http://www.macmillans.com.au/ Sun, 20 May 2012 06:44:42 Macmillans Waller Fry Articles http://www.macmillans.com.au/articles/RBA-drops-cash-rate.html http://www.macmillans.com.au/articles/RBA-drops-cash-rate.html Statement by Glenn Stevens, Governor: Monetary Policy Decision At its meeting today, the Board decided to lower the cash rate by 50 basis points to 3.75 per cent, effective 2 May 2012. This decision is based on information received over the past few months that suggests that economic conditions have been somewhat weaker than expected, while inflation has moderated. Growth in the world economy slowed in the second half of 2011, and... http://www.macmillans.com.au/articles/Dividend-franking-of-SMSFs.html http://www.macmillans.com.au/articles/Dividend-franking-of-SMSFs.html Despite 25 years since its inception in the Australian tax system, there is still a cloud of confusion surrounding the dividend imputation system or the “franking dividend”. With superannuation funds taxed at the rate of 15 per cent imputation credits can be a great tool to enhance your fund’s investments. Investing in shares directly or through a managed superannuation fund can benefit you with imputation... http://www.macmillans.com.au/articles/ATO-closing-in-on-tax-cheats.html http://www.macmillans.com.au/articles/ATO-closing-in-on-tax-cheats.html With tax time looming, the Australian Taxation Office has announced tough new measure to clamp down on tax evasion – specifically targeting the hospitality, and building and construction industries. The ATO has stated businesses that deliberately use cash transactions to hide income and evade tax obligations will be under the spotlight. Illegal behaviour included companies who paid cash-in-hand wages, skimmed cash takings,... http://www.macmillans.com.au/articles/More-power-to-hold-refunds.html http://www.macmillans.com.au/articles/More-power-to-hold-refunds.html Proposed legislation that would provide the ATO with increased power to withhold tax refunds could potentially affect the cash flow of small to medium enterprises. The legislation, which was introduced into Government last month, would provide the ATO with the ability to retain refunds claimed by taxpayers for up to 60 days while authentication checks were processed. The proposed law would be introduced to avoid fraudulent refunds... http://www.macmillans.com.au/articles/Business-name-registrations-set-to-change.html http://www.macmillans.com.au/articles/Business-name-registrations-set-to-change.html Until now, business name registration has been handled by state-based agencies (e.g. Fair Trading in NSW or Consumer Affairs in Victoria). Effective from 28 May 2012, this process will be streamlined and managed nationally by ASIC (Australian Securities and Investments Commission). ASIC will oversee a national business names database and will handle all Australian business name applications and renewals. What do you need to know... http://www.macmillans.com.au/articles/How-does-your-business-compare?.html http://www.macmillans.com.au/articles/How-does-your-business-compare?.html Check your small business benchmarks regularly The ATO has recently updated its small business benchmarks. It has also added two new activity statement benchmark ratios for non-capital purchases and GST-free sales. The ATO uses the benchmarks to identify businesses that it considers may not be reporting some or all of their income. The ATO can also use the benchmarks to quantify income that it considers not reported. According to... http://www.macmillans.com.au/articles/Private-heath-insurance-rebate-changes.html http://www.macmillans.com.au/articles/Private-heath-insurance-rebate-changes.html A package of Bills to means test the 30% private health insurance rebate has made its way through Parliament. The changes will mean the amount of rebate available will depend on an income test for each financial year for individuals and families. The changes will apply from 1 July 2012 and will introduce three new "Private Health Insurance Incentive Tiers".  In conjunction with this, and also from 1... http://www.macmillans.com.au/articles/Don't-try-and-avoid-the-tax-man!.html http://www.macmillans.com.au/articles/Don't-try-and-avoid-the-tax-man!.html The Government has announced that it will amend the general anti-avoidance provisions in the tax law. First introduced in 1981, the provisions broadly allow the Commissioner to cancel a tax benefit obtained in connection with a scheme subject to some conditions. According to the Government, the changes will ensure the provisions will continue to be effective in countering tax avoidance schemes that are carried out as part of broader... http://www.macmillans.com.au/articles/How-healthy-is-your-deed?.html http://www.macmillans.com.au/articles/How-healthy-is-your-deed?.html