDIVIDUALS


From 1 July 2015 work related motor vehicle expense deductions for individuals are now limited to either

1)     $0.66 per kilometre up to a maximum of 5,000 kilometres; or

2)     A log book derived percentage of work related travel applied to eligible motor  
       vehicle expenses

If you believe this change will impact you, consider you may need to record a twelve week log book of work related and private travel between now and 30 June 2016 to gain the best available deduction.
 

Please contact Andrew Marshall or Janine Orpwood at Langley McKimmie Chartered Accountants on (03) 5427 8100 to discuss further.

We provide accounting and wealth management services to clients in WoodendGisborne and Macedon Ranges areas within Victoria Australia.

 

Tuesday, 15 December 2015

SEASON'S GREETINGS

The Langley McKimmie team wishes everyone a Merry Christmas and a safe and prosperous new year 

Our office will be closed from Wednesday 23 December 2015 and
re-opens on Monday 11 January 2016
 

We look forward to assisting you with your Business Services, Taxation, Superannuation and Audit needs in the New Year


 

Tuesday, 8 December 2015

CHRISTMAS PARTIES & PRESENTS : WHAT ARE THE TAX IMPLICATIONS?

 
This time of year employers often give presents and throw parties for their hard working staff. Two questions that often pop up is whether these costs are deductible in the business and if they are subject to Fringe Benefit Tax.
 
The following link from the ATO explains the tax implications of the festive season:

Please contact Andrew Marshall or Janine Orpwood at Langley McKimmie Chartered Accountants on (03) 5427 8100 to discuss further.

We provide accounting and wealth management services to clients in WoodendGisborne and Macedon Ranges areas within Victoria Australia.

Wednesday, 2 December 2015

DO YOU NEED TO REGISTER FOR GST?

 
If your business has grown you may need to register for Goods and Services Tax (GST).  You will need to register for GST if your GST turnover is more than $75,000 per annum.  Your turnover should be continuously monitored as you must register for GST within 21 days of exceeding the threshold.

Click on this link to find out more:
Please contact Andrew Marshall or Janine Orpwood at Langley McKimmie Chartered Accountants on (03) 5427 8100 to discuss further.

We provide accounting and wealth management services to clients in WoodendGisborne and Macedon Ranges areas within Victoria Australia.

Wednesday, 18 November 2015

DO YOU KNOW YOUR SUPERANNUATION OBLIGATIONS?



Case Study

Sole trader Chris failed to pay $2,500 superannuation guarantee for his employee Ron for the June 2015 quarter. Ron is 21 and a full time employee who has been working for Chris for two months. Chris is legally required to pay 9.5% of Ron’s ordinary times earnings to an eligible superannuation fund by the 28th day past the quarter. However Chris is new in business and was not aware of his superannuation obligations.
  
The ATO became aware of the non-payment of superannuation and issued an audit notice. Chris then realised he hadn’t made any payment and went to his accountant for help. Chris’s accountant told him to obtain Ron’s nominated superannuation fund details and then prepared a Superannuation Guarantee Charge Statement that calculated the following:

·        Superannuation guarantee shortfall $2,500
·        Administration fee $20
·        Interest on shortfall owed to Ron $134.25. Interest is payable from the
         beginning of the applicable quarter rather than the end of the quarter

  
When payments are late employers risk the following:

·        Large penalties and interest charges
·        Risk of staff loss
·        Legal action
·        Continued audits from the ATO 






Should you wish to discuss your superannuation obligations further please feel free to contact Andrew Marshall or Janine Orpwood at Langley McKimmie Chartered Accountants on (03) 5427 8100 for an initial consultation.

We provide accounting and wealth management services to clients in WoodendGisborne and Macedon Ranges areas within Victoria Australia.

Wednesday, 4 November 2015

IS YOUR DONATION TAX DEDUCTIBLE?

For you to claim a tax deduction for a gift, it must meet four conditions:

1.       The gift must be made to a deductible gift recipient (DGRs).
2.       The gift must truly be a gift.
3.       The gift must be money or property.
4.       The gift must comply with any relevant ATO gift conditions.

The amount you can claim depends on the type of gift. For gifts of money, it is the amount of the gift but it must be $2 or more. For gifts of property, there are different rules, depending on the type of property and its value. A tax deduction for most gifts is claimed in the tax return for the income year in which the gift is made. However, you can elect to spread the deduction over five years in certain circumstances.

You cannot claim a donation deduction for items that provide you with a personal benefit, including raffle tickets, chocolates and pens, attending fundraising dinners etc.


If you have questions please contact Andrew Marshall or Janine Orpwood at Langley McKimmie Chartered Accountants on (03) 5427 8100 for an initial consultation.
 
