Updated Form  6 from 1 August 2016

 

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Updated Form  6 from 1 August 2016
Version Number will change to Form 5

The Office of Fair Trading (OFT) has released another version of the Owners Agreements [Form 6] commencing 1 August and replaces the previous version.

The previous version lasted only 1 month, so please take note, it will be superseded when issuing new owner agreements from 1 August.

All previous PAMDA 20A’s and Form 6’s that have been issued prior to this date of course remain in effect and can continue to be relied upon.

Therefore, any new agreement you enter with new owners, the Form 6 that you are required to complete from 1 August 2016, must be on the latest “Form 6 V5 1 August 2016” in order to be valid.

Click here to access this form

New ASIC fees for the 16/17 year

 

New ASIC fees for the 16/17 year.

To Register a New Company

$469.00 (was $463.00)

Late lodgement fees

If paid within 1 month after payment due date –$76.00 (was $75.00)

If paid after 1 month of payment due date –$316.00 (was $312.00)

Annual Review Fees

Proprietary company –$249.00 (was $246.00)

Special Purpose Company –$47.00 (was $46.00)

Change Company Name

$387.00 (was $382.00)

 

Voluntary Deregistration
$38.00

 

Warning on Bank advice to business owners

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Warning on Bank advice to business owners

Some banks are advising customers with business accounts to transfer excess cash to pay down the business owner’s home loan.  While it might sound like common sense to use the excess cash in your business, there are significant potential problems for business owners who do this.
Money in your business account is the money of the business, not your personal cash.  You can’t just take it out and move it around at will, even if it is your business.

If you run a company, there are a set of tax rules called Division 7A that apply.  Division 7A is a particularly tricky piece of tax law designed to prevent business owners accessing funds that have not been taxed at their individual tax rate – only the corporate rate.  While these amounts are often debited to the shareholder’s loan account in the financial statements, Division 7A ensures that any payments, loans, or forgiven debts are treated as if they were dividends for tax purposes unless there is a valid shareholder loan agreement in place.

So, if you take money out of your company bank account to pay down your personal home loan, this amount might be treated as a deemed dividend.  That is, you need to declare this amount in your personal income tax return and the dividend is not frankable. This means that even though the company might have already paid tax on this amount, you will be taxed on it again without the ability to claim a credit for the tax already paid by the company (basically leading to double taxation).

 

If you have taken money out of the company account for personal purposes you can either pay back the amount or put a complying loan agreement in place before the earlier of the due date and actual lodgement date of the company’s tax return for that year.  To be a complying loan agreement the agreement requires minimum repayments to be made over a set period of time and the minimum benchmark interest rate to apply – currently 5.45%. The rules are also very strict when it comes to loan repayments because these can actually be ignored if it looks like you are planning to borrow a similar or larger amount again from the company.

A similar issue can also arise if you transfer funds from a trust bank account, especially where that trust already owes amounts to a related company in the form of unpaid distributions.

The material and contents provided in this publication are informative in nature only.  It is not intended to be advice and you should not act specifically on the basis of this information alone.  If expert assistance is required, Please do not hesitate to give us a call.

(Courtesy: The Knowledge Shop)

Budget 2016 – Superannuation

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Budget 2016 – Superannuation

Last week, in his budget speech, Federal Treasure Scott Morrison put forward a number of proposed changes to superannuation.

Here is a brief roundup of what the proposal are.

  • Lifetime cap on non-concessional contributions
  • Concessional contributions cap reduced
  • 30% tax on super for high income earners
  • Tax free super balances capped at $1.6m
  • Tax deductions on super contributions expanded

You can see by the dates to take effect only the lifetime cap on non-concessional contributions has an immediate impact.

If you are planning to make a non-concessional contribution to your super fund prior to 30 June 2016 and have made previous contributions of this nature please contact us to ensure you don’t breech this cap.

Regarding the other changes they will not take effect until 1 July 2017, so there is plenty of time to plan.

Remember, proposals are not set in stone and could change as legislation passes through parliament.

