• Knowing when to change your business structure
• Tax Planning - how it can save you $000's
• SMSF & Borrowing
• Banklink - A good business decision
• Modern Awards and National Employment Standards
• Claiming deductions for education expense against youth allowance
• Reminder to Lodge - Deadline Approaching
• Important Dates
• Client Testimonial
• About DSR

Welcome Note

Welcome to What's Happening at DSR in March.

All of us at Davis Stewart Rowland are looking forward to helping you achieve your business and personal goals and work towards building a successful retirement plan.

We aim to bring you interesting and tax effective ideas for saving you money, explore new developments in taxation and the way we do business, and keep you up to date with issues that may affect you and your business.

Remember...

'whatever your financial and accounting needs we can work with you to find a solution".

The first should be when you can identify that there is significant value building in your business. This might be reflected by the assets held in the business or the development of goodwill or intellectual property. The existence of these assets means that you should be considering risk protection and ways to protect against the unexpected. Ideally, significant capital assets of the business should be separated from the operating structure.

The second sign is where you can see a material increase in your tax exposure. As your business grows, so too should your profits and your earnings from the business. And, in some cases profits and cash will not mirror each other. Typically cash lags profits, so you might be dealing with the tax on profits that are not readily available to you. Apart from the fact that you don’t want to pay any more tax than necessary, the right structure can help to manage tax impacts and the timing differences between profits and cash.

Finally, if you are expecting to sell your business or to introduce other partners or shareholders, then the right structure can make a huge difference. To maximise your access to tax concessions and in particular the CGT small business concessions, you need to have your structure right in advance of any changes.

There are some ways to manage the tax costs associated with a change in structure. The first thing to do is to identify the structure that is right for your business. From there, quantify the cost of any change and the best way to put it into effect.

If you would like to ensure that your business structure is right for you now and in the future, talk to us today.

Tax Planning - how it can save you $000's

Did you know a few hours of planning and review could take thousands of dollars off your year end tax bill.

Tax planning should not be a last minute scramble. It should be a year round event that forms an integral part of your business management process. The savings could make a real difference to the way you manage your business.

With the end of the 2011 financial year fast approaching now is an ideal time to talk with your accountant about exploring the legitimate tax advantages to your business before paying out to the tax office.

Tax planning is a smart business decision.

Your SMSF and borrowing 

Knowing what assets your Self Managed Superannuation Fund (SMSF) can own is an important part of being a fund trustee. You should also know what assets your fund can acquire from you or related parties. New rules recently introduced may give more scope for your SMSF to borrow funds to acquire these assets but there are unique rules and guidelines that need to be adhered to.

As the trustees of your SMSF, you need to ensure that all assets held in the fund are consistent with the fund’s investment strategy. That is, as trustee you need to consider issues such as risk and return, diversification of the fund’s assets, liquidity within the fund, and of course, the ability of the fund to discharge liabilities. 

Click here for the common questions we’re often asked about borrowing:

Did you know...

There were 425,300 Self Managed Superannuation Funds in Australia at 30 June 2010 with 29,405 new funds created in the 2009/2010 financial year. Of those, 25% had a total asset value below $200,000, and 49% had a total asset value between $200,000 and $1m. Just over 30% of all new funds in the same time period were set up by 45 to 54 year olds. As at December 2010, SMSFs owned assets worth a total of $420,612,000,000 – 31% in listed shares.

Speak with your accountant today about controlling your own destiny with a self managed super fund.

 Going Forward with Banklink

Since implementing Banklink in our practice 18 months ago, we have over 150 business clients successfully using the Banklink System with new users joining every week. They are discovering that the hours they spent preparing their accounts each month has now turned into just minutes.

"I have found Banklink to be very convenient in that I no longer have to spend time boxing up documents and arranging to have them couriered to and from my accountant's office. It has also saved the cost of the courier service"

F & F Brandes Pty Ltd

The Banklink System allows us to complete your accounts efficiently and accurately, whilst saving you precious time and money.

No more spending hours on your computer doing monthly book work, Banklink frees up your time.

IT IS THAT SIMPLE.

So do yourself a favour and talk to us today about using Banklink for your business.

National Employment Standards

National Workplace Relations System

Modern Award Fact Sheet

Employer Obligations

Small Business Fair Dismissal Code

Claiming deductions for education expenses against youth allowance    
        
The Australian High Court decision on 11 November 2010 (Federal Commission of Taxation v. Anstis) meant that taxpayers may be eligible to claim a deduction for their study expenses if they received the youth allowance to study full-time.  

If taxpayers were eligible for a deduction in the years 2007, 2008, 2009 or 2010 the Australian Taxation Office will be notifying taxpayers regarding amending their assessment(s) for the relevant years. The amendment(s) will allow for a deduction of $550.00 for each year in which the taxpayer was eligible to receive a deduction for their study expenses.

If this decision affects you and have any questions, give your accountant a call today.

Reminder to Lodge

Final deadline (15 May 2011) for lodgement of your 2010 income tax return is fast approaching.

With BAS and Tax deadlines falling due and the Easter break, please organise your work to our office at your earliest convenience to ensure deadlines are met.

The Australian Taxation Office may impose late lodgement penalties should your return not be lodged by the due date. 

Call our office for an appointment or email your tax work to DSR today.

Important Dates

21 March 2011 
- February 2011 Monthly Instalment Activity Statement

31 March 2011
- Income tax return for companies and superannuation funds with total income in excess of $2 million in latest year lodged (excluding large/medium business taxpayers).
- Income tax return for individuals and trusts which were tax level 6 as per latest year lodged (excluding large/medium business trusts).

Client Testimonial

I'd like to thank you for all your help and support you have given Alinta Apparel over the years, ensuring that our business is financially streamlined, and taking the stress out of all my tax concerns.

When a business associate recommended that I contact DSR in regards to our accounting needs, I didn't realise just how much of a business change and enhancement would mean. As Alinta Apparel has grown, DSR has been right there to adjust financial procedures, offer advice and maneuver my company towards greater stock management.

I especially appreciate your quick responses to any queries I have, and the friendly and valuable help you and your staff provide to Alinta Apparel.

Mark Pinchbeck
Director
Alinta Apparel Pty Ltd

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