Accounting & Taxation

Depending on your occupation and income circumstances, there are tax deductions you can claim on your tax return each year. We will ensure that you take advantage of these deductions and benefits to realise the maximum tax refund.

Unfortunately tax planning is usually one of the last items considered or is not thought of at all. Once an investment is sold many investors are shocked to find a hefty capital gains tax (CGT) bill has dug a big hole in their profit margin.

A capital gain or loss is the difference between what it cost you to buy a parcel of shares or a property and what you received when you sold them. If you make a gain, this amount is added to your assessable income and is then subject to your marginal rate of tax.

There are a number of considerations when deciding on the right business structure, such as who will be involved and the type of business being run. Some of the main business structures include sole trader, partnership, joint venture, company and trusts.

Salary packaging is an Australian Tax Office approved way of restructuring your income. It enables you to buy a range of everyday items out of your pre-tax salary rather than your after-tax salary – leaving more money in your back pocket.

Fringe Benefits Tax or FBT is a tax paid on certain benefits provided to employees or an associate of an employee. It is separate from income tax and is based on the taxable value of the various fringe benefits provided by your employer.

Examples of fringe benefits you may receive as an employee are when your employer:

• allows you to use a work car for private purposes
• gives you a cheap loan
• reimburses an expense incurred by you such as school fees
• provides you with entertainment by way of food, drink or recreation.

Goods and services tax, often known as GST, is collected by registered businesses. GST is a tax on most goods and services sold or consumed in Australia.

If your business is registered for GST, you will have to collect some extra money (one-eleventh of the sale price) from your customers and pay it to the Australian Taxation Office (ATO) when it is due.

A payroll tax liability arises in South Australia when an employer has a wages bill in excess of $600 000 for services rendered by employees anywhere in Australia if any of those services are rendered or performed in South Australia.

An estate plan includes your will as well as any other directions on how you want your assets distributed after your death. It includes documents that govern how you will be cared for, medically and financially, if you become unable to make your own decisions in the future.

Key documents might include:

• Will
• Superannuation death nominations
• Testamentary trust
• Powers of attorney
• Power of guardianship
• Anticipatory direction

A tax or superannuation review or audit is an examination of your affairs conducted by the ATO to see if you have done what you are required to do under the tax and superannuation laws, including whether you:

• have declared all the assessable income you receive
• are entitled to the deductions and tax offsets you have claimed on your tax return
• have met all your regulatory obligations.

The reviews or audits vary in their complexity. Sometimes they only involve a phone call or a letter asking you to provide further information or verify your claims. In some cases a tax officer may visit you. In some cases you may be asked to bring all your records for examination.

Benchmarking shows you whether your performance is stronger or weaker than your competitors. It will give you a clear picture of where improvements are needed and how to increase profits.

For every property transaction you make, you need to think about tax implications

Asset protection safeguards you from potentially losing your assets in the event of legal action.