Here, our financial experts take a close look at what’s happening in the world of finance.
We uncomplicate breaking announcements from the Reserve Bank of Australia (RBA), the Australian Taxation Office (ATO), the Australian Securities and Investments Commission (ASIC) and the Federal and State Governments so you can understand how those changes will impact you, your family or your business.
If you’re wanting to stay up-to-date on topics such as interest rates, tax planning, superannuation, the Federal Budget, incentives and schemes, HELP debt, deductions, concessions, depreciation, investment properties and much more, this is where you’ll find the answers.
Knight is with you every step of the way as you strive for financial success. If you’d like some additional information regarding any financial news, please reach out for a consultation to plan your next step.
Selling Your Business
Like most things in life, when you are selling a business, it is only when you ask the right questions that you can get anywhere close to the right solution. Here we get you started with some of the basics: What is for sale? Do you intend to sell shares in your company or the business assets from within the company? A purchaser might prefer to buy the business assets – then they do not inherit the risks associated with
The clock is ticking on income test changes
Two of the more significant changes for retirees that was proposed in the government’s 2014 budget are changes to age pension and seniors health card entitlements. From January 1 2015 there will be different method of assessing the income tests for these highly regarded government benefits by retirees, creating a window of planning opportunity for those who may be most impacted to lock in their entitlements under the current rules. The Changes – A recap Deeming of Superannuation Pensions
Superannuation year end planning for 2014
The end of the financial year always seems to crop up faster than it should. Understanding what you could do before and after 30 June 2014 can provide the icing on the cake for employees, investors and those in small business. Such things as bringing forward tax deductions or delaying the receipt of income within the rules can mean less tax this year. When it comes to superannuation, make sure you maximise the tax deduction this year or salary sacrifice
Home based businesses
1. Cost of room’s utilities These claims must be apportioned and if the portion is based on anything other than the floor area the claim must be clearly documented. 2. Phone costs If a telephone is used exclusively for business, owners can claim for the rental and calls but not the installation costs. 3. Decline in value This can apply to items such as desks and computers. If the equipment is also used for personal use then the claim must
Review of management accounts
This is best done with a tax advisor as they can help to identify tax areas and opportunities that may require further consideration. A few key areas that need to be reviewed prior to year end include: Owner’s salary Business owners should consider the salary they are receiving. Owners should review the overall position of their business with the view of increasing or decreasing their personal salary accordingly. Owners may often find that there is an added cost in paying
Claiming deductions for plant and equipment
Due to the potential changes affecting capital allowances, it is important that businesses understand what they are entitled to this year end. The capital allowances for small business entities this year end is: small business entities would be able to claim a deduction for the value of a depreciating asset that costs less than $1000 (rather than the $6500 before 1 January) in the income year in which the asset is first used or installed ready for use small business
Work-related travel expenses
However, eligible individuals are able to boost their tax refund with some deduction claims. Individuals are able to claim a deduction if they incur any travel related expenses that directly relates to their specific job function. Depending on the individual’s circumstances they can claim the cost of transport, incidentals, and meals for overnight trips. However, they must be able to provide the necessary documentation. Some of the travel expenses that can be claimed on a tax return include: air, bus,
New penalties for SMSF trustees
The ATO has warned SMSF trustees about a new range of administrative penalties that can be imposed for a range of breaches of the law. This includes breaches that may be inadvertent. This new legislation received Royal Assent on 18 March 2014 and will make new penalties available to the ATO for breaches that occur on or after 1 July 2014. The legislation will also apply to contraventions that were made prior to 1 July 2014. Examples of breaches of
Year end super strategies
1. Spouse contributions The spouse super tax offset allows higher earning taxpayers who contribute super for their non-working or low income earning partners to be eligible for a tax break. To be eligible for this benefit the lower earnings spouses’ income, total reportable fringe benefits, and reportable employer superannuation must have been less than $13,800 in the financial year. 2. Salary sacrifice A salary sacrifice arrangement is where an individual agrees to forego part of their future salary or wages
