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by Jodie | Jul 11, 2012 | Advisers, Australian Economy, Business, Economy, Finances, General, Insurance & Protection, Superannuation
Wealth Planning Partners are pleased to announce that Russell Sheasby has joined our team of Gold Coast based Financial Advisers.
Russell emigrated from South Africa 10 years ago and has been both self employed in small business and employed in management roles of various national companies since that time.
Having had daily contact with clients, contractors and SME’s and first hand experience with building business, Russell will make a great addition to the team.
Russell is looking forward to tailoring plans that will individually suit our clients and will help to assist in achieving your wealth creation goals and protection needs.
Please visit Russell’s LinkedIn profile for more information:
http://au.linkedin.com/in/russellsheasby
by Jodie | Jun 21, 2012 | Business, Economy, Finances, Superannuation, Taxation
Superannuation payments are set to rise for employers phasing up from 9 to 12% over the coming years. Employers are expected to be paying the full 12% by 2020.
Basically, this measure is designed by the Government to increase the future retirement savings and incomes of Australian workers through a gradual increase in the superannuation guarantee.
Most of us realise that the Government can’t afford to fund pensions forever, and we all need to take a more active role in saving for our retirement. And most of us understand that employers are the ones who will be funding the bulk, if not all of the increase.
The Government has released the following Fact Sheet with detailed explanations: http://www.deewr.gov.au/Department/Documents/Files/6_Fact_Sheet_SG%20_rate_increase.pdf
It all seems fairly straight forward to myself, my employees and most of the employers and clients I speak with. Even the DJ’s at 2GB seem to have a pretty good handle on how it’ll work.
Not so for the Labor member for the seat of Canberra – Gai Brodtmann it would appear.
In this interview, she attempts to explain who’s going to pay for the 3% increase in the Superannuation levy. Presumably this is an interview she has prepared for and a law she has quite possibly, voted on.
The political ‘spin’ is perfect (if repetitive) but it appears, she hasn’t a clue about what it means or how it all works.
Unfortunately, as amusing as the following interview is, it’s also serious. Our Politicians are the lawmakers – and one would hope they have some idea of what they’re doing.
http://www.2gb.com/index2.php?option=com_newsmanager&task=view&id=12080&task=view&id=12080
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by Jodie | May 9, 2012 | Business, Debt Management, Economy, Finances, General, Investments, Self Managed Superannuation Funds, Superannuation, Taxation
The 2012 Federal Budget only contained few surprises as many of the measures had already been legislated or pre-announced.
The main winners were lower income earners, families and the elderly.
Federal Budget 2012 summary
The key new announcements include:
- tax may increase on certain employment termination payments
- the reduction in the company tax rate isn’t going ahead
- the increase in the concessional contribution cap for people aged 50 or over with less than $500,000 in super will be postponed until 1 July 2014
- the tax payable on concessional super contributions by people earning $300,000 pa or more will increase from 15% to 30%, and
- a ‘SchoolKids Bonus’ of $820 a year for each child at high school and $410 for every child in primary school will automatically be paid to parents who are eligible for Family Tax Benefit Part A, replacing the Education Tax Refund.
The Government has also confirmed that:
- people earning under $80,000 pa will receive modest tax cuts
- the minimum income payments for a superannuation pension/income stream won’t increase until 1 July 2013, and
- funding will go ahead for the landmark changes to Australia’s Aged Care System announced recently.
For further information – read here 2012 Federal Budget Summary
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by Jodie | May 9, 2012 | Economy, Finances, Superannuation, Taxation
Well, it could have been much worse for super. But it wasn’t so bad after all.
There were a couple of measures which will reduce the ability to contribute to super in a cost effective manner, however the 15% tax rate on investment income and 10% capital gains tax was maintained; the exemption for funds paying pensions (and for 60 year old+ superannuants) was not touched.
As always, there are to be some changes. The 2 main ones are:
Deferral of $50,000 For People With Less Than $500,000 in Super Contributions
We already knew from 1 July 2012, the Government was going to reduce concessional contributions to $25,000 p/a for many people. The exception was to be those who were both over 50 years of age and had less than $500,000 in total superannuation balances.
The Government has now decided to defer this by a further 2 years. So for the next 2 years, everyone will be limited to $25,000 p/a. For the 2014/15 financial year, the original plan (i.e. $50,000/+50yrs/<$500,000) will recommence.
Probable Increase in Concessional Contribution Caps From 2014/15
The Budget papers say that “In 2014-15, the general cap is likely to increase to $30,000 through indexation, and the higher cap would then commence at $55,000.”
“Likely”? Normally Budgets are documents which commit to the addition, removal, increase or decrease in things as a matter of fact. It is unusual that the word “likely” is used in the budget delivery making us a little unsure how to interpret this new “maybe” style of commitment. A word-search of the papers can find no other measure which is similarly described.
