 |
Welcome to C & W Partners new online accounting practice!
We’re thrilled to announce the launch of our new interactive ‘web practice’ at www.candw.com.au , where we can now provide you with additional services.
Our aim is to make better use of your time and keep you up to date on matters affecting your business and family life. The "C & W Business Brief" will be sent each month and will include relevant material presented in a clear and useful format.
In addition, our web practice offers you interactive services.
Perhaps you ran out of time during normal business hours to call us for an appointment...why not schedule an appointment using our special online form? You can access this form any time of the day or night and with the easy to follow instructions, you’ll find it a quick and simple way to request an appointment time. Click here to book an appointment.
You may also find the “C & W” tabs at the top of the page useful to direct you to specific areas in our website.
As we respond to feedback from you and our other clients, we will continue to add further information and interactive services to our website.
If you have any questions, comments, suggestions, please don’t hesitate to contact us at any time.
We look forward to hearing from you.
_____________________________________________________________________________________
Latest News!
Federal Government’s Second Stimulus Package
On 4th February, 2009, the Federal Government released its second stimulus package, estimated to be worth $42 billion, named the “Nation Building & Jobs Plan” to support jobs & economic growth.
The package initiatives include:
Enhanced Investment Allowance
The initial Capital Investment Allowance announced in December, 2008 (See Below) has been increased to a total of 30% for businesses with an annual turnover of less than $2 million, investing in capital items with a purchase value greater than $1,000.
For businesses with an annual turnover of greater than $2 million, the original Capital Investment Allowance still applies, but only on assets with a purchase value of greater than $10,000.
The expenditure applies to new depreciating assets and new expenditure on existing assets between 13th December, 2008 and 30th June, 2009.
Generally speaking, assets included are plant, equipment and motor vehicles used in the running of the business and the expenditure is claimable as a tax deduction in the Business Income Tax Return.
An extension of the allowance will now see it on offer beyond its original expiration date of 30th June, 2009, through to 31st December, 2009. Thresholds and turnovers for continuing allowances have not been stipulated clearly enough at this point in time.
The information available to us has been brief, but we have endeavoured to communicate our best interpretations so far.
Household Stimulus Package
Five one-off cash bonuses:
Building or upgrading of large scale infrastructure in every primary, special and K-12 School i
n
Energy Efficient Homes
Installation of free ceiling insulation in 2.7 million Australian homes.
Investment in Social & Defence Homes
Investment in Social & Defence Homes
Building 20,000 social house dwellings and
802 new houses for Australian Defence Force.
Maintenance on 2,500 vacant social houses.
Black Spots, Boom Gates, Community Infrastructure
200 new boom gates and 350 additional projects in Black
Spot Program.
$650 million expenditure on local community
infrastructure &
The allowance comes in the form of an additional tax deduction equal to 10% of the cost of eligible assets. I t is applicable to most new tangible depreciating assets, with a purchase price of greater than $10,000, as well as to expenditure greater than $10,000 on existing capital assets. Typically this will include plant & equipment and motor vehicles purchased for a business. Land & trading stock are excluded.
The allowance is available to businesses which purchase or begin construction of the asset from 13 th December, 2008 and before 30 th June, 2009. Any improvements or modifications need to be completed, with the asset ready for use by 30 th June, 2010.
The 10% is based on the first element cost, being the initial purchase price, and can be further claimed on the second element costs, being for improvements or modifications, up to the date of completion.
The allowance is claimable as a tax deduction via the business’s income tax return, for the year ended
30
th
June, 2009.
If you are thinking of investing in improvements to plant & equipment, this is an attractive
incentive to assist in reducing your potential tax liability for 2009. Should you require any further
information regarding this allowance please talk to your C & W advisor.
ATO Scam Email Warning
January 7, 2009 - 9:24AM
Australians are being warned to ignore a scam email claiming to be from the tax office and offering refunds.
The Australian Tax Office (ATO) has issued the warning, saying the email includes realistic-looking features - including the tax office logo - to make it look genuine.
Bogus emails sent to people have included the words "Notification - Please read" or "Australian Taxation Office - Please Read This" in the subject heading.
