Have you recorded your motor vehicle closing odometer reading TODAY?

Where a motor vehicle owned by a business is used by an employee for private purposes, FBT is an issue that needs to be managed.

If this is the case then as at the end of the FBT year which closed 31 March 2016 it is a general requirement that you record the closing odometer reading for the motor vehicle.

There are two calculation methods which can be used for motor vehicle fringe benefits one is the Operating Cost Method and the other is the Statutory Formula method. 

If the motor vehicle is used for a high business percentage it can mean that the Operating Cost Method results in a more beneficial outcome. 

In some cases an employee contribution can be made to offset the taxable benefit being received otherwise an FBT return needs to be lodged to the Australian Taxation Office (ATO). 

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 Woodend, Gisborne and Macedon Ranges areas within Victoria Australia. 

MINIMUM PENSION LEVELS

As 30 June 2016 approaches, members with account based pensions in their Self Managed Superannuation Funds should take to the time to ensure they have requested and received the correct amount of minimum pension.

Minimum pension levels are calculated with reference to the member’s age and account balance at 1 July in the year the pension is paid (or the date within the year the pension is commenced for the first time). The rates for the year ending 30 June 2016 are:

Age                            Required Payment
Under 65                           4%
65-74                                5%
75-79                                6%
80-84                                7%
85-89                                9%
90-94                                11%
95 and over                      14%

There is no maximum amount other than the member’s superannuation balance. 

The pension must be paid and cleared to the member’s personal bank account prior to 30 June to be effective.  Failure to meet the minimum pension requirements is likely to result in the member balance returning to accumulation status and losing its’ tax free pension status.

 

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 Woodend, Gisborne and Macedon Ranges areas within Victoria Australia. 

PAYING EMPLOYEE SUPERANNUATION GUARANTEE ON TIME

As the March 2016 quarter end is near, employers need to be mindful that the due date for superannuation payments is 28 April 2016.

The ATO link below explains additional requirements in the event an employer does not pay the superannuation guarantee on time for employees.

The ATO has been conducting audits on businesses and issuing default assessments to employers where non-compliance has occurred.

https://www.ato.gov.au/Business/Super-for-employers/Paying-super-contributions/Missed-and-late-payments/The-super-guarantee-charge-(SGC)/

 

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 Woodend, Gisborne and Macedon Ranges areas within Victoria Australia. 

TAX BASICS FOR SMALL BUSINESS - ATO WEBINAR SERIES

For those who are considering starting a new business, the ATO produces webinars called 'Tax Basics for Small Business'. These may prove useful in providing some understanding around the topics of budgeting, record keeping and your obligations to the ATO as well as employees. The webinars run for 45 minutes each and serve as a good starting point for any small business owner looking to build their knowledge base

For more information and to register, please see the following link from the ATO: 

https://www.ato.gov.au/Newsroom/smallbusiness/General/Webinar-series---Tax-basics-for-small-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 Woodend, Gisborne and Macedon Ranges areas within Victoria Australia. 

ARE YOU AWARE OF YOUR FRINGE BENEFIT TAX OBLIGATIONS?

 

Consider Diane’s case   Diane runs a company with a staff of twelve. Bill is her general manager and receives use of a company car as part of his remuneration. Diane throws a large Christmas party each year to which she invites all her staff, as well as other meal benefits during the year. Diane is concerned that the 49% FBT rate may apply to these benefits.    Motor Vehicle   Whether there is a Fringe Benefit Tax (FBT) obligation depends on the following:   Availability to Bill for private use. Does Bill have access to the car outside work hours? If Bill only uses the car during work hours generally no FBT applies, however if Bill garages the car at his house FBT may apply. Where private use is minor or infrequent FBT may be minimised.   Whether or not Bill makes contributions to the running costs of the vehicle. Personal contributions may reduce any FBT obligations. Meal Entertainment   Entertainment is a complex area of FBT. Some aspects to consider are:   If the entertainment is of a minor and infrequent nature, such as a Christmas party that costs less than $300 per employee, then the entertainment is exempt from FBT.  Diane providing sandwiches during board meetings is less likely to be classified as entertainment as it is for sustenance during work hours.  Alternatively a monthly restaurant dinner for staff on a Friday night would be subject to FBT as it is after hours, offsite and a social nature. 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 Woodend, Gisborne and Macedon Ranges areas within Victoria Australia.

IS YOUR DOG TAX DEDUCTIBLE?

Your dog could be tax deductible! If you have a guard dog or working dog the costs associated with their upkeep could be claimed in your tax return. 

Things to consider:

· Is your dog a guard dog on site and used to protect your business?
· Do you take your dog to work with you in order to protect your tools of trade?
· Is your dog a working farm dog?

If any of the above apply to you the costs associated with the upkeep of your dog including food and vet bills may be tax deductible.

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 Woodend, Gisborne and Macedon Ranges areas within Victoria Australia.