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22 RED FLAGS YOUR BUSINESS NEEDS A PAPERLESS OFFICE DOCUMENT MANAGEMENT SYSTEM
Want to save time, money, reduce risk, improve communication, increase management control and company value?
What would it mean to your business if you could save at least 30 minutes per person per day by eliminating the wasted time taken looking for electronic documents, emails, paper files and other documented knowledge?
What would it mean to your business to standardise and systemise your procedures and templates across the business?
Contact us today to see specific examples and a no obligation demonstration of the features outlined in this white paper: Your Business Needs A Paperless Office Document Management System If.pdfBaby News
Congratulations to Kathryn Norman & her husband Mark on the birth of their first child.
Brent Mark Norman was born at 2:56pm on Thursday 8 December at 9 pounds & 51cm long.
ASOFIA Golf Day
On 28 October 2011 dmca participated in the ASOFIA Golf Day. Angela Murphy & Matthew Davey played and were a Bronze Sponsor. The proceeds from the day were raised for scosa.
2011 Self Managed Super Fund Overview & Borrowing Seminar
Thank you to everyone who attended our Self Managed Super Fund Overview & Borrowing Seminar. We trust you found the information presented by Tania and Laurie Bilby of Westpac Bank useful and that you also enjoyed tasting the Dowie Doole wines.
If you would like a copy of the slides from our presentation, you can access them here: 2011 smsf overview & borrowings presentation.pdf
The Super Choice Clearing House is in Operation
Super Choice have launched their superannuation clearing house to assist employers to reduce their processing times, mitigate errors & increase satisfaction when administering superannuation. The service electronically handles default & choice super contributions on behalf of the employer, and transfer the relevant contributions to any complying superannuation fund in Australia.
For further information please see: http://www2.superchoice.com.au/organisations/index.html
2011 Self Managed Super Fund Overview & Borrowing Seminar
On Tuesday 22 November 2011 dmca Wealth Solutions will be running an interesting & informative seminar on Self Managed Superannuation Funds. For further information please see this invitation:
Invitation to dmcaws Seminar November 2011.pdf
Are you ready for the PPSA?
Please find below a document which provides an overview of the possible implications the Personal Property Securities Act will have on your business and you personally.
If you require further assistance or information in regards to the new legislation please do not hesitate to contact us.
Are You Ready For The PPSA.pdf
Change to the fuel tax credit rate for heavy road vehicles
From 1 July 2011, the fuel tax credit rate for heavy vehicles that use fuel such as diesel or petrol and travel on public roads is 15.043 cents per litre. This change is due to an increase in the road user charge.
A heavy vehicle is considered to have a gross vehicle mass (GVM) greater than 4.5 tonne. Diesel vehicles acquired before 1 July 2006 can equal 4.5 GVM tonne.
What you need to do
Please use this new rate when you complete an activity statement for the 2011-12 year if you are affected by the road user charge increase.
To substantiate your claims, you will need to keep records that show you acquired the fuel and how you used it. Fuel dockets, invoices and log books are examples of acceptable records.
For more information
You can visit the website www.ato.gov.au/fuelschemes to find out all the fuel tax credit rates or fuel schemes information.
Changes to Car Fringe Benefit Rules
Changes announced in the 2011 Budget have ensured that car benefits determined under the Statutory Method will slowly progress towards a standard rate of 20%.
Under the new legislation these rates will apply to new vehicles purchased or ordered after 7.30pm (AEST) on 10 May 2011 and phased in over 4 years as shown below:
For vehicles currently operating under the statutory method, you are able to continue using the same rate for your Fringe Benefit Calculations.
When it’s time to trade-in a current vehicle or you acquire a new vehicle for use by employee’s, the employee’s package and your Fringe Benefit Liability will need to be determined using the new rates.
The table above demonstrates for vehicles travelling in excess of 25,000 kilometres a year that the taxable Fringe Benefit will be higher under the new rules so not a good result. However, it will be more favourable for vehicles travelling under 15,000 kilometres.
There are no changes to the operating cost method.
Changes to car fringe benefit rules ATO fact sheet.pdf
New Appointments
We are pleased to welcome Mark Gellert & Seth James to our team.