And Now For the Bad News…
For people with income over $300k p/a the 15% contributions tax will no longer apply as of 1 July 2012. Instead, the rate will go to 30%
Considering that people in that category are going to be limited to $25,000 p.a. of concessional contributions in any event, someone making the maximum deduction contribution would be looking at an extra $3,750 of tax. It is unlikely that the extra impost will stop them from contributing.
For accountants and administrators, the main point of concern is about how they intend to administer and collect this extra amount. Anyone who survived the Howard Government’s introduction of the superannuation surcharge will remember what a debacle the reporting and assessment process was.
Given that they are intending to bring it into effect from 1 July 2012, we won’t be left wondering for long!
And That’s a Wrap!
There were a couple of re-announcements of existing measures including the increase in the super guarantee and the upcoming requirement for SMSF auditors to obtain registration. However, there was nothing else new to add.
by Jodie | Apr 30, 2012 | Economy, Finances, General, Taxation
The tax year is once again set to end June 30 and the budget is due for release on the evening of 8th May 2012.
Tax planning opportunities are available now, and as soon as the budget has been released I will also send through an update of what’s new. It’s a great time to get together to review how you’ve travelled for the year and what we can do prior to EOFY. It’s also the perfect time to get together with your Accountant to ensure you’ve done all you can before June 30.
Please find outlined below some new developments as shared by my Accountant Leiza Cole, from Accountant Sharing Knowlege:
Tax Tip 1: Small Business: instant asset write off and simplified depreciation
On the 29 March 2012, the small business instant asset write off and simplified depreciation received royal assent. Therefore in the 2012/2013 the change will enable small businesses to write-off all depreciable assets where the taxable purpose proportion is less than $6,500 in the income year in which they start to use the asset, or have it installed ready for use.
Tax Tip 2: Changes to Private Health Insurance Rebate and Medicare Levy
Currently holders of private health insurance receive a minimum of 30% rebate in relation to their insurance premiums. This will change from 1 July 2012, as a consequence of the Parliament recently passing legislation that will “means test” the private health insurance rebate. Therefore eligibility for the rebate will now be determined based on income (of either an individual or a family) and age. This means that if your income (or the income of a family) exceeds certain thresholds each year, the amount of eligible rebate may be reduced (or removed completely). If you want to discuss this further with me please give me a call as individual circumstances will need to be taken into account.
Savings Tip 3: Review your Home Loan
For most of us our homes are our biggest assets however they very often have a home loan attached to them which takes us many years to repay. As the debt exists for many years we end up paying thousands of dollars in interest each year. The banks/ building societies can offer various products and rates of interest. I suggest that we review these every few years to ensure we have the best product to meet our needs and hopefully to save us funds. This can be a daunting task as there are so many products on offer. I suggest talking to a mortgage broker so they can assist you with finding the best solution.
Info Tip 4: National Names Register
If you wish to trade under a trading name i.e. a name different to your individual name or your company name, then you are required to register this name, previously with the Office of Fair Trading.
Following a recent Government announcement, it is expected that from 28 May 2012 registration of business names will be managed under a national scheme administered by The Australian Securities and Investments Commission (ASIC) replacing the current state based system where businesses are required to register in each state or territory of operation. If you currently have a business name registered in any state or territory, the details of your registration will automatically transfer to the new national register and the due date of your current registration renewal will remain the same. If there is another business in another state or territory with the same name as your business, you will not need to change your business name, however, an additional identifier will be applied to your business name to differentiate between same name registrations (this will be for administrative purposes only and you will not need to include the identifier in your trading name). If your business name is currently registered in multiple states, all registrations will be transferred to the new national register. You will not be required to pay multiple registration fees, however, you can retain one registration, and either cancel the additional registrations (without incurring any fees) or allow the additional registrations no longer required, to lapse.
For all new business name registrations you will be able to register for your business name at the time of applying for an ABN. A hyperlink to the ASIC website will be provided at the end of your ABN application to allow
you to easily navigate to the online business name registration home page. Prior to registering your business name you will also be able to search the business names register to ensure the name you have chosen is not currently subject to any trademarks. It is important to note that registration of a business name does not automatically protect the name from use by others and you may need to consider registering your business name as a trademark to ensure exclusive use of your brand.
Fees under the new scheme:
New application for registration of a
business name for 1 year $30
Application for renewal of a
business name for 1 year $30
New application for registration of a
business name for 3 years $70
Application for renewal of a
business name for 3 years $70
These fees are less that the current QLD fee with Office of State Revenue.
Transitional arrangements:
- • If your business name is due for registration prior to 28 May 2012, the state or territory authority currently responsible for registrations will send you a renewal notice which you will need to pay to register your business name. The details of your business name registration will transfer to the national register on 28 May 2012 and no further action or payment is needed until your next renewal date.
- • If your business name is due for registration on or after 28 May 2012, ASIC will send you a renewal form to register your business name on the national register.
Wealth Planning Partners are pleased to announce that Russell Sheasby has joined our team of Gold Coast based Financial Advisers.
