REVIEWING SALARY PACKAGING ARRANGEMENTS

Reviewing Salary Packaging Arrangements

REVIEWING YOUR SALARY PACKAGING ARRANGEMENTS

REVIEWING YOUR SALARY PACKAGING ARRANGEMENTS

The new fringe benefits tax year starts on 1 April 2016. The following changes will take effect from this date.

Car expense fringe benefits

The rules for individuals claiming car expense deductions have changed.

As a result, if you reimburse expenses relating to an employee’s use of their own car, only two methods will be available to calculate the taxable value of this fringe benefit (when you apply the ‘otherwise deductible’ rule).

The two methods are:

  • The log book method
  • The cents per kilometre method (a single rate of 66 cents per kilometre now applies).

Meal entertainment benefits

All salary packaged meal entertainment benefits will be reportable. They will also be subject to a separate cap of $5,000. Benefits exceeding this cap will be counted towards an employee’s existing FBT exemption or rebate cap.

 

Read more…….

CASE STUDY: Good news story.

CASE STUDY: Good news story

good news story

CASE STUDY: Good news story

A couple recently retired and their previous accountant told them they did not have to pay capital gains tax on the sale of their rental property. 

He was wrong.

The clients got hit with interest of $5,900. They are on the age pension and John was able to get the interest written off.

Here’s what they had to say:

On behalf of my wife and myself I wish to pass on to you and your staff our late but very sincere thanks to all of you regarding our problem with the ATO over our failure to pay capital gains tax. If it was not for your company’s expertise and experience in this matter, the end result for us would have been horrendous. The added bonus of the ATO refund following the appeal process by your company was really appreciated. Once again, thank you to yourself and your staff.

NOW is the time to plan

now is time to plan for new financial yearAs we rapidly approach the end of the financial year, NOW is the time to focus on the best strategies to reduce your tax where possible, to streamline your accounting and bookkeeping procedures, and to forward plan for the new financial year.

Of course the best way to do this is to come in and have a chat with us, so we can discuss your situation and give you personalised advice.

However, to get you thinking, we’ve put together a few tips:

Tax planning strategies

  • Top up your super contributions
  • Delay invoicing or receipting your income until 1 July
  • Realise capital losses to offset against capital gains made during the year
  • Small businesses with a turnover under $2 million can claim an immediate deduction for the cost of depreciable assets costing less than $1,000 and certain prepayments (e.g. lease and rent expenses)
  • Get rid of slow-moving stock and write-off obsolete stock before 30 June
  • Write off bad debts and claim back the GST credits where the debt has been outstanding for more than 12 months
  • Review PAYG instalment obligations and consider varying the instalment for the June quarter where the estimate of business income tax payable for the year is less than the instalments raised by the ATO

 Accounting & bookkeeping 

  • Ensure that BAS lodgements and super guarantee contributions are up-to-date
  • Behind on tax and BAS payments? Ensure that payment arrangements have been entered into with the ATO and are complied with
  • Report salary sacrifice contributions and certain fringe benefits on employee’s PAYG Payment Summaries
  • Back up the data file prior to rollover and ensure your records are in good shape
  • Review GST codes for profit & loss and balance sheet accounts for correctness
  • Have cut-off procedures to ensure matching of income and expenses. For example, ensure suppliers provide the relevant invoices for all purchases and expenses for the period up to the end of June. Also identify work in progress or sales not yet invoiced and raise the relevant invoices for the period up to 30 June.
  • Complete stocktakes of inventory. Any unders/overs of stock quantities and spoilage identified from the stocktake process should then be adjusted in the stock module by 30 June and thereby reflected in the financial statements.
  • Complete stocktakes of fixed assets. Any adjustments required to the assets register identified in the assets stock take for issues including description, location, quantity and damage/obsolescence needs to be made in the assets module by 30 June and thereby reflected in the financial statements.
  • Review the balance sheet and profit & loss statement to confirm:
    • Bank accounts and loans are reconciled.
    • Receivables and Payables subsidiary ledgers are reconciled to the general ledger.
    • GST accounts and PAYG withholding are reconciled to the business activity statements.
    • Wages in the profit & loss is reconciled to the PAYG Payment Summaries.
    • Capital items such as plant & equipment purchases have not been expensed as repairs.
    • Amounts in suspense have been allocated to the appropriate account.
    • Fringe benefits tax has been paid on deductions claimed for employees private expenses.
    • Material differences to the prior year can be explained.

Planning for the new financial year

There are a few things you can do to improve on the performance of your business this year:

  • Prepare/update your business plan to provide solid focus and direction
  • Update the budgets for the next 12 months and compare actual to budget.
  • Review your current accounting software and upgrade to the latest version to take advantage of new features, or talk to us about other options
  • Review credit terms with suppliers and customers and make changes if required
  • Review insurances to ensure adequate level of coverage
  • Reduce costs in areas identified as excessive in the current year
  • Implement new internal control systems to address weaknesses identified

If you need any help at all with your planning, please get in touch. We are here to support you and give you the right advice, whatever stage you’re at.

Disclaimer: This information is provided as a guide only and is not intended to constitute advice whether legal or professional. You should obtain appropriate advice concerning your particular circumstances.
tax scams - ATO reminds to beware

Beware of tax scams

Tax Time 2014 is just around the corner and you’re probably not the only one thinking about your refund – scammers are too.

The ATO are warning to be on the lookout for tax related scams this tax time. Scammers try to trick you to obtain your personal information.

Watch this video and share it with your friends for tips to protect your identity.

sciacca's accountants + advisers jetts ad

Jetts Fitness Ad

Here at Sciacca’s Accountants + Advisers we’re proud to be a part of our local community. We’ve currently got an ad featured in the Jett’s McDowall newsletter that we thought we’d share with you. Let us know what you think and as always, if you want to organise to have a chat with John or the team about your finances, get in touch.

sciacca's accountants + advisers jetts ad

scam email warning - Sciacca Account brisbane north

More scam emails

scam email warning - Sciacca Accountant Brisbane NorthA phishing email claiming to be from the ATO is currently circulating.

The email claims that the recipient is entitled to a tax refund and states they should click the embedded link and complete the online form.

Do not click on the link inthe email as it opens a fake webpage that will attempt to obtain your tax file number.

The ATO will never email you asking for personal or credit card details and you should never provide this information. If received you should delete the email immediately.

More info from ATO

If you have any questions, please don’t hesitate to give us a call on (07) 3357 5553.

Sciacca's Accountants + Advisors Brisbane

BAS time again

994945_415609058561400_951490392_nIt’s that time of the month again..

Small Businesses remember to lodge your BAS by 28th October.

Did you know if you lodge your BAS through a Tax Agent you get an extended due date until 25th November?

If you would like some assistance lodging your BAS this quarter give our office a call (07) 3357 5553.