News
Adapting to changing weather and economic conditions
Staying ahead of the curve is essential. As we continue to witness the impact of changing weather patterns and economic fluctuations on farming operations, it becomes increasingly clear that adopting smart financial farming strategies is not just beneficial - it's crucial
Cyber-attacks
Cyber-attacks are always prevalent and reaching the news headlines more and more frequently. Bad actors can do a lot of damage to your data and systems. And they're always finding new ways to break in. So, at Forsyths we urge you to be careful and protect yourself online.
How to nominate a superannuation beneficiary
There are many types of nominations offered by different funds. Knowing which one suits your circumstances is key to ensure your superannuation ends up in the right hands.
Qualifying as an interdependent or financial dependant
A question that often gets asked when dealing with death benefit nominations is whether a person will qualify under the interdependency or financial dependency definitions. This is an important consideration as meeting the dependency criteria will enable potential beneficiaries to qualify as a dependant and therefore allow them to receive a death benefit.
When two bonuses are not enough... Introducing the Energy Incentive!
If you’ve been putting off upgrading the inefficient office air-conditioner, a new 20% bonus deduction might just be the incentive you need to help beat the heat before it arrives with a vengeance!
Who is a resident for tax purposes?
A person’s residency for tax purposes can be one of the most difficult issues to determine in Australian tax law. And it is not just a question of whether a person is a ‘citizen’ of Australia.
Are you eligible to make a personal deductible contribution?
Personal deductible contributions can allow individuals to claim a tax deduction for contributions they have made to superannuation provided they meet certain requirements. So what are these requirements and what should you look out for?
Don’t overlook the CGT small business roll-over concession
The CGT small business concessions are invaluable to those who make a capital gain from a small business. They can eliminate a gain entirely; they can reduce a gain; and they can allow for the gain to be CGT-free if paid into a superannuation fund.
Small business skills and training boost
Looking to boost your employees’ skills and your tax deductions at the same time? Then keep reading to see if you could be eligible for the small business skills and training boost!
Property developers – and would-be ones – beware!
For property developers (or would-be property developers) a recent decision of the Federal Court may be of interest.
Changes to unfair contract terms laws: What businesses need to know
Soon to be implemented changes to the Australian Consumer Law will provide additional protection to consumers and small businesses prohibiting the proposal, use or reliance on unfair contract terms in standard form contracts.
How to reduce your income tax bill using superannuation
Did you know you can reduce your income tax by making a large personal tax-deductible contribution from your take-home pay to your super? This strategy may be particularly useful if you will be earning more income this financial year or if you have sold an asset this year and made a large capital gain.
Costs of a caravan/motor home for work-related travel
In these challenging and changing times, many have jumped on the modern version of the proverbial band wagon and purchased a caravan or motor home to use for work or business-related travel.
Appointing an SMSF auditor
Early last month, the ATO issued a reminder around auditors. If you have an SMSF, you need to appoint an approved SMSF auditor for each income year, no later than 45 days before you need to lodge your SMSF annual return (SAR).
Discounting your capital gain
The capital gains tax (CGT) discount can reduce by 50% a capital gain that you make when you dispose of (sell) a CGT asset that you have owned for 12 months or more.
Avoid schemes targeting SMSFs
Sometimes promoters of schemes target self-managed super funds (SMSFs). Schemes can include tax avoidance arrangements that inappropriately channel money or assets into your SMSF so you pay less tax. They may also include arrangements promoting the illegal early release of benefits from your fund for personal use.
Self-education: when is it deductible?
If the subject of self-education leads to, or is likely to lead to, an increase in the taxpayer’s income from current (but not new) income-earning activities, a deduction for self-education expenses incurred will be allowable.
Thought of registering a trademark for your new business?
The ATO has issued a reminder around trademarks! For background, a trademark legally protects your brand and helps customers distinguish your products or services in the market from others. Trademarks can be used to protect a logo, phrase, word, letter, colour, sound, smell, picture, movement, aspect of packaging or any combination of these. In short, they protect your brand, products and services.
