Info base

Info Base

Our Info Base is a collection of fact sheets, templates, downloadable forms, lodgement checklists, taxation details and other relevant information. 

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  • INFO BASE

    • Resources

      • Individuals

          Residents: Personal tax rates and thresholds

          These rates apply to individuals who are Australian residents for tax purposes: 

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          Non-Residents: Personal tax rates

          Non-residents are not subject to the $18,200 tax free threshold and are not required to pay the Medicare levy.   

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          Rental Properties

          Purchasing a rental propertyWhen purchasing a financed rental property you may consider:o The interest on the debt is deductible in contrast to the interest on the debt for your main…

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          Motor Vehicle Deductions

          Since 1 July 2015 there are only two methods available for claiming a deduction for motor vehicle expenses:Logbook, orCents per kilometre All motor vehicle claims need to be supported by…

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      • Tax Rates

          Residents: Personal tax rates and thresholds

          These rates apply to individuals who are Australian residents for tax purposes: 

          read more »

          Non-Residents: Personal tax rates

          Non-residents are not subject to the $18,200 tax free threshold and are not required to pay the Medicare levy.   

          read more »

          Weekly, Fortnightly & Monthly Tax Tables

          To calculate the Pay As You Go (PAYG) withholding tax amount for your employees download the weekly, fortnightly or monthly tax tables below, depending on your agreed pay frequency. These schedules incorporate the…

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      • Lodgement Dates

          Tax Return Lodgements 2017

          A list of lodgement dates applicable to tax returns for the 2016 - 2017 financial year is below:Individual Tax Returns –• Individuals who lodge their own tax returns, the due date…

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          BAS Lodgements 2017-2018

          The lodgement program due dates for the 2017 - 2018 financial year are listed below for all quarterly and monthly activity statements, including PAYG withholding payments. Please note the different…

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      • Checklists and Downloads

          Personal Tax Return Checklist

          Income:• Group certificate(s)• Statements of any allowances, Centrelink benefits or pensions• Details of interest received on bank accounts• Dividend statements• Rental property statements from managing agent or details of any…

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          Tax Return Checklist for Rental Property Income

          Income & Expenses:• Rental statements from property agents – these will include the rental income, property agent fees and commissions, and advertising expenses• Body corporate / strata fees•…

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          Requirements for BAS

          Below is a list of the detail required to be able to process BAS documentation for lodgement:Bank statements for the full BAS period – Make sure you have all the…

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          Spreadsheets - Business Income & Expenses

          It's not always necessary to purchase, install, create and update complicated accounting package programs when starting up a business. Sometimes a simple Excel spreadsheet can be more suitable, particularly with sole traders and…

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          Spreadsheet - Rental Property

          This spreadsheet is a useful tool for monitoring your rental property's income and expenses for your year end tax return. Keep track of your quarterly earnings and expenditure, as well as capital purchases…

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          Spreadsheet - Motor Vehicle Expenses

          This spreadsheet is a useful tool for monitoring and recording your motor vehicle expenses for your year-end tax return. Keep track of your quarterly expenditure, including lease payments and interest on loans…

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          Template - Motor Vehicle Logbook

          A logbook can help you get the most from your business or work-related motor vehicle use. Download this template so you can keep track of each business or work-related trip…

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      • Superannuation

          Consolidating your super

          There are numerous benefits to keeping your super in one place.  Apart from only paying one set of fees, you will also be able to keep track of your retirement…

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          Binding Beneficiaries Nominations

          Under superannuation law, the Trustee of your super fund has the discretionary power to decide which of your dependents receives your super if you die before you retire. The law…

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      • Estate Planning

          Template - Last Will & Testament

          A Will is a legal document that clearly sets out your wishes for the distribution of your assets after your death. Having a clear, legally valid and up-to-date Will is…

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      • Starting a New Business

          Starting Up Your Business

          1.  Business PlanBefore you register for an ABN and start trading it is vital to sit down and flesh out the finer points of your business idea: Consider the different…

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          Company & Trust Set Up

          If you decide on a company or trust structure for your new business AFYF can assist you in meeting the various legal, ATO and ASIC documentation necessary for registration and…

