DFK Everalls - Blog - Information on Developments - Field of Advisory - Superannuation - Individual Tax - Company - Business

Self-managed super: is it right for you?

2016-04-08T09:00:00+10:00

Investing in your future the right way will unlock your financial freedom later on in life.

Make the time now to understand your options, so that you can maximise your retirement benefits. Setting up a self-managed super fund (SMSF) gives you the control to invest and structure your retirement fund.

If you set up a SMSF, you're in charge – you make the investment decisions for the fund and you're responsible for complying with the super and tax laws. This is a major financial decision and you need to have the time and skills to do it

Everalls Wealth Management senior adviser Ray O'Toole says that "a SMSF is ideal for DIY investors who prefer to make their own investment choices for their retirement rather than leave their superannuation to be invested by others. A SMSF can also be more cost-effective in certain circumstances."

"Once we've determined that a SMSF is appropriate we can provide ongoing investment advice and administration support. We can also assist clients who decide that the SMSF option doesn't suit their situation."

"On Thursday the 14th of April at 5.30pm we are hosting a free Boardroom Briefing on what SMSFs are, including the process and criteria involved and, most importantly, if it's right for you."

This seminar is open to anyone who is interested in getting tips and advice on how to better manage their investments, but especially small to medium sized enterprises."

Limited spots are available, so to secure your seat or for more information, please call 6232 4561 or see www.everallswealth.com.au

Free business seminar to boost business performance!

2016-03-06T09:00:00+11:00

With the majority of small businesses failing in their first few years because of poor financial management, DFK Everalls are helping to put the odds in your favour! A free boardroom briefing seminar will be held on Thursday 10 March from 5.30pm at our premises in Deakin.

Designed for business owners of new or existing businesses of any size, or businesses in the making, the seminar will discuss how to get the most out of your financial statements. After all, how can you make more of a profit if you don't know how it is calculated or where it is coming from?

The seminar will help you understand the different components of your financial statements, discover important things like why your business isn't making money, or if it is, exactly where the money is coming from and where it's going.

We've aimed this particular seminar at two groups of people: new business owners who don't have much experience with interpreting financial statements; and existing business owners who just don't quite understand what is going on with their money or how to identify which particular areas of their business needs attention.

It will be a plain English presentation, so that people walk away with a clear understanding of each element involved in understanding financial statements. This includes profit and loss statements and balance sheets to understand the different accounts and where the numbers come from. During the evening we will also discuss how to interpret statements so that you can identify areas where you can improve your business performance going forward.

TO REGISTER YOUR SEAT CONTACT US!

Limited seats available!

Cashflow Mastery Webinar & Seminar for Business Owners

2016-02-09T09:00:00+11:00

Cashflow is still King in 2016 and a great majority of our clients identify Cashflow as an area they wish to focus on and improve, no matter what stage or size business they have.

This we are holding a 5 Keys to Cashflow Mastery Webinar Workshop on Tuesday 23rd of February at 1pm AEDT to walk you through the Foundational Strategies you need to have in place to maximise this prime asset.

Hosted by Melissa Healy from DFK Everalls in Canberra and Michael Gray from DFK Gray Perry in Adelaide, this webinar will help you identify gaps to close in your cashflow management strategy.

It's a great investment of your time and energy that will have a significant positive impact on your business in 2016.

Bonuses include a Cashflow Budget Template, a best practice Debtors management Guide and the chance to win one of 15 Cashflow Review Strategy Sessions with a DFK Advisor.

You can join us for this highly valuable, practical & insightful webinar workshop by registering through this link >> http://bit.ly/cfwednl

At DFK Everalls we will also be hosting a Boardroom briefing on February 12th at 5.30pm. Bookings essential through, info@dfkeveralls.com or call 6232 4588

Christmas gifts and parties

2015-12-17T09:00:00+11:00

The festive season is upon us and while it is the season for giving and a great time to celebrate a job well done, it is important to make sure that as an employer you don't get left with the tax hangover!

Let's have a look at some of the common things employers do at this time of the year, the tax considerations and how with a little bit of planning you can ensure the best tax outcome and still have a good time!

Cash Bonus

If you pay a 'cash' bonus to an employee, it is treated in the same way as other salary/wage payments
to them i.e. taxable to the employee. You need to withhold the correct PAYG withholding from the amount and make sure you pay at least 9.5% super
on time. Provided you do both of these things, all the amounts paid will be deductible to your business. There are additional on-costs you may need to consider e.g. payroll tax and workers compensation.

Staff gifts/presents

Employees: Presents such as hampers, vouchers etc. given to employees are fringe benefits and so not taxable to the employee. Fringe benefits tax (equal to about 96% of the value of the gift!) can also be avoided by ensuring that the gift is less than $300 (including GST) and that you do not provide gifts to staff "regularly". The amount will still be deductible to your business and you will be able to claim the GST unless the gift provided is entertainment e.g. movie/concert/football ticket.

Clients/suppliers gifts

You do not have to worry about FBT on gifts to clients/ suppliers because FBT only applies to employees. A tax deduction and GST claim will be available to you where the gift is anything other than entertainment (e.g. movie/concert/football ticket). The only other thing is, if the gift has a value of greater than $300 including GST, it may be treated as assessable income to the client/supplier.

Christmas Party

The tax treatment of your Christmas party will depend on your circumstances. But generally if the cost of
the party is less than $300 per employee (including their associates), then there won't be any FBT issues but you won't be able to claim the entertainment as tax deduction, nor the GST. If clients/suppliers also attend their portion is also non-tax deductible or GST claimable, but FBT is never payable.

Please note the total cost of the party includes the cost of food, alcohol, venue hire, travel – flights/buses, accommodation and any entertainment e.g. bands.

Insurances...It's personal

2015-10-29T09:00:00+11:00

Personal insurance, unlike a Zebra, is not always black and white. A boardroom briefing hosted by Everalls Wealth Management on the 12^th of November will help you to understand the different types of personal insurance and how you, and your loved ones, can benefit by having an appropriate insurance portfolio in place.

Personal insurance is all about the "concept of risk". Risk is the chance of an unforeseen event that results in the loss of something we value. An example of this is where people take on debt, perhaps to buy a home or to purchase a car. We can continue to repay the debt while we have our income. However, the loss of our income, from either accident or illness, could result in a failure to repay the loan, potentially resulting in the loss of the home or car. Research shows us that 83% of Australians have insurance on their car however, only 31% have income protection (which can replace up to 75% of income lost due to accident or illness).

Unfortunately, in Australia, we have become one of the most underinsured nations in the developed world. According to Rice Warner Actuaries research, life insurance cover within super, on average, is estimated to be only 20% of what is needed. Hopefully, our boardroom briefing will highlight this situation and we can work with clients to ensure they do have enough personal insurance in place.

The Seminar will provide an opportunity for people to ask questions and learn about the process of establishing your personal insurance portfolio. "Our emphasis is on ensuring people understand the benefits of insurance cover for life's unexpected, and unforeseen, events".

Everalls Wealth Management provides plain English advice on the full suite of financial planning services including; insurance, superannuation, pensions, estate planning and much more.

To secure your place or for more information, call 6232 4588 or visit everallswealthmanagment.com.au

Second of the 5 Key Traits of a Healthy Business: The Financial Perspective

2015-10-22T09:00:00+11:00

Having set a clear vision/mission/strategy and the "why" for your business, the next of the 5 healthy traits is: a very clear financial perspective.

Having clarity around:

1) What are the financial drivers in your business; and

2) What are the financial results sought;

- these are the critical elements to this trait. And as with all the 5 traits, clearly communicated, shared knowledge here ensures the outcome are achieved.

So setting some financial targets is great and necessary: be it a sales target, profit growth, return on investment or some other indicators; go for it.

But: those are outcomes. Those are the score-board after the game has been played. It's the activities that lead to the results that drive the outcomes. So for example, if the target is more sales revenue, what are the inputs to drive this? More cold calls, more promotional offers, more advertising, more geographic regions? What are the activities, steps and resources necessary to achieve the outcome? What processes can be made more efficient? Activity drives outcomes, they don't "just happen".

These activities will typically not be measured in dollar figures. They will be actions - how many cold calls are to be made this week? How many old customers are to be re-contacted this month? How many new adverts are to be placed, and where, this week?

The financial drivers in your business are actually measured in actions, not dollars. The outcomes are marked up on the score-board in dollars, after the actions have happened. So the KPI's that your team will find meaningful and useful must include activities and actions, not just dollar outcomes.

Imbed the drivers in your business

The most successful business owners go to the next stage and imbed these activity drivers into the fabric of their management process. They communicate the actions required to achieve KPI targets to employees, allocate individual or team responsibilities for their success and ensure the workforce is engaged and committed to the outcome. This is perhaps the hardest step, requiring the most ongoing effort, but is also the most critical.

You and your management team can determine the right KPIs and targets for your individual business. Great accounting advice can help bring clarity to these discussions – after all, accounting is all about measurement and reporting!

Once KPIs and targets are set your team should aim to understand what drives the numbers. My experience in business is that some business owners and managers are good with numbers, others are good with strategy and planning and most are good at doing the task their business promotes. A few are good at all of these! The best owners and managers not only measure the numbers, they know how they are constructed and they understand what every day actions make them go up and down.

Monitor and benchmark

Now that you have set KPIs and targets and you understand what actions drive them, the next step to achieving financial control is to monitor and benchmark your results. Benchmarking provides an objective view of how your business is performing, encouraging you to balance your focus between external and internal perspectives. This is working on, not in, your business.

A comprehensive set of benchmarks should include internal historical (eg against your previous years' performance), peer comparison (against your competitors) and industry standards.

To get the desired outcome, take your team through a workshop to understand the KPIs and how they are achieved, link drivers to employee objectives and individual performance plans. Develop management systems to ensure these actions are taken every day.

Shared clarity of financial objectives and the drivers to get you there will build a more success-oriented business!

In the next article I will address the customer perspective – the third trait of a Healthy Business.

- Robert Shelton

Business Structure Basics

2015-10-14T09:00:00+11:00

If you are thinking about setting up a business, there are various structures you can use to do this. These are:

· Sole trader

· Partnership

· Company

· Trust

Each are very different and have their own considerations and advantages & disadvantages. Here is a quick introduction into each of them:

Sole trader

Summary: A sole-trader is when an individual carries on a business in their own name/right! The individual is the sole decision maker, but can still have employees.

Advantages:

· Simple, quick, cheap and efficient to set up, run and close down!

· The net profit of the business goes into the individual's personal tax return, on which personal tax rates apply. This can also be a disadvantage.

Disadvantages:

· No liability protection provided by the structure. That is, if the business is sued, the individual's personal assets are exposed.

· The net profit of the business goes into the individual's personal tax return and the higher personal tax rates are greater than the flat company rate. Also, there is no capacity to stream income to any other person.

Partnership

Summary: A partnership is when two or more persons carry on a business in common with a view to profit. Decisions on the operation of the partnership are made by the partners jointly.

Advantages:

· Comparatively simple, quick, cheap and efficient to set up, run and close down!

· The share of net profit of the partnership goes into the individual partners tax returns, on which personal tax rates apply.

This does provide the ability to split income into more than one tax return, however there are provisions designed to stop/limit this where the income is the result of only one person's efforts.

Disadvantages:

· No liability protection provided by the structure. Partners are joint and severally liable for the debts of the business.

· The share of net profit of the partnership goes into the individual partners tax returns, on which personal tax rates apply. This can mean higher tax rates than a company.

· Changing partners results in the end of the original partnership and the commencement of a new one. This can trigger significant tax issues. Partnerships can be inappropriate for businesses that are looking to grow or change direction and bring on new owners etc.

Company

Summary: A business can be set up in a company. A company is a separate legal entity that is run by directors on behalf of the owners (shareholders).

You can be the director and shareholder and even an employee. But the company itself will own the assets and liabilities and receive its own income and pay expenses.

Advantages:

· Provides limited liability in certain circumstances. Generally, directors can only be sued if they breach their director's duties or provide personal guarantees.

· Companies are the perfect structure for owners to come/go. Think ASX listed companies! The company structure itself endures while the underlying owners (shareholders) or operators (directors) change.

· 30% tax rate. This is lower than the higher individual tax rates.

· Can make life simple and provide separation – the business is separate to personal.

Disadvantages:

· Complex and have strict compliance requirements.

· As a result, they are expensive to operate. Comparatively expensive to set up and can be expensive and time consuming to close down.

· Any losses are trapped inside the company and are not able to be offset against any individual's income.

Trust

Summary: A business can also be run through a trust. A trust is a legal relationship where the trustees run the trust on behalf of beneficiaries.

In family situations, the trustees and beneficiaries are often the same people. There are many types of trusts, but the most common type is a family (or discretionary) trust.

Advantages:

· With a corporate trustee, asset protection or limited liability is provided.

· Profits of the trust flow through to beneficiaries, meaning income splitting can be achieved. However there are provisions designed to stop/limit this where the income is the result of one person's efforts.

Disadvantages:

· Complex and have strict compliance requirements.

· As a result, they are expensive to operate. Comparatively expensive to set up and can be expensive and time consuming to close down.

· Any losses are trapped inside the trust and are not able to be offset against any individual's income.

· Only designed for 'family' businesses. It is currently impossible to bring on 'external' owners as the trust grows or changes direction.

· If individual trustees are used, no asset protection is provided.

Combination

It is possible to use a combination of different or multiple structures to achieve the right combination of advantages & disadvantages to suit your needs.

This summary is intended only to be a brief introduction of the structures, primarily from a tax point of view. Individual and commercial circumstances must be considered in any new business set up decision.

If you are thinking of setting up a business or just not sure if your current business structure is right for you we would love to discuss the issues with you in more detail! Please give us a call on (02) 6232 4588.

DFK International wins IAB Association of the Year Award 2015

2015-10-07T09:00:00+11:00

DFK International is celebrating being named Association of the Year at the International Accounting Bulletin Industry Forum and Awards 2015.

The top honour was awarded to DFK International at the prestigious awards ceremony to showcase excellence in the accounting profession held at the Kensington Close Hotel in London.

Martin Sharp, executive director of DFK International, collected the prized trophy on behalf of DFK International for the Association of the Year category also being contested by finalists INPACT and Praxity.

The finalists and winners were selected by an independent panel of judges including Jane Howard, partner at Wragge Lawrence Graham & Co LLP, Ndungu Gathinji former chairman of the Institute of Certified Public Accountants of Kenya (ICPAK) and former IFAC board member, and Mark Koziel, vice president - firm services & global alliances at the American Institute of Certified Public Accountants.

To win the category, DFK International had to demonstrate the execution of profitable growth strategies, be recognised by the industry as a reputable brand that consistently delivers high-quality professional services and excelled in a number of key strategic and operational areas over the past 12 months.

DFK International's entry was based upon its contribution to advancing the profession for more than 50 years and its significant progress in recent years in gaining new members, enhancing members' cooperation and creating special value for members through its investment in IT infrastructure.

In announcing the winners, the International Accounting Bulletin said: "DFK International is the second fastest growing organisation in the top 10 global associations in financial year 2014. It has expanded its presence beyond its traditional footholds of Europe and North America and added members in all regions.

"DFK International sustained growth despite some challenging conditions in key markets as well as its all rounded nomination with a particular focus on sustainability, and its internationally driven mind set and resilience in front of adversity were all contributing factors for the association's win in this category."

Demetris Demetriou, president of DFK International, said: "DFK International is delighted to have been selected as the winner of the International Accounting Bulletin Association of the Year Award 2015.

"These Awards celebrate excellence in the international accounting profession and it is therefore a tremendous honour to be recognised as the leading association in front of such a distinguished industry audience.

"It recognises the advances that DFK International has made which over the last year has seen our continuing expansion with high-quality accounting and consulting firms worldwide, and it will no doubt help to inspire us to achieve our greater ambitions going forward."

The forum and awards ceremony is aimed at UK, European and global accounting firm leaders and brings together some of the most prominent figures in the industry.
Talks at the event focused on the accountancy landscape in 2015, disruption, data security and digitalisation, with a panel of expert speakers debating what the accounting industry will look like in 2020.

The Association of the Year Award follows on from the world survey conducted by the International Accounting Bulletin earlier this year which saw DFK International record one of the highest growth rates of fee income in the world in 2014 to be ranked seventh largest accounting association.

DFK International has over 400 offices in more than 90 countries worldwide.

An invitation to all start up and existing business owners

2015-10-02T09:00:00+10:00

DFK Everalls are offering a workshop to help business owners understand your Financial Statements and how to use them to identify areas for improvement.

With the majority of small businesses failing in their first few years because of poor financial management, DFK Everalls is helping to put the odds in your favour. A free Boardroom Briefing to discuss Practical Financial Management is being held on Tuesday October 20th, from 5.30pm at their premises in Deakin.

Designed for owners of new or existing businesses of any size, or businesses in the making, the workshop will discuss how to get the most out of your financial statements. After all, how can you make more profit if you don't know how it is calculated or where it's coming from?

The seminar will help you understand the different components of your financial statements. Discover important things like why your business isn't making money, or if it is, exactly where the money is coming from and where it's going. Our director Melissa Healy, has more than 25 years' experience in the industry, and has presented a wide variety of training courses for all sectors of the community.

The Practical Financial Management seminar is open to everyone. We've aimed this particular briefing at two groups of business owners - new business owners who don't have much experience with interpreting financial statements; and existing business owners who just don't quite understand what is going on with their money or how to identify which particular areas of their business need attention. We aim to build confidence when looking at financial reports.

It will be very much a Plain English presentation. We will be looking at Profit and Loss Statements and Balance Sheets to understand the different accounts and where the numbers come from. During the evening we will also discuss how to interpret Financial Statements for the purposes of clarifying what has actually happened in the last 12 months and how to use the Financial Statements to identify areas where you can improve your business' performance going forward.

This FREE Boardroom Briefing is open to anyone.
Limited spots are available, RSVP to secure your place by calling Sarah Lamech on 6232 4588.
or by emailing sarah.lamech@dfkeveralls.com

Quarterly Tax Update

2015-10-01T09:00:00+10:00

Work-related car expenses simplified: Two methods discontinued; now only one flat rate and logbook method

The Government says that nearly 4 million Australians claim a work-related car expense deduction each year. Previously there were four different methods by which taxpayers could claim the tax deduction for work-related car expenses cents per kilometre method, logbook method, the 12% of original value method, and one-third of actual expenses incurred method. From 1 July 2015, the 12% of original value method and one-third of actual expenses incurred method can no longer be used in an effort to streamline the system and reduce compliance costs.

This means only 2 methods will remain: cents per km method and logbook method.

What is the cents per kilometre method?

You can use this method to claim up to a maximum of 5,000 work-related kilometres per car even if you have travelled more than 5,000 work-related kilometres. For example, if you travelled 5,085 work-related kilometres, you can only claim the cost of travelling 5,000 kilometres with this method. You cannot claim for the extra 85 kilometres.

You do not need written evidence but you need to be able to show how you worked out your work-related kilometres.

