We all get bombarded with information from every source possible and frankly, it's too much. Even if you haven't already flicked it into spam you probably don't have time to read it. We call it Information Overload. So, on this page we've selected big picture news items we think are relevant and of interest to our clients.
Claim deductions on outdoor structures and save tax
The RBA announced their fifth rate cut in 12 months. A further official cash rate cut of 0.25% lowers the official rate to 3.25%p.a., the lowest in three years.
The ATO has introduced new measures on 7 August which are part of the suite of measures announced within the Stronger Super legislation.
History tells us that financial recessions take a lot longer to work through than normal recessions as the deleveraging occurring in both the private and public sectors reduces the effectiveness of traditional government stimulatory measures. Furthermore, governments need to re-establish confidence in the financial sector as risk aversion causes the velocity of money (lending) to reduce significantly.
From 1 July 2012, the Government is delivering tax cuts to low and middle-income individuals by increasing the tax-free threshold and adjusting the first two marginal tax rates over two phases.
Did you know that the tax deductible superannuation contributions cap of $50,000, including salary sacrifice amounts, if you are 50 or older have stopped on 30 June 2012?
The Government has deferred the start date from 1 July 2012 to 1 July 2013 for some of it’s Stronger Super reforms for SMSF’s including the proposal to require related party transactions involving SMSF’s to be conducted through the market where one exists, such as listed securities.
From 1 July 2013 the following changes came into effect:
With the new financial year upon us, people are gathering their information for preparation of their tax returns for 2012. With changes to taxation levels and less availability for making super contributions for those over 50, paying more tax seems to be a reality.
On 29 June 2012 the government passed legislation to amend the director penalty regime to make company directors personally liable for unpaid superannuation contributions. While the changes are important for making the payment of employee superannuation and PAYG a primary consideration, the changes impose more onerous personal obligations on directors. Directors of companies experiencing a cash flow crisis need to be aware of the changes and take steps to mitigate their potential personal liability.
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