Once these changes are passed we recommend you strategically review how these changes impact your current circumstances.

If you require assistance with this do not hesitate to contact myself or Susan Stainwald.

Sunshine Coast: 07 5474 8955

JOHN SIEMON

John Siemon

(Partner)


Lifetime cap on non – concessional contributions

Applies to all non – concessional contributions made on or after 1 July 2007
Date of effect: 7.30 pm (AEST) on 3 May 2016

  • The current contributions cap will reduce to $25,000 from 1 July 2017.

A lifetime $500,000 non-concessional contributions cap will be introduced from Budget night.

The current system of annual non-concessional contributions of up to $180,000 per year (or $540,000 every three years for individuals aged under 65), will be replaced with this new lifetime cap.

The lifetime cap will take into account all non-concessional contributions made on or after 1 July 2007 and will commence at 7.30 pm (AEST) on 3 May 2016.  Contributions made before commencement will not result in an excess.  However, excess contributions made after commencement will need to be removed or will be subject to penalty tax.  The cap will be indexed to average weekly ordinary time earnings.

The lifetime cap is available up to age 74.


 Concessional contributions cap reduced

Date of effect: 1 July 2017

  • The current concessional contributions cap will reduce to $25,000 from 1 July 2017.

Age: Under 50
Current concessional gap: $30,000
From 1 July 2017: $25,000

Age: 50 & over
Current concessional gap: $35,000
From 1 July 2017: $25,000


30% tax on super for high income earners

Date of effect: 1 July 2017

At present, individuals with combined income and superannuation contributions of more than $300,000 pay an additional  contributions tax of 15% on concessional contributions. From 1 July 2017, this income threshold will reduce to $250,000.


Tax free super balances capped at $1.6m

Date of effect: 1 July 2017

A new $1.6 million cap will apply to how much can be transferred into a retirement phase account. Earnings on amounts within the account will continue to be tax-free.  Transfers in excess of this $1.6 million cap (including earnings on these excess transferred amounts) will be taxed in a similar way to the tax treatment that applies to excess non-concessional contributions.

Where an individual accumulates amounts in excess of $1.6 million, they will be able to maintain this excess amount in an accumulation phase account (where earnings will be taxed at the concessional rate of 15%).

Members already in the retirement phase with balances above $1.6 million will be required to reduce their retirement balance to $1.6 million by 1 July 2017.  Excess balances for these members may be converted to superannuation accumulation phase accounts.

The amount of cap space remaining for a member seeking to make more than one transfer into a retirement phase account will be determined by apportionment.


Tax deductions on super contributions expanded

Date of effect: 1 July 2017

All individuals up to age 75 will be able to claim an income tax deduction for personal superannuation contributions from 1 July 2017.  This effectively allows all individuals, regardless of their employment circumstances, to make concessional superannuation contributions up to the concessional cap – partially self employed, employees whose employers don’t offer salary sacrifice arrangements, etc.This is a sensible move, which means that it will no longer be necessary for individuals to pass a 10% test in order to be able to claim a deduction for personal superannuation contributions.  Currently, an individual can only claim a deduction for personal contributions where less than 10% of their adjusted income for the year relates to employment activities.  The 10% test can make it difficult for people who have started their own business to make deductible superannuation contributions where they also have part-time work.

(Source: The Knowledge Shop)

Pushing too hard with deductions!

In 2014, a Sydney man had to pay a hefty penalty after the ATO discovered he was falsely claiming thousands of dollars on work related expenses.

McAdam Siemon Business Accountants Upper Mt Gravatt, Noosa Heads & Maroochydore. Specialising in Accounting, Taxation, Management Rights, SMSF Administration, Business Advisory, Business Valuations , Management Rights specialist accountants, If you push too hard the tax man will get you.

If you push too hard with deductions the taxman will get you.

This guy worked as a salesperson and under the conditions of his employment he was able to work from home. He was advised by a Registered Tax Agent.

The dispute arose out of an audit of his tax affairs triggered by his 2010 tax return in which he declared a taxable income of $21,377, and claimed deductible items to the value of $97,162.