The cents per km rate for the 2015-16 financial year has been reduced and is now a flat 66 cents per km, regardless of car engine size. Employers who pay their staff a car allowance based on cents per kilometre may therefore have the opportunity to reduce the amount they pay their staff accordingly.

Employees who continue to be paid their car allowance at a rate higher than 66 cents per km need to be aware that they will need to declare the car allowance received in their personal tax return and claim a tax deduction for the kms travelled but only using the 66 c/km rate. This may result in additional taxable income and therefore extra tax payable.

What is the logbook method?

The logbook method allows taxpayers to claim the work related percentage of their actual car operating costs as a tax deduction.

A log book record of car trips doesn't need to be kept for the whole year. The minimum requirement is a continuous 12-week period which commences in or before the tax year.

If a car is swapped, a new log book is not required, but a 'nomination' must be made noting the following information for both cars:

start and ending odometer readings for the period
make, model and registration particulars
engine capacities

Unless circumstances change, each log book is valid for 5 years.

Actual car operating costs include registration, insurance, repairs and maintenance, tyres, cars washes, fuel and oil. They also include lease payments for leased vehicles or depreciation and interest for vehicles financed by loans, HP's or chattel mortgages.

Please note you cannot claim a personal deduction for car expenses for a company car or salary sacrificed car.

Travel allowances:

The ATO has now released the 2016 Reasonable travel allowances amounts that business can pay their employees without them needing to keep receipts.

Please click here for a copy of the Tax Ruling with the 2016 amounts.

Please note that self employed people cannot pay themselves a travel allowance- they must keep receipts. If you are an employee but didn't get a travel allowance you must also keep receipts to substantiate your tax deduction.

TWO DFK Everalls clients are finalists for the 2015 ACT Chief Minister's Export Awards

2015-09-30T09:00:00+10:00

DFK Everalls are proud sponsors of the ACT Chief Minister's Export Awards for a third consecutive year. Our Managing Director, Rob Shelton was one of the judges for the prestigious awards.

The ACT Chief Minister's Export Awards are the Territory's most respected business awards. They acknowledge the innovation, hard work and success of businesses, large and small, in reaching new global markets. The Awards recognise the important contribution that Australian Capital Territory businesses make to the local economy through job creation and increased prosperity in the community.

On September 22nd the finalists were announced, we are thrilled to say that two of our very own DFK Everalls clients are finalists. We wish them and the other applicants the best of luck.

The winners will be announced next month, October 22nd at the National Arboretum. For the full list of finalists and further information on the awards please click here.

Tax Tips for Small Business equipment purchases

2015-09-16T09:00:00+10:00

In the May 2015 Federal Budget, the Government announced that small businesses (with annual turnover of less than $2m) would be able to immediately write off the cost of assets they start to use or install ready for use from 12 May 2015 to 30 June 2017, provided the assets costs less than $20,000 each. This means that you can claim a tax deduction in full for any depreciable asset costing less than $20,000.

If you are registered for GST then the cost of each asset needs to be less than $20,000+GST. If you are not registered for GST then the cost needs to be less than $20,000 including GST.

The deduction does not apply to equipment that you lease but financing it by way of a Hire Purchase, Chattel Mortgage or loan is fine. Please review your budget and cash flow carefully before making any purchases.

The deduction can also apply to existing assets – If you have a Small Business Asset Pool (from assets bought in previous years) and the balance of the pool at the beginning of the financial year was below $20,000 then you can write off the entire balance this year.

If you would like to know more about the new depreciation rules or purchasing/financing equipment in the most tax effective manner please contact us.

Meals from the Heart- Ronald McDonald House

2015-09-10T09:00:00+10:00

Meals from the heart 2015

Through DFK Everalls community partnership with Ronald McDonald House Charity in Canberra, the DFK Everalls team volunteers to make home cooked meals for families staying at the house.
It was a great team effort and a lot of fun- the team made a selection of Beef casserole, Thai chicken curry, salads and fried rice, followed by apple pie with ice cream for dessert!
We catered for about 35 people staying in the house at the time, from planning the menu to preparing and serving the food and chatting with families – it was wonderful to do something simple but personal like providing a home cooked meal for these families in need.
If you would like to contribute your time or donate to this worthy cause please visit Canberra Ronald McDonald House Charity website.

It is such a rewarding experience for all involved and we look forward to contributing our time in a way that really makes a difference to those staying in the house.

Planning BEFORE Retirement, why it's so important!

2015-09-07T09:00:00+10:00

Planning before Retirement: Why it's more important than ever!

We are fortunate enough to live in modern times where retirement often involves enjoying a long, healthy and active period of your life.

If you are like most people, it's likely that you have worked your entire life and have been looking forward to the day when you can finally relax and do all those things you've never had time to do before. However, to ensure your money can give you the lifestyle you want – for as long as you require it – you need to plan ahead. Be prepared before your retirement.

Ray O'Toole, from Everalls Wealth Management, explains that funding your ideal retirement can be harder than you think. "These days people are generally living longer and it is more important than ever to have a plan in place to ensure you will have adequate funds to support yourself during your retirement years. It would not be unusual to live another 30 years after retiring. The question you need to ask yourself is – how long will my money last?"

Ray stresses that relying on the Age Pension is a common mistake. "The needs of Australia's ageing population is placing intense pressure on government support for retirees. For most people, the Age Pension is insufficient to provide for a comfortable quality of life in retirement which is why the government provides incentives for people to save for their own retirement. For this reason, you should really think of the Age Pension as a 'safety net' – and take a proactive approach to fund your own retirement so that, ideally, you won't have to rely on government funding."

There are various ways you can gain the upper hand including making the most of your superannuation and the various taxation advantages it provides. A range of strategies may be appropriate depending on your current situation and how you see your future retirement.

"There are many variables to consider, so it's wise to discuss your retirement goals sooner rather than later – a little planning can go a long way," explains Ray. "If you are ready to begin your pre-retirement planning, or would like to review your existing retirement plan, you may find it helpful to attend our forthcoming Boardroom Briefing which will give you an idea of some of the issues and considerations you need to think about when it comes to planning for a comfortable retirement."

The FREE Everalls Boardroom Briefing, on 16 September at 5.30pm, will appeal to anyone who is currently considering their retirement and will ultimately help you answer questions such as: Will I have enough money to retire? What kind of lifestyle do I want in retirement? How can I continue to grow and protect my assets after I stop working?

Attend our FREE Boardroom Briefing to understand the importance of planning before your retirement - it's where you'll spend the rest of your life.

Wednesday 16 September 5.30pm – 7pm
RSVP by 14 September to Sarah Lamech by calling 6232 4561 or sarah.lamech@dfkeveralls.com

Everalls Wealth Management Boardroom
Royal Life Saving House 26-28 Napier Close, Deakin 2600

Everalls Wealth Management Pty Ltd is a Corporate Authorised Representative (No. 465367) of Capstone Financial Planning Pty Ltd. ABN 24 093 733 969. AFSL/ACL Licence No. 223135.

Deciding to start your own business? Now what?

2015-08-03T09:00:00+10:00

With cuts to the public service, there is a trend of people in Canberra starting their own business or consultancy. Deciding to start your own business can be one of the most exhilarating projects of your life. However, it can also be one of the most stressful. It's important to plan for success and ensure that the finances for a new business are viable and profitable. DFK Everalls provides business development plans, strategies and management tactics to ensure you get the best result from your business.

Call it a goal or a mission, we want people to have a rough idea of what their business will look like down the track from the very start, and then we look at four key areas. Being accountants, we like looking at the finances first because statistics prove that most small businesses fail within the first few years because they don't have their finances under control.

Once you have an idea about what you want your business to look like in 12 months or three years, you need to work out how you are going to make it happen and how much money is going to be needed to make it happen. We recommend you have a budget up front. It can be very simple – one income line and five to 10 lines for your major expenses. It doesn't matter that you don't know how things are going to work out; do the budget based on what you would like to happen. Plan for success! It doesn't matter if your plans change – just update the budget accordingly.

'At DFK Everalls we love seeing our clients meet and exceed their business goals.'

The free Boardroom Briefing, on Thursday 13 August 5.30pm, is aimed at anyone who wants to start up their own small to medium business or consultancy service. This is not only for local companies, but for anyone who is thinking of going global for import or export trade.

Limited spots are available, so to secure your seat or for more information, please call 6232 4588 or email sarah.lamech@dfkeveralls.com

Single Touch Payroll

2015-08-02T09:00:00+10:00

An overview of Single Touch Payroll

The Single Touch Payroll system is aimed at cutting red tape for employers by simplifying tax and superannuation reporting obligations.

The government is hoping to achieve multiple benefits by introducing Single Touch Payroll.

THE BENEFITS

REPORTING CAPABILITY

- Single Touch Payroll will simplify the way employers fulfil their reporting obligations. With the use of compatible software, employers would process their payroll and automatically fulfil the functions and obligations 'at the touch of a single button'.

- The reporting function would require employers to report the following information, through their payroll software, at the time of the payroll event:

· Employee income;

· Pay As You Go Withholding (PAYGW); and

· Super Guarantee obligations.

- The reporting function will eliminate paper-based payroll reporting by requiring business to report digitally via their Standard Business Reporting-enable software instead. This will reduce the double handling of data.

- Employer will no longer be required to report employee PAYGW through activity statements (during the year) and payment summaries (at the end of the year).

- The ATO would also be notified of the super contribution amounts that the employer will pay to the super fund. As a result the ATO will be in a better position to ensure that businesses are meeting their employee super obligations.

REAL-TIME REPORTING AND PAYMENT CAPABILITY

CONCERNS

- The government's preferred options of employers paying their PAYGW and superannuation guarantee obligations every payroll cycle would mean that PAYGW is remitted to the ATO and superannuation contributions are paid to an employee's fund at every payroll event rather than in line with what is currently required.

- Increased frequency of payments will result in cash flow impacts, particularly on transitions. Businesses typically would fall into one of the following categories when it comes to cash flow impact:

· For business that already set aside their PAYGW and super obligations each pay cycle, the impacts should be relatively minor – however this 'cash reserve' will be reduced because, for most business, payment will be required more frequently.

· For business hat actively use the current delay between the payroll cycle and their tax and super obligation event to manage the cash flow of their business, this new process may create cash flow issues

- Employees will be required to upgrade (or in some cases acquire) appropriate payroll software (Standard Business Reporting-enabled software) in order to meet their increased obligations under Single Touch Payroll.

- There is a small percentage of businesses in a net GST refund position, or entitled to fuel tax credits, that are also likely to see an impact on cash flow. Previously, these GST or fuel tax credits were used to offset the payment due for PAYG withholding – however, under Single Touch Payroll, businesses would be required to find the cash to pay the PAYG withholding to the ATO at the time of payroll and then receive a refund when they lodge their activity statement.

- Further to the above, changes to the frequency of payments may have consequences for other business practices, such as payment of invoices. A change of this nature for all employers is likely to increase market pressure within particular industries to reduce the number of days before invoices are paid.

- The increase in payment frequency for SG will have an impact on the volume of payments and contribution messages going through SuperStream gateways and clearing houses. There is often a small fee associated with each payment and any increase in volume is likely to increase the administrative cost associated with making super contributions. There may be opportunities for the marketplace to change these fee structures to minimise any rises in these fees.

COMMENCING EMPLOYMENT

When an employee starts a new job, they are required to complete numerous forms, including a Tax File Number (TFN) Declaration and a Super Choice form. Due to the onerous nature of this paperwork, there is the risk of incomplete or incorrect information being supplied.

The government proposes that a digital channel be set up to simplify the process of inducting new employees.

Under a Single Touch Payroll system:

- Employees would be offered the option to supply their details electronically through an online government portal which links directly to their employer's payroll software; or alternatively

- Employers could enter the employee's details directly into the employer's payroll software and have the ATO validate the details.

Information sharing with employee superannuation funds and other government departments, such as Human Services, is also expected to increase.

CESSATION OF EMPLOYMENT

The introduction of Single Touch Payroll could allow businesses to easily notify super funds, the ATO and the DHS of employees that have ceased employment. This could be completed with limited business administration, through payroll software allowing for an 'employee ceased' indicator to be entered.

Super funds will be able to receive information on employees who are no longer employed. Super funds could also use the information to communicate with members about choosing the fund for future employment.

ADMINISTRATIVE PENALTIES

As with other areas of tax and super, administration penalties may apply for failures to meet certain obligations under Single Touch Payroll.

The Commissioner of Taxation will provide support to employers making a genuine attempt to comply with their obligations under Single Touch Payroll. As a result, discretion in the administration of penalties under Single Touch Payroll will be necessary during the transition period and ongoing.

SOFTWARE

In order for businesses to utilise Single Touch Payroll, compatible software will be necessary. The software would need to be compatible with Standard Business Reporting (SBR) standards and build on SuperStream solutions used by employers.

Businesses or their payroll providers may be required to either purchase or upgrade existing software, potentially at an additional cost. However, it is expected that initial costs for businesses will be recouped in the longer term because the software will save them time in paperwork required for payroll transactions and other business processing.

In the past, it was recognised that all businesses may not be able to buy, continually upgrade and operate the latest computer systems. Based on the experience with Real Time Information in the United Kingdom, it is expected that some basic, entry-level software packages will be available free of charge; this will help businesses that do not currently use software transition into an electronic business model without software costs.

A DISCUSSION PAPER was released in February 2015 seeking stakeholder's views on a number of issues before any final decision was to be made on its implementation. Some of the key points raised were as follows:

· Transition arrangements;

· Suggestions on how to minimise implementation and compliance costs; and

· The potential for employers to remit employer PAYGW and the super guarantee at the same time employees are paid.

IMPLEMENTATION – Progress update

1. Details are still being finalised.

2. Submissions from stakeholder on the discussions paper have now closed.

3. The current proposed timetable is for Single Touch Payroll to be available from July 2016. However given the teething problems often experienced with the introduction of such measures, there is expected to be a transitional period available to employers (see below).

4. Employers must wait for further progress on the proposed system from the government.

TRANSITIONAL ARRANGEMENTS

The discussions paper provides a suggested approach to this transitional period, which will depend on the employer's withholding liability.

Issues relating to cash flow will be considered during the design of transitional arrangements, and options will be considered to reduce the impact on employers.

The following table sets out a potential approach to implementing Single Touch Payroll:

July 2016

July 2017

July 2018

July 2019

Employers with Withholding greater than $100,000

Employers strongly encouraged to transition to the Single Touch Payroll environment

Employers required at law to operate in a Single Touch Payroll environment

Penalties may apply for those that don't

Generous exemptions may apply to delay the start date for some employers

Employers expected to be operating in a Single Touch Payroll environment

Exemptions may apply in exceptional circumstances

Employers with Withholding less than $100,000

Employers are able to transition to the Single Touch Payroll environment

Employers strongly encouraged to transition to Single Touch Payroll environment

Employers required to operate in a Single Touch Payroll environment

Penalties may apply for those that don't

Generous exemptions may apply to delay the start date for some employers

Employers expected to be operating in a Single Touch Payroll environment

Exemptions may apply in exceptional circumstances

Is there Super on that?

2015-07-20T09:00:00+10:00

Is there super on that?

Superannuation Guarantee (SG) contributions are the minimum superannuation that you are required to pay on behalf of your employees. The current rate is 9.5% of ordinary time earnings (OTE) but what does that mean exactly? Businesses and employee agreements can be complex so it is important to understand what makes up the OTE amount when calculating superannuation guarantee figures.

The Australian Taxation Office (ATO) describe OTE as the total of:

- Earnings in respect of ordinary hours of work; or

- Earnings consisting of over-award payments, shift-loading or commission.

While this seems simple enough, in practice the application can be difficult … and expensive when your accountant starts pointing out that the now overdue underpaid super is no longer tax deductible! Below are some of the most common pitfalls when it comes to calculating OTE and subsequently SG;

- Overtime hours are not considered OTE and therefore do not have SG.

-  Parental leave payments are not considered OTE.

-        Expense allowances are not considered OTE.

-        Performance, Christmas or other extra-gratia bonuses are considered OTE and therefore do require SG.

Below is a comprehensive list of the most common payments to employees however if you would like to know more, or would prefer to speak to an actual person please contact our office.

Types of payment to employees	Salary or wages?	OTE>OTE?
Awards & Agreements
Overtime hours – award stipulates ordinary hours to be worked and employee works additional hours for which they are paid overtime rates	Yes	No
Overtime hours – agreement prevails over award	Yes	No
Agreement supplanting award removes distinction between ordinary hours and other hours	Yes	Yes
No ordinary hours of work stipulated	Yes	Yes
Casual employee – shift loadings	Yes	Yes
Casual employee – overtime payments	Yes	No
Casual employee whose hours are paid at overtime rates due to a 'bandwidth' clause	Yes	No
Piece-rates – no ordinary hours of work stipulated	Yes	Yes
Overtime component of earnings based on hourly-driving-rate method stipulated in award	Yes	No
Allowances
Allowance by way of unconditional extra payment	Yes	Yes
Expense allowance expected to be fully expended	No	No
Danger allowance	Yes	Yes
Retention allowance	Yes	Yes
Hourly on-call allowance in relation to ordinary hours of work for doctors	Yes	Yes
Payments of Expenses
Reimbursements	No	No
Petty Cash	No	No
Payments for unfair dismissal	No	No
Workers' compensation – returned to work	Yes	Yes
Workers' compensation – not working	No	No
Leave Payments
Annual leave	Yes	Yes
Parental leave – eg, maternity leave, paternity leave, adoption leave	No	No
Ancillary leave – eg jury duty, defence reserve service	No	No
Termination Payments
Termination payments – in lieu of notice	Yes	Yes
Termination payments – unused annual leave	Yes	No
Bonuses
Performance bonus	Yes	Yes
Bonus labelled as ex-gratia but in respect of ordinary hours of work	Yes	Yes
Christmas bonus	Yes	Yes
Bonus in respect of overtime only	Yes	No

The Australian Taxation Office (ATO) describe OTE as the total of:

- earnings in respect of ordinary hours of work; or

- earnings consisting of over-award payments, shift-loading or commission.

While this seems simple enough, in practice the application can be difficult … and expensive when your accountant starts pointing out that the now overdue underpaid super is no longer tax deductible! Below are some of the most common pitfalls when it comes to calculating OTE and subsequently SG;

- Overtime hours are not considered OTE and therefore do not have SG.

- Parental leave payments are not considered OTE.

- Expense allowances are not considered OTE.

- Performance, Christmas or other extra-gratia bonuses are considered OTE and therefore do require SG.

Below is a comprehensive list of the most common payments to employees however if you would like to know more, or would prefer to speak to an actual person please contact our office.

Free seminar - Market update

2015-07-17T09:00:00+10:00

Attend our FREE Boardroom briefing to understand the current economic and market situation covering topical issues such as Greece, global interest rates and more.

Understand;

- How Greece could affect the share market

- The Lonsec investment approach

- How to access different assets classes using exchange traded funds

Hear from our guest speaker Geoff Beeston who has 20+ years in expertise in Global Economics and Finance strategies.