Mark, is a member of the Institute of Chartered Accountants and joins the firm in the position of Senior Manager with widespread experience gained from over 15 years of working with firms in Adelaide, interstate & overseas. Mark’s numerous areas of interest & expertise include business advisory for small to medium enterprises and strategic taxation advice & compliance.
Seth joins the firm in the position of Supervisor with 5 years experience working in accounting firms across Adelaide
Mark Gellert Seth James
New Fuel Tax Credit Rates
Please find below a link to the Australian Taxation Office website which outlines new fuel tax credit rates which have been released by the ATO effective from the 1st of July 2011.
If you require further assistance or information in relation to these new rates please do not hesitate to contact us.
http://www.ato.gov.au/content/00174722.htm
Baby News
We are pleased to announce the safe arrival of Angela & Lee’s first child.
Will James Grogan was born at 7.35pm on Thursday 23 June at 9.2 pounds, 55cm long & with a 37cm head circumference.
2011 End of Financial Year Checklist
Like Christmas, the end of the financial year often requires final checks to ensure that everything is in order prior to the day.
To assist you please see the below checklist of things we believe you should check prior to the end of financial year. If you require assistance or further information please do not hesitate to contact us.
2011 end of financial year checklist.pdf
dmca Excess Super Contributions Calculator
Figures released by the ATO indicate that 65,000 people had excess super contributions in 2010. If you exceed the limits then you will be subject to extra tax on your contributions - the worst case scenario being that you could pay up to 93% tax on any excess contributions.
For more information and to use a calculator to determine if you have exceeded the contribution limits, please follow this link: dmcaws - excess contributions calculator.doc
2011 Federal Budget Summary
The 2011 Federal Budget was handed down on the 10th of May 2011.
For full details on the budget announcement, please click this link:
Federal-Budget-2011.pdf
The following is a list of some of the key points outlined in the budget:
- Reduction in the minimum payment for account based pensions to continue for the 2012 Financial Year, but only 25% instead of current 50%From 1 July 2011 the low income offset will no longer be available to children to reduce tax due on their non-work income (eg distributions from Trusts)
- From 1 July 2011 deductions can no longer be claimed against Government Assistance Payments received (eg Austudy or Youth Allowance)
- Higher Education Contribution Scheme (HECS) – discount on up-front and voluntary payments from 1 January 2012 to be reduced
- Increased Family Tax Benefit (FTB) Part A payments for 16 to 19 year olds
- Overlap between FTB Part A and Youth Allowance payments reduced
- Increasing the Self Managed Super Fund levy from $150 to $180 for the 2011 Financial Year
- Option to refund up to $10,000 of excess concessional super contributions, to apply from the 2012 Financial Year
- Concessional contributions cap for eligible individuals over 50 years with super balances less than $500,000, to be $25,000 above the general cap from 1 July 2012 (eg. general cap is currently $25k, so $50k cap for 2012)
- From 1 July 2012 employers will need to include total super payments made for employees during a year on employee payslips
- An immediate write off will be available for the first $5,000 of motor vehicles purchased by small businesses from the 2013 year onwards
- New assets purchased by small businesses costing less than $5,000 will be eligible for an immediate write off from 2013 year onwards
- Primary Producers affected by the natural disasters will be able to access Farm Management Deposits within 12 months of their deposit and still be able to access the concessional tax treatment
- Flat rate of 20% to apply when determining Fringe Benefits Tax on motor vehicles provided to employees using the statutory formula method, regardless of number of kilometres travelled - to be phased in over 4 years for vehicles purchased after 10/5/11
- Please note there have been no changes to the operating cost method for determining Fringe Benefits Tax on motor vehicles provided to employees
- Obligation to report to the Tax Office, any payments made to contractors within the Building and Construction Industry from 1 July 2012
Estate Wise Launched
Estate Wise, an internet-based service with on-the-ground support, has been launched in SA by creator Jeremy Duffy supported by Adelaide's Donaldson Walsh Lawyers. Estate Wise provides the perfect balance between traditional estate planning service delivery and innovative, modern on-line tools.
