http://jwa.com.au/ Joe Walsh and Associates - Gold Coast Business Accountants Articles http://jwa.com.au/?process=views/article.php&articleId=9805 http://jwa.com.au/?process=views/article.php&articleId=9805 The ATO has announced new measures to help small businesses that are struggling to manage their tax debts in the current economic climate. The Commissioner emphasised need for the ATO to provide an empathetic approach to individuals and viable businesses that may be in financial difficulties. The approach will be for the ATO to differentiate between businesses likely to remain viable, if given reasonable latitude, and those that show little... http://jwa.com.au/?process=views/article.php&articleId=9788 http://jwa.com.au/?process=views/article.php&articleId=9788 The ATO has recently issued a draft ruling to explain their views about enduring powers of attorney for SMSF members. The arrangement intended to provide a way to minimise the risks associated with a SMSF losing its concessional tax status if its members spend time outside Australia for an extended period. An individual who holds an enduring power of attorney for a SMSF member is required to be appointed as a trustee or a director of the... http://jwa.com.au/?process=views/article.php&articleId=9808 http://jwa.com.au/?process=views/article.php&articleId=9808 The ATO recently issued a new ruling on the definition of ‘ordinary time earnings’ and ‘salary or wages’ under the superannuation guarantee system. The final version represents a significant departure from the initial draft released in November 2008. The new ruling addresses some concerns raised by employers with the draft version, and also includes some new items in the superannuation contribution... http://jwa.com.au/?process=views/article.php&articleId=9809 http://jwa.com.au/?process=views/article.php&articleId=9809 Meeting needs is the basis of all business. It is easy to get caught up in the day to day operations of running a businesss and lose sight of ways to innovate and improve your business. Take time out to flesh out some new concepts and determine how your product or service can be newer or better than anyone else; Ideas should be strong in at least one of the following areas in order to truly be competitive: Coming up with new offerings: This... http://jwa.com.au/?process=views/article.php&articleId=9807 http://jwa.com.au/?process=views/article.php&articleId=9807 Twitter is ranked as one of the 50 most popular websites worldwide by Alexa’s web traffic analysis. Social media is online content created by people using highly accessible and scalable publishing technologies. In the last few years, an array of new opportunities have appeared on the Internet in the form of social networking sites. An online social network service focuses on bringing together communities of people who share... http://jwa.com.au/?process=views/article.php&articleId=9806 http://jwa.com.au/?process=views/article.php&articleId=9806 With the current state ofthe economy, directors may need to review their understanding of obligations. In addition to the obligations imposed on directors under common law and the Corporations Act, the Australian Taxation Law imposes director duties and obligations for which there are significant consequences in the case of a breach. A ‘director’ refers to any person with or without formal appointment, who fulfills the... http://jwa.com.au/?process=views/article.php&articleId=9609 http://jwa.com.au/?process=views/article.php&articleId=9609 The ATO has warned trustees of SMSFs to keep their lodgements up-to-date. Whilst the ATO have maintained an empathetic approach and encouraged trustees to lodge even if they are having problems fixing breaches or are in financial difficulty, some funds are still failing to comply. Lodging the annual return is a primary compliance obligation that must be met by trustees. However, some SMSFs continually fail to lodge annual returns, even... http://jwa.com.au/?process=views/article.php&articleId=9789 http://jwa.com.au/?process=views/article.php&articleId=9789 The ATO is maintaining their position that unpaid entitlements held in discretionary trusts should be treated as loans and taxed as such. The crackdown, originally suggested in September, concerns the use of discretionary trusts with corporate beneficiaries. The ATO’s view is that when a trust distributes income or capital to a company, that unpaid present entitlement is actually a loan made by the company back to the trust and... http://jwa.com.au/?process=views/article.php&articleId=9790 http://jwa.com.au/?process=views/article.php&articleId=9790 The Administrative Appeals Tribunal (AAT) recently announced its position on advances to a partnership. It confirmed that these are capital contributions and not a loan provided by the taxpayers. In a recent case, the AAT held that the loan to a partnership was in fact an investment of capital in the partnership and, therefore, deductions claimed for interest and the cost of servicing the loan were not allowable. According to the AAT, the... http://jwa.com.au/?process=views/article.php&articleId=9608 http://jwa.com.au/?process=views/article.php&articleId=9608 The ATO has warned taxpayers to be aware of illegal super schemes that encourage people to take their super out before they retire. Those endorsing these schemes offer to help people