Thursday 30^th July 5.30pm – 7pm

RSVP to Sarah Lamech by calling 6232 4561 or email sarah.lamech@dfkeveralls.com

EOFY MD Overview

2015-06-29T09:00:00+10:00

From the desk of the MD,

In last year's newsletter I wrote:
"Perhaps the thought now is that it is far better to be adaptable than sustainable."
Since writing those words it seems more and more communities, businesses and individuals are adapting to the "new normal" that seems to have emerged. Business models, community policies and individual thinking that relied on everything being similar from one year to the next (sustainable) are being challenged by the pace of changes. The "new normal" includes change; adapting to this is not just necessary to succeed, it is probably the only way to succeed.
So with a new financial year about to dawn and the current one drawing to a close, let's look out over and above the details to see what's happening at a very "macro" level…

The World:
• Economies in developed countries seem to be recovering.
• Communities in developed countries seem to be accepting that their current circumstances are becoming a "new normal".
• Politics is as unstable and cyclical (cynical?) as ever.
• Patches of instability around the world cause volatility and uncertainty in economies, communities and politics… But the world goes on anyhow, except for those directly impacted.

In Australia:
• Inflation is at extremely low levels;
• Interest rates are also at extraordinarily low levels;
• Unemployment is relatively low;
• The economy seems to be handling the slowdown from booming mining capital expenditure to more regular times;
• Communities are dealing with whatever shape the "new normal" seems to be creating;
• Politics in Australia is as unstable and cynical (cyclical?) as ever;
• Differing patches of growth or decline around the country cause a lack of confidence in economies, communities and housing.

But we adapt, even to all that and more!
This low inflation, low interest rate period gives a great time to invest. For small businesses, the incentives noted in the Budget to invest in capital items under $20K+GST for immediate write-off make it even more attractive to invest now.
Here in Canberra we adapt too. Despite economic, community and political questions about the tram, public sector redundancy and relocations, Mr Fluffy, and housing more generally.. We adapt. Canberra is still a great place to live, invest, build communities and grow businesses, despite the challenges.

DFK Everalls is adapting too! In the last 12 months we have:
• Started our financial planning division, Everalls Wealth Management;
• Launched our cloud accounting solutions for businesses and SMSF clients;
• Massively ramped up our bookkeeping services.

These very significant initiatives continue our long history (since 1968) of strategically looking after you, our clients, in the best possible way.

Our happy and stable team continue into the new financial year and we look forward to seeing you again too.

Robert Shelton

Autopia the ‘best’ most tax-effective way to finance a car

2015-06-26T09:00:00+10:00

THE 'BEST', MOST TAX-EFFECTIVE WAY TO FINANCE A CAR CAN SAVE YOU THOUSANDS.

by Ernest Chunge CTA, Head of Finance, Autopia

There's a lot of ways to finance a car, and apart from 'cash' they're all far from straightforward. However making the right decisions up front (even when it comes
to which car you buy) can save thousands, and organisations even more!
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A car for you, or your business?
There are a number of variables to consider in this situation:
1. First you need to determine whether the vehicle(s) will be in your name, or the company's name. The entity the car is allocated to claims the tax deductions, so making the right decision here is key.
2. Next you need to select the optimum finance method. For example, if the car's in the company name, you can choose from a chattel mortgage, commercial hire purchase, finance lease, operating lease, cash, line of credit or property loan re-draw. They all have varying levels of tax benefit, flexibility and security, so it's best to talk to your accountant here, and match the finance to your requirements.
3. Then you need to choose the right car (one that does the job, but doesn't depreciate too quickly) and structure the finance to suit your needs.
4. Finally, you need to get the best price you possibly can for the vehicle, ensure you maximise your tax deductions, eliminate any potential FBT from the picture, and manage your EOFY reporting as efficiently as possible.
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Employee or Employer?
If you're an employee, or looking for a fleet of vehicles for your employees, a notated lease is almost always the cheapest way to own a car. The ATO approved tax benefits delivered by the ability to salary package your car, apply to virtually everyone - even for those with no business use, no matter how many annual kilometers are travelled.
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The bottom line
Buy the right car, at the right price, with the right finance method. Run it efficiently, and dispose of it on time. It's that simple.
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Discounts for DFK Everalls' Clients
For DFK Everalls' clients, all of this has just become an awful lot easier thanks to a partnership with Autopia – Australia's foremost experts in vehicle finance and tax. In addition to fleet discount on purchase price and most running costs, Autopia can roll all your expenses into one set monthly cost, providing certainty around your cash flow. And there's a 50% discount off the set-up fee for all DFK Everalls' clients too. (See deals here)
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Next steps?
Call 1800 288 674, or visit autopia.com.au to find out the best way to finance your car, and make sure you mention you're a client of DFK Everalls to lock in the discounts.

DFK Everalls receives no income from Autopia. We just enjoy working with providers of good quality solutions for you.

Its Bookkeeping Jim …… but not as you know it ...

2015-06-24T09:00:00+10:00

"Its Bookkeeping Jim …… but not as you know it ……"

…………. slightly butchered text from Captain Kirk of Star Trek Fame

For the last couple of years DFK Everalls has been promoting the benefits of cloud accounting software to our own small business owner clients and the Canberra market in general. Currently, we now have over 100 clients who we have helped successfully migrate their data files from the desktop to the cloud. The main three cloud software services that DFK Everalls supports are:
Xero, MYOB AccountRight Live or QuickBooks Online.

We have had great responses from our clients and our accountants alike who have had the opportunity to work on their new cloud data files. Some of the key benefits that our clients and accountants have experienced are:

Direct bank feeds have been fantastic. Saves so much time, all financial info is up to date, "auto rules" code transactions automatically and save time and frustration in the bank reconciliations.
More Accessible – being able to access their accounts from their phone or iPad, airport computer – any time of the day (Xero and QBO files only).
More flexible: multi user access.
One version always up to date – In the case of Xero and QBO - there is only one version of true cloud software….. and it's always up to date.
More secure: no stolen computers or laptops to worry about, no failed hard drives, no water damage from floods….. the data is secured in the cloud with the same protection as your internet bank account details.

At DFK Everalls we have developed a "Customised Cloud Accounting Solution" for your business.
We will find the right cloud accounting solution that best fits the needs of your business.

Our special offer to you:
FREE Cloud Software Assessment and Migration Service
From now until the end of August - we can offer your business a free Cloud Software Assessment and Migration Service. This service includes:

A thorough needs assessment of your current accounting software requirements.
A report to you detailing what we recommend will be the most appropriate cloud accounting solution for your business, based on your business needs.
A FREE migration service from your desktop to your new Cloud Accounting software package.

This customised service is normally valued at $500, however from now until the end of August this service will be free. (Please note that in some cases we may recommend that your business stay on its current desktop software).
To take advantage of this great offer, please contact your Accountant to set up an appointment and we will visit you at your premises.

There is nothing to lose. As your trusted business adviser we will make the best recommendation for your business, however the final software choice will be yours.

"Beam me up Scotty" …… sorry couldn't help myself!

10 things your adviser can do for you

2015-06-17T09:00:00+10:00

Whether you are in business or not - there are Ten Things Your Accountant/Financial Adviser can do for You

1. Manage your cash flow
It's a simple statement to say that you'll never get ahead if you spend more than you earn, yet in many businesses and households spending more than you earn is what happens on a regular basis. Your adviser can work with you to develop a budget, one that suits your needs and will set you on the right path now and in the future.

2. Put your debt to work
There are different types of debt – good and bad. Your adviser can explain the difference and make sure that – where possible – your debt is working for you and your future

3. Assist you with a savings plan
Individuals and businesses need money for a rainy day, reinvestment and retirement. The benefits of a good, regular savings plan cannot be stressed enough.

How do you start?
How much can you afford?
What will your short-term, medium-term and long-term goals be?
What will your savings milestones look like?

As your financial coach, your accountant can help you develop a plan that will work for you and will also help you meet the goals you set together.

4. Invest your money
Saving is one thing and without the discipline of putting something aside it may not be possible to invest. Investing is something else – it is making sure your money is working as hard as possible. Knowing where to invest is a difficult decision. Our Everalls Wealth Management team members are qualified and have the experience to help you navigate the myriad of opportunities available to give you the best options available.

5. Help you realise your goals
There are a few steps required to achieve the financial goals for you or your business. The first step is to talk through and understand your goals. Next is to make a plan – the plan should be clear in showing how you are intending to reach these goals. The plan may change over time as your priorities change and goals need to adapt to changes of mind or circumstances. Your financial adviser will be able to work with you in adapting and reshaping your plan to meet these new goals. Without a plan in place, reaching your goals will be much more difficult.

6. Keep you on track
Making a plan is one thing. Sticking to it is quite another. It's much more difficult and takes willpower and perseverance. Like working out, having a coach is better than doing it all alone. A financial adviser is your financial coach and will help you stick to your plan. This doesn't mean not being flexible but it does mean making sure you stick to it even when temptations abound and times become tough.

7. Take care of your retirement
You want to stop working when it suits you. Your adviser is there to make sure that – using the right plan – you are able to make an informed decision about when is the right time for you to retire, and to ensure you retire with the lifestyle you desire. Your plan should ensure that your money is accessible enough to maximise your income in retirement and continue to do the things you most enjoy doing. Retiring is not the end of life as you know it but the beginning of life the way you want to live it.

8. Protect your lot
Building your assets is vitally important for your future, but protecting your assets is equally important. How much protection is enough? If something happens to you (or your partner) how will you continue the life you are accustomed to – how much will it cost to maintain your lifestyle for the present and the future? If you don't have enough insurance, your life may face drastic and unpleasant changes just at a time when this would compound other difficulties facing you. Your adviser can help you to determine what type of protection you might need when preparing for the worst. It is good to know that whatever happens, in you and your family's life, you can continue as best as possible in changed circumstances.

9. Look after your estate
Families are at the heart of financial planning. Making sure that everyone is looked after when one member dies is something that can make a huge difference to the financial position of the rest of the family. This is even more important when a small business is involved.
A financial adviser can ensure that your estate is structured effectively so that when something does happen to you or a loved one your financial plans won't be another thing you have to worry about.

10. Plan for your future
As your circumstances change you will need to update the way your finances are structured. A financial adviser can do this for you – make sure you are in the best shape to take the next step on your financial journey – from single to married to parents to new jobs, no jobs and even grandparents and retirement.

Source: BT

EOFY Tax Updates

2015-06-15T09:00:00+10:00

2015 TAX UPDATE

Personal Tax Rates from 1 July 2015:
$0 - $18,200 nil%
$18,201 - $37,000 19%
$37,001 - $80,000 32.5%
$80,000 - $180,000 37%
$180,000+ 47%
Plus Medicare levy 2%

FBT: The FBT rate has increased from 46.5% to 49% from 1 April 2015.

Company tax: The company tax rate for small businesses with a turnover of less than $2 million has been reduced from 30% to 28.5% from 1 July 2015 effective from 1 July 2015.

Personal Tax Offsets: The Mature Age Worker Tax Offset was abolished from 1 July 2014 along with most dependent tax offsets.

Medical changes: The Medicare Levy remains at 2.0%. The Private Health Insurance discount means testing continues. The Medical Expenses Tax Offset continues to be means tested and phased out.

Superannuation: The compulsory SGC rate stays at 9.5%. The concessional contribution cap for people who are aged 49 or over on 30 June 2015 is $35,000 from 1 July 2015. If you are under 49 on 30 June 2015 the limit is $30,000.

New small business Asset Deprecation: Small businesses with turnover of less than $2 million can claim a 100% deduction for the business portion of a depreciable asset that costs less than $20,000+GST.
The changes apply to assets acquired after 7.30pm on 12 May 2015 until 30 June 2017. It applies to new and second had assets and on a per asset basis, so several assets each costing less than $20,000 would qualify.

Primary Producers: Primary producers can immediately deduct capital expenditure on fencing and water facilities such as dams, tanks, bores, irrigation channels, pumps, water towers and windmills. Primary producers will also be able to depreciate over three years all capital expenditure on fodder storage assets such as silos and tanks used to store grain and other animal feed.

Trust Distribution Minutes: Trustees need to sign a Minute before 30 June 2015 declaring how the trust income for the year is going to be distributed between the beneficiaries. If the Trustees do not make their resolution by 30 June then the Trustee is liable for tax on the profit at the rate of 47%. If we have not already been in touch regarding your Trust Minute please contact us immediately.

Payment summaries: Employers need to issue Payment Summaries to their employees by 21 July 2015 and forward copies to the ATO by 14 August 2015. If you are the employer and you and your family members are the only employees of your business then you have an extension to the same time your tax return is due for lodgement. Please don't forget to include Reportable Employer Superannuation Contributions and Reportable Fringe Benefits Amounts on the payment summaries.
If you would like any assistance reconciling your wages, tax and super and/or with the preparation of your payment summaries in July please contact your Accountant.

Extra Tax on Super contributions for High Income Earners: Normally employer and tax deductible super contributions get taxed 15% when they get paid into your super fund. Since 1 July 2012, the super contributions for high income earners (more than $300K Adjusted Taxable Income) get taxed an additional 15%. The ATO will send you a separate bill after you lodge your tax return. You can pay this extra tax personally or you can get your super fund to pay it for you out of your Super account. This makes the total tax 30% but this is still better than paying 47-49% so additional salary sacrifice contributions can still be tax effective and good for your retirement savings!

International tax obligations: Just a friendly reminder to all clients that if you are an Australian Resident then you must declare all of your income including foreign income such as rent, interest and pensions. Non-residents need to declare their Australian sourced income. Please let us know if you need any assistance with your international tax obligations.

Audit Shield services

2015-06-04T09:00:00+10:00

Better safe than sorry . . . Are you prepared?

If you are subjected to an audit, enquiry, investigation or review you are responsible for the professional fees involved in us providing the required information. Even the simplest enquiry can require hours of work. In some cases, when there are complex environments, unusual circumstances, multiple years or multiple companies and trusts, thousands of dollars in accounting and legal fees can be incurred. In many cases, those who are audited are compliant and have done nothing wrong. However, work must still be undertaken and thus professional fees will be incurred.

We have responded to this growing threat by sourcing the most comprehensive tax audit insurance available and are pleased to offer to you and your business our Audit Shield Service. The Audit Shield Service is fully tax deductable providing you with peace of mind in relation to audit, enquiry, investigation and review associated costs. The features of this are:

· Our accounting fees in responding to audits, enquiries, investigations and reviews of your lodged returns, including those from previous years are covered.
· Specialist's professional fees if we need to engage a tax expert or lawyer for an opinion or defence are covered.

To find out more about our Audit Shield Master Policy, please speak to your accountant, manager or partner.

Peace of mind for when you are put under the microscope.

Our Audit Shield Service* provides for the payment of professional fees incurred as a result of you being selected for an audit, enquiry, investigation or review by the Australian Taxation Office (ATO) or other government body.

The cost of being properly represented in these matters can be quite considerable depending on the length of time involved. Audit Shield provides a fixed, cost effective solution to guard against these unforseen costs.

How likely am I to get an audit, enquiry, investigation or review?

The ATO, along with other federal, state and territory agencies, now have unprecedented access to taxpayer records, allowing them to specifically target previously unreviewed tax returns. Now more than ever, Individuals, Businesses and Self-Managed Superannuation Funds are at risk of being selected for an audit, enquiry, investigation or review.

For more information about this product and how we can tailor it to suit your personal circumstances please contact us.

*Audit Shield is provided by Accountancy Insurance Pty Ltd (AFS License No: 276100).

What is a Small Business Entity?

2015-05-18T00:00:00+10:00

What is a Small Business Entity?

The 2015 government budget has brought some great news to small business, including a 5% tax rate cut from 1 July 2015 (capped at $1,000 for business taxpayers that aren't companies); a 100% asset write off for assets purchased under $20,000 from 7.30pm on 12 May 2015; and the ability to write off a pool balance if it's under $20,000.

The key to access all these concession is to be a SBE (Small Business Entity).

This might not be as easy and straight forward as you thought.

To be an SBE, you need to satisfy two criteria: the entity carries on business, and satisfies the $2 million aggregated turnover test. (s.328-C)

Under s.328-110, the SBE test is divided into a general rule, an additional rule and a rule for winding up a business previously carried on. In this article, I will explain the general rule and the additional rule.

1. General Rule

An entity is an SBE if it carries on a business and its aggregated turnover for the previous year was less than $2 million, or its aggregated turnover for the current year is likely to be less than $2 million (s.328-110).

The second half of the definition, 'Its aggregated turnover for the current year is likely to be less than $2 million' will not be able to be satisfied if the entity's aggregated turnover for the two income years before the test year was $2 million or more.

2. Additional rule

The entity's actual aggregated turnover for the current income year, worked out as at the end of the current income year is less than $2 million. (s328.110)

Note however that if the SBE qualifies under the additional rule only, it will not have access to some of the SBE concessions, including cash accounting for CGT; quarterly GST instalments; PAYG instalments based on GDP-adjusted notional tax; annual apportionment of GST input tax credits for partly creditable acquisitions and importations; simplified accounting methods for Spas that make mixed supplies or mixed purchases.

SBE rules can be complicated when you drill into the definition of the tax law and apply the concessions. For example: What is the definition of 'aggregated turnover'? What is the concept of 'affiliate of an entity' and 'connected with the entity' when you try to work out the aggregated turnover? Which SBE concession can or cannot apply to your entity?

If you would like to learn more about the above concessions and other tax legislation, come and have a chat with our experienced directors and managers about your business, we will provide you with quality and practical tax and business solutions.

Year End Tax and Business Tips for 2015

2015-05-04T00:00:00+10:00

It's that time of year again to start planning before 30 June 2015 rolls around. Planning should be undertaken by both individuals and businesses alike to maximise all possible opportunities and ensure a smooth end of year process.

The following are an outline of items to consider and discuss with your adviser now before 30 June ticks over.

Individuals

1. Defer earning taxable income until the next tax year

If you plan to sell and asset, can the contacts be signed after 30 June to push tax into the next financial year? If not, are there any capital losses available to reduce capital gains?

Roll maturing term deposits to a date after June 30.

2. Bring forward deductible expenses

buy work related items < $300 for an immediate deduction;
prepay interest on investment loans;
bring forward repairs to your investment property;
make tax deductible donations.

Superannuation

If you are an employee, salary sacrifice some of your wages into superannuation up to the contributions cap;
if you earn < 10% of your assessable income from wages & salary, make extra deductible contributions up to the contributions cap;
Find our more on contributions:
Increased tax deductible (concessional) contributions cap for 50yrs and over.
Making after tax (non-concessional) contributions to super.
explore your eligibility for rebates such as the spouse co-contribution and government co-contribution.
if you are in pension phase make sure the minimum pension has been paid to you for this financial year.
If you have a Self-Managed Superannuation Fund make sure all points raised in audit management letters have been addressed.

Review salary sacrifice arrangements to ensure they are still beneficial.