Back in 2010, the High Court of Australia handed down the long-awaited decision in Commissioner of Taxation v Bamford; Bamford v Commissioner of Taxation (Bamford). Following this case, the tax law in relation to trusts has been changing, and is likely to continue to change as new legislation affecting the taxation of trusts is developed. As a result, trust deeds should be regularly reviewed to ensure they align with the... http://www.macmillans.com.au/articles/RBA-Leaves-Cash-Rate-Unchanged.html http://www.macmillans.com.au/articles/RBA-Leaves-Cash-Rate-Unchanged.html At its meeting today, the Board decided to leave the cash rate unchanged at 4.25 per cent. Recent information is consistent with the expectation that the world economy will grow at a below-trend pace this year, but does not suggest that a deep downturn is occurring. Several European countries will record very weak outcomes, but the US economy is continuing a moderate expansion. Growth in China has moderated as was intended, but on most... http://www.macmillans.com.au/articles/James-Ryan-admitted-as-Solicitor.html http://www.macmillans.com.au/articles/James-Ryan-admitted-as-Solicitor.html Macmillans Waller Fry - Solicitors is pleased to announce that James Ryan has been admitted as a solicitor. James has been associated with Macmillans Waller Fry for some time and is now able to directly assist our clients with a wide range of legal matters. As a prominent advocate of the environment, James has an extensive background and personal interest in the law particularly as it pertains to the environment,... http://www.macmillans.com.au/articles/Beware-the-price-shopper!.html http://www.macmillans.com.au/articles/Beware-the-price-shopper!.html Most businesses work on the basis that they are supposed to sell on value and not price. What happens when a business is faced with the prospect of a priceonly buyer? First, make sure they really are in fact a priceonly buyer. In most cases, salespeople are too quick to place a ‘price-only buyer’ label on their prospect’s forehead. It is stuck on... http://www.macmillans.com.au/articles/Is-your-superannuation-in-order?.html http://www.macmillans.com.au/articles/Is-your-superannuation-in-order?.html Superannuation payments should not be missed even if small businesses are having tight cash flow problems. The Australian Taxation Office (ATO) has proposed new laws aimed at cracking down on employers. Despite difficult market conditions, employers should not resort to deferring worker superannuation payments. This is due to heavy penalties and new laws. Businesses that fail to pay employees’ super by 28 days after the end... http://www.macmillans.com.au/articles/Government-launches-Property-Security-Register.html http://www.macmillans.com.au/articles/Government-launches-Property-Security-Register.html The Australian Government has this week launched a new initiative to establish a single point of contact register for consumers, businesses and the finance industry. The Personal Property Securities Register is an online service where consumers and business operators can search a register when they need to know whether certain personal property has a security interest registered against it. The online service also extends to... http://www.macmillans.com.au/articles/How-good-is-your-home-loan?.html http://www.macmillans.com.au/articles/How-good-is-your-home-loan?.html With the ongoing economic uncertainty in Europe many people are finding it difficult to predict our economies future. Even with uncertainty, it is important to make sure that you are getting the best possible deal with your mortgage. One of our recommended finance brokers has seen the best variable rate offered at this time at about 6.30% while the best fixed rate deal getting around is about 5.75% fixed for 3 years. By way of... http://www.macmillans.com.au/articles/Back-to-School...-Claim-your-expenses!.html http://www.macmillans.com.au/articles/Back-to-School...-Claim-your-expenses!.html What is it?   The Education Tax Refund (ETR) is designed to help with the cost of educating primary and secondary school children. Eligible parents, carers, legal guardians and independent students are able to claim money back on certain education expenses. Who is Eligible?   