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.

Minimise year end opportunities and minimise risks

The end of the financial year will be here before you know it.

In this end of financial year update, we have summarised some of the key ways you can minimise your tax and reduce your tax risks prior to 30 June.

Plus, to ensure you are prepared for the new financial year, we’ve outlined some of the key issues you should be aware of.

Key Dates

Key Dates

Your End of Financial Year Obligations

Consider this Financial ‘house-keeping’:

Software

Before rolling over your accounting software for the new financial year, make sure you:

  • Prepare your financial year end accounts. This way, any problems can be rectified and you have a ‘clean slate’ for the 1025/2016 year. Once rolled over, the software cannot be amended.
  • Do not perform a Payroll Year End function until you are sure that your payment summaries are correct and printed. Always perform a payroll back-up before you roll over the year.

PAYG Payment Summaries

You need to provide all of your staff with their PAYG Payment Summary on or before 14 July 2015. This includes any staff that left your employment during the 2014/2015 financial year.

The ATO imposes penalties for the late lodgement of their PAYG Summary Statements with penalties of up to $2,750.

The annual PAYG Summary Statement for the year ending 30 June 2015 needs to be lodged with the ATO on or before 14 August 2015.

Reportable Fringe Benefits on PAYG Payment Summaries

Where you have provided fringe benefits to your employees in excess of $2,000, you need to report the FBT grossed-up amount on their PAYG Payment Summary. This is referred to as a “Reportable Fringe Benefit”(RFB) amount and you will notice that a label is included on the PAYG Payment Summary for this purpose.

You might not need to do a stocktake – using the simplified trading stock rules

Small Business Entities (operational businesses with an aggregated turnover below $2 million) have access to a range of tax concessions. One of these concessions is the simplified trading stock rules. Under these rules, you can choose not to conduct a stocktake for tax purposes if there is a difference of less than $5,000 between the opening value of your trading stock and a reasonable estimate of the closing value of trading stock at the end of the income year. You will need to record how you determined the value of trading stock on hand.

If you would like to take advantage of the simplified trading stock rules, call us today to make sure you are eligible to use the simplified rules and to talk through how to use them properly.

Top 5 simple tax saving strategies

Planning on giving to charity?  Make a donation now and claim the deduction this year. If you donate monthly to charities, think about paying the full year’s worth of donations upfront and take the deduction now.

Operate through a company? If you operate through a company structure and the company has advanced you money during the year or paid expenses on your behalf, then work out whether you are going to repay the loans or put in place a complying loan arrangement. If you already have loan agreements in place from prior years, make sure that you make the minimum repayment (including interest) before June 30.  If the company normally declares a dividend to cover these loan repayments, make sure the dividend is declared and set-off against the loan balance before 30 June.

Are your salary sacrifice agreements still relevant? If you have existing salary sacrifice agreements in place, review them to make sure they are still viable. Also, if your taxable income is over $180,000, don’t forget about the debt tax (see the article, can you plan around the debt tax).

For business, if cash flow allows, now is the time to accelerate deductions by paying for any required repairs, replenishing consumable supplies, trade gifts or donations before 30 June.

Run a business? Don’t forget your super. Your personal or company sponsored contributions need to be received by the fund before 30 June to be deductible this year.   Don’t forget to make sure the paperwork is in place and that you don’t breach your concessional contribution caps.

Please contact the team at McAdam Siemon if you would like further information.