R&D reminder
The ATO has issued a reminder for companies wishing to claim a tax offset for their R&D (research and development) activities. The reminder was issued in the context of the ATO’s success in the Federal Court decision T.D.S. Biz Pty Ltd v FCT.
SMSFs & higher interest rates
SMSF trustees with limited recourse borrowing arrangements (LRBAs) are now feeling the impact of ten interest rate rises since May 2022 in one hit, from July 2023.
Gifting to employees
Some employers, especially at Christmas time or for birthdays, give small gifts to their employees or the employee’s associates (i.e. spouses). These gifts typically take the form of bottles of wine, movie tickets, gift vouchers etc.
Trusts – are they still worth it?
The recent ATO crackdown on trusts will no doubt have some business owners (and even some advisors) asking themselves the question: Is this structure for business purposes still worth it?
Tax Time: Unexpected first-time debts
For the first time, many Australians are finding themselves in a position where they are being told they owe the ATO money after completing their tax return this year.
Forsyths Foundation Contributes $15,000 to Local Charities
The Forsyths Foundation, established in 2015 by Forsyths, the leading accounting and financial services firm in regional NSW, is proud to announce its continued commitment to supporting local communities through its annual donation program.
Work-Related Car Expenses Updated
The ATO has just announced that the cents per kilometre rate has increased to 85 cents per kilometre for 2023/24.
Small Business Lodgement Amnesty
Since Budget night, the ATO has released more information around the small business lodgment amnesty…which can now be taken advantage of from 1 June 2023!
Fair Work Changes
Although not related to tax, there are a number of changes on the Fair Work front that employers should be aware of.
Time for a Restructure?
The new financial year can be a time where business owners look at their operating structure and consider whether it still meets their needs.
Superannuation and the Right to Delegate
Another key Federal Court case may have a bearing on whether you owe certain workers you engage superannuation guarantee or not.
Super Guarantee Increases 11%
The increase to the superannuation guarantee (SG) rate from 1 July 2023 will see more employees (and certain contractors) entitled to additional SG contributions on their pay.
Maximising cashflow
The predicted slowing of the economy in 2023-24 along with the pay day super guarantee (SG) proposal are sure to make cashflow more important than ever for business over the coming months and years, noting that it is one of the biggest difficulties faced by business.
What are the types of super funds you can contribute to?
With the total superannuation sector worth more than $3.5 trillion at the end of March 2023, superannuation is serious business. There are many types of superannuation funds available but sometimes having too many to choose from can be confusing. However, picking the right fund is important as it could impact how much you may have to retire on in the future.
Do you have a side-hustle?
With the cost-of-living skyrocketing, have you taken up a side-hustle? With new and emerging ways to make money, the ATO is reminding taxpayers to consider if they are ‘in business’ and to declare to their tax agent if they are engaged in a side-hustle.
Generous depreciation in its final days
This month’s federal budget confirmed that temporary full expensing (TFE) is now in its final days. To recap, TFE will cease and be replaced by a $20,000 instant asset write-off (IAWO) from 1 July 2023.
Super pensions and the Commonwealth Seniors Health Card
Are you a self-funded retiree who does not qualify for the Age Pension? If you’ve answered yes, then help may be available for certain living expenses by way of the Commonwealth Seniors Health Card (CSHC).
ATO Tax Time focus areas
With the end of the financial year on our doorstep, the ATO has announced its three key focus areas for 2022-23 Tax Time – rental property deductions, workrelated expenses, and capital gains tax (CGT). To maximise your claims in this area and protect yourself from ATO audits and adjustments, be sure to keep the appropriate records.
2023-24 Budget Wrap
The 2023-24 Federal Budget was handed down on 9 May. It contains changes to business and personal taxation, superannuation, social security entitlements, as well as cost of living relief. Following are some of the headline measures, many of which are subject to enabling legislation.
Temporary Full Expensing: get in quick!
This could be the final opportunity for your business to take advantage of Temporary Full Expensing (TFE)…but get in before 1 July!