Review your log book for currency. A log book will ensure you get the maximum claim for your work related travel and needs to be kept for a consecutive period of 12 weeks out of every 5 year

Businesses

Prepay expenses if you are a small business entity for an immediate deduction in the current year – for example prepay interest on loans. Bring forward deductible expenses, such as repairs.
Review your debtors ledger and write off any bad debts prior to 30 June 2015 so you don't pay tax on money you are unable to collect.
Review your asset register – identify and scrap any obsolete items of plant and equipment for a tax deduction of the written down value.
Prepare for your stock take at year end by identifying old or obsolete stock that can be written off.
Pay your employees super prior to 30 June for a tax deduction this year.
If your business is running at a loss, speak to your accountant about the non-commercial loss rules and what is required to deduct the losses from other income.
Make sure you have all details required from your contractors to complete your taxable payments report.
Have you considered the super stream requirements for your employees?
If you have a company, review any loans that the company has made to associates and contact your accountant to ensure the most tax effective strategy is in place for repayment.
If you have a trust, review the year and with your adviser, plan for and document year end trustee resolutions as to the distribution of income

Reviewing your business and personal circumstances prior to year end will help you to maximise your potential deductions and ensure a smooth transition into the 2016 financial year.

If you need any assistance please contact us today.

The Budget Boardroom Briefing

2015-04-30T00:00:00+10:00

A free seminar hosted by DFK Everalls on 14 May will help explain the impact of this year's coming Federal Budget on your business.

With at least some changes expected to come from the Federal Budget, now is the time to take control of your tax and financial affairs.

The best tax planning is done before the start of the income year, not weeks before the end.

We are hosting a free boardroom briefing on 14 May, two days after the Federal Budget is announced, so that it's practical and immediate information.

The seminar is for any business owners who want to take control of their tax and financials and for individuals who would like to be kept up to date with changes.
The seminar will focus on practical implications from the changes in the Federal Budget and how that will affect your business, as well as simple tax planning strategies businesses can use year round to achieve best practice. It will provide an opportunity not only to forward plan your tax requirements but also to fine-tune any tax planning for the current financial year.

Limited seats available, first in best dressed to RSVP for this event please contact jessica.norton@dfkeveralls.com

So Fringe Benefits Tax (FBT)…

2015-04-15T00:00:00+10:00

You aren't really sure what it is but it seems to cost you money every year either in accounting fees or tax, sound about right?

In basic terms, if you employee staff and give them access to certain benefits or privileges you might be providing them with a 'fringe benefit' …. and the ATO want to tax that.

If you are letting your employees drive a work car around, paying for their gym membership, or even covering the costs of the staff Christmas party this year then you are providing a 'fringe benefit'.

FBT has become a minefield of if's-and-but's and it is generally this knowledge that you are paying for when your accountant wants to look over your figures every April. Nevertheless when the FBT tax rate is at 47%^ the accounting fees can be the least of your worries!

At DFK Everalls we want to make sure that you meet your FBT responsibilities each year to help you minimise the hidden dangers and a 47% tax bill.

If you are an employer and think this might affect you, or just want some more information, contact our office for a chat with one of our accountants.

Should you give your employees shares in your company?

2015-04-14T00:00:00+10:00

There is a lot being written about employee share schemes (ESS) right now. And rightly so. Reforms before Parliament will make these schemes more attractive with a common sense approach to how they are taxed and special incentives for start up companies to share the rewards of growth with the people who help create that growth.

As the reforms apply to shares and options issued from 1 July 2015, it's important that employers do not issue new shares or options prior to this date if they want the new rules to apply to those shares or options. If the shares or options are issued prior to this date they will be caught under the current, more onerous rules.

What does an employee share scheme do?

Employee share schemes are a way for businesses operating through company structures to provide employees with an ownership stake and share in the growth of the company or its parent. The main purpose of employee share schemes is to align the interests of employers and employees as both parties will be working towards a common goal.

Under an ESS, employers issue shares (an ownership stake) and/or options (a right to acquire shares at a later date) to their employees at a discount to the market value of the shares or rights.

A range of conditions generally applies to determine when and how the employee can access those shares. For example, in many cases employees will not have full access to the shares until they have been employed by the company for a certain number of years or certain performance targets have been satisfied. These conditions can lead to reduced staff turnover and higher levels of productivity. This is because the employee would generally forfeit the shares if the conditions are not met.

A shareholders agreement may also be put in place to control when, how and who the shares can be sold to once the employee is able to exercise the rights.

The reforms before Parliament address how and when employees are taxed on those shares and the regulation of share schemes.

How will the new rules work?

At a very high level, when an employee receives shares or rights under an employee share scheme they are taxed on the discount they have received.

The discount is taxed much in the same way as salary or wages. The discount is generally taken to be the difference between the market value of the share or right and any amount paid by the employee to acquire the share or right

Depending on the way the scheme has been structured, the employee may be able to defer the taxing point until a later point in time (many years later in some cases) and concessions may also be available to reduce the amount that is subject to tax.

As with the current rules, it will still be necessary to work through a number of conditions to determine whether an employee is able to defer the taxation of the shares or rights they have received. If these conditions are met and the employee has been provided with shares, the taxing point will be the earlier of:

· When the employee leaves the employer;

· 15 years after the shares were acquired; or

· The point where the employee can sell the shares without restriction.

If the conditions are met and the employee has been provided with options to acquire shares then the taxing point will be the earlier of the following:

· The employee leaving the employer;

· 15 years after the right was acquired;

· The point where the employee can sell the rights without restriction; or

· The right is exercised and there is no real risk of the employee forfeiting the resulting shares and there are no restrictions on the employee selling the shares.

In general, the new rules enable the taxing point to be deferred for a longer period of time until the point at which it becomes clear that the employee will actually derive some economic benefit from the shares or options they have received.

The reforms also introduce special incentives for start up companies.

Start up companies are unlisted companies that have been incorporated for less than 10 years and have an aggregated turnover of $50m or less in the income year prior to the introduction of the share scheme. Where the start up is part of a corporate group, all companies in the group must also meet these requirements. There is a carve out for certain venture capital funds from this turnover test and 10 year incorporation rules for start up companies.

One of the concessions that will be available for employees of these start-up companies is that small discounts received in relation to shares or rights are not taxed at all under the ESS rules. For shares, the discount offered cannot be more than 15% of the market value. For rights, the strike price must be equal to or greater than the market value of ordinary shares in the company at the time the right is acquired. If the relevant conditions are met the discount should not be taxed but it will still be necessary to deal with the capital gains tax implications on eventual disposal of the shares or rights.

The new rules also tidy up the interaction with the capital gains tax (CGT) system for employees of start-up companies to make it easier for them to access the 50% CGT discount. Normally, when someone exercises an option to acquire shares, the 12 month holding period rule is reset, which means the shares need to be held for another 12 months to access the CGT discount on sale. Under the new rules, the 12 month period will be measured from when the rights were acquired.

When should your company contemplate an employee share scheme?

Share schemes are typically used as an incentive to retain and attract key team members. They can be particularly useful in a start-up environment where there is not necessarily the cash available to attract top quality employees with high salaries. As team members cannot realise the value of the shares for an agreed period of time, the scheme locks them in for this period or they lose any benefit. Beyond the 'golden handcuffs', offering employees the ability to invest their talent in a tangible growth asset rather than just receiving a salary is a powerful incentive.

It's important that there are strong rules and documentation around how share schemes are managed. For example, if an employee holds shares acquired through an ESS but then leaves the company, can they sell the shares to anyone or will they be restricted to selling the shares back to the company or existing shareholders based on an agreed valuation formula? The risks to the company of having a broad array of shareholders need to be carefully thought through.

How do you establish an employee share scheme?

It's really up to the company and its current owners to determine how the ESS is structured. However, the scheme is more likely to be successful in aligning the interests of employers and employees if it is structured in a way that is tax effective for the employees who will be participating in the arrangement.

For example, in order to access many of the concessions that are available under the rules there are some common conditions that need to be met. These are:

· The scheme should not result in any one employee holding more than 10% of the shareholding or controlling more than 10% of the voting power of the company;

· The shares offered under the scheme need to be ordinary shares;

· The company's main business must not be share trading; and

· The individual needs to be employed by the company issuing the shares or one of its subsidiaries.

Before implementing an employee share scheme it is important to ensure that both the commercial and tax issues have been fully considered. You will need professional support including commercially aware legal advice and documentation, tax advice and business structuring advice. Generally a valuation of the business would also need to be undertaken to establish the discount that is being offered. There is no one size fits all method.

The Australian Tax Office is working on standard employee share scheme documentation and valuation safe harbours. While companies do not have to rely on these documents they will go some way to standardising how these schemes are implemented and the minimum requirements and standards.

Contact us to explore whether an employee share scheme is right for your business and how to structure it to get the right result.

Choosing the correct employment type for your staff

2015-04-09T00:00:00+10:00

When you run a business, you might have to hire someone for their skills, knowledge and expertise.

As an employer, it is your responsibility to carefully choose the correct employment type for your staff.

Just because someone works for you, this does not mean that they could be always classified as an 'employee' or an 'independent contractor.'

There are many differences between these two employment types and understanding them is very important as it affects on tax and superannuation obligations.

Independent contractor

As an independent contractor, your staff would run their own business with an Australian Business Number (ABN). They are paid for results achieved rather than receive wages. They provide their own equipment and materials to perform the work. They also have their own professional indemnity or public liability insurance. Upon completing the work, they usually issue an invoice and receive remuneration accordingly.

Employee

When you hire someone and agree to pay wages or salary, they are classified as an employee rather than a contractor. As an employer, if your employee receives more than $18,200 in one financial year, you must withhold tax for them. Moreover, you must pay compulsory employer contributions to your employee's complying super fund, if they are 18 years old or over and receive $450 or more (before tax) in one month. You may have to also pay this to under 18 years old employees, if they work more than 30 hours per week.

The Australian Taxation Office is very strict on this matter and it is against the law to treat your employees as contractors to avoid tax and super obligations. Regardless of whether you intentionally or unintentionally engage with your worker incorrectly, the ATO will correct these obligations not from the date you identify the mistake but from their employment start date. Therefore, if you already have workers or plan to hire someone in the future, you must check and select the correct employment type for them.

If you would like some further help or advice on any of the above – then please contact us so that we can help you understand these issues and get the best outcome for you at tax time.

Are you missing out on rental property deductions?

2015-04-07T00:00:00+10:00

Property tax deductions, including plant & equipment depreciation and building allowances, are a valuable aspect of any property investment.

After interest expenses, depreciation is generally the largest deduction available to property investors. Claiming depreciation can save you significant amounts of tax.

The easiest way to work out what depreciation you are eligible for on your rental property is to get in touch with a quantity surveyor specialising in tax depreciation...

But there are a couple of things to consider before doing this, so it is best to have a chat to us first. We can also put you in touch with recommended and licensed quantity surveyors.

If you have missed out on depreciation claims in prior years, we can assist you with amending your tax returns, generally up to two years old, to have your tax recouped.

You may be able to go back to amend older tax returns in limited circumstances.

If you would like to know more about depreciation claims for rental properties or any other rental property deductions, please contact our office.

We love our clients

2015-03-12T00:00:00+11:00

At DFK Everalls we love helping our clients and seeing them succeed!

As a manager I was delighted to receive this amazing gift from one of my long term clients…

As you can see it's a treasure chest filled with (chocolate) gold coins with a thankful message in true Pirate style.

At DFK Everalls we love our clients, and it's great to see that they love us too!

SMSF Fundamentals for Trustees

2015-03-11T00:00:00+11:00

SMSF Fundamentals – essentials

1) Contributions

Contributions standards – reminder for Trustees:

Member's Age	Mandated Employer Contributions	Voluntary Employer Contributions	Personal Member Contributions	Other Member Contributions
Under 65	Yes	Yes	Yes	Yes
65 to under 70	Yes	Yes with work test (note 1)	Yes with work test (note 1)	Yes with work test (note 1)
70 to under 75	Yes	Yes with work test(note 1)	Yes with work test (note 1)	No
75 and over	Yes	No	No	No

Concessional Cap (includes Mandated Employer Contributions, Salary Sacrifice, and Personal Contributions)

	2014-15
For all ages 49 or under	$30,000
For members aged 50 to 59	$35,000
For members aged 60 plus but <75	$35,000

Non concessional Cap

	2014-15
For all Ages	$180,000 or a three year limit of $540,000
For members aged 50 to 59	$180,000 or a three year limit of $540,000
For members aged 60 plus but <65	$180,000 or a three year limit of $540,000
For members aged 65 plus but <75	$180,000
For members >75	NCCs cannot be accepted

Note 1:

Work test = 40 hours for 30 consecutive days which must be met before the Super Fund can accept contributions from a member.

FREE Seminar on SMSF

2015-03-02T00:00:00+11:00

Self-managed super: is it right for you?

Investing in your future the right way will unlock your financial freedom later on in life.

Take the time now to understand your options, so that you can maximise your retirement benefits.

Setting up a self-managed super fund (SMSF) gives you the control to invest and structure your retirement fund. If you set up a SMSF, you're in charge – you make the investment decisions for the fund and you're responsible for complying with the super and tax laws. This is a major financial decision and you need to have the time and skills to do it.

A SMSF is ideal for DIY investors who prefer to make their own investment choices for their retirement rather than leave their superannuation to be invested by others. A SMSF can also be more cost effective in certain circumstances. Once we've determined that a SMSF is appropriate we can provide ongoing investment advice and administration support. We can also assist clients who decide that the SMSF option doesn't suit their situation.

On the 12th of March at 5.30pm we are hosting a free Boardroom Briefing on what SMSFs are, including the process and criteria involved and, most importantly, if it's right for you. This seminar is open to anyone who's interested in tips and advice on how to better manage their investments, but especially small to medium sized enterprises.

Limited spots are available, so to secure your seat or for more information, please call 6232 4588

The Colour Run

2015-02-24T00:00:00+11:00

The Colour run is also known as the happiest 5km on the planet.

It's a unique paint race that celebrates healthiness, happiness and individuality.

DFK Everalls entered the race to connect with friends, outside the office, to promote activity and enjoyment amongst our busy lives and to encourage others to do the same.

Check out our happy accountants here...

EWM Launch

2015-02-23T00:00:00+11:00

The team at DFK Everalls were thrilled with the number of clients coming to the launch of our new financial planning company – Everalls Wealth Management on Thursday 12 February.

Dr Chris Caton, Chief Economist of the BT Financial Group presented an economic overview in Plain English making it meaningful and relevant to all attendees by explaining the practical financial implications of current economic trends.

It was also a great opportunity for our clients to meet our Financial Planners – Ray O'Toole, Tim Brooks and Melissa Healy.

If you didn't get to make it to our launch and want to find out more about our Financial Planning company Everalls Wealth Management , please contact us for complimentary consultation.

Should you be thinking about a Testamentary Trust?

2015-02-18T00:00:00+11:00

A Testamentary Trust is type of Trust that can only be created in a will and comes into effect only after the death of the will maker. So instead of your assets being distributed direct to individuals they are held in trust and the income earned is distributed to nominated beneficiaries.

A Testamentary Trust is good for people who have children under the age of 18 as the distributions the child receives from a Testamentary Trust are taxed as if they were adults. This means the children can take advantage of the tax free threshold of $18,200 (normally under 18's only get $416 of investment income tax free).

A Testamentary Trust can also be appropriate for asset protection purposes as the trust's assets are not owned by any individual but by the Trust itself. Testamentary Trusts are great in cases of:

1) Divorce – The assets of the Trust are protected although the income generated can be included as a Financial Resource for Family Law purposes.

2) Creditors - if you go bankrupt or are sued – As the assets are not owned personally creditors will not be able to access the assets.

3) Beneficiaries - An independent Trustee can be appointed to protect the assets from being wasted thereby looking after the long term interests of beneficiaries who may have disabilities or gambling/drug problems etc.

If you would like to know more about Testamentary Trusts and Estate planning please contact our office.

EWM Launch

2015-02-02T00:00:00+11:00

Who doesn't want a fully paid-off home?
Who wouldn't want less time working and more time relaxing?
And sleeping well at night, knowing your finances are sound... now that's priceless!

Achieving financial freedom is the ultimate goal.

Hear from BT Financial Groups Chief Economist Chris Caton as he advises on the financial implications of economic trends, policy pronouncements and major political developments. A brilliant communicator, Chris has a rare ability to make economics come alive. Drawing on this international experience and with an impressive breadth of knowledge, he provides tailored information in a wide range of industries.

The evening will include complimentary drinks and nibbles and the chance to meet our Everalls Wealth Management financial advisers.

Date: Thursday 12th February 2015
Time: 5.30 - 7.30pm
Address: Royal Canberra Golf Club, Bentham Street Yarralumla
(The club is located in Westbourne Woods at the end of Bentham Street, past the shops)

RSVP: By Monday 9th February to Jessica Norton on 6232 4588 or jessica.norton@dfkeveralls.com

Please register your interest with us as soon as possible, as places are filling up fast – first in best dressed!

Start Up Smart Awards 2015

2015-01-13T00:00:00+11:00

The StartupSmart Award is the competition that invites the best and brightest emerging businesses in Australia. A large number of start-ups entered last year's Award – over 300 – all demonstrating a stunning depth of innovative and fast growing entrepreneurial talent. Entries will be open for the 2015 Award January 13th.

Criteria for entry:

Entrants must have been in operation since July 1 2008
Businesses must report one full year of revenue (2011/12 financial year), unless only entering the Best Startup Idea Award.
To be legible for the Fastest-growing Business Award, businesses must have revenue over $250,000.
Founders must have at least 20% equity in the business
The business must not receive 50% or more of its revenue from government grants
The company must be Australian (not a subsidiary of a multi national).

DFK ANZ will be the presenting sponsor of the Awards for the third year in 2015.
"Our independent firms are all SME's too, so we understand what's required to successfully operate and grow a business in this space. The enthusiasm, commitment and vision of the business owners involved in the awards last year was inspiring and we're looking forward to providing support to this years entrants and winners too" says Stephen Bushell, the Chairman of DFK ANZ.

DFK ANZ firms are providing packages to all winners, finalists and entrants so they can tap into the experience, expertise, contacts and resources of our members right across Australia and the globe to assist all entrants' businesses with the services they need now. These may be traditional accounting services, business advice, R&D assistance, venture capital connections or other advice relevant to the business's needs.

• Best start-up
• Best new start-up (fewer than 12 months old)
• Best distributor
• Best social entrepreneur
• Fastest growing Startup
• Best regional start-up
• Best Startup Idea
• Start-up hero

With a commitment to support growing businesses with their compliance and business advisory needs, DFK Everalls is looking forward to providing guidance and service to any participants in these awards. Please contact us for more information!

See more information about the awards here.

Tax reminder!

2014-12-17T00:00:00+11:00

A reminder to everyone who has not completed their tax…

The Christmas holidays are a great opportunity to go over your tax affairs and bring in your papers in January if you haven't already done so!

See our check list here.

Insights into the SME world

2014-12-08T00:00:00+11:00

Recently DFK firms across Australia and New Zealand invited their clients to complete an opinion survey across a range of business issues. The key highlights of the survey findings are illustrated in this overview and provide a snapshot into the challenges and focus of business owners today.