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          Registering a Business Name

          When you first get started in a business you should register your business name with ASIC. Registration of a business name lasts for either one or three years, depending on the…

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          Company & Partnership Agreements & Deeds

          When first setting up your partnership, company or trust there may be a requirement to draw up and sign an agreement or deed. These agreements can regulate the arrangements between partners,…

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          Invoicing - What to Include

          Invoices can be hand-written, carbon copies or computer generated from programs like Xero or MYOB, but they all need to include certain details.  For businesses registered for GST invoices need…

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      • BAS & GST

          BAS Lodgement Dates 2017-2018

          The lodgement program due dates for the 2017 - 2018 financial year are listed below for all quarterly and monthly activity statements, including PAYG withholding payments. Please note the different…

          read more »

          Requirements for BAS

          Below is a list of the detail required to be able to process BAS documentation for lodgement:Bank statements for the full BAS period – Make sure you have all the…

          read more »
      • Business Planning

          Business Planning

          A business plan is an essential tool in starting up your business. It allows you to set a clear direction for your business, to communicate planning objectives and strategies to…

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      • Employing People

          Weekly, Fortnightly & Monthly Tax Tables

          To calculate the Pay As You Go (PAYG) withholding tax amount for your employees download the weekly, fortnightly or monthly tax tables below, depending on your agreed pay frequency. These schedules incorporate the…

          read more »

          Job Descriptions with Various Templates

          The job description should be the very first step in the recruitment process. It provides a support for writing job advertisements, specifying necessary qualifications, interviewing candidates, planning job training and…

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          Letters of Offer & Example

          A letter of offer is an important aspect when hiring a new employee as it outlines the terms and conditions of the job being offered.Try to include as much detail…

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          Letters of Appointment & Example

          A letter of appointment is another aspect of the recruitment process that the employer should complete to confirm the details of employment. It generally only needs to be a short…

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          Issuing Payment Summaries to Employees

          Payment summaries must be issued to every employee paid during a financial year ending 30 June. These summaries should be given to employees by the 14 July each year.The information…

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      Inside the mind of your banker

      Your chances of attracting finance from your bank are always going to improve if you understand what bankers are looking for and how they assess risk.

      Contrary to recent media coverage, more and more businesses are finding that it is possible to obtain finance and have close working relationships with their banks.

      However it is true that, more than any time in recent history, bank funding is scarce and bankers are under pressure to make every cent lent to customers count towards their profit targets. Approve a bad loan and a banker’s career could be jeopardised. Business is finding it harder than ever to convince banks that investing in them will prove a profitable investment, with minimal risk of failure.

      A business loan approval can be an extremely subjective decision, especially when you are relying on business assets and ongoing cash flow to secure the facility, rather than a house. Boiled down, most bankers are looking for three things when making a lending decision:

      • Does management have integrity and is it sufficiently skilled?
      • Can the business demonstrate an ability to pay back the money? (Serviceability); and
      • Is there a way to get the money back if things don’t go to plan? (Security)

      For anyone planning on approaching a bank for finance, the following pointers will help maximise your chance of a successful bank approach.

      Demonstrating your integrity and skill

      Bankers are trained to constantly watch for indicators of dubious characters or poor business skills. And the more money you are asking for, the more people will be watching you. Often the Bank Manager you are dealing with is not the end decision maker. Banks are approving up to $2m loans now with computers and automation. Generally loans above this will end up with a Credit Manager in a centralised assessment environment, away from the customer to ensure independent assessment is made.

      While it is easy for the Bank Manager you deal with to get a feel for your integrity, the centrally located credit manager uses clues in the information provided to make his or her assessment. Fail to impress either your Bank Manager or the Credit Managers, and your loan chances are adversely impacted.


