Talking Cents
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 The importance of a small business accountantAs your business accountant in Surry Hills I thought you should know that as per recent Government legislation from 1 July 2011 the low income tax offset for minors will no longer be applied to unearned income, that Is trust distributions, interest, dividends and rent. This effectively means that the amount of income a minor can earn before paying income tax has been reduced from $3,334.00 down to $416.00.This will have an impact on those small business and investment clients who have set up their business structure as discretionary trusts and have been distributing unearned trust income to their children to take advantage of beneficial tax rates and the resulting income tax savings. For the 2012 income tax year(and onwards) a minor will only be able to receive a maximum of $416.00 in trust distributions, assuming no other income. Otherwise the highest marginal rate of income tax will apply if these new changes are ignored. I guess it just shows that it really does pay to leave your tax planning and business structures to a trusted professional who has the primary interest of keeping abreast of such changes. Not many people, as a percentage of the population, would be affected by this change. As a result it will not receive the media attention to make it a widely known matter. Keeping abreast of changes in your small business industry is paramount to the success of any business and what we do best as small business accountants. The flood of information we receive from printed media, the internet and social media can often be overwhelming. Best to focus on what will directly impact on your business and allow your trusted advisor group to keep you informed of changes to other matters such as the one highlighted today. For any further information do not hesitate to contact us, your small business accountants in Surry Hills. |