Why are the results from this survey important to you?

See what fellow business owners are thinking, what are they focusing on and what technology they are using... are you ahead of behind the pack?

For businesses: $10,000 support to employ mature age workers

2014-11-26T00:00:00+11:00

On July 1 2014 the Australian Government launched Restart, a programme designed to help business owners employ mature age workers.

Under Restart, employers can receive $10,000 (GST Inclusive) in Government assistance if they hire a full time job seeker 50 years of age or older, who has been unemployed and on income support for six months or more. The Restart wage subsidy is also available on a pro rate basis for part-time workers who work for at least 15 hours per week.

To receive the full payment you must employ the same employee for 24 continuous months in the same business, and there are some other conditions.

To find out more about the Restart programme, go to www.experiencepays.gove.au or call 13 17 15

Government assistance doesn't stop at the Restart programme. Visit www.employment.gov.au to find more information about other employment programmes that could be available to you.

DFK Everalls can help with making applications and related advice for these programmes.

Contact us to make an appointment

Introducing our new Financial Planning business - EWM

2014-11-18T00:00:00+11:00

DFK Everalls is delighted to announce our new business in Financial Planning – Everalls Wealth Management, 'EWM' for short.

Why have we expanded?
EWM was formed to provide our current clients and other people in the Canberra region with a full suite of financial planning services which are not aligned to any major financial institution - thus making us "distinct" Financial Planners.
As of 1 July 2016 regulations and licensing rules for Accountants are changing. We wanted to be able to offer our clients a holistic approach to their taxation, business, superannuation and financial needs, therefore we have decided to expand our service offering in order to provide and cater to each area of taxation and financial advice.

What do the licensing changes mean?
From 1 July 2016 accountants can only advise on Superannuation, SMSF's and related issues if they hold either a Full or Limited Australian Financial Services Licence. If we didn't take up either option we would have to cease all such services which is not what you, our clients want! By becoming an Authorised Representative of a holder of an Australian Financial Services Licence we can keep providing the excellent services you expect from us.

What are our services?
EWM provides the full suite of financial planning services including:

Retirement advice and Superannuation solutions
Portfolio selection
Management, monitoring and reporting
Insurances
Succession and estate planning
Voluntary redundancy advice
Negative gearing ...
and so much more!

Who's involved?
EWM starts with two extraordinarily capable people, both with over 25 years' experience.
Melissa Healy- A director of both the accounting firm DFK Everalls and Everalls Wealth Management
Tim Brooks- Financial Planning Adviser, previously with Godfrey Pembroke in Deakin
We will be adding to our capability in this space very soon - so stay tuned!

Why you should choose us?

It is certainly an interesting time to be starting a Financial Planning division given the amount of bad press out there about certain Financial Planning firms. These have typically involved large institutions giving poor quality advice.

EWM is owned by us and EWM has chosen to undertake Authorization through Capstone Financial Palnning Pty Ltd (AFSL No.223135). Capstone is one of the largest privately owned licensees in Australia. In plain language – our licensor is not owned by a bank or a large financial institution. We pay a fixed annual fee to Capstone for Authorisation, training and administrative services regardless of how much business we do. EWM will not receive any volume rebates or incentives.

The fees that EWM charges clients for the preparation of initial advice and any ongoing advisory services will be charged on a fee for services basis, the amount of which will depend on the complexity involved and the time taken (not commission based). You will be notified of the costs involved prior to the commencement of any work.

We will offer a holistic approach to all of your financial planning needs and will customise a unique solution to suit your individual situation. We look forward to continuing our long association with you in this new capacity and being able to offer these further services to you, your business, your family and friends.

For more information, or to make an appointment with a financial adviser please contact us.

Pensioners and SMSF’s: Act now before the January 2015 changes!

2014-10-30T00:00:00+11:00

On January 1 2015 the government will severely tighten the rules for access to the Commonwealth Age Pensions, and to the Commonwealth Health Care Card.

Effectively, pensions started before 1 January 2015 are ignored under the revised rules; but pensions started after will be counted against eligibility under the new rules.

If you are thinking of starting a pension, seek advice now about starting it - before Christmas!

If you already have a pension but are considering whether to make it reversionary, seek advice now about putting the reversionary details in place - before Christmas.

From a tax and cash flow point of view as well as possible access to Commonwealth benefits, we believe reversionary pensions are well worth implementing where they are appropriate to your circumstances.

If you aren't sure whether you have the right pensions, or just for more information or to review your options, please contact us. But don't wait!!!

Investment property owners: What paperwork SHOULD you keep?

2014-10-13T00:00:00+11:00

Below are some TIPS for those of you with investment properties or those of you thinking about purchasing an investment property...

1. Make sure to keep all the relevant documents

When you purchase an investment property, you will receive various documents including;

- Your purchase contract

- A settlement statement from your lawyers

- stamp duty payment receipts

- A legal fee payment receipt for the purchase of the property

- Details of costs incurred for property improvement

- Details of costs incurred to purchase assets for the property

Information from these documents is used to calculate the cost base of your property, and you need it to be spot on for capital gains purposes when you sell the property in the future. Consequentially, when information is omitted, it could potentially lead to you paying higher capital gains tax! For example, losing your legal fees payment receipt and not knowing the amount can result in reducing the cost base - hence you become liable for a higher amount of capital gains tax.

2. Understanding your deductions entitlements

When you rent out your investment property to someone, you receive rent which becomes reportable to the ATO. What most property investors are interested in knowing however is their deduction entitlements. Many people either do not know what to claim and miss out on deductions or try to claim something that they are not entitled to claim.

There are numerous factors and tax rulings that need to be considered when claiming expenses for your investment property.

This is one of the major areas in a tax return that you should be seeking professional advice for, especially after the ATO's recent announcement about having their eyes on rental property deductions in 2013/14 tax returns.

If you would like some further help or advice on any of the above – then please call the team at DFK Everalls so that we can help you understand these issues and get the best outcome for you at tax time.

___________________________________________________

FREE seminar on New Business Start Up

2014-10-07T00:00:00+11:00

Start up your business, and plan for success!

With cuts to the public service and a trend of people in Canberra tending to start their own business or consultancy it's important to plan for success and ensure that your finances for the business are viable and profitable. Deciding to start your own business can be one of the most exhilarating projects of your life. However it can also be one of the most stressful. DFK Everalls provides business development plans, strategies and management tactics to ensure you get the best result from your business.

Rob Shelton, one of the directors at DFK Everalls says "Call it a goal or a mission, we want people to have a rough idea of what their business will look like down the track from the very start, and then we look at four key areas. Being accountants, we like looking at the finances first – statistics prove that most small businesses fail within the first few years because they don't have their finances under control."

Robert stresses the importance of planning when starting up a business "Once you have an idea about what you want your business to look like in 12 months and three to five years, you need to work out how you are going to make it happen and how much money is going to be needed. We recommend you have a budget up front. It can be very simple – one income line and 5-10 lines for your major expenses. It doesn't matter that you don't know how things are going to work out – do the budget based on what you would like to happen. Plan for success! It doesn't matter if your plans change – just update the budget accordingly."

"At DFK Everalls we love seeing our clients meet and exceed their business goals."

The FREE boardroom briefing is aimed at anyone who wants to start up their own small to medium business or consultancy or advisory business. This is not only for local companies, but for anyone who is thinking of going global for import or export trade.

To secure your place or for more information visit DFK Everalls.com or call 6232 4588.

5 top tips to prepare for tax time

2014-09-22T00:00:00+10:00

5 Top Tips to Prepare for Tax Time

Whether you are lodging your own tax return or doing it through a tax agent, the following tips will greatly assist your preparation ordeal. Not only will they reduce your stress but they can also reduce your accounting fees, improve your cash flow and minimise your tax liabilities.

1. Prepare your 'real' paperwork

Get your paperwork in order. Gather and collate all pertinent information including tax slips sent by employers, banks, brokerage firms, charitable organisations, medical providers and businesses. And keep it real. (You can avoid a lot of stress by making sure you only claim expenses that were legitimately related to your earnings). Be sure to have your other income including self-employment income and rental income well documented with supporting documentation.

2. 'Type in' your records

Avoid hand-written records. Enter your business information in an accounting package or Microsoft Excel spreadsheet to allow easy tracking of expenditure types. Have your personal income tax return from the prior year handy as this document will provide some guidance on how last year's returns were completed and what you need for this year.

3. List the 'big ticket' items

Prepare a list of capital equipment you've purchased in the last twelve months and have copies of any finance agreements on hand. This information is important to record for the purposes of depreciation.

4. Balance, balance, balance

Reconcile your accounts and financial facilities. Start with bank accounts, then move on to debtors and creditors and loans. By reconciling your accounts, you'll identify any errors that might have occurred in your data entries and can rectify them early.

5. Hand it over to your accountant

Get in on time and electronically. Doing it electronically means there is a bigger chance of it being lodged on time to avoid penalties. Make an appointment with your accountant well in advance of the lodgement deadline. She or he will be able to tell you up front if you have a tax problem while you can still do something about it.

If you have any tax questions – talk to us today!

The Mining Tax Repeal – It does impact on small business!

2014-09-16T00:00:00+10:00

The legislation to repeal the Minerals Resource Rent Tax passed the Senate today along with a series of concessions funded by the mining tax.

Consequently many of small business related measures were repealed without amendment.These include:

The company loss carry back rules
The instant asset write off threshold of $6,500 under the simplified depreciation rules
Accelerated deduction of $5,000 for motor vehicles

To remove the mining tax and the associated concessions, the Government relented on a series of the measures that formed part of the original Bill, including:

Rephasing of the superannuation guarantee increases (again);
Changing the repeal date of the schoolkids bonus to 31 December 2016 and applying an additional means test (adjustable taxable income of $100,000 or less) between Royal Assent and the repeal date;
Changing the repeal date for the low income superannuation contribution so that it will cease to apply to concessional contributions made for the 2017/2018 financial year and later financial years;
Changing the repeal date for the income support bonus to 31 December 2016

Loss carry back rules

The loss carry-back rules were intended to provide companies with a refundable tax offset by allowing them to utilise a current year tax loss against a tax liability paid in a previous income year.

For companies with a normal accounting period, the loss carry back rules have been repealed from 1 July 2013. For those with a substituted accounting period it is from the start of the period that matches the 2013/2014 income year.

This means that companies are only able to apply the loss carry back rules for the 2013 income year. From the 2014 income year onwards, companies will need to carry forward any tax losses to future income years subject to passing the continuity of ownership test or same business test.

Instant Asset Write off and simplified depreciation

We're (almost) back to the old rules for small business depreciation. The amendments will reverse the changes made by the previous Government that enabled small business entities (SBEs) to deduct assets costing less than $6,500 from 1 July 2012 onwards. From 1 January 2014, SBEs will only be able to claim an immediate deduction for depreciating assets costing less than $1,000.

Depreciating assets costing $1,000 or more from 1 January 2014 should be allocated to the SBEs general small business pool and depreciated at 15% in the income year in which the assets are first used or installed ready for use. The assets will then be depreciated as part of that pool at 30% in subsequent income years.

Accelerated deduction for motor vehicles

The $5,000 immediate deduction for motor vehicles acquired by small business entities (SBEs) has been removed from 1 January 2014. SBEs had until 31 December 2013 to qualify for the $5,000 immediate deduction by acquiring and using a motor vehicle over the value of $6,500 by this date.

Rephasing of Superannuation Guarantee In the 2014/2015 Federal budget, the Government announced that they will rephase the increase in superannuation guarantee (SG). To secure the passage of the legislation through the Senate the SG has been rephased again. Now, the SG rate will remain at the current rate of 9.5% until 1 July 2021 when it will increase by 0.5% each year until it reaches 12% on 1 July 2025.

Year starting	Superannuation Guarantee %
1July 2014	9.5
1July 2015	9.5
1July 2016	9.5
1July 2017	9.5
1July 2018	9.5
1July 2019	9.5
1July 2020	9.5
1July 2021	10
1July 2022	10.5
1July 2023	11
1July 2024	11.5
On or after 1July 2025	12

If you would like to discuss how the Mining Tax Repeal effects your business, contact us today.

International Taxation might be relevant to you!

2014-09-11T00:00:00+10:00

International Taxation might be relevant to you

Under the Australian taxation system, Australian residents (for tax purposes) are taxed on their worldwide income. If an Australian resident earns foreign income, this income will be taxed in Australia. At the same time, a foreign country may also tax the same income. This is known as double taxation.

Foreign income tax offset regime

Double taxation can be reduced through two paths. One is through an exemption path, the other is through a foreign income tax offset path. The exemption path gives exemption to specific types of foreign income according to the legislation. This article will not discuss this in details, as this part of the legislation is really technical.

The foreign income tax offset path provides a tax offset for foreign taxes paid on that foreign income. This is another way to reduce double taxation. The amount of a foreign income tax offset a taxpayer gets is the amount of foreign income tax you have paid. However, the legislation places a limit on the amount of foreign income tax offset you can get. The limit is the greater of $1,000 or the amount calculated in accordance with s. 770-75(2) to (4). When you drill into the legislation, foreign income tax offset eligibility and calculation can be complicated. We suggest that you to seek further advice from us, we will assist you based on your personal scenario.

Tax treaties or double tax agreements

The tax treaties in the International Tax Agreements Act 1953 are also known as double tax agreements. These form a significant part of the Australia's international tax regime. The treaties can be found from Australian Tax Treaty Series

Each treaty classifies income and gains into classes of income and then defines which jurisdiction has the right to collect tax in particular circumstances. By doing this, it can effectively prevent or limit the double-taxation of earnings. It also enable the legitimate exchange of taxpayer information between jurisdictions, such as automatic exchange of information.

However, tax treaties don't prohibit two countries from taxing the same amount of income. The treaties only require a country to provide relief against double taxation.

As I mentioned above, how tax treaties work can be complicated when you apply it to a real life scenario. We can help you with your tax affairs or apply for a private tax ruling on your behalf, when you have to deal with complicated international taxation issues.

If you have any foreign income, overseas assets or even just offshore bank accounts, please let us know so that we can help you stay on the right side of the ATO!

Business Camp 2015

2014-08-21T00:00:00+10:00

Join us for the 2015 Business Camp...

This is a special opportunity to get away for a few days and work "on" your business, not "in" it to 'Give Your Business the EDGE'.

Working ON your business is one of the most important and most rewarding things you can do.
When times are tough it is even more important.
Businesses that think and plan for the future actually perform better and look after their customers, clients and patients better than the ones that do not.

There's also the opportunity to have some fun, meet with and talk to some likeminded business people PLUS you get one of our team at your table for three days – now what could be more awesome than that!

The Event:
Global Business Camp 2015 event

Your Investment for the 3 day event:
For you being Early Bird Registration the investment is only $2,320 per person.

· Register from 1 January to 28 February 2015 the investment is $2,750 per person.

· Register from 1 March 2015 onwards the investment is $3,300 per person

This includes:

· the course and content for the 3 days,

· The intellectual property collateral which has been developed over many years and has taken hundreds and thousands of hours to develop

· morning tea, lunch and afternoon tea for the 3 days,

· a cocktail event around the sponsors on the Monday night

· a themed dinner on the Tuesday night

· access to a number of value adding sponsors

· all of the speakers and entertainment

· and much more

How to register:

Complete the registration form

Where are we going:

InterContinental Sanctuary Cove Resort

How to become a SUPER woman

2014-08-15T00:00:00+10:00

When it comes to super savings, women in Australia are likely to have significantly less than men. The average Australian woman retires with around half the balance of the average man; this is because women (still!) earn less than men for equivalent jobs and they're more likely to have a career break to raise children.

Combine this with a longer life expectancy and women are less likely to have enough for a comfortable retirement. Only 12% of women think their super will be enough for retirement, and half of all women don't know how much they'll need for a comfortable retirement.

Consider these facts for a moment: women's super-balances 'flat-line' between the ages of 38-42 and 43-47; only a small proportion of retired women live on incomes above $50,000 and more than half have incomes of less than $30,000; 77% of women rely on some form of age pension in retirement.

For many women, life with work and family is a juggling act. These pressures mean that focusing on your super can easily be overlooked. Cutting down your work hours, taking a career break, going through separation or divorce, or adjusting to a single income, can all have a big impact on your ability to save for retirement.

Superannuation is a very tax effective way of saving for your retirement. Here are a few tips on how to maximise your super contributions each year.

Employer Contributions and Salary Sacrifice (Concessional Contributions)

Most of us receive the compulsory 9.5% contributions from our employers but quite often we don't reach the maximum limits. One way of topping up these "concessional contributions" (CC) is to organise a salary sacrifice arrangement with your employer. Your employer will reduce your wages and pay extra super contributions instead.

The contributions will be taxed in the Super Fund at 15% leaving you with more money (in your super fund) than if you had earned the extra income and paid tax on it at your personal marginal tax rate, providing your annual income is between $37,000 and $300,000.

After tax personal contributions (Non-Concessional Contributions)

Once you start drawing a pension the earnings are tax free. So if you have some spare cash, making a personal non-deductible non-concessional contribution (NCC) into your super fund is a great way to increase your wealth.

There are annual limits for how much you can put into super, but if you are under 65 then you can put in up to three years' worth at once (and then less or no NCC's for the next two years).

Spouse Super Contributions

Another way to boost your super balance is to get your spouse to put money into your Super Account. Non-concessional contributions (NCC) can be paid on behalf of a spouse as long as the receiving spouse is under 70 years old and you are living together on a permanent basis. If the receiving spouse is between 65 – 69 years old they also must be in paid work for at least 40 hours over 30 consecutive days during the financial year in which the contribution is made.

The taxpayer paying the NCC super contribution on behalf of their spouse may also be eligible for a tax offset of up to a maximum of 18% of the first $3,000 of the NCC ie $540. The tax offset phases out once the receiving spouse's assessable income reaches $13,800.

Spouse Contribution Splitting

Another way spouses can help even up superannuation account balances between themselves is by Contribution Splitting. If you would like to increase your spouse's super balance you can 'split' last year's CCs that have been paid into your super fund account (eg by your employer). The split in respect of your contributions for this year can be processed after the end of the financial year. You cannot split NCCs. You are able to split up to 85% of your prior year CCs (up to your cap) as this is the amount left after taking out the 15% tax.

Your spouse also needs to be still under their preservation age or under 65 and not retired. The superannuation spouse contribution tax offset is not available to this type of contribution.

This strategy can be particularly useful where there is an age difference between the spouses or one is going to retire earlier than the other. This way, contributions can be reallocated to the spouse who is eligible to access their superannuation benefits earlier than the other.

Super Co-Contribution

Government co-contributions may also be available. This is when the Government matches your NCC of up to $500 a year. To be eligible for this you must lodge your tax return for the relevant year, be a permanent Australian resident, be under 71 years old, have 10% of your income coming from business or employment (not investment income) and be earning less than $48,516.

The amount available to be co-contributed will depend on your income. The Co-Contribution is automatically processed when you lodge your tax return.

