• Banklink - A solution for the new tax year
• DSR Secure Client Sites
• Your end of year financial opportunities
• Tax Tips - 10 last minute ways to minimise your tax
• What's changing on 1 July
• Important Dates
• Client Testimonial

Welcome Note   Welcome to What's Happening at DSR this June. Each month we aim to bring you interesting and tax effective ideas for saving you money, growing your business and  ultimately building a successful retirement plan. Remember, whatever your financial & accounting needs we can work with you to find a solution.

 

Secure Client Sites Fancy the idea of having your financials and tax returns available 24/7? If so, the little guy on the left will show you the way. We have developed a secure area to provide you with exclusive access as our valued clients to reports and documents that we hold in our files that you may wish to access and you can print, download or view at your convenience. This service is highly mobile and you can log in whilst meeting with your bank manager for direct access to information such as your financial statements and tax returns. No more worry about finding your information in a pile of papers at home, this is a one stop library for your tax information. DSR Secure Client Sites.....available from 1 July for all business clients on our website.

Banklink - A solution for the new tax year As we enter into a new tax year it is a good time to evaluate the last 12 months and work out for the time ahead what changes we can make whilst saving us time and money. The one thing that comes to mind for most business owners is how can they make preparing their accounts simpler and time efficient? Banklink could be your solution. The Banklink System allows us to complete your accounts efficiently and accurately, whilst saving you precious time and money. Your financial institution can simply provide our office with your bank statement data electronically and securely encrypted. From here we can process all your transactions with minimal input from you. It is that SIMPLE. No more worry over missing bank statements or spending hours at your computer doing your monthly book work. Banklink frees up your time so you can focus on important matters like running your business or doing the things you like to do. The number of  clients now using Banklink is increasingly rapidly and they are discovering that the hours they spent preparing their accounts each month, has now turned into just minutes. To view a short demonstration on the benefits of Banklink - Banklink Service Presentation So do yourself a favour and make sure the time you have left at the end of the week isn't wasted on writing up your books or data entry.  Call us today to discuss how Banklink will work for you.

Your end of year financial opportunities Investment Allowance The Government’s Investment Allowance was hugely popular. However, conditions did apply to what, how, and when assets purchased by your business could utilise the Allowance. For businesses with an aggregated turnover of $2 million or more, the Investment Allowance provides an additional 10% or 30% deduction on the purchase price of an asset used primarily for business purposes in Australia. The level of allowance you can claim depends on the date you purchased the asset and the date you install the asset ready for use. The allowance is claimed as an added deduction in the year the asset is first used or installed ready for use and is in addition to the normal depreciation deductions. The allowance is only available for assets that you would normally be able to claim depreciation deductions for. To claim the 30% investment allowance on eligible assets this financial year, the contract for the acquisition of the asset (or the addition) must have been in place by 30 June 2009 and the asset’s first use time must be before 30 June 2010. If assets are not first used by 30 June, they must be used or installed ready for use by 31 December 2010 in order for the 10% deduction to be available in the 2011 tax return. If you'd like further information on the investment allowance, contact us before 30 June