1) Parents, Carers & Legal Guardians You can claim the ETR if you had eligible education expenses during the... http://www.macmillans.com.au/articles/The-ATO-is-watching:-Credit-and-Debit-Card-Data.html http://www.macmillans.com.au/articles/The-ATO-is-watching:-Credit-and-Debit-Card-Data.html The ATO has ramped up its credit and debit card supervision and matching program. This information is designed to identify taxpayers who may be participating in the cash economy and not complying with their tax obligations. What the ATO does Data is acquired from banks that identify credit and debit card sales made by Australian businesses. This data is then matched against taxpayer records to identify those participating in the... http://www.macmillans.com.au/articles/Timely-reminder-on-Personal-Services-Income.html http://www.macmillans.com.au/articles/Timely-reminder-on-Personal-Services-Income.html During January 2012, the Australian Taxation Office (ATO) will be in touch with various taxpayers who have reported PSI and may have incorrectly self-assessed themselves. PSI refers to income that is mainly a reward for an individual’s personal efforts or skills. Taxpayers must determine whether they have earned PSI and conducted a personal services business (PSB) in an income year. As a result, entitlement to certain... http://www.macmillans.com.au/articles/Is-your-online-presence-protected?.html http://www.macmillans.com.au/articles/Is-your-online-presence-protected?.html Your online customer database may be at risk A recent court case in California has highlighted the risk that employers face when entrusting their online presence to employees. Using social media, businesses can amass quite a large contact database through 'Followers' and 'Fans' all of which can be potential leads in the future. However, a grey area has been exposed when employees combine their... http://www.macmillans.com.au/articles/Want-good-insurance-cover?-Best-speak-with-the-experts....html http://www.macmillans.com.au/articles/Want-good-insurance-cover?-Best-speak-with-the-experts....html It’s easy to underestimate the importance of your regular income – or even take it for granted. A recent article by David Glen, Tax Counsel at TAL (formerly Tower Australia Ltd) published in The Australian highlights the importance of seeking expert advice in protecting your income. Macmillans Waller Fry are able to assist you with seeking appropriate insurance tailored to your circumstances with proper consideration of... http://www.macmillans.com.au/articles/Your-next-worker-is-overseas....html http://www.macmillans.com.au/articles/Your-next-worker-is-overseas....html Rethinking your staffing model Offshoring has a bad reputation. As a result, most businesses may not properly explore the opportunities it presents. Yet the business case for designing services that can be delivered remotely regardless of geography is clear: it will create more highly skilled, high-wage jobs for Australians. If offshoring succeeds, Australia prospers. If... http://www.macmillans.com.au/articles/The-importance-of-marketing.html http://www.macmillans.com.au/articles/The-importance-of-marketing.html Financial success often depends on marketing ability. Finance, operations, accounting, and other business functions will not really matter if there is not sufficient demand for products and services so the company can make a profit. Marketing ability involves the ability of your business to understand its target market and communicate its products and services offering to them. Good marketing will create a positive effect on the... http://www.macmillans.com.au/articles/A-definition-of-charity---consultation-paper.html http://www.macmillans.com.au/articles/A-definition-of-charity---consultation-paper.html A review of charities In the 2011 Federal Budget, the government announced it intended to review charities and the taxation concessions extended to charities. In response, the government has released a consultation paper A Definition of Charity. The aim of this process is to produce a standard definition of charity throughout Australia, including in the areas of state and... http://www.macmillans.com.au/articles/Small-business-depreciation-changes.html http://www.macmillans.com.au/articles/Small-business-depreciation-changes.html The Government had released for comment exposure draft legislation which proposes to make various tax law amendments concerning the small business depreciation rules. The amendments are proposed to apply to small business entities as defined in s 328-110 of the ITAA 1997 that have an aggregated turnover of less than $2m for an income year. Public consultation closed on 28 September 2011. The amendments are proposed to have effect from... http://www.macmillans.com.au/articles/Monetary-Policy-Decision.html http://www.macmillans.com.au/articles/Monetary-Policy-Decision.html At its meeting today, the Board decided to lower the cash rate by 25 basis points to 4.5 per cent, effective 2 November 2011. Recent information is consistent with a moderation in the pace of global growth, though fears of a major downturn have not been borne out so far. The pace of US economic expansion picked up in the September quarter, but is still only moderate and leaves considerable spare capacity. China's growth has... http://www.macmillans.com.au/articles/Pro-active-HR-&-ER---avoid-non-compliance-penalties.html http://www.macmillans.com.au/articles/Pro-active-HR-&-ER---avoid-non-compliance-penalties.html With just a few weeks of the financial year left, it is a good time to check on your employment relations situation and avoid falling prey to the penalties of non-compliance. 