Are you maximising your super contributions? Give us a call on 6232 4588 if you'd like to find out how you can boost your retirement savings.

Get your cash flow under control

2014-08-04T00:00:00+10:00

Get your cash flow under control

It's important to understand that cash is not the same as profit. Your profit is the difference between your invoiced income and expenses, but cash flow is the difference between the money coming in, versus the money going out.

Solid cash flow is at the heart of any good business strategy. It's a critical key performance indicator of business success, so it pays to spend some time checking over your approach to make sure it's effective for your business objectives. You need cash flow to grow your business because as your turn-over increases, debtors and expenses will increase and you will need more working capital.

DFK Everalls will be hosting a FREE seminar on cash flow on the 14^th of August from 5.30pm -7pm, which is open to anyone who is interested in tips and advice on how to better manage your cash flow, but especially new business owners.

The seminar will cover business strategy, short term cash, long term cash, best debt management, types of finance and advice

Limited spots available!

When: 14^th August, 5.30pm – 7pm

Where: DFK Everalls Boardroom

RSVP: by 11^th August, Jessica.norton@dfkeveralls.com

6232 4588

5 things you must know when starting a business

2014-07-14T00:00:00+10:00

Have a rough idea of what your business will look like down the track

Call it a goal or a mission, we want people to have a rough idea of what their business will look like down the track from the very start, and then we look at four key areas. Being accountants, we like looking at the finances first – statistics prove that most small businesses fail within the first few years because they don't have their finances under control.

Once you have an idea about what you want your business to look like in 12 months or three years, you need to work out how you are going to make it happen and how much money is going to be needed to make it happen. We recommend you have a budget up front. It can be very simple – one income line and 5-10 lines for your major expenses. It doesn't matter that you don't know how things are going to work out – do the budget based on what you would like to happen. It doesn't matter if your plans change – just update the budget accordingly. It doesn't matter if it's not perfect – as time progresses and you keep fine-tuning it will get more accurate.

It's important to ensure you have the right amount of start up capital – too many businesses go broke because they start running a business and realise they don't have enough money to buy the equipment or pay the rental bonds. We also strongly advocate the use of a separate GST savings account so that you don't get too excited when you get a big sum of money.

You also need to make sure that when quoting a job that you've estimated correctly in the first place, so you are making enough profit to cover your overheads and still have money leftover . Once you have invoiced a customer, you also need to manage your Accounts Receivable properly so that they pay you on time, which allows YOU to pay your bills on time. The other aspect is borrowing money; making sure that if you have any bank loans, you structure them the right way. Don't run your business on a credit card.

Find your niche

What's important in any business is keeping your customers happy, so we work with our clients to find their niche. It's important to look at how much it's going to cost you to provide your service; and ask yourself are the customers out there that want that service and are willing to pay the price you need?

It's also important to know whether your advertising and marketing strategies are actually working – businesses spend a lot of money in this area and very rarely do people have a good feel of whether it's been of any value. Obviously, you can get an indication from a profit and loss statement, but sometimes it's hard to know whether sales increased because of what you did, or it was just seasonality or other factors. You need to know how to measure your marketing activities.

Remember it's not all about you

Many small businesses are solo ventures, so we work with clients to make sure that there are systems in place that will allow the business to survive without the owner while they take time off – voluntarily or 'in case of emergency'. Another advantage of having these systems in place is that the resale value of a business that is completely dependent on the owner is much lower than that for a business that is 'walk in walk out' because the systems are all in place to keep going regardless of who is at the helm.

But for those businesses which do have a team, there are some simple things you can do to ensure you're operating at your highest capacity. When we work with clients, we go through everything from making sure they've got good job descriptions through to recruitment practices and induction processes. For example, once you have people on board, buddy them up with somebody, giving them a mentor through the first 90 days.We can offer advice on how to train and promote staff and keep them inspired.

We have a service for businesses with a team where we leave the bosses in their office and we get their team into our office and discuss with them what does your company do well? What doesn't it do well? How can we make their job easier? Where can we improve for customers? Teams love the opportunity to share their ideas on how to make the business better and is certainly very helpful if there are some 'office politics' that people are reluctant to talk about with the boss present!

Get your systems right

McDonald's "Do you want fries with that?" is a classic case of great systems and procedures in a business. Systems make things run better – your team needs to know what to do and how to do it (even when someone is away); from a customer's point of view, they know they are getting a particular service; and from a succession planning point of view, if you want some time out for holidays, having those systems in place will allow your team to hold the fort while you're gone.

If you have a quiet spell in your business, take the time to develop templates – the minute you're doing something more than twice, develop a template for it. Do it now before you get too busy – even if you have to tweak those systems over the years, have something in place from the get go.

Get your head in the Cloud

Technology offers so many advantages for small businesses – we are trying to convert as many clients as possible to Cloud accounting, whether it be Xero, MYOB or Reckon, etc. Applications like this allow us to work alongside our clients so much more – gone are the days where we're doing the numbers 18 months behind, now we're able to log on each quarter and check that clients are on track and up to date with their superannuation etc. It helps us stay much more in touch with the client's day to day issues and give relevant and timely advice.

Staring up a business? Or want to discuss your idea?
Contact us today!

Does making your employee superannuation payments take too long?

2014-07-03T00:00:00+10:00

Does making your employee superannuation payments take too long?

Maybe you should consider signing up to the ATO small business* clearing house to handle your employee superannuation.

The clearing house lets you pay your super contributions in one transaction to a single location. It is designed to make the payment process easier, reducing red tape and compliance costs. You simply register your employees' super fund details and, through the clearing house, the ATO distribute the contributions to their various super funds.

Other key features of the clearing house are:

· You make one secure electronic transaction and we distribute the super contributions to your employees' nominated super funds.

· Using the clearing house minimises the time and paperwork involved in paying contributions to numerous super funds.

· Each time you make a contribution, your employees' preferences are already included in the transaction details, so you only need to enter the contribution amounts.

· You can obtain a record of your contribution history whenever you need it.

· Once set up, it only takes a few minutes to process payments.

· The ATO clearing house is available 24 hours a day, 7 days a week.

Registering for the ATO small business clearing house is easy and can be done at the following address:

https://www.ato.gov.au/Business/Employers-super/In-detail/Small-Business-Superannuation-Clearing-House/Registering-for-the-clearing-house-%28employers%29/

Please contact us today if you would like any further information or if you would like us to assist you with setting up the ATO small business clearing house for your business.

* Please note that the ATO small business clearing house is only available for small businesses with 19 or fewer employees. There are commercial clearing house providers for larger businesses not eligible for this free ATO service.

Cloud Accounting Services at DFK Everalls

2014-06-24T00:00:00+10:00

Technology is revolutionising the traditional accounting practices… and rapidly.

Cloud accounting providers are currently in a high stakes battle to gain their own piece of the Australian market. Australia's much loved MYOB has had to fight off speculation that its deep-seated market share is slowly being eroded by tech rival Xero.

New entrants into the Australian market such as US Company Intuit coupled with the recent re branding of Reckon have also begun to strain MYOB's control.
These changes are resulting in some of the best competition for accounting software Australia has ever seen.

Competition for the Australian accounting market is fierce and many accounting and bookkeeping practices are finding themselves locked in to one preferred cloud provider. The trouble is as competition for market share heats up, each provider is offering more and more services for better and better prices.

At DFK Everalls we are taking an unbiased approach for our clients.

We will not offer you just one product, we want to help you find the RIGHT product for your business.

- XERO

- MYOB

- Quickbooks Intuit

If you have any questions regarding our Cloud accounting software options, or moving your accounts to the Cloud, please contact us.

6 Ways to maximise your Super before EOFY

2014-06-19T00:00:00+10:00

SIX WAYS TO MAXIMISE YOUR SUPER

Superannuation is a very tax effective way of saving for your retirement. Here are a few tips on how to maximise your super contributions each year.

1) Employer Contributions and Salary Sacrifice

Most of us receive the compulsory contributions from our employers but quite often we don't reach the cap limits. One way of topping up the concessional contributions (CC) is to organise a salary sacrifice arrangement with your employer. Your employer will reduce your wages and pay extra super contributions instead. The contributions will be taxed in the Super Fund at 15% leaving you with more money (in your super fund) than if you had earned the extra income and paid tax on it at your personal marginal tax rate.

2) Spouse Contributions

You can make non-concessional contributions (NCC) on behalf of your spouse. You can do this providing your spouse's assessable income is less than $13,800, they are under 70 years old and you must be living together on a permanent basis. If your spouse is between 65 – 69 years old they also must be in paid work for at least 40 hours over 30 consecutive days during the financial year in which you want to make the claim. The NCC you make on behalf of your spouse in a financial year can also provide you with a tax offset of up to a maximum of 18% of the NCC up to $3,000. How much of the 18% you can claim is based on your spouse's assessable income.

3) Contribution Splitting

If you would like to increase your spouse's super balance you can 'split' the CCs that have been paid into your super fund account. The split in respect of your contributions for this year can be processed after the end of the financial year. You cannot split NCCs. You are able to split up to 85% of your prior year CCs (up to your cap) as this is the amount left after taking out the 15% tax. Your spouse also needs to be still under their preservation age or under 65 and not retired. The superannuation spouse contribution tax offset is not available to this type of contribution.

4) Super Co-Contribution

Government co-contributions may also be available. This is when the Government matches your NCC of up to $500 a year. To be eligible for this you must lodge your tax return for the relevant year, be a permanent Australian resident, be under 71 years old, have 10% of your income coming from business or employment and earning less than $48,516. The amount available to be co-contributed will depend on your income. The Co-Contribution is automatically processed when you lodge your tax return.

5) Low Income Superannuation Contribution

If you earn less than $37,000 and have had CC paid into your SMSF you may be entitled to a refund of the 15% tax paid. This is capped at $500 and you must earn more than 10% of your income from business or employment. This is processed automatically by the ATO when you lodge your tax return.

6) Non-Concessional Contributions

Superannuation is a very tax effective environment in which to save for your retirement. The earnings of superannuation funds are only taxed at 15% if your account is still in the 'Accumulation Phase'. Once you start drawing a pension the earnings are all tax free. So if you have some spare cash, making a personal non-deductible non-concessional contribution into your super fund is a great way to increase your wealth. Please note the annual limits for how much you can put in but if you are under 65 then you can put in three years at once (and nothing for the next two years).

Please make an appointment to talk to your accountant about how you can maximise your super!

Check, check and check your Super contributions before June 30

2014-06-09T00:00:00+10:00

Check, re-check and double check your total superannuation contributions before the end of financial year 30 June 2014

Before it is too late, it is very wise to check NOW, how much you have contributed to your Superannuation fund.
There are substantial penalties for contributing too much.
There are two types of contributions that you can put into your Super Fund

1) Concessional contributions
The following limits that a person can put as a concessional contributions for the year ending 30 June 2014:
< 58 or under on 30 June = $25,000
>59 or over on 30 June 2013 = $35,000

These contributions include amounts you may make as a salary sacrifice, Superannuation Guarantee or personal deductible contributions, if you qualify.
Claiming a tax deduction for personal superannuation contributions:
If you are self-employed, an investor, in receipt of a pension and receive less than 10% of your income, fringe benefits and other related payments from employment you may qualify for a personal tax deduction for superannuation. If you intend to claim a tax deduction make sure you are eligible to claim a tax deduction and seek advice if you are unsure.

2. Non-concessional contributions: (after tax contributions)
You can make after tax contributions to super which could come from your personal savings, transferring personal investments, an inheritance or from the sale of investments. This financial year the maximum personal after tax contribution is $150,000, however, if you are under 65 you can contribute up to $450,000 over a three year period. This allows you to make substantial contributions to super and build up your retirement savings. The way it works is that if you are under 65 and make total after tax contributions of more than $150,000 in a financial year the bring forward rule is triggered. This allows you to make non-deductible contributions of up to $450,000 in total over a fixed three year period commencing in the year in which you contributed more than $150,000.
This may sound like a real bonus, however you need to make sure you don't exceed the after tax contribution caps because there may be penalty tax payable. This could be as high as 46.5%.
From 1 July 2014 the after tax contributions cap increases to $180,000 which means if you trigger the bring forward rule that a total of $540,000 can be contributed over the fixed three year period. Please note that if you trigger the bring forward rule before 30 June 2014, the maximum amount will be $450,000 for the fixed three year period, 2014, 2015, 2016. ie. You don't get to use the higher cap until 2017.

Beware: if over 65 and not working, you may not be able to contribute money into your super fund unless you meet the work test. The test is, must have worked 40 hours for 30 consecutive days. The test must be met first before contributing money into super.

How can we help?
If you need assistance with any aspect of your end of year superannuation tax planning, please call us to arrange a time to meet so that we can discuss your particular requirements in more detail.

Are you a small business having trouble managing your tax lodgement obligations?

2014-05-28T00:00:00+10:00

The ATO small business tax calendar could be the answer for you.

The ATO small business tax calendar is an easy to use tool that will help you plan your tax obligations and even give you timely reminders!

It builds a 12 month schedule that is tailored to your business lodgement and payment obligations. You can print it as a one-page yearly planner of your tax due dates, or even integrate it to Microsoft Outlook and receive reminders!

All you need to do is spend 5-10 minutes answering a list of questions about your business. This will personalise it and ensure that all the obligations specific to your business are included (such as employee PAYG/W, employee super, GST, income tax etc.).

The tool is available on the ATO website and a link to it is below. It is updated at the start of every financial year by the ATO and their 2015 financial year update will be available in early July 2014. Finding 10 minutes to set it up may save you hundreds in late lodgement penalties and fines or even worse!

Please contact us today if you would like any further information or if you would like us to assist you with setting up a small business tax calendar for your business.

https://www.ato.gov.au/Calculators-and-tools/Your-small-business-tax-calendar/

(Please note that the ATO small business calendar is only designed for small businesses or those with an annual turnover of less than $2m).

Super streaming, how it affects self-managed superannuation funds

2014-05-22T00:00:00+10:00

Super Stream

What is it? – Super Streaming is a new requirement for how employers pay the super guarantee charge (SGC). These employers now only have the option to pay electronically and data messaging via an electronic services address (ESA), no more cheque payments.

What is it for? – It has been put in place to ensure SGC payments are received into the employee's super fund as quickly as possibly by avoiding delays in postage time and cheques clearing.

What do I need to do? – If you have a SMSF you need to provide your employer with your super stream details. This means you will need to set up your ESA with an ATO approved messaging provider.

For businesses with more than 20 employees you will need to start using this method from 1 July 2014. Business with less than 20 employees, have until 1 July 2015.

If you would like more information about Superannuation and Super streaming, please contact us today.

FREE Seminar: What do the Federal Budget Changes mean for your business?

2014-04-22T00:00:00+10:00

With quite a few changes expected to come from the Federal Budget, now is the time to take control of your tax and financial affairs.

The best tax planning is done before the start of the income year, not weeks before the end. We are hosting a free boardroom briefing on 15 May, two days after the Federal Budget is announced, so that it's practical and immediate information.

It will be practical analysis for clients and business people. The seminar is for any business owners who want to take control of their tax and financials, given the volume of likely changes to come from the new Budget.

It will also provide an opportunity to assist businesses not only to forward plan their tax requirements but also to fine-tune any tax planning for the current financial year.

Our emphasis is on building better business, we enjoy helping clients to achieve their goals around financial direction and security.

DFK Everalls provides plain English advice, profit improvement plans, in-depth business coaching, board advice and much more to grow your business.

The free boardroom briefing to discuss Federal Budget consequences and financial yearend planning is on Thursday 15 May starting at 5.30pm.

The briefing is aimed at anyone who may be impacted by the Federal Budget, but especially investors, SMSFs and businesses.

To secure your seat, or for more information contact us today.

Seats are limited so book early to avoid disappointment.

RSVP: Jessica.norton@dfkeveralls.com
Ph: 6232 4588

A paperless world is just around the corner...Electronic Lodgement update!

2014-04-22T00:00:00+10:00

The push towards a paperless world is coming at us from all directions…even the ATO!

From 1 July 2014 the ATO is going to be pushing for greater use of their online services, in particular the electronic lodgement of activity statements.

Once an activity statement has been lodged electronically you will no longer receive paper copies of the activity statements.

There have been a few exclusions for businesses whose activity statements are consistently lodged by paper for monthly periods and electronically for quarterly periods.

This exclusion only applies if your activity statement lodgement is up to date.

Despite this exclusion DFK Everalls is an environmentally conscious business and we want to encourage all our clients to move to their own electronic systems to manage their ATO requirements.

Please contact us and we can help you set up your own business portal that can enable you to make full use of the ATO's online services.
DFK Everalls provides plain English advice to help you understand your tax and financial requirements.

For more information about electronic lodgement see the ATO website

To Cloud or not to Cloud ?

2014-03-25T00:00:00+11:00

The Cloud and my Accounting Software

Confused with all the talk about moving into the cloud? Put simply - the cloud is a platform to make data and software accessible across internet connected servers anytime, anywhere, from any device. Your hard drive is no longer the central hub. Think about when you use your email or internet banking. Every time you access this data, you're using the cloud(via the internet).

Small business accounting software that's not available via the cloud can be tedious. Traditionally, it can suck up far too much of your business' time and effort. This doesn't add value, and takes the fun out of being in business. Cloud software can save your business time and money.

Problems with traditional Accounting Software:

- The data in the system isn't up-to-date and neither is the software.

- It only works on one computer and data bounces from place to place on a device such as

a USB drive which is not secure or reliable.

- Only one person has user access. Key people can't access financial and customer details.

- It's costly and complicated to keep backups (if done at all).

- It's expensive, difficult and time-consuming to upgrade the software.

- Customer support is expensive and slow.

Some of the benefits of using cloud accounting software:

- IT Flexibility - Anywhere/anytime access. Access from any PC or Mac or tablet with an internet connection. Work from home or on the go.

- IT Convenience - No more software installs and updates, you are always on the latest most current version. Enhancements, hotfixes and upgrades all are all done by the cloud supplier in the background. Also there is no need to upgrade hardware to keep up with the software.

- Security- the cloud is one of the most secure ways to store information. For example, using cloud software, if your laptop is stolen, no one can access your data unless they have a login to the online account. With cloud software, the internet is where the data lives as opposed to on your hard drive

- Disaster recovery - your data is automatically backed up and available 24 hrs a day. If disaster strikes (fire, flood, theft etc) your data file is secure in the cloud and can be accessed from any PC connected to the internet via secure login. On-line accounting means that there is only ever one data file that you and your accountant can work on, no multiple versions, no sending backwards and forwards to your accountant. Business owners stay connected with their data and their accountants.

- Automated Bank feeds into your data file- make tracking transactions and bank reconciliations much quicker and easier and cut down on the need for manual data entry.

- Better business information - Cloud accounting software gives you accounting in real time via instant, live updates of your business' financial position. This gives small business owners and their accountants a lot more information about the financial health of their businesses which makes it easier to make decisions on how to increase revenue and profitability.

- Improved Cash flow having a fixed monthly fee to subscribe to cloud accounting software helps smooth out large one off payments for software.

