1. Keep your banker informed about your business activities and industry trends
2. Ensure your financial information provides adequate detail for a credit assessment
3. Understand the lenders requirements
4. Find out if the loan will have reporting covenants
5. Ensure you have a cashflow statement that is accurate and demonstrates an ability to cover future interest rate rises.
This year the ATO expect to take action on 17,500 employee complaints about unpaid superannuation. Last year the ATO yielded more the $700 million from these complaints, have you paid your employees superannuation?
From 1 July 2010, the fuel tax credit rate for heavy vehicles that use fuel such as diesel or petrol and travel on public roads is 15.543 cents per litre. This rate change is due to an increase in the road user charge.
A heavy vehicle is generally defined as one with a gross vehicle mass (GVM) of greater than 4.5 tonne.
Please contact your accountant if you require assistance calculating the rebate or if you are unsure if you are eligible.
In the 2010 – 11 ATO Compliance Program, the Commissioner of Taxation, Michael D’Ascenzo, has announced that the ATO would extend the measures to assist small businesses introduced last year. He said the ATO understood that some businesses were still experiencing financial hardship as a result of the economic downturn and that businesses having difficulty paying their tax debts may be able to enter into flexible payment arrangements or interest-free payment deferrals.
The program was originally intended to expire on 30 June 2010, but will now run until 30 June 2011. He said the extension of the Small Business Assistance Package will mean that eligible businesses with a turnover of $2 million or less will continue to have access to:
If you are having trouble meeting your tax obligation please contact your accountant to discuss the above change.
There is now a free superannuation clearing house service available to small businesses with less than 20 employees. Please contact your accountant to discuss the benefits!
Federal legislation that took effect from 1 July 2009, require some superannuation contributions that are in addition to the compulsory superannuation guarantee rate of 9% be reported to the ATO. If you are now preparing PAYG summaries and are unaware of this change please contact your accountant immediately.
Investors in failed companies can salvage some benefit out of their worthless shares by crystallising a capital loss for tax purposes. If you are a shareholder in a failed company you should consider crystallising this tax loss before June 30. Please contact your accountant to discuss.
Since March 2000 the ATO have provided small business owners with a free electronic record-keeping system, e-Record. It was originally developed as an interim product that would help small businesses move from paper-based record keeping but a decade later it needs to be redeveloped to keep up with technology and new business directions.
From 1 July 2010, e-Record will no longer be available and it will no longer be supported after 30 September 2010. Users will need to move from e-Record to a suitable alternative record-keeping system and you should have your new system in place by 30 June 2010. The ATO have indicatedthat you may continue to use e-Record after 30 June 2010 but only to complete your 2010 or prior income year records. You should not use e-Record for your 2011 income year records. Speak to us today about a suitable alternative for your record-keeping system.
Hidden in the Budget paperwork was a change to the way business can claim the GST back on assets financed under a Hire Purchase agreement. Previously a GST cash registered client would have had to claim the GST over the term of the borrowing. This will change and the GST will be able to be cliamed back at time of purchase. We strongly recommend you contact us to discuss your asset financing options before purchasing any business aseets.
Those taxpayers with minimal deductions will be able to streamline their tax return processing by submitting a standard return prepared by the ATO. We are yet to hear the time frame for these returns but feel that taxpayers may have to wait until end of October to receive their refunds to allow the ATO time to collate their return.