Upcoming trust distribution strategies –latest developments
If you run your business through a family trust, there’s some good news on the distribution front.
Financing motor vehicles in 2023
One of the most common decisions facing business is how to finance and account for the acquisition of a motor vehicle. There are numerous ways of doing so, with each resulting in differing accounting, taxation and GST treatment.
How to claim an early tax deduction on SG contributions
Are you an employer who needs to make superannuation guarantee (SG) contributions for your employees? If so, it may be worthwhile bringing forward these SG contributions to before 1 July to benefit from a tax deduction this financial year.
New reporting arrangements for SMSFs from 1 July 2023
From 1 July 2023, trustees and directors of SMSFs must report certain events that affect their members transfer balance account quarterly.
The journey to success is a marathon, not a sprint
While deciding what to write this month for the Coonabarabran Times, I couldn’t believe that it has been nearly 12 months since starting out on this journey. Throughout the course of the year I have come to realise how much I’ve learnt about the process of story-telling, which is not an accountant’s natural skillset.
Does it all add up?
As the end of another financial year approaches, conversations around taxes are back on again. Cost of living is up across the board and so on top of all of this it’s no fun to add to it with taxes.
Lost super
Did you know there is around $16 billion in lost and unclaimed superannuation across Australia? The ATO recently indicated this is an increase of $2.1 billion since last financial year and is urging Australians to check their account to see if some of the money is theirs.
Fending off GST audits
The Government has welcomed the actions of an ATO-led taskforce in relation to what is termed “the biggest GST fraud in Australia’s history”.
Reducing the risk of crypto scams
ASIC has released fresh and timely information around crypto scams.
FBT exemption for electric vehicles
With car fringe benefits one of the most common benefits provided by employers to employees, a new ATO fact sheet shines more light on the FBT exemption for electric vehicles.
Proposed tax on $3m super balances
Individuals with large superannuation balances may soon be subject to an extra 15% tax on earnings if their balance exceeds $3m at the end of a financial year.
Trust distribution landscape now more settled
If you carry on your business affairs through a trust structure, there is now more clarity around the law on distributions following much uncertainty throughout the year.
Legislating the purpose of superannuation
On 20 February 2023, Treasury released a consultation paper on legislating the purpose of superannuation. This is an idea that has been around since 2016 when the former Coalition government contemplated doing the same thing.
FBT and car logbooks
With the end of the FBT year approaching, are your car logbooks in order? The operating cost method is used by many employers to calculate their car FBT liability. This method is particularly effective where the business use of the vehicle is high. Keeping a logbook is essential to use the operating cost method.
New work from home record keeping requirements
Are you one of the five million Australians who claim work from home deductions? If so, stricter record-keeping rules may now apply.
Crystalising capital losses
It’s been a particularly difficult 12 months for investors. On the superannuation front, we now have two major reports assessing how super accounts fared in the 2022 calendar year. SuperRatings issued its average balanced return recently and found it was minus 4.8%.
PAYG instalment variations
The ATO is encouraging accountants to educate clients around varying PAYG instalments – this can potentially assist cashflow.
An investment in knowledge pays the best interest
We are well and truly rolling ahead in 2023 now, another year where we might’ve thought we wouldn’t be quite as busy as last year, which hasn’t proved to be the case yet.
ATO finalises Section 100A guidance for Family Trusts
Do you operate your business via a family trust? The ATO released its final guidance material on the application of section 100A on 8 December 2022 – TR2022/4 and PCG 2022/2. In doing so, it has fortunately clarified a number of issues.
Can you use your SMSF property upon retirement?
Many SMSF trustees wonder if they can live in their SMSF property once they retire. This is a common question particularly as property is such a popular SMSF investment.
The importance of cash flow forecasts
As we enter into the new year, with many economists predicting a slowing of theeconomy, planning your business’s cashflow is more important than ever.
Reduction in downsizer eligibility age
The eligibility age for downsizer contributions reduced from 60 to 55 years from 1 January 2023. This means if you are age 55 or older, you could invest the proceeds of the sale of your family home to your superannuation outside of your standard contribution caps.
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