Tax Tips... 10 last minute ways to minimise your tax These tax saving ideas might be simple but they are tried and tested. 1. Write off bad debts. To be a bad debt, you need to have brought the income to account as assessable income, and given up all attempts to recover the debt. It needs to be written off your debtors’ ledger by 30 June. If you don’t maintain a debtors’ ledger, a director’s minute confirming the write-off is a good idea. 2. Trading Stock. Write off any stock that is damaged or obsolete. Complete a stock take and remember that stock can be valued at the lower of cost, replacement, or net realisable value. You can use different methods for different stock items. 3. Review your asset register and scrap any obsolete plant. Check to see if obsolete plant and equipment is sitting on your depreciation schedule. Rather than depreciating a small amount each year, if the plant has become obsolete, scrap it and write it off before 30 June. 4. Repairs, consumables (office stationery etc), trade gifts or donations. To claim a deduction for the 2009/10 financial year, consider paying for any required repairs, replenishing consumable supplies, trade gifts or donations before 30 June. 5. Pay June quarter employee super contributions if you want to claim a tax deduction in the current year. The next quarterly superannuation guarantee payment is due on 28 July 2010. Some employers choose to make the payment early to bring forward the tax deduction instead of waiting another 12 months. 6. Superannuation. Don’t forget yourself. Superannuation can be a great way to get tax relief and still build your wealth position. Your personal or company sponsored contributions need to be made before June 30 to ensure deductibility. Remember, the concessional contributions caps were reduced to $25,000 per annum (indexed) from 1 July 2009. The transitional concessional contributions cap (applicable to individuals aged 50 and over for the 2009/2010, 2010/2011 and 2011/2012 financial years) was reduced to $50,000 per annum. 7. Capital gains and losses. Neutralise the tax effect of any capital gains you have made during the year by realising any capital losses that you have. These need to be genuine transactions in order to be effective for tax purposes. It may be possible to contribute assets with unrealised losses to superannuation in order to do this. 8. Directors’ fees and bonuses. Declare them before 30 June and providing the company is absolutely committed to them, you are entitled to the deduction even if they have not been paid. Again, a director’s minute is a good idea. The directors and employees only need to declare this income in the year of receipt although they need to be formally notified of their entitlements before 30 June. 9. Trust distributions. Where you are operating a discretionary trust, the trustee should resolve how the income of the trust will be distributed and this should be minuted. While tax considerations are not the only issue, your decision on trust distributions can provide some effective tax management. While these distributions would generally need to be made by 30 June for trust law purposes, the ATO provides an administrative concession and allows distributions to be made by 31 August (ie, an extra 2 months). 10. Management fees. Where management fees are being charged between related entities, make sure that the charges have been raised by June 30. Where management charges are used, make sure they are commercially reasonable. This is an area that the ATO are placing under greater scrutiny. With 30 June fast approaching a few hours of tax planning and review could take $000's off your year-end tax bill. To ensure we fully explore and implement any tax planning advantages to your business contact us now!

 

 

What's changing on 1 July • New Income Tax Rates - the low income tax offset will increase to $1,500 from 1 July 2010. This will increase the effective tax-free threshold to $16,000 for individuals earning $30,000 or less. • Harder to claim excess medical expenses - From 1 July 2010 the threshold above which you can claim the net medical expense tax offset will increase from $1,500 to $2,000. • Senior Australians can earn more before being taxed - in line with the new income tax rates, the calculation of the rebate threshold for the Senior Australians tax offset will also change. • Superannuation co-contributions frozen - the Federal Government will permanently freeze the matching rate for the superannuation co-contribution at 100% and the maximum co-contribution that is payable on an individuals eligible personal non-concessional superannuation contributions at $1,000. • Increase in Medicare levy thresholds - the Medicare low-income thresholds will increase to $18,488 for individuals and $31,196 for families effective 1 July 2009. • New rules target shareholder perks - the Federal Government wants to stop shareholders and their families from benefiting from company assets such as real estate, cars or boats where the assets are provided free or cheaply to them (non-arms length). • New foreign employment income tax rules - foreign income earned by Australian resident employees will generally be taxed in Australia effective 1 July 2009. • NSW Payroll tax rate will reduce - From 1 July 2010, the payroll tax rate will reduce from 5.65 per cent to 5.50 per cent. • NSW Stamp Duty - From 1 July 2010 transfer duty exemptions and concessions are available for certain new home purchases, off the plan purchases, and vacant land purchases on which a home will be built within a specified time. There is also a specific exemption for eligible seniors purchasing a new home as their principal place of residence. For more information visit the NSW Homebuyers website. If you want further information about any of the changes contact us today.

Important Dates Pre 30 June    -        Pay superannuation to claim contribution in the current finanial year 1 July 2010 -     New Income Tax thresholds apply 14 July 2010 (on or before) -    PAYG Payment Summaries provided to all your staff 28 July 2010 -    Quarterly superannuation guarantee payments due (1 April - 30 June) if not already paid prior 30 June 14 August 2010 -    Annual PAYG Payment Summary lodged with the ATO. Penalties apply for late lodgement.

Client Testimonial Davis Stewart Rowland has been an integral part of our business strategies and forward planning. We have known Glenn Stewart for over ten years and believe he is an accountant that understands business. He is approachable, knowledgeable and we are confident that h has our business success in mind. Jim & Sharon Tieman

About Davis Stewart Rowland Davis Stewart Rowland is a three partner firm located at The Entrance on the NSW Central Coast. With over 50 years experience we have an in-depth knowledge of what the business owner and investor needs to embark and stay on the path of growth and wealth creation. We have a unique appreciation of the issues business owners and investors face, which makes us an integral part of our client's advisory team. Our comprehensive approach includes: Benchmarks Tax minimisation plans Cash flow forecasting Business information processing Management & strategic advice Whatever your needs we can help find a solution.  Contact us today