2015 Newsletter

Welcome to our first electronic newsletter.

Budget Update

Tax Rate Cuts

As many of you will be aware the budget has provided some tax breaks to small business with a drop in the company tax rate from 30% to 28.5% from the 2015/2016 financial year. In addition taxpayers operating a business in a trust, partnership or as a sole trader will receive a 5% tax discount. The discount will be given in the form of a tax offset, calculated on the business income received and will be capped at $1000 per person per year.

 Accelerated Depreciation Changes

A temporary measure will allow small business with turnover under $2million to get an immediate tax deduction for every asset they buy that is valued up to $20,000, up from the previous $1000.

In addition if the value of small business poll is below the $20,000 threshold the remainder of the pool can be written off as an immediate deduction.

Immediate deduction for business establishment costs

An immediate deduction will be available for professional expenses associated with starting a new business such as professional, legal and accounting advice or legal expenses to establish a company, trust or partnership.

CGT relief reforms for small business restructures

Small business may change the legal structure of their business without attracting capital gains tax from 2016/2017 income year. It will enable small business to alter their legal structure to become more suitable to their changing needs, without being impeded by CGT implications. This will reduce the barriers for sole traders, partnerships and trusts to incorporate as a company.

GST

With agreement from the States and Territories, GST will apply to digital products and services from 1 July 2017, such as Netflix etc.

Individuals

Whilst the government is introducing a number of changes to family allowances and calculations, there are also a number of income tax changes that will also impact on the individual non business taxpayer.

The methods of calculating motor vehicle expenses will be reduced to either logbook or cents per kilometre, and the cents method will be further streamlined to one rate of 66c for all vehicles.

The Zone offset will amended to exclude “fly-in fly-out” and “drive-in drive-out” workers where their normal residence is not within the zone.


 Save tax by using a Transition to Retirement (TtR) Strategy

pensionThe transition from working life to retirement involves many considerations. One of the most important is what alternative income you will receive, in place of wages or salary. Like all life changes and plans you need a strategy. from age 55 onwards, a Transition to Retirement (TtR) Strategy can potentially save you thousands of dollars in the lead up to retirement.

To determine whether a TtR strategy is suitable for you, call our office to make an appointment with Daniel from FMD Financial.


 End of Year Checklists

As in previous years we have prepared a checklist to help prepare for the end of the year and the information that we will need to assist in the preparation of your 2015 tax return.

Details can be found at the following link : 2015 Checklist


Cloud Accounting

Cloud computing is the use of computer hardware, such as smart phones, tablets and PC’s and software programs delivered as a service over the Internet. As an example, a Gmail account is using cloud technology when your emails are sent to your smartphone.

Logical-diagram-of-cloud-computing

Cloud Accounting serves the same function as accounting software that you would install on your computer, except that it runs on the providers server and you can access on a web browser over the Internet. Your data is securely stored and you can enter data, such as appointments, orders and invoices anywhere using any device as long as you can connect to the Internet.

At TTA we have experience with a number of cloud accounting solutions including MYOB Essentials and AccountRight, Quickbooks, and Xero. If you are considering either upgrading to cloud technology or are looking to move to computerised accounting solutions give us a call and see how we can help make the transition simple and easy.


 

Late Night Appointments

latenightOnce again as in previous years we will be open late on Tuesday nights to prepare tax returns for clients that are unable to get to our office between 9.00am and 5.00pm.

Please call the office to make an appointment