1. Directors Personally Liable on Super The director penalty regime will be extended to include the superannuation guarantee from 1 July 2011. From this time, directors will be held personally liable for their companies' failure to pay employee... http://www.macmillans.com.au/articles/Education-Tax-Refund.html http://www.macmillans.com.au/articles/Education-Tax-Refund.html What is it? The Education Tax Refund (ETR) is designed to help with the cost of educating primary and secondary school children. Eligible parents, carers, legal guardians and independent students are able to claim money back on certain education expenses. Who is Eligible? 1) Parents, Carers & Legal Guardians You can claim the ETR if you had eligible education expenses during the financial year for a child who meets... http://www.macmillans.com.au/articles/RBA-Leaves-Official-Cash-Rate-Unchanged.html http://www.macmillans.com.au/articles/RBA-Leaves-Official-Cash-Rate-Unchanged.html At its meeting today, the Board decided to leave the cash rate unchanged at 4.75 per cent. Statement by Glenn Stevens, Governor Monetary Policy RBA The global economy is continuing its expansion, led by very strong growth in the Asian region, though the recent disaster in Japan is having a major impact on Japanese production, and significant effects on production of some manufactured products further afield. Commodity prices have... http://www.macmillans.com.au/articles/Deductions-for-study-and-job-seeking-expenses-now-available.html http://www.macmillans.com.au/articles/Deductions-for-study-and-job-seeking-expenses-now-available.html A recent high court decision means that you may now be able to claim a tax deduction for study and job seeking expenses. (Commissioner of Taxation v. Anstis - 11 November 2010) The decision affects taxpayers who receive or have received: Austudy, ABSTUDY and Youth allowance payments to undertake study and have incurred study expenses Newstart allowance and Youth allowance job seeker and have incurred expenses in... http://www.macmillans.com.au/articles/Stamp-Duty-change-hits-first-home-buyers-hard.html http://www.macmillans.com.au/articles/Stamp-Duty-change-hits-first-home-buyers-hard.html The NSW Government last night announced its budget. In an attempt to stimulate the new home market (and therefore the building industry), the government has announced that from 1 January 2012, exemption from stamp duty for first home buyers will only apply to new homes (including substantially renovated homes and vacant land). Please note that the announcement only relates to the Stamp Duty on a purchase. The First Home Owners Grant... http://www.macmillans.com.au/articles/2011-Annual-Award-Review-Decision.html http://www.macmillans.com.au/articles/2011-Annual-Award-Review-Decision.html Annual Wage Review 2010-11 Decision A Full Bench of Fair Work Australia has this morning handed down the Annual Wage Review Decision. The key components of the decision are:  A uniform increase of 3.4% to all Award rates of pay.  The national minimum wage (which applies to Award/Agreement free employees) will be $589.30 per week. This amounts to an increase of $19.40 per week.  The... http://www.macmillans.com.au/articles/TimeSaver-Plus---a-new-service-from-Macmillans-Waller-Fry.html http://www.macmillans.com.au/articles/TimeSaver-Plus---a-new-service-from-Macmillans-Waller-Fry.html Do you spend too much time on your bookkeeping? Well, we have just the solution for you... Macmillans Waller Fry – Accountants, in consultation with BankLink, have introduced a state of the art ‘cloud based’ computing technology with impressive data matching tools. This means the BankLink service can now rapidly reduce the amount of time you spend on your bookwork. How could this help you? Using... http://www.macmillans.com.au/articles/Employee-Relations---Modern-Award-Transitional-Provision.html http://www.macmillans.com.au/articles/Employee-Relations---Modern-Award-Transitional-Provision.html Confused about the transitional provisions in your Modern Award? If you are not its time check that you have calculated the correct wages payment – it is a very complex area with employers unknowingly miscalculating employee wage and penalty entitlements. A small business recently discovered it was obligated to pay back thousands of dollars to employees after incorrectly applying the very complex transitional provisions in...