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| ( -Static content "MainNav" not found- ) | Welcome to our March '09 Business Brief and we trust the summer rains have been good to you. We are keen to improve both our newsletter and interactive website and would appreciate your feedback. 30% Investment allowance
As mentioned in the previous newsletter, the Federal Government has announced a 30% Investment Allowance as part of the stimulus package.
Under this allowance, business operators will be able to claim a 30% tax deduction for new assets or improvements to assets already held. Note that it does not apply to the purchase of 2nd hand assets. To be eligible, small businesses (turnover of $2m or less) only need to spend $1,000 to obtain the bonus deduction (other businesses must spend $10,000 or more). This new allowance replaces the investment allowance announced last year.
The detail of the allowance are as follows:
In addition to the investment allowance, businesses are still able to claim normal depreciation deductions over the effective life of the assets.
Please note that the allowance will be claimed as an additional deduction in the tax return. Therefore, any benefit will not be received until the tax return has actually been lodged.
If cashflow permits, the investment allowance may have the effect of bringing forward investments that the business was already going to make. Just remember that there is a period of time between making the investment and receiving the allowance, that you need to factor into any spending decisions.
The investment allowance can create or add to a loss so a deduction can be claimed even if your business is not in a profit situation.
Cash Payments for Working Australians
The tax bonus legislation became law on Wednesday 18th February, 2009. As a result, the Australian Taxation Office will commence paying the tax bonuses from April 2009.
The amount of the cash payment is as follows:
Your taxable income will be derived from your 2008 income tax assessment. To receive the tax bonus you must have your 2008 income tax return lodged by 30th June, 2009.
Please note that a tax liability of greater than zero is required to be eligible for the bonus payment. To see if you are eligible, please click the following link http://calculators.ato.gov.au/scripts/axos/axos.asp?CONTEXT=&KBS=ESB.xr4&go=ok You will need your 2008 Notice of assessment to complete the tax bonus calculator.
The tax bonus can be directly paid into your bank account. If you wish to update your bank details to allow for direct payment, you can contact the Australian Taxation Office on 1300 686 636 where you will need the following details:
Otherwise, you can email in your bank details or call your C & W Adviser and we will be able to update your bank details online, via our secure tax office login.
For more information regarding the Tax Bonus Payments, please feel free to contact your C & W Adviser on (02) 6759 1000.
Pension Drawdown Relief for Retirees The government has announced measures to provide relief for superfund members presently drawing account based pensions. Account based pensions require the recipients to draw a minimum amount per annum from their superannuation account. The minimum amount is a percentage (based on age) of the opening balance of a members superannuation account. As a consequence of the global economic crises, significant value reduction has occurred in member account values. As such, to meet minimum repayment amounts this may have caused superannuation assets to be sold during a very depressed market. The government has reduced the minimum percentage requirements by 50%. Rates are as follows:
Age Amended Minimum % < 65 2 65 – 74 2.5 75 – 79 3 80 – 84 3.5 85 – 89 4.5 90 – 94 5.5 > 95 7 For those people who have already taken half of the current minimum payment for 2008/09, the annual nature of the minimum payment rules that a further payment will not be required until the end of the 2009/10. Please note at this stage this measure is only temporary and does not apply beyond the current financial year.
Luxury Car Tax Refund for Primary Producers & Tourism Operators
From 1st July, 2008, Primary Producers and Tourism Operators can claim a refund from the ATO on Luxury Car Tax (LCT) applied to Luxury Cars. A Luxury Car is defined as being an eligible passenger or off road vehicle, costing more than $57,180. LCT is calculated at 33% of the cost of the vehicle over this threshold. This rate has increased from 25% as of 1st July, 2008. A car dealer is required to remit LCT back to the ATO on motor vehicles purchased for resale. This cost is passed on to the consumer, at retail level. The refund available to Primary Producers and Tourism Operators is the 8/33 of the LCT, up to a maximum amount of $3,000 per car. Commercial Vehicles, designed for the principal purpose of carrying goods for business or trade are exempt from LCT.
Claiming the refund is possible via an application form from the ATO. You will require supporting documentation such as original purchase invoice, VIN, and ABN of the dealer where you purchased the vehicle. You will also require details such as the make and model of the car, date of delivery, the contract price and the LCT actually paid. If you would like more information, or would like to make a claim please feel free to contact us for assistance.
PROTECT YOUR FAMILY
DID YOU KNOW?
