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…

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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…

          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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      Increasing the value of your business

      With many Baby Boomers nearing retirement and thinking about selling their businesses, a buyers’ market has emerged.

      If you are a business owner, obviously you want to get maximum value for the business and that may be harder than you imagine. I suggest you start the process of “grooming” your business for sale well before you put it on the market.

      First of all, put yourself in the shoes of a potential buyer. Think about what you would look for if you were buying a business. This is often referred to as “Due Diligence” ie the process undertaken to test the value of a business. The method used to value a business is mostly related to the size of the business and the type of industry.

      For small-to medium-sized businesses the most common valuation method is a multiple of EBIT (Earnings before Interest and Tax). That is a business could be worth between one to five times EBIT and the multiple depends on the type of business and risk of future earnings. Other ways that businesses are valued are:

      • Discounted Cash Flow – The future net cash flow of the business discounted back to present value at an appropriate discount rate.

      • Assets – Going concern value or realisation value – method used where a business is performing poorly and the main value is in equipment and stock.

      • Relevant industry – A generally accepted multiple of gross income of the industry.

      • EBIT (Earnings before Interest and Tax) – Multiple affected by a number of factors relating to the nature of the business and its efficiency.

      • Price to Earnings(P/E) – similar to EBIT Multiple except after tax profit used and a different ratio used for multiple.

      • Return on Investment – The return on funds invested to buy the business ie net profit before owner’s wages.

      In the EBIT method profit maximisation is the key as well as increasing the multiple in order to get the maximum value for the business.

      Ways to increase profit

      • Increase the Price of products or services sold

      • Sell more volume of products or services

      • Reduce the direct cost of products or services

      • In a product based business – the cost of the item for sale and delivery costs


      • In a service based business – the cost delivering the service such as labour and materials

      • Reduce overheads or indirect costs in the business, ie those costs incurred even if nothing is sold, such as rent, wages etc

      The EBIT multiple is affected by a number of factors such as:

      • Industry – Is it stable and growing and is it exposed to outside influences or trends?

      • Business Performance – Profitability, sales, margins, liquidity and control costs

      • Growth prospects – are there opportunities for product/services e.g. geographical expansion.  Is the plant and equipment in good condition to capitalise on growth opportunities and are premises capable of handling growth? Is a business Plan in place? Has SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis been performed.

      • Risk – Are costs exposed to interest and currency fluctuation? Is the market depressed or protected by government policy? Are there threats from cheap imports? Is insurance in place? Is new technology a threat? Is secure tenancy in place for premises? Could supplies be disrupted? Could legal claims be made? Is there reliance on a small number of suppliers and do they decide on products/services offered?

      • Competition – Is it aggressive and are there future threats? Is overseas competition likely and can the market sustain the current level of competition? Are the start-up costs prohibitive to new competitors and do they need skills and knowledge?

      • MIS (Management Information Systems) - are computer accounting and CRM (Customer Relationship Management) systems in place? Does the business report on sales, cost of sales and profit by products/services/employees? Is monthly reporting in place and are operating procedures in place?

      • Owners - Is the business reliant upon the current owner and how easy is it to transfer knowledge – are systems in place? When the current owner departs will key customers and staff be affected? Is there a healthy work/life balance culture in place?

      • Customers and Market Demand - Is there exposure to big customers and what is the level of customer loyalty? What is the market demand and nature of products/services ie are they necessary or discretionary and is there price sensitivity?

      • Staff – Is the industry attractive to staff and how is staff job satisfaction? Are your staff experienced and is industry knowledge essential? What HR (Human Resources) procedures are in place – recruitment, retention and motivation? How is staff retention history and how is communication within the business?

      • Succession – Is there Key Person insurance and are there strategies to protect the growth and ability to realise opportunities to increase business value?

      As you can see there are quite a few factors that can affect the multiple of EBIT used to value a business, and it’s quite a complicated process to work through. The factors mentioned are a great starting point to work on, with a view to improving the value of your business. The better these factors operate, the more desirable and valuable your business will be, and a smoother handover to new ownership will be the result.

      Sue Hirst
      My Business, February 2009

      www.cadpartners.biz


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