- Scalability - scaling the software up to meet the growing needs of the business can be done much more easily and quickly.

- Multiple User access: various users can be invited to access your data file in the cloud and there access rights can be customised. This aid is collaboration between your team and your accountant.

At DFK Everalls we will be encouraging all our business clients to consider moving their data files into the cloud - to take advantage of all the features mentioned above. However we understand that there is not just one cloud accounting solution that will fit all types of business.

At DFK Everalls we will take an unbiased approach to match your business needs to the most relevant cloud accounting software that has the features that "you" need. There are now quite a few cloud accounting solutions to consider.

To get the best advice from afirm that has been helping businesses in Canberra for over 45 years, give us a call on:

Ph 02 6232 4588

or email info@dfkeveralls.com

FREE Seminar on Practical Financial Management

2014-02-06T00:00:00+11:00

Want to better understand your financial statements and how to use them to improve the performance of your business?

Attend our February Boardroom briefing for a FREE Seminar on Practical financial management

This session will explain how the numbers are calculated, what they mean and how to use your financial statements to improve the performance of your business. The evening will be hosted by two of our company directors Robert Shelton and Melissa Healy, who have over 25 years' experience each in providing business advice to SME's. Complimentary drinks and nibbles will be provided.

When: 27th Feb, 5.30pm - 7pm
Where: DFK Everalls Boardroom
RSVP: jessica.norton@dfkeveralls.com
Ph: 6232 4588

For all business owners!

2014-01-15T00:00:00+11:00

5 Key Business Drivers
Resource for business owners

DFK ANZ have produced the '5 Key Business Drivers Fact sheets'.
These easy to read guides provide information on five crucial elements when forming, growing or planning a business.

See the links below on the 5 Key Business Drivers

Structure
DFK-KBD-FactSheet5-Systems-LR.pdf

Risk
DFK-KBD-FactSheet2-Risk-LR.pdf

Cash flow
DFK-KBD-FactSheet3-Cashflow-LR.pdf

Performance
DFK-KBD-FactSheet4-Performance-LR.pdf

Systems
DFK-KBD-FactSheet5-Systems-LR.pdf

Life as an undergraduate at DFK Everalls

2014-01-15T00:00:00+11:00

In August this year, I joined DFK Everalls as a part-time undergraduate accountant.
I am an "undergraduate", meaning I am still a "Uni student". I was fortunate enough to be given the opportunity to experience what it is really like to be working in a professional setting. Working at DFK Everalls allows me to apply the theory into practice. Most importantly, I was also fortunate to be placed amongst caring and competent professionals who are always more than willing to help each other and take the time to educate me.
Working as an undergraduate can be challenging. Maintaining an effective work and study balance can be difficult, especially during the exam period! In addition to work and study, it can also be difficult to find the times to maintain relationships with family and friends. Nevertheless, I find that working as an undergraduate is rewarding. Not only am I developing strong time management skills, I am also improving my interpersonal skills as I interact with clients and work together with colleagues. The DFK Everalls team has always ensured I have a great work and study balance and understand the high pressures of my position. The DFK Everalls team has inspired me to become an accountant and since doing practical work and actually working in the industry I have learnt about what I want to be my speciality and expertise.
I have worked with all staff including other undergraduates, accountants, managers and directors. This has provided me with fantastic insight about how a firm's process works and how workflow is managed. I have been treated and respected at the highest level and always take part in the perks of working life such as the work Christmas party, social club events and community days and work lunches.
An undergraduate position at DFK Everalls has equipped me with the practical skills and insight in order to apply University knowledge and theory. I highly recommend DFK Everalls as a place to work!

Events in 2014

2014-01-13T00:00:00+11:00

2014 – Events and excitement

In 2014 DFK Everalls will again be supporting;
- The second Canberra Comedy Festival; a pile of star studded comedy acts. While tax and business and accounting is all serious, we can still have fun!
- Ronald McDonald House Canberra, as a major sponsor of the Annual Gala Ball and we will continue to work within the House during the year including providing Meals from the Heart.
- Boardroom Briefings , 4 highly demanded topics, free to clients AND guests in our boardroom.
- The ACT Exporters Network - an activity of the Canberra Business Council and supported by the ACT Government, seeking to help businesses look over the borders for new markets. Our DFK connections are an invaluable help for these businesses.

Recent Changes to the Fair Work Laws - What You Need to Know

2013-08-13T00:00:00+10:00

The Commonwealth Government has made a number of changes to Australia's employment laws. These important changes took effect on 1 July 2013 and businesses are now legally responsible for compliance with the new obligations these changes have imposed.

There has been a lot of recent attention on the recent increase to the compulsory superannuation guarantee; however there has not been much focus on another equally important area to businesses legal obligations under the Fair Work Act 2009.
Penalties of up to $51,000 per breach apply, so it's vital you take the time to understand these changes and ensure compliance.

Flexible Working
Since 1 January 2010, employees covered by the Fair Work Act 2009 and who have worked for your business for at least 12 months and who are responsible for the care of a child under school (or a disabled child aged under 18) have had the legal right to formally request 'flexible working'.
This means they have had the right to ask, in writing, for you to consider changes to the way work is performed.

Once a formal, written request is received, you have 21 days in which to consider it and to respond to it in writing to confirm either your acceptance or refusal. If the request is being refused, you have an obligation to explain the 'reasonable business ground(s)' supporting your refusal.

The changes now made to the Fair Work Act 2009 have dramatically increased the pool of employees who are eligible to make formal requests for flexible working and the expanded group of eligible employees now includes those who meet any of the following criteria

• parents or carers of children of school age or younger
• carers of others
• employees with disabilities
• persons aged over 55
• people experiencing family violence
If you receive a written request from an eligible employee you must still respond in writing within 21 days and either accept or reject the application. The updated legislation now includes a (non-exhaustive) list of the various grounds you could rely upon if rejecting the request.

These include:

• the requested changes would be too expensive
• your client can't change the working arrangements of other employees to meet the employee's request
• it's impractical to change current working arrangements or to hire new staff to meet the employee's request
• the changes would likely lead to significant losses in productivity or efficiency, and
• the changes would likely have a significant negative impact on customer service.
You should note that these are certainly not the only reasons you can point to when rejecting an employee's request. In addition to this this, you should also keep in mind that only employees who meet the above criteria and who have been employed for at least 12 months have the right to make formal requests.

Parental Leave

Significant changes have also been made to unpaid parental leave entitlements and, once again, heavy penalties may be imposed against your business if you don't meet their new obligations.

As of 1 July 2013, members of eligible 'employee couples' can now take up to 8 weeks of concurrent unpaid leave – a significant increase from the previous 3 week limit. In addition, this concurrent leave no longer needs be taken in one single period or commence immediately following the date of birth or placement.

Employees with less than 12 months' service are now also eligible to request a transfer to a safe job during their pregnancy and, if no safe job exists at the time, you will become obligated to provide the employee with access to unpaid parental leave. In practice, this may present a number of difficulties for your business, especially those running small businesses.

Other Changes

Amendments have also been made to your obligations to consult with employees regarding changes to rosters, union right of entry and time limits for 'unlawful termination' applications. Expert advice should be sought if you find yourself dealing with any of these situations.

Finally, new laws relating to workplace bullying will also take effect on 1 January 2014. These will also have a significant impact upon your business.

This document has been re-produced from a document created by David Bates, MD, Workforce Guardian.

Leadership in Tough Times

2013-08-13T00:00:00+10:00

Being a leader in these tough economic times is difficult.

Motivating your sales team, managing your cash-flow and planning for the future are all challenging issues for business leaders.

Managers make sure things are done right, Leaders make sure the right things are done.

Do you know exactly what your business is trying to achieve over the next few years?
How do you manage change and think strategically?
How do you solve the business problems that you are facing?
How do you evaluate opportunities?
How do you plan future activities for your business?

It's a changing business world and leaders need to think through how they are going to chart a path for their businesses to navigate through these obstacles.

Managing Director, Rob Shelton comments "Taking time out to ensure you focus on the important and not just the urgent, is a critical skill for leaders. Urgent matters often create a lot of "noise", but don't necessarily create lasting value".

DFK Everalls can help with strategic planning for business to ensure that the important things get the focus they need.

Please contact us for more information about our Strategic Planning Services.

Challenges of the New Financial Year

2013-08-13T00:00:00+10:00

The start of the new financial year is a great time to undertake some forward planning as to what might happen during the next financial year. There is a lack of confidence in the business community which may ease once the Federal government election is held, however, that still does not help with the uncertainty faced by many businesses. Of course the ACT may be in for a particularly tough time.
THE ACT Chamber of Commerce has called a business crisis summit next month to hear first-hand about the challenges local businesses are facing; and what can be done working together to fix the situation.
Chamber of Commerce CEO, Mr Andrew Blythe says "Today, Canberra has the lowest business survival rate in the nation", "We are receiving many calls from business owners seeking advice on downsizing," (Source "City News.Com).
Proposed cuts within the Public Sector have created further uncertainty as this has a disproportionate effect on the ACT community compared to other states and territories. There are substantially fewer people with money to spend which has a knock on effect on retail and the rest of business in and around the city.

There are obviously some significant challenges confronting every business operator. Now is the time to prepare or revise your budget expectation for 2013/14.

Rob Shelton, Managing Director of DFK Everalls comments "Plans need to be both stretching and realistic. Now is the time to seek external assistance with setting cash flow and profit targets and developing robust strategies to achieve them"

At DFK we can help business navigate the complex business environment that is emerging, and if you would like our assistance with planning your budgets for the new financial year, or undertaking a review of your business, please do not hesitate to contact us.

What is a Self-Managed Superannuation Fund?

2013-06-18T00:00:00+10:00

Not really sure what a Self-Managed Superannuation Fund is? We can help:

A Self Managed Super Fund (SMSF) must meet the following :

The fund has fewer than 5 members
Each member of the fund is a trustee (A SMSF can also have a Company as a trustee of the fund - known as a "Corporate Trustee" as long as each member of the fund is a shareholder too)
Each individual trustee of the fund is a member of the fund
No member of the fund is an employee of another member of the fund (I.E no person can perform services for wages and be a member of the fund) - unless those members are related
No trustee of the fund receives any remuneration for his or her services as a trustee

Single Member funds:

You can have a SMSF with one member. If the single member has a corporate trustee they must:

Be the sole director of the trustee company; or
Be related to the other director of the trustee company and there are only two directors of that company; or
Not be an employee of the other director of the trustee company and there are only two directors of that company

If the single member does not have a corporate trustee the fund must have two members as trustees. Members must be a trustee with:

Another person who is a relative of the member; or
Any other person provided the member is not an employee of that person

Want to find out more about Remuneration and Reimbursement of Trustees?

Superannuation Changes from 1 July 2013

2013-06-14T00:00:00+10:00

Superannuation Changes from 1 July 2013:

There are a number of changes to the superannuation system which take effect from 1 July 2013:

Compulsory superannuation guarantee payments increase from 9% to 9.25% of ordinary times earnings
The maximum age of 70 years for super guarantee eligibility has been removed so all eligible employees over 70 years can continue to build retirement savings
New MySuper accounts are to be established with a business default fund for any employees who do not choose their own super fund. MySuper accounts are a basic, low fee superannuation product
The low income super contribution scheme commences where the Government will contribute up to $500 extra into you super each year if you earn less than $37,000
The concessional contributions cap for 2013-2014 is $25,000 per person
Self-Managed Super Funds (SMSF) are required to review their investment strategy regularly and to consider whether the fund should hold insurance for its members
New penalties for SMSF's for non-compliance and tighter regulations in respect of related party transactions

If you are unsure about any of these changes, please do not hesitate to give us a call on 02 6232 4588 to have a confidential chat about your situation.

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DFK Everalls News: Australia's Fastest Growing Business

2013-06-12T00:00:00+10:00

DFK Australia and New Zealand is a proud sponsor of StartUpSmart's Fastest Growing Business. This year saw a record 371 businesses entered into the award which has nine different categories; Fastest growing start-up, Best start-up product, Best serviced start-up, Best online strategy, Best green start-up, Best start-up idea, Best young entrepreneur and Best start-up hero.
The winner was 1800Approved, a finance and insurance broker, who had grown to $20 million in four years. That achievement, rewarded the business owners with a strategy review and planning workshop from DFK and advertising package from Private Media. "We are proud to support fast-growing businesses in Australia; it aligns well with DFK's core. We hope we can help them grow further." Chris Coulton, chairman of DFK Australia New Zealand said. StartUpSmart has written numerous articles about the award, finalists and winners where DFK has been quoted. The award was held in the Victorian State Government Building in Melbourne and saw over 200 guests. Apart from entrants, finalists and winners, DFK also had ten partners represented plus representatives from the Victorian Government.

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2013 Federal Budget: Tax Exemption for Earnings Supporting Retirement Income Streams

2013-05-17T00:00:00+10:00

Earnings on superannuation assets supporting income streams will only be tax-free up to $100,000 per year for each individual, from the 1^st July 2014. Earnings in excess of that limit will be subject to tax at 15%. The limit will be indexed to Consumer Price Index (CPI) and will rise in $10,000 increments.

Capital gains on assets acquired before 1 July 2014 will have special treatment. This new measure will only apply to capital gains that accrue:

After 1 July 2024 - for assets acquired before 5 April 2013
After 1 July 2014 - for assets acquired between 5 April 2013 and 30 June 2014

As superannuation funds receive a 33% discount on capital gains made on assets held for at least 12 months the Capital Gains Tax (CGT) will effectively be at a rate of 10% when the $100,000 income limit is exceeded.

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2013 Federal Budget: Concessional Contribution Caps

2013-05-17T00:00:00+10:00

An increase in the limit for concessional contributions, from $25,000 to $35,000 will apply from 1^st July 2014, for people aged 50 and over. The higher limit will apply from 1 July 2013 for people aged 60 and over.

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2013 Federal Budget: Increase in Contributions Tax for Very High Income Earners

2013-05-17T00:00:00+10:00

Individuals with incomes greater than $300,000 will have the contributions tax doubled, from 15% to 30%, for contributions from 1 July 2012.

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2013 Federal Budget: Seniors Downsizing Family Home

2013-05-17T00:00:00+10:00

Seniors will be able to invest up to $200,000 without the amount being included for pension means-testing where at least 80% of proceeds from the sale (up to $200,000) are deposited into a
special account by an authorised deposit taking institution (ADI). To qualify, they must have owned the home for 25 years. This commences 1^st July 2014.

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2013 Federal Budget: Baby Bonus

2013-05-17T00:00:00+10:00

This bonus will be removed from 1^st March 2014, and replaced by a Family Tax benefit boost, consisting of $2,000 for the first child and $1,000 for subsequent children. This will be paid as an additional FTB Part A payment. Parents who accept Paid Parental Leave (PPL) will not be eligible for the additional FTB Part A component.

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2013 Federal Budget: Family Payments

2013-05-17T00:00:00+10:00

The higher income thresholds for family payments and supplement will not be indexed and will remain at their current levels for a further 3 years until 1 July 2017, as follows:

Upper income test limit of $150,000 for Family Tax Benefit (FTB) Part B, the
dependency tax offsets, the Paid Parental Leave Scheme and Dad and Partner Pay;
FTB Part A upper income free area will remain at $94,316, plus an additional $3,796 for each child after the first;
FTB supplement amounts will remain at $726.35 per child per year for FTB Part A and $354.05 per family per year for FTB Part B.

FTB Part A lower income-free threshold (currently $47,815) and the FTB Part B secondary earner income threshold (currently $5,037) will continue to be indexed.

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2013 Federal Budget: Capital Gains Tax for Foreign Residents

2013-05-17T00:00:00+10:00

Foreign residents will be prevented from using transactions between members of the same consolidated group to create and duplicate assets, in amendments to take effect 14^th May 2013. Mining, quarrying or prospecting information and goodwill will be valued together with the mining rights to which they relate. From 1 July 2016, a 10% non-final withholding tax will apply to the disposal of certain taxable Australian property (most commonly real estate) by foreign residents. This will not apply to residential property transactions under $2.5m or to disposals by Australian residents.

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2013 Federal Budget: Dividend Washing

2013-05-17T00:00:00+10:00

This practice can result in two sets of franking credits being received for the same parcel of shares, by selling shares with a dividend entitlement and then immediately buying equivalent shares that still convey a right to the dividend. Legislation will be developed to prevent this practice.

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2013 Federal Budget: Research and Development

2013-05-17T00:00:00+10:00

The R&D tax incentive will be limited from 1 July 2013, so that it only applies to companies with annual aggregate Australian turnover of less than $20 bn.

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2013 Federal Budget: Consolidated Groups

2013-05-17T00:00:00+10:00

The law will be amended from 1^st July 2014, in order to prevent:

The double claiming of deductions by consolidated groups via the shifting of assets between entities.

Non-residents from buying and selling assets between consolidated groups to allow the same ultimate owner to claim double deductions

Certain deductible liabilities being taken into account twice

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2013 Federal Budget: International Tax

2013-05-17T00:00:00+10:00

The thin capitalisation regime aims to limit the ability of multinational firms to allocate an excessive amount of debt to their Australian operations, as a means to move profits out of Australia. Interest expenses cease to be deductible when the Australian subsidiary's borrowing exceeds a defined threshold. These changes are expected to take effect on or after 1 July 2014. The de-minimis threshold will be increased from $250,000 to $2m of debt deductions (interest), meaning many business will no longer be subject to thin capitalisation rules. Safe harbour limits will be changed, and a worldwide gearing test to inbound investors will be extended. For general entities (i.e. most non-bank taxpayers) the allowable gearing ratio will be reduced from 3:1 to 1.5:1 debt to equity. The exemption for foreign non-portfolio dividends received by Australian companies will be targeted. The provision allowing a tax deduction for interest expenses incurred in deriving certain exempt foreign income will be removed. Debt funding arrangements will therefore need to be reviewed to ensure that interest expenses remain deductible, for any businesses with international dealings.

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2013 Federal Budget: Apprenticeships Alternative Pathways Program

2013-05-17T00:00:00+10:00

An Alternative Pathways Program will be developed for apprentices in high demand industries experiencing skills shortages. This will include a grants process to trial innovative training approaches. An additional $2,000 per apprentice will be available for employers to encourage their participation in the program.

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2013 Federal Budget: Monthly PAYG Instalments

2013-05-17T00:00:00+10:00

The monthly payment cycle for PAYG Instalments will be extended to include all large entities including trusts, superannuation funds, sole traders and large investors. Currently, the monthly PAYG Instalments arrangement was only to apply to large companies.

Monthly PAYG instalments will be introduced as follows:

1 January 2014 for companies with turnover of $1bn or more

1 January 2015 for companies with turnover of $100m or more

1 January 2016 for companies with turnover of $20m or more, and all other entities with a turnover of $1bn or more

1 January 2017 for all other entities with turnover of $20m or more.

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2013 Federal Budget: Self-Education Expense Claims

2013-05-17T00:00:00+10:00

There will be a cap of $2,000 per year on tax deductions for individuals in respect of work related self-education expenses, from 1 July 2014. This will not however impact the FBT implications for employers who provide education to employees, except where there is a salary sacrifice arrangement relating to the education costs.