access super to pay off debts, buy a house or go on a holiday by setting up a self- managed super fund (SMSF). Schemes that help set up an SMSF with the sole intent of accessing super savings early are illegal. Severe penalties apply to taxpayers that illegally... http://jwa.com.au/?process=views/article.php&articleId=9605 http://jwa.com.au/?process=views/article.php&articleId=9605 Many investors purchase properties that require improvement, with the intention of renovating to create equity and generate extra rental income. Investors may be able to maximise their depreciation claims by taking types of new fitts and fixtures into account before installing them, taking advantage of different depreciation rates. Maximising depreciation claims By way of example, a property investor might want to consider which is the most... http://jwa.com.au/?process=views/article.php&articleId=9607 http://jwa.com.au/?process=views/article.php&articleId=9607 The slump in investment markets has seen super funds post negative returns for a second year. After a period of buoyant investment returns, many SMSF trustees are falling into the trap of incorrectly accounting for their investment losses. Investment losses by a SMSF are generally considered capital losses. The ATO has shed light on the subject through its recently published Interpretative Decision 2009/92. The statement outlines: ... http://jwa.com.au/?process=views/article.php&articleId=9606 http://jwa.com.au/?process=views/article.php&articleId=9606 The Australian Taxation Office has commenced sending letters to tax agents representing shareholders of private companies. The letters warn shareholders against breaching rules in relation to taking out personal loans from their businesses, and are part of an ATO early intervention program. They are intended to warn companies which are not charging commercial interest rates to shareholders and associates. The warning also deals with... http://jwa.com.au/?process=views/article.php&articleId=9363 http://jwa.com.au/?process=views/article.php&articleId=9363 Concessional contributions are those made to a superannuation fund where a tax deduction is claimed and are taxed at 15% at the time of contribution. In addition, contributions are subject to a limit. This was previously $50,000 for individuals under age 50, and $100,000 for taxpayers over age 50 until 30 June 2012. The Budget announced that from 1 July 2009 the concessional contributions cap will be reduced by 50%, which results in caps of... http://jwa.com.au/?process=views/article.php&articleId=9364 http://jwa.com.au/?process=views/article.php&articleId=9364 The family trust election rules were introduced to prevent the transferring of trust losses. In 1997 however, important concession to these general rules were introduced to allow certain losses to be recouped where a family trust election is made. Once a trust has elected to be a family trust, distributions are restricted to those entities and individuals that form part of the family group relevant to the ‘specified... http://jwa.com.au/?process=views/article.php&articleId=9365 http://jwa.com.au/?process=views/article.php&articleId=9365 Despite recent signs of improvement in the global economy, investors may be left holding unrealised capital losses. That is, investments or shares that are trading at a lower price than when they were purchased. Some may have sold investments to crystallise or realise any loss before June 30, to offset capital gains from other investments. Whilst this is a legitimate strategy to reduce capital gains tax, the ATO will be closely watching how... http://jwa.com.au/?process=views/article.php&articleId=9259 http://jwa.com.au/?process=views/article.php&articleId=9259 The Australian Taxation Office has indicated that it intends to closely monitor self managed superannuation funds. It has issued a warning to trustees of SMSF against intentionally trying to beat the in house assets rule. The warning comes after issuing a taxpayer alert regarding joint venture property development schemes designed to defeat the in-house assets legislation. Under the Superannuation Industry Supervision Act, the market value... http://jwa.com.au/?process=views/article.php&articleId=9258 http://jwa.com.au/?process=views/article.php&articleId=9258 The Government has passed wide-ranging reforms recognising all couples, regardless of sexual orientation or gender. The changes ensure that same-sex couples and their families receive the same entitlements and are subject to the same obligations as opposite-sex couples. From 1 July 2009, the changes to definitions of ‘spouse’, ‘de facto relationship’, ‘relationship’ and... http://jwa.com.au/?process=views/article.php&articleId=9257 http://jwa.com.au/?process=views/article.php&articleId=9257 Many individuals who advise their superannuation funds to whom should receive their death benefit, are of the belief that their wishes are binding on the trustees of the fund or that benefits will be paid according to their will. However, superannuation is not part of an individual’s estate and most nominations lodged with funds are ‘preferred’ nominations and not binding ones. In the absence of a nomination, a... http://jwa.com.au/?process=views/article.php&articleId=9256 http://jwa.com.au/?process=views/article.php&articleId=9256 The global economic downturn has reduced the value