Christmas is a time to unwind and celebrate. However, we’re well aware that one thing that can dampen the festive mood is unexpected tax. So let’s see some of the most responsible ways you can keep the Fringe Benefits Tax grinch at bay and enjoy some fiscally responsible merriment.
The new financial year provides an opportunity for a fresh start for your finances. Make this the financial year you get on top of yours… for good!
We’ve broken it down into six bite-sized, manageable steps for you to tackle over six months, because real change takes time!
With many ‘safe’ investments such as term deposits offering very low interest rates, more people are turning to the share market in pursuit of higher returns.
For new share investors this means understanding not only the risk profile of share investments, but also the different ways in which the returns on shares are taxed.
His words might have been recorded over 200 years ago, but Benjamin Franklin’s famous uttering “in this world nothing can be said to be certain, except death and taxes” remains as true today as it was in 1789. The one thing that has constantly changed is tax law, and although death is impossible to avoid, with the many options available to us, taxation doesn’t need to inflict too much pain.
The end of financial year is fast approaching! Have you started planning yet?
It is important to book in for a review prior to the end of financial year to take advantage of planning opportunities and ensure you are in the best position you can be. We can you look at strategies, take stock and look at where you are tax-wise for the year to avoid any nasty surprises come tax time.
Not sure if tax planning will benefit you? It can provide big benefits if you:
- are unsure of how to read your business financials and dont know if you have tax payable for the year
- have significant changes to you business profitability
- have sold any substantial assets like an investment property, business or shares
- have a Discretionary Trust and must document a Trustee Resolution before 30 June to avoid paying 47% tax
- are reaching retirement and are unsure of how to take advantage of superannuation strategies
- have had a change in your personal circumstances and you are unsure of how this might affect your tax
Now is also a great time to ensure you wrap up any loose ends. It is really important that any unpaid employee super or late super payments are dealt with immediately.
If you would like further advice or would like a tax planning assessment, please contact us.
February fuel tax credit rates change
Fuel tax credit rates change regularly. They also vary depending on when you acquire the fuel, what fuel you use and the activity you use it for.
Fuel tax credit rates are indexed twice a year, in February and August, in line with the consumer price index (CPI). The CPI is released towards the end of January and July, five days before the rates are changed. Fuel tax credit rates will be updated as soon as they become available.
Rates may also change for fuel used in a heavy vehicle for travelling on public roads. This is due to changes to the road user charge which is reviewed annually.
As of Monday 1 February 2016 fuel tax credit rates change due to indexation.
Fuel tax credit rates are indexed in August and February in line with the consumer price index.
You may need to use more than one rate in a BAS period.
Use the Fuel tax credit calculator to help you get your claim right.
For details of the fuel tax credit changes go to ato.gov.au/fueltaxcreditrates
We’re now one month into the new year, how are things going so far? Have you got all your plans in place? If not, we can help with budgeting, cashflow forecasting and general advice to help you ensure you reach your goals this year. Come in and see us or we can come to you.
This month in Sciacca’s News we’re bringing you:
- 5 things you need to do to ensure your business is compliant
- Top Marketing Tips for 2016
- Reviewing your salary packaging arrangements
If you have any queries at all, please get in touch.