NEWS/RESOURCES - Son Tran iTax Accountants

New ATO Reporting Requirement

2013-07-01T13:29:05+10:00

NEW ATO REPORTING REQUIREMENT Back > News/RESOURCES

On 1 July 2012 a new Australian Taxation Office (ATO) reporting requirement came into effect for businesses which are primarily in the building and construction industry. Payments to contractors to be reported for data matching by ATO. Businesses which are primarily in the building and construction industry will now be required to report,on an annual basis, information about payments made to contractors for building and construction services. The first annual report is due in July 2013.

It is understood that the annual reports will be used by the ATO for data matching purposes as a means of ensuring that all income is reported by contractors.

New requirements apply to businesses which meet three criteria.

The new reporting requirement will apply to any business that:

•is primarily in the building and construction industry (ie 50% or more of business activity relates to building and construction services in the current financial year or 50% or more of business income is derived from providing building and construction services in the current financial year)
•makes payments to contractors for building and construction services; and
•has an Australian Business Number (ABN).

Businesses which met the criteria the previous financial year

The reporting requirement will also apply in a given financial year to a business that has an ABN, makes payments to contractors for building and construction services and which derived 50% or more of its business income from providing building and construction services in the financial year immediately before the current financial year.

Contractor’s details, payments and GST

If the new reporting requirement applies to your business, you will need to report the name and ABN (if known) of each contractor to which payments are made, the contractor’s address, the gross amount paid inclusive of GST and the total GST included in the gross amount.

Start recording contractor payments immediately

The first reports are due in July 2013. It is important for affected businesses to take steps immediately to ensure that all information required to be reported about amounts paid to contractors is sufficiently recorded. This also applies to invoices which were issued prior to 1 July 2012 but which are not paid until on or after 1 July 2012.

Son Tran & Co (03) 83072270
Address:
179 a, Main Road West, St Albans VIC 3021

Super Fund Borrowing

2013-07-01T13:41:26+10:00

SUPER FUND BORROWING Back > News/RESOURCES

It has until recently been a hard and fast rule that an SMSF cannot borrow money, except in very limited circumstances.

However, changes to the law mean that super funds can, providing that certain requirements are strictly met, invest in some instalment warrants or enter into a similarly structured and complying arrangements involving borrowing money to acquire a permitted asset. Arrangements must meet the conditions stipulated by the law.

The main benefit of using an instalment warrant is that you can bring forward the purchase of a business property or other investment. You no longer have to wait until your super fund has enough funds to purchase the investment outright. You may also be able to make a loan to your supe

rannuation fund in addition to the concessional and non-concessional contribution caps.
Under the new law a super fund is permitted to borrow money, or maintain a borrowing of money, providing the arrangement entered into satisfies each of the following conditions:

The borrowed monies are used to acquire an asset which the fund is not otherwise prohibited from acquiring.;
The asset acquired is held on trust so that the fund receives a beneficial interest in the asset;
The super fund has the right to acquire legal ownership of the asset by making one or more payments after acquiring the beneficial interest;
Any recourse that the lender has under the arrangement against the super fund is limited to rights relating to the asset acquired.

TAX PLANNING STRATEGIES

2013-07-01T13:49:41+10:00

TAX PLANNING STRATEGIES Back > News/RESOURCES

INDIVIDUALS

Record Keeping
Records are normally required to be retained for tax purposes for between 2 and 5 years depending on the class of taxpayer.

Records are normally required to be retained for tax purposes for between 2 and 5 years depending on the class of taxpaper

However records should be retained for longer periods in relation to capital gains tax.

Taxation Rates
The following table outlines the individual income tax rates for 2012/13 and 2013/14:

Taxable Income ($)	Tax Rate (%)
0 – 18,200	0
18,201 – 37,000	19% for each $ over $18,201
37,001 – 80,000	$3,572 + 32.5% for each $1 over $37,001
80,001 – 180,000	$17,547 plus 37% for each $1 over $80,001
180,001 +	$54,547 plus 45% for each $1 over $180,001

In addition, there is a Medicare Levy payable of 1.5%. The flood levy does not apply after 30 June 2012.
The increase in Medicare Levy to 2.0% takes effect on 1 July 2014.

Medicare Levy Surcharge and Private Health Insurance Rebate

The income thresholds that apply to the 2012/13 financial year are:

Details	Full Entitlement	Tier 1	Tier 2	Tier 3
		Taxable	Income
Private Health Insurance Rebate
Singles	$84,000 or less	$84,001 to $97,000	$97,001 to	Over
Singles	$84,000 or less	$84,001 to $97,000	$130,000	$130,000
Families	$168,000 or less	$168,001 to $194,000	$194,001 to $260,000	Over $260,000
Aged under 65 years	30%	20%	10%	0%
Aged 65 to 69	35%	25%	15%	0%
Aged 70 and over	40%	30%	20%	0%
Medicare Levy Surcharge
All ages	0%	1%	1.25%	1.50%

Prepayments
Prepay interest up to 12 months in advance on investment loans to obtain a deduction in 2013.
However, due to anti – avoidance measures, you must demonstrate a commercial reason – other than obtaining a tax deduction, for making this prepayment. Payment must be paid prior to 28 June 2013.
Make payments for investment and income producing expenses, donations to deductible gift recipients and work related expenses prior to 30 June.

Tax Return Online / Over the Phone

2013-07-07T07:15:03+10:00

TAX RETURN ONLINE Back > News/RESOURCES

Tax Return Online / Over the Phone

We understand that you are so busy with your work and life; at Son Tran & Co we offer special services that are convenient to you such as online or over the phone tax returns.

All you need to do is to provide us some simple details and use our check lists to send us your income (Payment summary or Group Certificates) and work-related expenses. A qualified accountant will call you to advise the refund you will receive.
The process:

Sign up online
Email/Fax/SMS your documents to us
Easy over the phone appointment
Your maximum refund calculated
Your Tax refund & assessment sent to you

In order for us to complete your tax return, please answer the questions in the check list and send us by:
Fax : (03) 9323 – 0248
Email : info@sontranaccountants.com.au
Mail: PO Box 1139
St Albans VIC 3021

Useful links

2013-07-19T08:25:22+10:00

USEFUL LINKS Back > News/RESOURCES

Government Sites

Australian Accounting Standards Board
Australian Prudential Regulation Authority
Foreign Investment Review Board
Australian Competition & Consumer Commission
Takeovers Panel
Australian Securities & Investment Commission
AusIndustry
Austrade
Australian Taxation Office
Government Online Directory
Business Entry Point (BEP)
Invest Australia
IP Australia
Treasury