of investments for many taxpayers. As a result, some taxpayers will be claiming losses from the disposal of investments (for example, selling shares) for the 2008–09 year. The Australian Taxation Office (ATO) has recently indicated concern over taxpayer confusion in relation to the difference between losses on their revenue account (from carrying on a business, such as share... http://jwa.com.au/?process=views/article.php&articleId=8249 http://jwa.com.au/?process=views/article.php&articleId=8249 Most businesses putting up a website have visions that millions of people will be instantly flocking to their site, providing a qualified source of new enquiries. In some ways it’s the new age version of “hanging up a shingle” and naively expecting customers knocking on the door. It pays to have some realistic expectations about what can and cannot be achieved automatically by having a website and what steps can... http://jwa.com.au/?process=views/article.php&articleId=8248 http://jwa.com.au/?process=views/article.php&articleId=8248 Over the last two decades, customer loyalty programs have exploded. Consumers under 30 probably don’t remember a time when they went to a supermarket and bought groceries – or fixed your car or checked into a hotel – without showing a customer loyalty card. For big corporations, the value of customer loyalty programs is hotly debated. Consumers are now overloaded with programs, frustrated keeping track of... http://jwa.com.au/?process=views/article.php&articleId=8247 http://jwa.com.au/?process=views/article.php&articleId=8247 1. Understand what events may trigger a partnership. A written agreement is not required for a partnership to exist in the eyes of the law. If, over a beer, two friends decide to make up some bottles of a special barbeque sauce and sell it at a street market, a partnership may have formed. That means that both parties may have equal rights to the recipe and each may be responsible for all bills and obligations. So be very clear about the... http://jwa.com.au/?process=views/article.php&articleId=8246 http://jwa.com.au/?process=views/article.php&articleId=8246 Great partnerships can make great companies. Look at Hewlett Packard and Microsoft for example. However, before getting involved, it pays to get an understanding of the perils and pitfalls of partnerships. For anyone starting or trying to grow a business, working with a partner can be great. After all, it’s tough and lonely to build a business single handedly. It can be a big help to have someone with whom to share the... http://jwa.com.au/?process=views/article.php&articleId=8245 http://jwa.com.au/?process=views/article.php&articleId=8245 The world has changed. Terrorism, natural disaster, and global financial chaos. The last decade has been a wake-up call to anyone that runs a business. To be successful, or even to survive, expect the unexpected. How can a business increase its chances of survival and reduce exposure to one catastrophic business occurrence? 1. Don’t get too dependent on one customer. When a business has a very large, profitable customer,... http://jwa.com.au/?process=views/article.php&articleId=7252 http://jwa.com.au/?process=views/article.php&articleId=7252 The Government recently expanded the temporary investment allowance announced in December 2008 with the introduction of the Small Business and General Business Tax Break as part of the Nation Building and Jobs Plan. Small businesses can claim an additional 30% tax deduction for new investments in tangible depreciating assets used in running a business. Assets must cost $1,000 or more and acquired from 13 December 2008 to 30 June 2009, and... http://jwa.com.au/?process=views/article.php&articleId=7251 http://jwa.com.au/?process=views/article.php&articleId=7251 Contributing to superannuation can often provide significant tax benefits and long term wealth creation benefits. Some of the contribution strategies outlined below can be combined strategically to maximise both tax and retirement planning positions. Government co-contribution The Government will contribute 150 per cent of an eligible taxpayer’s personal after-tax superannuation contributions during a financial year up to a... http://jwa.com.au/?process=views/article.php&articleId=6924 http://jwa.com.au/?process=views/article.php&articleId=6924 Superannuation law requires that superannuation funds are maintained for the sole purpose of providing for the retirement of members. However, there are other benefits that can be achieved from a superannuation fund before retirement, particularly in light of a slowing global economy. Recent amendments to the Bankruptcy Act 1966 (‘the Act’) offer significant opportunities for asset protection through the use of... http://jwa.com.au/?process=views/article.php&articleId=6476 http://jwa.com.au/?process=views/article.php&articleId=6476  Identity fraud is a growing problem, with an increasing number of businesses and individuals being targeted by criminals. New research suggests it can take more than a year for some people to discover that they have been the victim of identity fraud, by which time a great deal of damage may have been done; while corporate identity fraud can also ruin the reputation of an otherwise successful business. Stealing... http://jwa.com.au/?process=views/article.php&articleId=6477 http://jwa.com.au/?process=views/article.php&articleId=6477 According to a recent survey, a third of employers claim that deficient skills among their staff result in higher operating costs, orders being lost and new product development being delayed.  