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

 

Using EOFY to strengthen your business

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

Using EOFY to strengthen your business

(source: Sean O’Meara) 

With the end of the financial year quickly approaching it is critical that small business owners use this time to make a strong plan for the year ahead. It is vital to analyse your business and try to find any opportunities and improvements that can be made, no matter how small they may seem.

The additional administration time required at EOFY can make the lead up to 30 June extremely stressful. So the keep your business goals in check. Here are some strategies that will improve your business to maximise your growth in 2016/2017.

It’s time to review your businesses situation 

You are probably already using reporting throughout the year to track your revenue, gauge your sales trends etc but it is important to take a second look at how your business performed on the whole and compare this to previous years.

“By looking at year-on-year sales and revenue we can see how public holidays or seasonal changes affect the business and enables us to do more accurate forecasting, rostering and budgeting for the year ahead. It also helps us make informed decisions on whether to spend now or later,”

Take advantage on the low interest rates

Interest rates remain low so it could be an opportunity to invest in capital equipment and paying off debts. 

Review business partners and suppliers

Ensure you are getting an excellent price for quality products. New businesses keep coming into the market, so be sure to do your research and renegotiate with your present partners and suppliers.

Your customers are probably reviewing their own strategic plan and making changes for next year so don’t forget to let them know that their business matters to you.

Take a long – term view of your cashflow 

  • How is your cashflow?
  • Is your business seasonal, with peaks and troughs?

Do some advanced planning -review your budget and anticipate what may happen in the year ahead. It may be all that is needed to free up liquid assets and ensure ongoing profitability. This is the best way to ensure you have safeguards in place to keep your business afloat during low times. 

Capitalise on tax breaks 

  • Have you any expenses that can be pre-paid?
  • Think about maximising your superannuation contributions to the relevant caps.
  • Consider investing in areas that will support your business; new equipment and/or technology that will provide your business with greater efficiencies and productivity The Government still has an immediate tax deduction on assets coasting less than $20,000.

Don’t hesitate to give us a call if you would like to discuss anything EOFY’s.

Kind regards

The Team at McAdam Siemon

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.

 

 

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.

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.

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

 

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

How to use the EOFY to strengthen your business

EOFYs blackboard

How to use the EOFY to strengthen your business

Many small business owners fall into the trap of managing business operations in a routine way without looking at their “side mirrors” or “blind spots” where new opportunities might come into view. However, with the End of Financial Year just around the corner, it’s crucial small business owners use this time to take stock and analyse the business to try and find small opportunities or improvements that could be made, and make a strong plan for the year ahead.

It can be hard enough to run a small business at the smoothest of times, but the additional administration burden at EOFY can make the lead up to 30 June an extra busy and stressful time of year for many owner-operators. However, in order to keep your business goals in check, it pays to be aware of the strategies and opportunities that will improve your business and maximize growth over the next 12 months.

Here are six ways that SMEs can use the EOFY to strengthen their business.

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Some highlights for the new financial year

Overseas assets & income? Why the ATO wants you!

The ATO is heavily targeting individuals that have assets and income from overseas. A month ago, the ATO announced an amnesty, called Project DO IT, that allows people to declare unreported assets and income they have received from overseas. These voluntary disclosures have already raised over $13 million in back taxes.

Now, the ATO are backing up that amnesty with a new datamatching program to target those who have not voluntarily declared foreign income. The data matching program will troll through information from overseas tax authorities on Australians with offshore investments and bank accounts; information from Australian and foreign banks on fund flows, interest and account balances; information from informants about offshore accounts, and money transfers to and from offshore bank accounts.

The bottom line is that if you don’t declare income you receive from overseas that you should be paying tax on in Australia, and the ATO catch you, you can expect little mercy.  Don’t assume that just because your foreign income is genuinely not subject to tax overseas that it is not taxable in Australia.

If you suspect you might have a problem, talk to us today to assess your position and manage your approach.

Employers paying Superannuation Guarantee!

Employers can expect a renewed focus from the ATO on superannuation guarantee (SG) payments made to employees. With the increase in the SG rate from 9.25% to 9.5% on 1 July 2014, employers will need to make sure that payments are made on time and that the calculations are accurate. Just be aware that the increase in SG does not necessarily reduce the take home pay of employees. In many cases employee contracts are ‘base plus superannuation’. In this case, the employer absorbs the increased SG rate not the employee.

Are your contractors really employees?

The ATO continues to enjoy a high success rate challenging the treatment of contractors under the superannuation guarantee (SG) legislation.  Despite recent comments made by the Government that the ATO should ‘relax’ its approach to contractors, the ATO has no reason to simply walk away from such a potentially lucrative revenue stream – why would they when the law is on their side?

As there is no real time limit on the recovery of outstanding SG obligations, business owners need to take a proactive approach reviewing arrangements to ensure that the business is not exposed to material liabilities – the start of the new financial year is a great time to do this.

The underlying issue is often that employers take the contractor relationship at face value – that is, what the piece of paper describing the relationship actually says.  The reality is quite different as the law is based on the character of the relationship not what is stated in writing.  So, if your business has contractors (or you are a contractor) performing the same role as an employee, then it’s possible the ATO will classify them as employees for SG purposes.

A genuine independent contractor who is providing personal services will typically be:

  • Autonomous rather than subservient in their decision making;
  • Financially self-reliant rather than economically dependent upon the business of another; and
  • Chasing profit (that is a return on risk) rather than simply a payment for the time, skill and effort provided.

There are a number of tests that can apply to help determine the status of a contractor-such as control, whether the worker has been hired to produce a result, the ability for them to freely delegate work to someone else, risk exposure, ownership of tools and equipment, and the treatment of business expenses, etc.

Employers cannot contract out SG responsibilities by adding fail safe clauses in contracts; and there is no certainty that a contractor using an interposed entity (for example setting up a company and operating through it), is fool proof.

Clear out the old! New Year house keeping

Here is the essential checklist to prevent last year overflowing into this year:

  • Reconcile your GST control account.
  • Does the income declared in your BAS for the last year reconcile to your annual income?
  • Check that the minutes for all director and trustee resolutions pre June 30 are documented and signed off.
  • Make sure your stock take has been completed and documented.
  • If you have paid management fees to a related entity during the year, ensure that all of the tax invoices have been documented and that there is a reasonable commercial basis for the charges applied.
  • Where dividends have been declared to manage Division 7A loan payments, ensure that there are letters on instruction on the file that the dividend is to be credited against the loan account. Dividend statements will need to be completed.
  • If you have cross border related party transactions, make sure you have your transfer pricing file completed with all the requirements signed off.
  • Review all contractors for the year going forward to ensure they would not be deemed as employees.
  • Get your operating budget completed for the year.
  • Get your cash flow budget in place.
  • Check the adequacy of your funding arrangements with your bank.
  • Check that you meet any loan covenants that you have with the bank at June 30.

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