The ATO disallowed various tax deductions for the 2011 and 2012 financial years.

The tax office also imposed a penalty on the basis that he or his agent had “failed to take reasonable care or comply with tax law when claiming work related expenses”.

The sales person disputed this and took the matter to the Administrative Appeals Tribunal.

Here are examples of some of the expenses he tried to claim deductions for:

  • Thousands of dollars for secretarial services completed by his son. (His son was around 7-years-old at the time)
  • Thousands of dollars of groceries as work related expenses (The groceries included cheese in a can and 39 packets of Monte Carlo biscuits.
  • Clothing, rubber soled shoes, dry cleaning, sunglasses, broad rimmed hat and sunscreen (just to name a few!)
  • Home office expenses
  • Other work related expenses

To read the full rulings click on the link below.

To find out more, please contact us

So, what are the deductions you can claim?

(Source: ATO, 14 March, 2016)

When completing your tax return, you’re entitled to claim deductions for some expenses, most of which are directly related to earning your income.

To claim a work-related deduction:

  • you must have spent the money yourself and weren’t reimbursed
  • it must be related to your job
  • you must have a record to prove it (there are some limited exceptions)

If the expense was for both work and private purposes, you can only claim a deduction for the work-related portion.

Follow the links below for specific deductions you can claim:

The staff at McAdam Siemon will get your deductions right because we have the checks and balances in place.

 

 

If you have one employee but less than 19

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If you have one employee but less than 19, You must be Super Stream ready by 30 June 2016

  • Do you have 19 or fewer employees?
  • Are you an SMSF Trustee? Self-managed super funds (SMSFs) must be able to receive employer contributions and the associated data electronically.
  • APRA – regulated funds

From 1 July 2016, the ATO’s SuperStream standards are set to be enforced.

A reminder:

  • If you are a larger employer, you should already be using SuperStream.

A Brief Overview

These new rules require employers to pay and report contributions to superannuation funds electronically. Both the payment and the reporting will need to be completed on the same day.

  • These measures don’t apply to individuals who are making personal contributions direct to their superannuation funds, only employers.

SuperStream will make it easier for you. 

  • You need to use SuperStream when paying employees super.
  • With SuperStream contribution payments are made electronically and you can pay all your employees super; sending all their information through one clearing house; saving you time and effort.
  • Providers must be approved by the ATO and are listed on the ATO website.

You should have already started transitioning by choosing an option to make super contributions electronically: 

  • Your payroll system
  • Your super funds online system, or
  • The Small Business Super Clearing House (SBSCH). This is a free service administered by the ATO whereby you can make super guarantee contributions as a single payment to the clearing house and it distributes the payments to the employees fund/s.

Next: You need to collect the following information on your employees. 

  • Their Tax File Number (TFN) and,
  • A Unique Super Identifier (USI)
  • Super fund ABN
  • For employees who have selected a SMSF for their contributions, they will also need to provide their Fund’s Bank Account details and Electronic Service Address (ESA)

Once this is done, these details must be entered into your preferred clearing house site.

For new employees, the ATO has updated the Super Choice form to include collection of the extra information required.

Start using SuperStream as soon as this process is completed so that any problems can be solved before 30 June, 2016.

If you any questions on setting up SuperStream super contributions for employees, please contact McAdam Siemon.

GOLFING GREATNESS

 

Golfing greatness….
We all strive for it don’t we?

Well I do anyway!  That perfect round where everything drops and you split the fairway every time.  I have been trying for close to 17 years for that one round and it still eludes me; not from lack of trying I might add, probably more so the lack of ability hinders me.

I love golf. I’m a golf tragic and happy to admit it! I would probably prefer to talk about golf with someone than pretty much anything I can think of.

So when the opportunity came about to become involved with the Australian PGA; its members and the golfing industry; I jumped at the chance.

Last year PGA Australia undertook a program on behalf of its members to offer a network of preferred service providers to the industry.  I was part of an intense two – day program exploring the golfing industry as a whole and how it could be better serviced.

