There are a variety of decisions that are required to be made at year end to manage your tax bill. Your choices will be based on your businesses activities, both past and future, and also when you are looking to exit.
A survey of directors, auditors and other financial professionals has revealed that, on average, directors believe their knowledge of the more technical accounting issues was just “fair”.
The Tax Office says that it has encountered several myths and assumptions adopted by both workers and employers when it comes to trying to decide the tax status of a job appointment. It found that employers continually rely upon some inaccurate factors when making distinctions about what makes a worker an employee or contractor — and therefore the tax treatment that applies in these cases.
At the end of 2014 the government announced its Single Touch Payroll (STP) initiative with a promise that it will cut red tape for employers by simplifying tax and superannuation reporting obligations. The application is still about a year away, but STP builds on the ongoing initiatives to build and improve the current Standard Business Reporting products, and utilises the innovation of software developers to provide accounting software solutions that meet the needs of employers.
Small business is a sector that came out a clear winner from this year’s Federal Budget. In an effort to support growth and employment, announcements included: tax cuts for every small business; accelerated depreciation for assets less than $20,000; an immediate tax deduction for professional expenses; CGT roll-over relief; and FBT changes for electronic devices.
General business announcements include: expansion of tax concessions for Employee Share Schemes; changes to the R&D tax incentive; a new tax system for managed investment trusts; streamlined business registration; and facilitation of crowd sourced equity funding. For tax administration: establishment of a Serious Financial Crime taskforce; the value of penalty units will increase; GST will apply to imported digital products and services; and salary sacrificed meal entertainment and entertainment facility leasing expenses will be capped.
Despite the lead-up mutterings that the budget was going to be “dull and boring”, there were nevertheless a few surprises contained in the pages of the budget papers.
The Board of Taxation has recently released a report titled Review of Tax Impediments Facing Small Business, which contains its recommendations to government on what it deems to be the main impediments to small business owners in Australia. The board is a body that was set up to look at various aspects of our tax system and make recommendations based on the board’s expertise.
Congratulations to Vaughn Whish-Wilson, Stephanie Jackson and Scott Mason on achieving Xero Certification this week, joining Kurtis Alexander and Fiona Muir as Xero Certified Advisors,
The comprehensive course has given them a thorough understanding of the functionality and features of Xero so they can better advise clients on how to get the most from the system. If you’d like to discuss Xero with one of our experts we encourage you to get in touch. You can also learn more about Xero here.