small business accounting newsletter | 2012 | May 2012 Newsletter

May 2012 Newsletter

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The May instalment of our new animated feature video

Are your tax affairs in order?

Simply put, tax planning is the arrangement of a taxpayer’s affairs so as to comply with the tax law at the lowest possible cost.

Can you defer income at year end to save tax dollars?

Income received in advance of services to be provided will generally not be assessable until the services are provided.

A timely reminder for year end housekeeping that may save you heaps!

Debtors should be reviewed prior to 30 June so that any bad debts can be identified and written-off.

Small business entities, the benefits are endless!

From 2012–13, the small business instant asset write-off threshold will be increased from $1,000 to $6,500.

Companies told to get their affairs in order

Companies should ensure that all dividends paid to shareholders during the relevant franking period (generally the income year) are franked to the same extent to avoid breaching the benchmark rule.

Trusts - Are you ready for year end?

Taxpayers should review trust deeds to determine how trust income is defined. This may have an impact on the trustee’s tax planning.

Buying a car in your company? Maybe!

The four rates used in the statutory formula method for determining the taxable value of car fringe benefits are being replaced with a single statutory rate of 20% for fringe benefits provided after 10 May 2011.

Superannuation contributions need to be calculated carefully

The ATO has reminded taxpayers to consider the superannuation contributions caps when planning tax affairs to avoid excess contributions tax.

Flood and Cyclone levies - Will you be liable?

Individual taxpayers with a taxable income exceeding $50,000 in 2011–12 will have to pay an additional levy known as the temporary flood and cyclone reconstruction levy, unless they fall within an exempt class of individuals.

Is it time to review your bank's performance? We think so!

On the back of the recent RBA announcement and following on from the many market analysts who always comment about the banks and their approach to funding, here is a quick quip from Mark O’Donoghue of our finance division, Fidelity Finance Group (FFG):-