The main focus was on PGA Australia members, which include, touring (playing) pros, coaching pros, pro shop owners, and general golfing retailers and support sectors.  This was a valuable process and built on the knowledge of the industry I had already accumulated.  Further work with PGA Australia followed and has resulted in McAdam Siemon Pty Ltd becoming a registered preferred supplier to the golf industry.

In order to build on this foundation, it was necessary to get the word out on the street, to promote the services to the industry.  What better way to do it than through a PGA member.

We chose to sponsor Matthew Field, who has been a PGA member for a number of year now and is searching for his break on tour.  Matt has played in a number of events around Australia and internationally.  Matt is also a key member of the Golf Queensland team and organises many of the events for amateur golf around the state.  We welcome Matt to the McAdam Siemon Team and wish him all the best for the coming year. We hope it is a successful one for him!!

If you would like to read more about Matt and his adventures visit his website at mattfieldgolf.weebly.com.

I have already had the pleasure of working with a number of PGA members so far and the experience has been fantastic.
The industry seems to be growing to high levels and it takes professional members with great knowledge, skill and attitude to succeed.

I hope to offer valuable ongoing support to the industry and its members for years to come, and maybe sneak a few extra rounds in here and there!

If you ever want to chat about Golf, drop me a line.

Happy Golfing

Jordan Spieth World #1 (Left)  Matthew Field (Right)

2016 represents the 20th year of McAdam Siemon

Well Christmas seems but a distant memory and Easter is just around the corner (I think Hot Cross buns hit the stores on 6 January), kids are back to school and the year is well and truly underway.

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2016 represents the 20th year of McAdam Siemon when John  and I opened our doors on 1 January 1996 at Kangaroo Point and a hole in the wall at Noosa Junction with 4 staff. 

Today we operate out of Upper Mt Gravatt, Noosa Junction and have just opened an office in Buderim.  Sam Hodgetts joined us as a partner in 2013, having started work in the Noosa Office and 12 staff.

It has been an amazing 20 years with us still acting for clients from our inception.

John, Sam, and I certainly appreciate and never underestimate the loyalty shown by our clients through the good times and bad. (luckily lots more good times.) 

This year the team at McAdam Siemon will be focusing on working with our clients so that they can focus and achieve your goals.

To help you achieve this we have developed a number of tools that will allow you to have a better understanding of your business and focus that is required. 

1. Breakeven analysis

2. Using your accounting package effectively and efficiently to save time and money. 

3. Tax planning tool

4. Fathom – to truly understand your business and set goals 

We will discuss these in more detail in future newsletters and of course our experienced team will discuss them in more detail when they meet with you. 

We look forward to our continued close working association with you.

Book keeping service

McAdam Siemon Business Accountants Upper Mt Gravatt, Noosa Heads & Maroochydore. Specialising in Accounting, Taxation, Management Rights, SMSF Administration, Business Advisory, Business Valuations and more, MS Bookkeeping Solutions, V

As the digital world continues to change at a seriously fast pace we recognised the need to establish a book keeping service for our clients to ensure that they are using the correct accounting package effectively and efficiently for their business to save time and money. 

The book keeping service is charged at book keeping rates and everything is fix price upfront  (we don’t use timesheets) 

The services we offer you are: 

  1. Establish and set up accounting package
  2. Training
  3. Ongoing book keeping services from monthly reconciliations to full service (payroll, debtors, creditors reconciliations)

Our experience to date is that clients have either been able to take back the book keeping service, saving them thousands of dollars, to reducing staff due to increased efficiencies. 

Samantha O’Rielley heads our book keeping division and is a qualified accountant. 

She is an accredited Xero accountant with many years’ experience having run her own bookkeeping business.   

Please feel free to contact her to discuss your bookkeeping needs.

