Issue Six - June 2012
End of financial year checklist –
some useful strategies to consider
By Lachlan Wark
With the end of financial year fast
approaching, it’s that time again to consider
what can be done to minimise your tax
and to ensure you have ticked off the
compliance measures required to administer
your business structure.
ƒƒ Have you conformed to all your
superannuation requirements including,
if applicable, ensuring your minimum
pension has been drawn and rents have
been paid. Should you be making a
personal contribution?
ƒƒ Farm Management Deposits are a great
strategic tool to defer primary production
income (and tax) to a later year.
ƒƒ Deferring the realization of a capital
gain will avoid having to pay the once
off flood levy on the net gain. If you
have realised a gain, have you any losses
available to crystallize? The flood levy
could be up to 1% of your taxable income.
ƒƒ If you are a small business, defer the
purchase of capital plant & equipment
with a cost under $6,500 and motor
vehicles until July. Again, refer to the
article in this newsletter regarding the
changes to SBE depreciation rules.
ƒƒ Will your cash flow allow you to defer
sales until July or accelerate expense
payments into June?
For advice in relation to implementing any
of the above or for further details, please
contact our office. We can tailor a plan to
meet your needs.
Changes to Farm Management Deposit rules
By Andrew Heazlewood
Note that from 1 July 2012, it will be possible to hold farm management deposits with more
than one banking institution. It is important to be aware of this increased flexibility when
comparing deposit rates available.
The cap remains at $400,000 per individual.
Small business
depreciation rates
By Andrew Heazlewood
From 1 July 2012 there are some
significant changes to depreciation
rules for small businesses with
turnover of less than $2m per year as
follows;
ƒƒ Immediate write off for
depreciating assets costing less
than $6,500 (previously a $1,000
threshold)
ƒƒ Depreciating assets classified
as ‘long life’ (greater than 25
years effective life) will have an
accelerated depreciation rate
being 15% in the year acquired
and 30% thereafter (previously
2.5% and 5% respectively)
ƒƒ Motor Vehicles acquired (both
new and second hand) will have
an immediate write off of $5,000
and the balance of cost will then
be depreciated at 15% in the first
year and 30% thereafter.
These enhancements provide some
tax planning opportunities when
considering the timing of purchasing
a depreciating asset, ie pre/post 30
June. If you wish to discuss in further
detail please do not hesitate to
contact the office.
Superannuation
update
By Hamish McDonald
PO Box 689
Hamilton VIC 3300
As 30 June 2012 approaches it is a good
time to ensure we are meeting all our
superannuation obligations.
44 Gray StPMS 8483 (Metalic)
Hamilton VIC 3300
PMS 375
Contributions
For those over 50 years of age this is the
last chance to contribute $50,000 before
the concessional contribution cap decreases
to $25,000 for everyone regardless of age.
Phone ...
61 03 5571 0111
Fax ...
61 03 5571 0100
Non-concessional contribution caps remain
unchanged at $150,000 per year. The 2
year bring forward rule remains in place
for people aged under 65 allowing a nonconcessional contribution of $450,000 each
3 year period.
[email protected]
web www.coggergurry.com.au
ABN 77 661 052 414
Partners
Laurie Cogger
Michael Fitzpatrick
Tony Gurry
Andrew Heazlewood
Hamish McDonald
Lachlan Wark
Pensions
The minimum requirements for pensions
have been reduced again by 25%.
Superannuation funds need to ensure that
the minimum pension is drawn to entitle
the fund to exempt income and ensure the
maximum is not exceeded creating an early
access to funds.
For all our super fund clients you will be
notified of all actions you need to complete
prior to 30 June assisting you with the
compliance of your super fund including
pensions, rent payable and any revaluation
requirements.
Associates
Mike McCulloch
Kay O’Connell
Considering a change in accounting software...
By Michael Fitzpatrick
cg easybooks
Managers
Michael Fitzpatrick
Kay O’Connell
PMS 8483 (Metalic)
... or just starting up and have no idea which
software to choose? Below are a few
suggestions you may like to consider:
ƒƒ XERO – Fast becoming “all the go” among
accountants and business owners alike.
Uses similar philosophy to Banklink as
far as automatic data feeds and coding
goes, but this one is the “full accounting
package” with invoicing etc. This is
however a fully online product, so unless
you have fast reliable broadband internet
connection, don’t even think about this
one. Easy for accountant to log in at
anytime to assist you.
PMS 375
financial planners
44 Gray St (PO Box 689)
Hamilton VIC 3300
tel +61 03 5571 0111
fax +61 03 5571 0100
CG Custodians Pty Ltd
(Metalic)
trading asPMS
CG8483
Wealth
ƒƒ IBIZZ – Watch this space … Banklink have
recently teamed up with an accounting
software company called Acclipse, to
offer an online software similar to Xero,
but at a much lower price. The software
is not yet available, they are looking at a
release date pre 1/7/12.
PMS 375
ABN 45 734 343 699
Madison Financial Group Pty Ltd
AFSL 246679
Authorised Representatives
Laurie Cogger
Vicki Kearney
cgfinance
finance broking
PMS 8483 (Metalic)
transfer with accountant. Not available
“off the shelf”, so please see your
accountant for further information.
ƒƒ BANKLINK – By far the easiest and most
efficient cashbook software available.
Some argue that one downside is that
it is not a “full accounting package” in
that it does not have integrated payroll
or invoicing etc, although it does offer
separate solutions for this if needed.
Offers easy communication and file
ƒƒ OTHER – There are still a number of
traditional products out there such as
MYOB, Quickbooks and Quicken etc, and
in some cases will still be the best option
for particular businesses.
Please don’t hesitate to contact us at
Coggergurry to discuss the best option for
you. Phone 5571 0111.
PMS 375
Considered Value Issue Six - June 2012