For the full In-Business article please see: Estate Wise Launched.pdf
Baby News
Congratulations to Jacqui Lea & her husband David on the birth of their second child.
Jade Susan Lea was born on 19 March at 53cm long, and weighing 4945 grams. All are doing well.
Paying Superannuation for Contractors
Paying super to eligible contractors or employees is often an area of confusion for our clients. It is important employers understand they need to pay super contributions for contractors they pay under a contract that is wholly or principally for the contractor’s labour – even if the contractor quotes their Australian business number.
Please note that there are income tax implications associated with not meeting your super obligations.
Some useful resources:
To help determine if contractors are eligible for super please view: Employee/contractor decision tool
For employers in the building and construction industry please view: Building and construction industry – employee/contractor decision tool
For further information about your superannuation obligations and what to do if you haven’t met your obligations, please view: Guide to superannuation for employers
If you have any questions about your superannuation guarantee obligations please contact us immediately for assistance.
Meeting Your Superannuation Guarantee Obligations
Under the superannuation guarantee law employers must pay super contributions for their eligible employees at a minimum rate of 9% of their ordinary time earnings, so they can enjoy the benefits of super in their retirement.
Under the superannuation guarantee law employers must pay super contributions for their eligible employees at a minimum rate of 9% of their ordinary time earnings, so they can enjoy the benefits of super in their retirement.
If employers don’t pay the minimum amount into the correct fund by the due date, they are required to lodge a Superannuation guarantee charge statement and pay the superannuation guarantee charge. The charge is the amount of shortfall super that needs to be paid for the employee, plus interest, plus an administration fee.
Please also note that there are income tax implications associated with late payment of superannuation in that a tax deduction is not allowed for the guarantee charge, interest or the administration fee.
Some useful resources:
Guide to superannuation for employers
Superannuation guarantee contribution calculatorSuperannuation guarantee contribution calculatorSuperannuation guarantee charge statement – quarterly (NAT9599)
If you have any questions about your superannuation guarantee obligations or if you believe you have been late in making these payments previously, please contact us immediately for assistance.
dmca's Bank Account Details Have Changed
As of 14 January 2011 our firm bank account details have changed. As such if you normally make payment directly into our bank account please phone us for the new details on (08) 8272 5620.
New Grants Program Launched
The State Government has launched a new grants program to help SME Manufacturers to invest in new capital. The competitive, merit based scheme will be administered by Innovate SA on behalf of the Department of Trade & Economic Development.
For further information please see: http://www.southaustralia.biz/Doing-Business-in-SA/SME-Investment-Development-Program.aspx
Promotion
The Partners of dmca are pleased to announce the promotion of Alicia Hargreaves to the position of Assistant Accountant. Alicia who is currently working in the role of Client Services Assistant commenced with us in 2008. She will be undertaking accounting studies in 2011.
Congratulations to Alicia on her promotion!
Alicia Hargreaves
State Budget
For information from Revenue SA regarding State Budget Announcements please view this circular: State Budget Revenue SA 2010-11 Information Circular.pdf
From the Dining Room to the Boardroom - Family Business in Focus
If you are involved in a family business we would urge you to read this report: MGI Australian Family & Private Business Survey 2010.pdf
The Cooper Review
The Cooper Review is a comprehensive review of Australia’s superannuation system and it was charged with examining and analysing the governance, efficiency and operation of Australia’s superannuation system.
A summary of the most relevant SMSF recommendations contained and how they apply is summarised in this document: Cooper Review Summary.pdf
Extension of Small Business Assistance Package
For information from Revenue SA regarding State Budget Announcements please view this circular:
On 8 July 2010 Assistant Treasurer, Senator Nick Sherry, and Minister for Small Business, the Hon Dr Craig Emerson MP, welcomed the announcement by the Commissioner of Taxation, Mr Michael D'Ascenzo, that the Tax Office will extend the Small Business Assistance Package for a further year.
