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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      Improving access to Capital Gains Concessions

      By way of background, small and medium sized business owners can potentially access one or more of the following six CGT concessions to reduce their capital gains tax liability when selling a business, if relevant conditions are met.

      1. Pre or post CGT business?

      Firstly, if the business commenced before 20 September 1985 and the same business was carried on since its inception, then any capital gain on the sale of business goodwill will generally not be taxable.

      However, if the company’s assets include post-CGT capital appreciating assets, where post-CGT assets (other than trading stock) comprise more than 75 per cent the net value of the company, the business owner may be liable to CGT, even when selling pre-CGT shares in a business. The same applies to sales of pre-CGT units where businesses are held in unit trusts.

      In the event that a taxable capital gain arises from the sale of a business, then the CGT liability may be reduced or eliminated by one or more of the remaining five CGT concessions, as outlined.

      2. The general 50 per cent CGT discount

      A general 50 per cent CGT discount is available to non-company business (and non business) taxpayers who have held the relevant assets for more than 12 months. Companies are not able to access this discount; however, an individual selling shares in a company would be eligible.

      For small business, any remaining capital gain might be further decreased by the following four CGT concessions, irrespective of whether access to this discount is available.

      3. The CGT small business concessions (‘SB concessions’)

      The four Small Business CGT Concessions are:

      • 15 year exemption – a full CGT exemption on the disposal of a business held for 15 years. If this applies, the capital gain will be reduced to nil. Further concessions need to be considered.

      • 50 per cent discount – a further 50 per cent discount on any capital gain. This means that if the general 50 per cent discount also applies, the taxable capital gain can be reduced to 25 per cent.

      • Retirement concession – any remaining capital gain can be further reduced if a payment (up to a lifetime limit of $500,000 per person) is made to the owner’s superannuation fund, or, in the case of a company or a unit trust capital gain to a “CGT stakeholder”, which is typically an individual with a 20 per cent direct or indirect stake in the company or unit trust. Such payments do not attract the 15 per cent superannuation fund “contributions tax” and are not counted towards the maximum non-deductible superannuation contribution limit. If the recipient of the remaining capital gain is over 55 years of age at the time his/her tax return needs to be lodged, there is no requirement to pay any amount into superannuation to get this exemption.

      • Replacement Asset Rollover – Finally, where any remaining capital gain is reinvested in business assets (or broadly, in at least 20 per cent of the shares or unites in small business entities), tax on the remaining capital gain can be deferred.

      Accessing the small business CGT concessions

      In order to access any of the four SB concessions, two critical conditions must be met. Firstly, the relevant asset being sold must be an “active asset”, which is broadly an asset used or held ready for use in a business carried on by the taxpayer, or certain associates. Shares in a company and units in a unit trust can also be “active assets” if certain conditions are met.

      Secondly, either one of the following thresholds must be met:

      • The entity is a “small business entity”, which is an entity that carries on a business, and has an aggregated turnover of less than $2 million, excluding GST; or’

      • The entity satisfies the “maximum net asset value test”. This means that the total of the net value of CGT assets owned by the taxpayer, and certain associates, does not exceed $6 million.

      Passively held CGT

      From July 1 2007, the $2 million threshold test has been expanded to be available in situations where valuable assets, such as business property is held in a separate entity to the business entity, say, for asset protection purposes. For example, a factory might be held in a separate entity from the business and leased to the business. Previously, for the entity that owned the factory, but did not run the business, access to the SB concessions via the $2 million threshold test was denied on sale of the factory.

      For business sales after 1 July 2007, access to the $2 million threshold test is potentially available, when the factory owing entity is an “affiliate” or a “connected entity”, to the business entity with a turnover of less than $2 million (GST exclusive).

      CGT assets used by partnerships

      Similarly, up until 30 June 2007, a partner who held an asset separately from the partnership, but allowed the partnership to use that in the running of the partnership business, could not access the SB concessions via the $2 million turnover test.

      However, where the asset was owned collectively in partnership, access was available.

      From 1 July 2007, the inconsistency has been eliminated by extending access to the $2 million threshold test to a partner that owns a CGT asset separately, but allows that asset to be used by the partnership, provided certain conditions were met.

      For example, assume Bill alone owns a supermarket building, which is used in the business of a partnership carried on by both Bill and Ben trading as the “Bill and Ben Supermarket”.

      From 1 July 2007, Bill can access the SB concessions in respect of the sale of the supermarket building, if the aggregated turnover of the partnership, as calculated for Bill’s interest, is less than $2 million.

      Spouses and children taken to be affiliates

      From 1 July 2007, a business taxpayer’s spouse or child (under 18 years old) is treated as an “affiliate” in a wider range of situations. This potentially makes it easier  to access the $2 million turnover test as the assets owned by affiliates (and entities owned by affiliates and spouses), and used in the business, but not owned by the business entity, can potentially more easily qualify for the SB concessions.’

      Where, say, land is owned by an entity (the land owner), that is not the business entity, but the land is used in the business, it is relevant for the landowner to be “connected with” or to be an “affiliate” of the business entity, as this results in the land being treated as an “active asset”. It is necessary for the land to be an “active asset” to qualify for the SB concessions on sale of the land.

      This new measure could potentially cover land owned by an entity, which is owned by a spouse of a business tax payer.

      However, a drawback is that the new rule may bring in new “affiliates” and more entities “connected” with the business taxpayer, in calculating the $6 million maximum net asset value test.

      Conclusion

      These amendments potentially allow better opportunities for small business taxpayers to achieve both more tax efficient outcomes and asset protection objectives by holding capital appreciating assets in separate vehicles to the business entity. Assets, such as real property and IP, could potentially be held in separate entities but leased or licensed to the business entity.

      Proper structuring on establishment of the business, as well as advice on sale remains critical to best access these concessions, which can, in the best case, eliminate tax on capital gains on restructures or sales of small businesses, and assets used by small business.

      Mark Northeast

      My business, May, 2009


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