Phone: 07 5474 8955

February 2016 Testimonial

” Having been a small business owner for over 10 years the time and cost of doing BAS every quarter was considerable. Xero has been a great introduction to our business not just in reducing time and cost but the reporting available really helps us manage our cash flow and the support and training from McAdam Siemon and especially Sam O’Rielly has been fantastic “

“Brant Dillon”

Tax file numbers (TFN)

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Forwarding documents with Tax file numbers

As you would be aware Privacy laws were significantly strengthened a couple of years ago with substantial penalties for both individuals and corporations who breach the rules.
One of the areas covered is dealing with tax file numbers.
It is now assumed that sending of emails is not a secure form of communication.  The tax department is taking a stronger stance on the sending of documents with TFN’s and there are cases of where tax agents have had their licences cancelled because of privacy breaches.
Our system does allow for tax returns to be printed with the TFN’s left out
For this reason we have established the following rules:

  1. No document will be emailed with TFN’s attached
  2. Any document that requires the TFN to be retained will either be posted or uploaded to our secure portal area which you can access via a password.
  3. Annual tax returns, if been emailed, will be sent with no TFN’s attached however your name, entity details will be shown to confirm that the return provided is the correct one.

 
If you have any questions or concern please do not hesitate to contact one of the team at McAdam Siemon.

Brisbane: 07 3421 3421

Noosa Heads: 07 54748955

Buderim: 07  5408 4622
 

A new office in Buderim

McAdam Siemon Business Accountants Upper Mt Gravatt, Noosa Heads & Maroochydore. Specialising in Accounting, Taxation, Management Rights, SMSF Administration, Business Advisory, Business Valuations. New office

We are excited to let you know that McAdam Siemon has a new office in Buderim, saving a huge commute for those of you that travel a long way to visit our Noosa office.

This will allow us to provide you with services more conveniently.

Susan and Adam will be working from the Buderim office  and John will be there each Wednesday or when appointments are made.

For those of you that like to meet either John, Sam or myself at the coast and this office is closer to you, please don’t hesitate to make your appointments with us at Buderim.

Middy’s Complex
Shop 16
29 Main Street
Buderim  Qld  4556

 There is off street parking available.

Are you thinking about buying a franchise?

 

Are you thinking about buying a franchise?

Before you do, you should assess whether or not you are the right kind of person to own a business.

  • Have you a passion for a particular type of business?
  • Are you dissatisfied in your present occupation?
  • You would like to work more flexible hours, more or less?
  • You want to be your own boss?
  • Will the pressures of a new business affect your significant others? Research shows that franchisees with highly supportive families perform better than those that don’t have this.
  • Do you have a strong desire to build wealth?
  • Do you have an ability to be creative and entrepreneurial but remain within the boundaries of a brand or a system?
  • Do you know how to lead a team?
  • Do you have strong organisational skills?
  • How much money are you thinking of investing?

The list goes on ……..

McAdam Siemon understands that a franchise business has unique features that differ from other businesses.

For that reason, we have established a franchising division and are members of the Franchising Accountants Network, so timely and accurate advice can be provided to you.

So that you can make informed decisions, we have a structured approach to the way we deal with franchising from buying through to selling.

These have been specifically designed for the franchise industry sector and you will be advised of the costs upfront.

If you would like to discuss buying into a franchise, do your due diligence first, and/or give Rob a call to find out how I can help you.

 Upper Mt Gravatt: 07 3421 3421

Record Keeping for Tax Purposes

 

 

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Frequently our clients ask us these questions with regards to record keeping for tax purposes.

  • How long should I keep my records
  • Is it acceptable to keep my records in an electronic format, or are paper copies sufficient?
  • Why should you keep records?
  • How do I know what records I should keep?

How long are you required to keep your records? 

Generally speaking, all of your evidence must be kept for five years from the date you lodge your tax return:
i.e. If you lodge your 2015 tax return on 1 December 2015 any records associated with that return (generally) can be destroyed on 2 December 2020.

However: 
·      If you acquire or dispose of an asset (e.g. shares or a rental property, dividend reinvestment statements) – 5 years after it is certain that no capital gains tax event can happen.
·      If you are in a dispute with the ATO – 5 years from the date you lodged your tax return and the dispute is finalised.