The email contains a link that directs people to a fake ATO website which then asks for credit card and personal details.
Anyone who receives the unsolicited emails claiming to be from the ATO should delete them immediately, Tax Commissioner Michael D'Ascenzo says.
"As an extra precaution we recommend you type Internet addresses directly into your internet browser rather than clicking on links embedded in emails,' he said in a statement.
Bogus sites are often hard to shut down because they are set up in multiple locations on the internet, making them difficult to track down.
Those who believe they may have fallen victim to the scam are urged to contact their credit card provider.
Fuel Tax Credits
The fuel tax credits scheme that was introduced on 1 st July 2006 has been expanded from 1 st July 2008.
The changes have broadened the types of industries that can claim a fuel tax credit as well as extending the types of fuel that can be claimed.
The industries of agriculture, fishing, forestry, mining, marine transport, rail transport, nursing, and medical were previously limited to claiming only diesel and fuel oil. As from the 1 st July 2008 the type of fuel that can be claim has been extended to include all other taxable fuels including petrol. Aviation fuels, alternative fuels and fuels used in vehicles of 4.5 tonne gross vehicle mass or less travelling on a public road continue not to be eligible fuels.
New industries included in the changes are construction, manufacturing, wholesale, retail, property management and landscaping. These businesses are now eligible to claim all taxable fuels used in machinery, plant and equipment, except for the ineligible fuels as noted above.
To make a claim you must be registered for GST and for fuel tax credits. You will also need to keep records showing the amount of fuel you require, manufacture or import for your business and how you use that fuel. For further information on fuel tax credits and how they apply to your business please feel free to contact our office.
Education Tax Refund (ETR)
The government has introduced a new tax offset for the 2009 financial year - the Education Tax Refund (ETR).
Eligibility
You must be entitled to Family Tax Benefit Part A or would be eligible but for the fact you receive certain allowances such as Youth Allowance.
What you get
A 50% refundable tax offset is available for eligible education expenses:
What you need to do
The Education Tax Refund will apply to eligible expenses incurred from 1 July 2008. Eligible expenses include:
If you would like any further information regarding the Education Tax Refund please give your advisor a call on 67591000.
Changes To Medicare Levy Surcharge Threshold
The Medicare levy surcharge threshold for the 2009 financial year has been changed.
What is it?
If your taxable income is greater than the threshold and you do not have private health insurance, you are liable to pay the Medicare levy surcharge.
How Much?
The Medicare levy surcharge is calculated as 1% of your taxable income.
The New Thresholds
For the 2009 financial year the new thresholds are as follows:
Remember you become liable for the surcharge if you do not have private health insurance.
If you would like any further information regarding this please give your advisor a call on 67591000.
Grain on Hand
Over the last few years there has been an increasing trend for farmers to store their own grain at harvest and beyond, either on farm or in external warehouse facilities.
Generally these grain holdings are sold well before 30 th June. However this year we may see grain stocks remaining unsold at financial year end due to the significantly lower grain price.
For taxation purposes this requires special treatment as those unsold grain stocks are treated as “trading stock” and must be included as part of assessable income for the year in which they are held.
Trading stock for taxation purposes includes “anything produced, manufactured or acquired that is held for the purpose of manufacture, sale or exchange in the ordinary course of business”.
Three choices are available for valuing trading stock. These are cost, market selling value or replacement value.
The cost method is probably the most common used for agricultural commodities and the most difficult to quantify. The Commissioner of Taxation has historically been comfortable with the application of the cost method for some agricultural products, whereby only harvesting & processing costs have been included in the values.
As tax planning commences over the next few months, these trading stock issues will need to be considered and should be discussed with your C & W advisor.
28th February - Due date for lodgement of income tax returns for new superannuation funds
3rd March - Final date for lodgement and payment of December quarter BAS and IAS
|
The Rudd Government has announced a 10%
temporary investment allowance, to encourage capital
investment. It is aimed at stimulating short term
economic growth and giving businesses the confidence to p
lan positively for the future, within the current
uncertain economic environment.
  |
|