We provide accounting and wealth management services to clients in WoodendGisborne and Macedon Ranges areas within Victoria Australia.
 

Wednesday, 28 October 2015

STARTING A NEW BUSINESS


Are you thinking of starting up a new business?  There are many things to consider and as a starting point the Australian Taxation Office has a checklist which can help with any questions you may initially have.  Setting up your own business should not be a daunting experience.  The staff at Langley McKimmie are here to guide you in setting up and making decisions regarding the structure of your business.  Once you have considered this checklist please feel free to contact us to discuss further.
Click on this link to find out more:
https://www.ato.gov.au/business/starting-your-own-business/in-detail/getting-started/checklist-for-people-starting-a-new-business/#

Please contact Andrew Marshall or Janine Orpwood at Langley McKimmie Chartered Accountants on (03) 5427 8100 to discuss further.

We provide accounting and wealth management services to clients in WoodendGisborne and Macedon Ranges areas within Victoria Australia.

Tuesday, 20 October 2015

BE WARNED OF THE LATEST TAX SCAM




Be aware of telephone calls where the caller is claiming to be from the Commonwealth Director of Public Prosecutions (CDPP) or Australian Taxation Office (ATO).
There have been a number of reports recently from Australians, including local residents, who have received calls from scammers claiming there is a warrant out for their arrest.  The caller claims they have unpaid taxes and require the funds to be transferred by wire or they need bank accounts details and other personal information.  Under no circumstances should you give these details.

The police and ATO are aware of the scam.  For additional information please click on the link below.
https://www.scamwatch.gov.au/news/telephone-calls-alleging-fake-arrest-warrants-used-to-scam-money

Alternatively, please contact Andrew Marshall or Janine Orpwood at Langley McKimmie Chartered Accountants on (03) 5427 8100.

We provide accounting and wealth management services to clients in WoodendGisborne and Macedon Ranges areas within Victoria Australia.

Tuesday, 13 October 2015

QUESTIONS TO ASK YOUR ACCOUNTANT - 10 WEEK SERIES

WEEK 10 – Is my business in a good financial position to survive a downturn?

The debt to equity ratio shows the proportion of capital invested by the business owners to the funds provided by external lenders. 
 
Generally, a debt to equity ratio in the range of 1:1 TO 4:1 (ie., a maximum of $4 debt for every $1 of owner’s equity) is acceptable but will depend on individual business and industry circumstances.

Too much debt means you may be putting extra stress on the business in the event of an economic downturn. 

Discuss these concepts with your accountant.
 
Should you believe any of the above apply to you please contact Andrew Marshall or Janine Orpwood at Langley McKimmie Chartered Accountants on (03) 5427 8100 for an initial consultation.

We provide accounting and wealth management services to clients in WoodendGisborne and Macedon Ranges areas within Victoria Australia.

Sunday, 11 October 2015

Claiming losses against your income



Frank is a lawyer in the city who has an adjusted taxable income of $290,000 a year. His wife Margaret is an office manager with an income of $39,000. They run a beef cattle farming operation in partnership which is currently running at a loss of $30,000 a year. The value of the land where they operate their farming business is $600,000.  They are trying to work out whether they can claim their farming losses against their employment income.  

Items to consider

Provided adjusted taxable income is less than $250,000, one of the four following tests must also be passed in order to offset business losses:

-      Land value for business operations being over $500,000;
-      Gross sales turnover more than $20,000 p.a.;
-      Profit in three of the last five years including the current year;
-      Other business assets with a value over $100,000
  
Margaret is able to offset her 50% of the farming losses reducing her taxable income to $24,000, as her income from other sources is less than $40,000. However Frank is over the $250,000 threshold and therefore he has to carry forward his share of the farming losses until a year in which his income is less than the threshold. 
 





Should you believe any of the above apply to you please contact Andrew Marshall or Janine Orpwood at Langley McKimmie Chartered Accountants on (03) 5427 8100 for an initial consultation.

We provide accounting and wealth management services to clients in WoodendGisborne and Macedon Ranges areas within Victoria Australia.

 

 

Wednesday, 7 October 2015

QUESTIONS TO ASK YOUR ACCOUNTANT - 10 WEEK SERIES

WEEK 9 – Would my money be better invested elsewhere?


 

Compare the returns of alternative investments such as property, shares or bank term deposits.  If you would earn significantly more for less effort and risk, it might be time to reconsider your business activities and whether they provide an acceptable rate of return on investment.
 
If you have questions please contact Andrew Marshall or Janine Orpwood at Langley McKimmie Chartered Accountants on (03) 5427 8100 for an initial consultation.
 
We provide accounting and wealth management services to clients in WoodendGisborne and Macedon Ranges areas within Victoria Australia.