Statistics show that three out of every four Australian families will experience cancer. *They also show that more than 60% of Australians will be disabled for more than one month during their working life and more then 25% will be disabled for more than three months.**
It's not nice to imagine, but accidents can happen and if you were to die it is vital your family are safe and financially secure.
Obviously for your family no amount of money could possibly replace you but think about the financial implications if something were to happen. Would your family still be able to continue paying the mortgage, personal loans, bills, debts or even your hospital expenses?
If you stop and think about it, almost everything depends on your income. And when this income stops - through injury, illness or even death - the bills don't.
Investing in risk insurance can keep you and your family in good financial shape throughout these bad times. Through Life Insurance, Total and Permanent Disablement Insurance (TPD), Trauma Insurance and/or Income Protection Insurance you can set up a plan that will protect you and your family for an unforeseen tragedy.
Fiducian Financial Adviser, Trent Humphreys can guide you on the best type of insurance to fit your lifestyle. Call Trent on 02 6752 1030.
If you would like a FREE Information Booklet on various insurance options please call 02 6752 1030.
* Source: Australian Institute of Health and Welfare, Australians Health 1998. ** Source: Australian Disability Table/AD89-93 Class
Trent Humphreys is an Authorised Representative (ARN 237592) of Fiducian Financial Services Pty Ltd ABN 46 094 765 134 AFSL 231103
This information is not intended to be a recommendation, offer, or invitation to invest. Any advice is general in nature and does not take into account your investment objectives, financial situation and particular needs. You should consult your financial adviser for advice before making invest decisions.
CONCERNED ABOUT YOUR INVESTMENT OR JUST CURIOUS AS TO WHAT IS HAPPENING IN GLOBAL MARKETS?
Please click on the link to get a full commentary from Indy Singh, Managing Director of Fiducian Portfolio Services about the state of play in the world markets.
http://www.candw.com.au/C_W_Financial_Planning/ Financial_Market_Commentary
Designed to help all parents with the cost associated with a new baby or adoption of a child, the Baby Bonus has changed over the years. It started life in 2001 as a tax offset and eventually changed to a lump sum payment of $3000 in July 2004. That amount has increased gradually to $5000. And as of 1 January, 2009 the Baby Bonus is now paid in fortnightly installments and an income test applies.
The Baby Bonus is payable to parents of a newborn child, or carers of a newborn child when they start caring for the baby within 26 weeks of the child's birth and continue to have care for at least 26 weeks. It is also available for adopted children who enter your care before they are 16. To qualify you need to be an Australian resident. You also need to pass an income test. To be eligible your combined family income in the six months following the birth of your child, or date the child entered your care, has to be $75,000 or less. The key here is that it is based on the six months after the child was born, so it doesn't matter what you earned before the birth of the baby. Even if your income is normally higher, if one or both of you is taking leave to look after the baby chances are your income will be reduced anyway. This income test does not apply to parents of children born before January, 2009. How much will I get? The payment is $5000 per eligible child - so it would be $10,000 if you had twins for example. This amount is indexed in line with CPI in July each year. It is paid in 13 fortnightly installments of $384 each. If your child was born before 1 January, 2009 however, you may be paid the Baby Bonus as a single lump sum. How do I claim? You can make a claim online at www.centrelink.gov.au or you can lodge a claim form. The claim form is usually given to you at the hospital when your child is born, but if not you can download the relevant form from Centrelink. The claim needs to be made within 52 weeks of the birth of the child. If you are adopting it's 52 weeks from when the child comes into your care. If your child was born before 1 January, 2009 you only have 26 weeks to claim. What else do I need to know? You need to formally register the birth of your child with the Births, Deaths and Marriages Registry in your state or territory. If you haven't applied to register the birth when you claim your Baby Bonus, you can't be paid.
Congratulations to Paul Gunthorpe & Brendan Ogle
On the 23rd January "Beatle" & "Ogle" celebrated 25 years since the commencement of their business. They are both from the AML & F and Elders days. You can see from the attached "Then" and "Now" photographs that they have not aged at all. Time has been kind to them both. Our congratulations go to them and best wishes for many more successful years. |
Other vehicles designed for the principal purpose of carrying passengers, such as station wagons, passenger sedans, people movers & sports utility vehicles are not commercial vehicles and can therefore attract LCT, if their cost exceeds $57,180.
Baby Bonus Changes To Help Young Families
Who is eligible?
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