The Australian tax system relies on taxpayers self-assessing, so what do you need to keep?

As far as the ATO is concerned, you can store your documents in either format. Remember though…

  •  If you keep paper copies they must be a true and clear reproduction of the original.
  • If you keep your records electronically, we strongly recommend that you keep backup copies – what if your hard drive is corrupted?

Why should you keep records?

  • To provide written evidence of your income and expenses.
  • To help you or your tax agent prepare your tax return.
  • To ensure that you are able to claim all your entitlements.
  • In case the ATO asks you to prove the information you provided in your tax return.

What records should you keep? 

  • Any payments you have received.

  •  Any expenses related to payments you have received.
  • When you have acquired or disposed of an asset (shares or rental property)

  • Any tax deductible gifts, donations and contributions.

You may also need to keep records in some other categories, or for other members of your family – for example, if you receive the family tax benefit.

You may decide not to keep particular records – for example, because you expect to claim for only a small amount of business travel. If it turns out that you travel more than you expected during the year, you may be limited to a smaller claim than if you had kept more records.

If you are unsure about whether to keep or destroy a record please do not hesitate to give one of the team at McAdam Siemon a call.

Kind regards

Rob McAdam, McAdam Siemon Accountants

Rob McAdam

 

There has been a lot of discussion about China lately

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There has been a lot of discussion about China lately .

Courtesy of The Knowledge Shop
Free Trade Agreements, financial stability and growth and the impact on the Australian economy, and Chinese investment in Australia.  With the help of our international contacts, we explore the impact of China on Australia and give some context to the debate.
According to Austrade, one in every three Australian export dollars earned is from sales of goods and services to China.  On top of that, 80 per cent of the value of Australia’s export growth in 2013-14 was from trade with China.  It’s not surprising then that we have a fixation with the welfare and continued consumption of Australian goods and services by China and China’s rising influence on the Australian economy.

Chinese growth – an insider’s view
China’s economic growth has been spectacular: until recently growing at around 10 per cent per annum from a low economic base to arguably the leading global economy.  While construction and infrastructure projects were the primary drivers of growth, the opening of the Chinese economy to foreign investment in the late 1970s saw it become the ‘factory of the world.’  The fuel to drive this growth was a massive growth in Chinese consumption of resources – steel, iron ore, copper – you name it China needed it.  You can see this consumption growth reflected in Australia’s export statistics.
With an increase in wealth came an increase in consumerism with a growing middle class.  And, with a growing middle class came a property boom with many Chinese able to afford better housing.
Demand for housing escalated and development after development was launched, many snapped up within hours of launching.
The cost of this success was a rapid increase in the cost of living, high property prices fuelled by speculators, and corruption.
With the global financial crisis, demand for China’s goods started to decline creating excess capacity, factory and company closures, and staff lay-offs.  Banks were then asked to reduce their loan exposure and Government projects scaled back.  Starved of funds some companies sought funding from underground banks – shadow funding – paying extreme rates of interest that further aggravated the slow down and excess capacity.

Looking forward
The People’s Bank of China recently reported that it expects economic growth to be 6 – 7 per cent over the next three to five years – although businesses on the ground will tell you it’s lower than this at about 5.8 per cent.  Interest rates were cut for the sixth time in 12 months in late October to try and hit growth targets.

Client Focus – Little Kickers

Client Focus – Little Kickers Qld 

  • Have you got young kids and would like them to play  soccer?
  • Has your child a birthday coming up and you would like something different to do?
  • The holidays are coming up – Why not think about enrolling your young kids in a holiday course.

 

Little Kickers provides fun and safe soccer classes for boys and girls aged 18 months up to 7th Birthday, in venues around Brisbane, Gold Coast and Sunshine Coast (free trial classes are available). They also offer day care programmes, holiday courses and birthday parties. Their motto is play not push and we are proud to offer this fantastic programme which has been created to get kids interested in sport by way of imaginative play.
Contact Name: Karen Tannoch-Bland
Website: http://www.littlekickers.com.au
Phone: 07 3299 3361