So how could you take advantage of training: firstly to help prevent damage to your bottom line, and ultimately to really benefit your business? Beyond the basics Clearly, the minimum you need to offer staff is the training to make them... http://jwa.com.au/?process=views/article.php&articleId=7795 http://jwa.com.au/?process=views/article.php&articleId=7795 The beginning of the year is often a time when business owners take stock of the year ahead, set goals and decide which strategies will provide the best result. More often than not, personal planning is set aside particularly when it comes to preparing a will. Death is a time of high emotion, of loss and of changing financial circumstances. For loved ones, a will can reduce some of the stress and uncertainty involved due to changes in... http://jwa.com.au/?process=views/article.php&articleId=6923 http://jwa.com.au/?process=views/article.php&articleId=6923 The Australian Taxation Office (ATO) recently released an Interpretative Decision which significantly changes the position for developers of new residential premises constructed for the purposes of sale, but leased temporarily, pending sale. With the current slowing of property sales, these changes provide welcome relief for property developers.   Under the existing system, the ATO required developers who leased out new... http://jwa.com.au/?process=views/article.php&articleId=6762 http://jwa.com.au/?process=views/article.php&articleId=6762 Sadly, not all prospects are going to convert to paying customers, regardless of your prices or the quality of your products or services. A great deal of time and money can be wasted dealing with enquiries and preparing tenders or proposals for prospects who are not ready to buy or just plain ‘tyre-kickers’. On the other hand, after ‘wasting’ your time with even one or two of these tyre-kickers,... http://jwa.com.au/?process=views/article.php&articleId=6761 http://jwa.com.au/?process=views/article.php&articleId=6761 When things get tough, directors of family companies may be tempted to delay payment of a tax debt. But that’s dangerous, as directors may be personally liable for company tax debts. Directors of family companies that run a business should keep in mind their duties as directors. As the economy slows and cash flow tightens, some business owners may “throw caution to the wind” in relation to making their tax... http://jwa.com.au/?process=views/article.php&articleId=6760 http://jwa.com.au/?process=views/article.php&articleId=6760 A day rarely goes by without a news story about the struggling economy. Good business and proper financial planning are important but, more so in an economic downturn. Here are some steps that can be implemented to ensure that your business is protected during these unpredictable times. 1. Do a cash flow budget – The first step to improving cash flow management is to be familiar with your business balance sheet. The error... http://jwa.com.au/?process=views/article.php&articleId=6614 http://jwa.com.au/?process=views/article.php&articleId=6614 When the economy slows, temptation to reduce or avoid paying taxes increases. The cash economy has been operating for many years, however, changes to technology have now enabled the Australian Taxation Office to place it within its sights. The Commissioner of Taxation recently outlined the ATO’s Compliance Program for the next twelve months, highlighting a continued focus on the cash economy. Businesses who fail to record... http://jwa.com.au/?process=views/article.php&articleId=6613 http://jwa.com.au/?process=views/article.php&articleId=6613 Changes announced by the Treasurer in the May budget that tighten the fringe benefits tax (FBT) exemption for certain work-related items (including laptop computers, personal digital assistants and tools of trade) have now become law. The rules affecting laptop computers come under the FBT exemption for work-related items such as mobile phones, calculators, personal digital assistants and tools. Under the old rules, employees could have... http://jwa.com.au/?process=views/article.php&articleId=6612 http://jwa.com.au/?process=views/article.php&articleId=6612 Tired of hearing about global warming, carbon footprints, and organic food? For every business, there are a number of actions that can be taken to incorporate positive environmental activities in your business and at the same time, improve profitability. 1. Improve your internal operations – Every company can save money and help save the planet by taking a few easy steps. The most important is reducing waste, which not only uses... http://jwa.com.au/?process=views/article.php&articleId=6336 http://jwa.com.au/?process=views/article.php&articleId=6336 What is your business worth? The growing number of Baby Boomers looking to retire will see an increasing number of businesses being placed on the market for sale. Combine this with the increased number of executives looking to enter the world of the self employed. These executive will be seeking increased control over their own future after being jettisoned from the corporate world as a result of the slowing global economy. These two...