For more information, please see this link: Extension of Small Business Assistance Package.pdf
The ATO, Unpaid Present Entitlements & Division 7A
For many years you have been able to distribute income from your discretionary trust to a company, the company paid tax at 30% and you could leave the income there to distribute as fully franked dividends at a later time, possibly when your income was lower. Often, no cash was paid to the company when the income was distributed, giving rise to an Unpaid Present Entitlement (UPE). The ATO has now decided that the resulting UPE owed to the company should be treated as a loan (Under Division 7A of the tax act). The loan will need to be repaid within 7 years if not secured or 25 years if secured. Interest will also be payable on the loan. The ATO has provided some circumstances where the UPE need not be treated as a loan.On 8 July 2010 Assistant Treasurer, Senator Nick Sherry, and Minister for Small Business, the Hon Dr Craig Emerson MP, welcomed the announcement by the Commissioner of Taxation, Mr Michael D'Ascenzo, that the Tax Office will extend the Small Business Assistance Package for a further year.For more information, please see this link: For many years you have been able to distribute income from your discretionary trust to a company, the company paid tax at 30% and you could leave the income there to distribute as fully franked dividends at a later time, possibly when your income was lower. Often, no cash was paid to the company when the income was distributed, giving rise to an Unpaid Present Entitlement (UPE). The ATO has now decided that the resulting UPE owed to the company should be treated as a loan (Under Division 7A of the tax act). The loan will need to be repaid within 7 years if not secured or 25 years if secured. Interest will also be payable on the loan. The ATO has provided some circumstances where the UPE need not be treated as a loan.
For more information, please see this link: The ATO, Unpaid Present Entitlements & Division 7A.pdf
Landholders and the $150m Voluntary Carbon Credit Market
With the Commonwealth government's emissions trading plans on hold, only land management will be the basis for the new National Carbon Offset Standard Government certified carbon credits. Landholders are set to become the prime beneficiaries of the Australia voluntary carbon market that last year traded 6 million carbon credits. The National Carbon Offset Standard (NCOS) will come into force in July.
A one-day course to be delivered in urban, rural and regional South Australia in July/August 2010 by Canopy will help managers, owners and operators of primary production enterprises to look sensibly at the $120m per annum voluntary carbon credit market.
For more information, please see this link: Landholders and the $150m Voluntary Carbon Credit Market.pdf
Making investment decisions - have you done your research?
Are you considering a tax-effective investment? It's important you have all the facts to make an informed decision.
Some investments offer tax benefits such as reducing assessable income or increasing deductions, but end up being outside the law. You can check with the Australian Taxation Office to ensure promised tax benefits will be available.
Find out as much as you can about an arrangement before investing. Make sure the arrangement has a prospectus or product disclosure statement and get independent advice about the promised tax benefits from a professional advisor. A person associated with the scheme is not independent.
Start by visiting www.ato.gov.au/investing and read the Tax planning - investigate before investing.pdf fact sheet. It provides information about tax effective investing and how to detect potential tax avoidance schemes.
You can also check if the arrangement you're considering is covered by an ATO product ruling confirming the tax benefits, or if a Taxpayer alert has been issued warning about the arrangement.
Doing your research will help you avoid negative consequences including having to repay tax and incurring interest and penalties.
How to calculate your new minimum wage obligations
On 2 June 2010 Fair Work Australia passed the decision to increase weekly wage rates by $26. The new minimum wage rates take effect from the first pay period on or after 1 July 2010. To make sure you calculate your new obligations correctly, please see link below.
How to calculate your new minimum wage obligations.pdf
2010 Federal Budget Report Summary
Please see link below for the 2010 Federal Budget Report Summary and how it will affect you.
2010 Federal Budget Report Summary.pdf
Cooper Review
The Cooper review is a comprehensive review of Australia's superannuation system. Please see link below for more details of how it might affect you.
Summary of the Cooper Review.pdf
Henry Review
On Sunday, 2 May 2010 the government released its response to the Henry Review's recommendations. Please see the link below for a summary of the most relevant recommendations and how they apply if introduced.
Summary of the Henry Review.pdf
Australian Taxation Office Approach to Collecting Debt
dmca would like to draw your attention to the Australian Taxation Office debt collection strategy. Please view this document.
ATO Approach to Collecting Debt.pdf