      Dos and don’ts of borrowing

      Following are some clear dos and don’ts to help with this aspect of the application:

      • Do help the bank to understand your proposition in writing.
      • Don’t leave it up to your banker to construct the case for lending to you, feed him/her with the ammunition required – you are the only expert in your business. You need to tell your banker why your business is low risk, and provide the ammunition that they need to understand the value of the proposition. They can then use this to accurately share this value internally.
      • Do expect bankers to investigate you thoroughly
      • Don’t hide information relevant to assessing the risk of your proposition – you will invariably get caught not disclosing key information, and you can kiss your chance of success goodbye. The bank automatically wonders what else you have failed to tell them and the “credit clam” shuts. Common often unintentional omissions include: other entities and trusts in the group, tainted credit histories of business or directors, significant trade relationship issues, and competitive or market issues.
       
      You can have negative aspects to your application and still be a good bank customer. Address them up front and you are showing that you are on top of your business and in control of your destiny.
      • Do identify and proactively address risky elements to your proposal
      • Don’t leave it up to the bank to guess how these risks influence the application – bankers are trained to assume the worst when presented with only half the story. It is not in their interests to believe that the missing information will not have high risk indicators hidden in it. By proactively addressing issues, it shows that you have nothing to hide and leaves nothing to the imagination, and that the business is on top of its problems.

      Demonstrating Serviceability

      There are two parts to assessing serviceability:

      • How the business has performed in the past; and
      • How the business is likely to perform in the future.

      The past

      If a business is making profit then in most circles it is a success story. However this is only part of the picture for a bank. Surplus Cash Flow, generally measured as Net Cash after Operations, is the number one consideration. This is because this is what a business will use to make bank repayments. A business can be making a profit and not have surplus cash, thereby making it a bad banking proposition.

      Net Cash after Operations is a company’s Gross Profit value, less cash related operating expenses (ie not including depreciation, amortisation, asset revaluations and bank interest expenses), less taxes payable and including movements in current and non current assets and liabilities (predominantly movement in Debtors, inventory and creditors). A bank wants to see that its repayments, plus interest, are met by the surplus and there is still something left over for a rainy day.

      The “rainy day” component is measured through a calculation called Interest Cover (Earnings before interest and tax / Interest Expense). Business needs to be earning more than twice as much profit as the interest expense.

      Example: Financial trends that bankers might worry about

      • Inventory is growing disproportionately to Revenue – Unless told otherwise, this could be caused by a stockpiling of unpopular product lines indicating management doesn’t have a good grip on market demand.
      • Debtor days (Accounts receivable/Revenue * 365) growing – This might imply that debt collection processes are poor or worse: that customers are not paying because of service/product quality issues.
      • Is COGS (cost of goods sold) growing disproportionately to revenue?
      • Are there supplier issues causing cost increases that could jeopardise future viability?

      Bankers will spend hours poring over your financials looking for issues and reasons to be concerned as this is their primary information source and skill set. The more you can pre-empt concerns and address them in a manner that shows you know your business, the more comfortable a banker will be.

      You also need to demonstrate that the business has great likelihood of trading. If there are industry, regulatory or competitor related storm clouds on your horizon, you need to demonstrate that you are aware of them and that you have a plan to succeed in spite of them. Banks have economics department that can feed lenders market information so they are usually reasonably well informed.

      The conventional way to demonstrate future trading expectations is through a cashflow forecast. The danger with these however is that bankers are wise to the fact that there is no such thing as a bad forecast. Hence assumptions need to be extremely detailed and noticeably conservative. Best case/worst case scenarios can assist with this as well.

      Putting the family home on the line

      No business manager wants to put the family home on the line for the business. However if the assets of your business were to be sold at a distressed business valuation, would they pay back your loans? This is the challenge that you face if you are to avoid the bank’s insatiable appetite for bricks and mortar security. One way out of this is to use current assets and equipment to secure asset specific funding, including debtors and inventory, which is growing in popularity.

      And even if you do have unsecured facilities, the likelihood is that you will have provided an unlimited guarantee as a director. This can be a trap for directors as in a distress situation you are likely to have to sell your home anyway. But because it is not directly linked to your loans the bank can justify charging you an extra 3 per cent in interest because the loan is deemed “high risk”. If you know that the likelihood of your business failing is slim, you might actually be better off financially to just directly link the house and take the discounted rates. In this example the ultimate safety of your house doesn’t change, you just get a more favourable interest rate.

      Nathan King
      My Business, November 2008


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