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2013 Federal Budget: Medical Expenses Offset

2013-05-17T00:00:00+10:00

Transitional arrangements have been put into place for the phasing out of this offset. Individuals are only able to claim in 2013-14 if they have a claim in 2012-13. Subsequently those that claim in 2013-14 will be able to claim again in 2014-15. Expenses relating to disability aids, attendant care or aged care will still be eligible for the offset until 1 July 2019.

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2013 Federal Budget: Low Income Tax Offset

2013-05-17T00:00:00+10:00

There is a reduction in the low income tax offset from $445 down to $300, effective from 1^st July 2015. However, changes to the phase-out rates and thresholds mean that the effective tax-free threshold actually increases from the current $ $20,542 to $20,979.

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2013 Federal Budget: Medicare Levy

2013-05-17T00:00:00+10:00

In order to help fund the DisabilityCare Australia (previously called the National Disability Insurance Scheme or NDIS), the Medicare Levy will be increased by 0.5% to 2.0% from 1 July 2014. There is an increase in the low income Medicare levy threshold to $20,542 (from $19,404) for individuals and $33,693 (from $32,743) for couples. Seniors entitled to SAPTO now have a threshold of $32,279.

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2013 Federal Budget: Increase in Medicare Levy

2013-05-15T00:00:00+10:00

To help cover the costs of the National Disability Insurance Scheme (NDIS) the Federal Government will introduce legislation, starting on 1 July 2014 to increase the current Medicare Levy rate from 1.5% to 2%. This increase will affect those earning $50,000 and above. Please see below to see the levy you will be paying:

Annual Assessable Income	1.5% Medicare Levy	2% Medicare Levy	Difference in $
$50,000	$750	$1,000	$250
$80,000	$1,200	$1,600	$400
$100,000	$1,500	$2,000	$500
$150,000	$2,250	$3,000	$750
$180,000	$2,700	$3,600	$900
$200,000	$3,000	$4,000	$1,000
$250,000	$3,750	$5,000	$1,250

2013 Federal Budget: Tax Rates

2013-05-15T00:00:00+10:00

Personal income Tax rates - residents

The 2013 Budget confirmed income tax cuts for the 2012-13 year. The Government however has deferred the subsequent tax cuts contained in this legislation that were to commence on 1 July 2015. A summary of resident personal rates is below:

INDIVIDUAL RESIDENT TAX RATES PER BUDGET
Taxable Income		RATES
Taxable Income		2012-13, 2013-14 & 2014-15
LOWER THRESHOLD	UPPER THRESHOLD	Tax on income up to lower threshold	Rate of tax for each $1 over lower threshold
-	18,200	-	0%
18,201	37,000	-	19%
37,001	80,000	3,572	32.5%
80,001	180,000	17,547	37%
180,001	-	54,547	45%

Below is the 2015-16 personal tax rates originally proposed in a previous budget by the Government that will not come into effect:

INDIVIDUAL RATES DEFERRED BY 2013-14 BUDGET
Taxable income		Tax on income up to lower threshold	Rate of tax for each $1 over lower threshold (up to upper threshold)
LOWER THRESHOLD	UPPER THRESHOLD	Tax on income up to lower threshold
-	19,400	-	0%
19,401	37,000	-	19%
37,001	80,000	3,344	33%
80,001	180,000	17,534	37%
180,001	-	54,534	45%

Personal income Tax rates - non residents

The non-resident individual tax rates were also announced in the Federal Budget. The new rates are set out below:

SUMMARY OF INDIVIDUAL NON-RESIDENT TAX RATES
Taxable Income		RATES
Taxable Income		2012-13
LOWER THRESHOLD	UPPER THRESHOLD	Tax on income up to lower threshold	Rate of tax for each $1 over lower threshold

-	80,000	-	32.5%
80,001	180,000	26,000	37%
180,001	-	63,000	45%

The proposed rate changes for non-residents have been deferred.

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Due Date for 2012 Individual Tax Returns - 15 May 2013

2013-05-07T00:00:00+10:00

Just a reminder to clients who have yet to lodge their Individual Tax Return for 2012 that the DUE DATE for lodgement is 15 May 2013.

If you have received your completed tax return and have yet to submit your signed declaration make sure you send it to our office before 15 May 2013 so we can lodge your return without any penalties for the Australian Tax Office.

Ways to send in your signed declaration include:

Fax to our office on 02 6232 4548

Scan and email it to info@dfkeveralls.com (or your accountant)

Send my mail to PO Box 180 Deakin West ACT 2600

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Start Up Smart Awards

2013-04-15T00:00:00+10:00

DFK ANZ is proud to be the sponsor of the 2013 StartupSmart Award!

The StartupSmart Award is the competition that invites the best and brightest emerging businesses in Australia. A record number of start-ups entered this year's Award – 371 – all demonstrating a stunning depth in innovative and fast growing entrepreneurial talent.

Entrants had to be up and running for less than four years and have revenue over $250,000 to be eligible for the top 50.

The judges of the 2013 awards, including the Chairman of DFKANZ, Chris Coulton, had the difficult task of picking out winners in the eight individual categories. This is his comment regarding one of the winners – Start-up Hero, Energy Intelligence, David Regenspurger.
"He has been knocked down but has got up again. He's has a motto of passion, determination and persistence to achieve his goals and I think that he is an inspiration to all of us."

The winners were announced at a ceremony at the Victorian Investment Centre in Melbourne on March 20, which was attended by representatives of all DFK's Australian association firms. In total 200 guests attended.

The overall winner, Fastest Growing Start-up award, was 1800Approved, a Queensland finance brokerage. They have $20 million revenue after just three years of operation! Impressive!

Other categories included Best Start-up Idea, Best Green Start-up, Best Start-up Product, Best Services Start-up, Best Online Strategy, Best Start-up Investor and Best Young Entrepreneur.

THE AWARD WINNERS:

Fastest Growing Start-up: 1800Approved

Best Start-up Product: Safescape

Best Services Start-up Boardcave.com

Best online Strategy: InsideTrak

Best Green Start-up: Greensense

Best Start-up Investor Award: AngelCube

Best Start-up Idea Tweaky.com

Best Young Entrepreneur Ash Davies of Tablo Publishing

Start-up Hero: Energy Intelligence

With a commitment to support growing businesses with their compliance and business advisory needs, DFK is looking forward to provide guidance and service to the participants in the 2013 awards. Welcome to contact us!

Deductions for Rental Properties Allowed - Update

2013-04-05T00:00:00+11:00

In a recent decision, the Administrative Appeals Tribunal (AAT) allowed a taxpayer's claim for rental deductions in respect of two properties for the 2008 income year.
The taxpayer owned the properties with her two sons as joint tenants and for part of the year, the properties were rented to her ex-husband and one of her sons. The taxpayer, in her 2008 tax return, declared a 50 per cent share of the rental income. She also claimed a 50 per cent share of the rental deductions.

The Tax Commissioner argued the tenancies were not commercial and therefore the deductions claimed were not allowable. However, the AAT found that there was no evidence that the taxpayer was assisting her ex-husband or her son. Further, the AAT noted the rent charged by the taxpayer did not differ greatly from the figures presented by the Commissioner. In conclusion, the AAT held the rental income was assessable and the expenses incurred were deductible.

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ATO Data-Matching Programs

2013-04-05T00:00:00+11:00

The ATO has announced data-matching programs to identify instances where taxpayers may not be meeting their tax obligations. The ATO says it will collect data from various banks and credit card companies relating to credit and debit cards sales of entities for the period 1 July 2011 to 30 June 2012. This will assist in identifying circumstances requiring ATO administrative action. Records relating to approximately 900,000 merchants will be matched. The ATO says it will also collect from state revenue offices and other government agencies the names and addresses of individuals and entities transacting with real property in order to identify non-compliance with the tax law. Records relating to over 10 million individuals will be matched.

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Taxman's New Power to Address Super Law Contraventions

2013-04-05T00:00:00+11:00

The Government has proposed to establish what it calls a fairer administrative penalty regime for trustees of SMSFs for certain contraventions of the superannuation law. Administrative penalties would range from $850 to $10,200. Broadly, the new regime will give the Tax Commissioner another way to encourage recalcitrant SMSF trustees to remedy defects quickly, rather than rely purely on existing heavy-handed enforcement powers.

The changes also propose to give the Tax Commissioner a new power to issue SMSF trustees with "rectification directions" and "education directions" for superannuation law contraventions. A rectification direction may require the person to take a specified action to "rectify" the contravention and to provide the ATO with evidence of the person's compliance with the direction. An education direction may require a person to undertake a specified approved course of education within a specified time frame and to provide the ATO with evidence of completion of the course.

If implemented, the new regime will apply from 1 July 2013.

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Simplified Depreciation Rules for Small Businesses

2013-04-03T00:00:00+11:00

From 1 July 2012 there have been some significant changes to the depreciation rules for businesses with less than $2million aggregated turnover. The threshold for instant asset write off has increased from $1,000 to $6,500 and can be claimed when an asset starts being used for a taxable purpose. A deduction of $5,000 is available when a new vehicle is purchased with the balance claimed through a small business pool at 15% depreciation in the first year and 30% in subsequent years. All new assets over $6,500 can be pooled and depreciated at a 15% rate in the first year and 30% in later years. Any remaining balance from previous depreciation pools can be added to the new pool and depreciated at 30%.

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Ownership of Assets in a Superannuation Fund

2013-04-02T00:00:00+11:00

If you are a trustee of a Self-Managed Superannuation Fund (SMSF) you are required by law to keep any cash or other assets held in the fund separate from any assets held by you personally or any other business associates including companies, trusts or partnerships. Assets which are held by the fund must be clearly documented and protected for SMSF use only. The SMSF must maintain its own bank account and all assets must be held in the name of the trustees usually with the following title 'the individuals/company as trustees for the SMSF'. In some situations it not possible for the trustees to show the ownership of an asset as belonging to the fund eg. land titles and in that situation a caveat or other such document should be executed to show the asset is held in trust for the SMSF. Every SMSF is required to be audited annually and so is required to ensure all ownership of assets in the SMSF are correctly documented.

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Market Update

2013-03-28T00:00:00+11:00

The S&P200 Accumulation Index finished trading up 4.95% in January. The market rallied strongly in the calendar year. The Australian market posted its best calendar year performance since 2009 finishing up 20.26%. In early January 2013 global equity markets including Australia rallied strongly post the US Fiscal Cliff resolution, and more positive Chinese Data. In this update we look at the potential for a sustained period of low interest rates. We also explore the risk in simply picking the highest yielding stocks.
For the past 3 years Australia has had the highest interest rates of the developed nations. This was primarily due to record commodity prices and record levels of capital expenditure in the mining sector. With commodity prices moderating, capital expenditure is forecast to peak in the next 12 months. Below is some interesting research from Goldman Sachs JB Were;

The RBA has cut rates from 4.75% a year ago to now 3.00%.
When we talk to people outside of the finance industry most think that rates will not stay here long.
Most expect rates to go back up next year but as many of you know there is an income shock coming to Australia. The RBA is positioning for this and they will take rates down to 2.50% sometime in the next 12 months.
Now rates are going lower, not higher, we are going to see 50 year low rates. What no one has lived through is a 'sustained period of low rates'. One where yield will dominate.
Those companies with high dividend yields will see their share prices continue to work higher as investors chase higher yields relative to what banks will be offering.
We are seeing client's rolling over term deposits from 6% when they locked in a while ago with some now being offered 3.9%. As term deposit rates continue to decrease, some of the $300 billion that went into bank deposits in the last three years will move back into high yield Australian shares.
Lastly a question that we get asked frequently is why you don't just pick the stocks with the highest dividend yield. The simple answer is that often the companies that pay a very high dividend one year will often decrease their dividend the next.
We target high quality companies that have a growing sustainable dividend yields. The analysis of dividends forms part of our detailed research process. The criteria we use for determining whether a company's dividend is sustainable include the following;
A well managed company growing its earnings and profits.
Company should have a five-year dividend track record and ideally the dividend payment has never have been reduced during that period.
Average dividend pay-out ratio (dividends/profits) to be no higher than 80% over a three-year period (no more than 60% for a capital-intensive business). A constant high dividend pay-out ratio increases the risk of a capital raising, which will either cause you a cash outflow or dilution.
Special dividends paid solely out of the proceeds of an asset sale should be excluded from the calculation.

To maximise current market opportunities, we continue to invest in quality companies that have sustainable growing dividend yields.

If you need to find out more please do not hesitate to speak with your accountant.

Have you seen our Advert in today's Public Service Informant?

2013-02-05T00:00:00+11:00

Don't forget to share with any colleagues or friends that need help opening up their new business.

RSVP to this briefing today.

Deductions for Rental Properties Allowed

2013-01-30T00:00:00+11:00

In a recent decision, the Administrative Appeals Tribunal (AAT) allowed a taxpayer's claim for rental deductions in respect of the 2008 income year. The taxpayer owned the properties with her two sons as joint tenants and for part of the year, the properties were rented to her ex-husband and one of her sons. The taxpayer, in her 2008 tax return, declared a 50 per cent share of the rental income. She also claimed a 50 per cent share of the rental deductions.

The Tax Commissioner argued the tenancies were not commercial and therefore the deductions claimed were not allowable. However, the AAT found that there was no evidence that the taxpayer was assisting her ex-husband or her son. Further, the AAT noted the rent charged by the taxpayer did not differ greatly from the figures presented by the Commissioner. In conclusion, the AAT held the rental income was assessable and the expenses incurred were deductible.

If you are unsure about what deductions you can claim please do not hesitate to contact one of our accountants and business advisors.

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New Year, New Financial Goals

2013-01-03T00:00:00+11:00

The silly season is nearly over and it is time to get serious about what you want to achieve over the next year. Do you want better financial security for your business? Gain a better understanding of your finances? Or learning new ways to grow your business through greater efficiency or entering new markets?

In a new study Accountants are now seen as the most trusted business advisors following a breakdown in honesty between companies and their bank managers. Exactly half (50%) of Sage Omnibus survey of more than 1,000 customers believed that their accountant provided the most valuable business advice. In addition, 15% of small business also claimed that they were most honest with their accountant than friends, family or spouse.

Jim Scott, Managing Director of Sage Accountants Division said "Accountants have played a key role in the success of many businesses, but it is in challenging times that the value they bring really comes to the fore. More business owners than ever are turning to their accountants for guidance as the regulatory landscape evolves, and the fact that over one in seven are more honest with their accountants than they are with nearest and dearest underlines just how valued their counsel and advice really is."

At DFK Everalls, we have business advisors who are always interested to work with you to achieve your financial goals, whether big or small.

This is the year to change old habits and look to create a better functioning business during this time of uncertainty. As a famous philosopher once said,

"Change your life today. Don't gamble on the future, act now, without delay."

Simone De Beauvior.

Contact our business advisors today.

Find out more about our business advisory services.

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5 reasons to 'Like' us on Facebook

2012-12-17T00:00:00+11:00

1) Stay up to date with the latest news and developments in Business Accountancy, Individual Taxation and Self-Managed Superannuation Funds.
2) Get tips to help manage your small/medium business and personal wealth
3) Stay informed about upcoming lodgement dates
4) Ask questions or make a booking, you can use Facebook as your one stop source to communicate with us
5) Keep in touch with news from DFK Everalls office

Don't forget to 'LIKE' DFK Everalls on Facebook.

Want to find out more? DFK offer many services to suit your accounting and superannuation needs.

Top Tips for Business in Uncertain Times

2012-12-12T00:00:00+11:00

CPA Australia have released the results of a recent survey looking at economic uncertainty and its impact on small businesses. With uncertainty on the rise, confidence in growth is quite low. To help manage uncertainty, CPA Australia have suggested the follow 5 tips:

Reduce Your Reliance on External Debt

To reduce your reliance on external finance, businesses should be focused on increasing the productivity of existing assets and staff as well as improving cash flow. Improving cash flow can free up money to fund necessary purchases or investments without having to seek external finance and can be used to pay down debt.
They recommend that you:
- Follow up on outstanding debts
- Prepared a regular cash flow forecast
- Prioritise your marketing to products and services that can be turned into cash quickly
- Sell unnecessary assets
- Reduce stock levels and replace slow-moving and obsolete stock with stock that has faster turnover

Improve Your Productivity

For a business to be successful in good times and bad, it needs to ensure that their business is operating as efficiently and effectively as possible.
They recommend:
- Evaluating the current performance of your business
- Identify key drivers of your business and set goals for such drivers
- Regularly evaluate performance in those key drivers against goals
- Monitor the effectiveness of those drivers in achieving goals

Review Your Cost Structures

If a business cannot bring costs under control or pass increased costs onto customers, this reduces both cashflow and profitability and can impact the future viability of your business.
They recommend that you:
- Review costs under your control
- Do not be afraid to ask suppliers for discounts
- Compare your cost structure with other businesses in your industry and with your past results to identify areas for improvement

Adopt Appropriate Risk Management Strategies

Uncertain times may expose your business to risks that threaten its viability.
They recommend that you develop appropriate risk management strategies that help reduce:
- Relying too heavily on a small number of major customers
- Relying too heavily on one supplier
- Relying too heavily on one type, or source of finance
- Selling on credit without appropriate checks and not following up late payments
- Fraud

Review Your Business Plan for the Changed Environment

If business conditions change, it is good practice to revisit your business plan and budgets and amend them to reflect current circumstances.
The recommend businesses should:
- Review the assumptions underpinning your business plan and if those assumptions have changed, amend the place to reflect such change
- Evaluate performance and incorporate strategies to improve performance in the business plan
- Reflect your amended business plan in your budgets and forecasts

Conclusion:
While businesses may experience uncertainty, opportunities will still emerge. Do not turn a blind eye to such opportunities if they are consistent to the strategic direction and can be properly funded. You may also need to create opportunities, such as seeking out new markets.

If you are unsure on how to tackle any of the above, please do not hesitate to get in contact with one of our business advisors.

Source: CPA Australia - http://tinyurl.com/bfmxe4r

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Living-Away-From-Home Allowance

2012-12-05T00:00:00+11:00

The Government has made a raft of changes concerning living-away-from-home allowances (LAFHAs) and benefits. Essentially, the Government is restricting access to the concessions. Employers and employees who may be affected need to take note. The changes started on 1 October 2012, although there are grandfathering provisions to preserve tax concessions for a limited time for some arrangements that were in place prior to Budget Night (8 May 2012).

TIP: The changes raise significant issues for affected employers and employees. If you have any questions, please speak with your business advisor or accountant by contacting our office.

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Have you seen our new DFK ANZ video?

2012-11-29T00:00:00+11:00

Our new DFK ANZ video gives a summary of what you can expect as a client of DFK Everalls. Check out the video below:

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MYOB Errors

2012-11-15T00:00:00+11:00

Recently MYOB have made some significant changes to their software products and released new versions including Account Right with Cloud Computing. As always when major changes occur, interesting quirks appear.

MYOB Premier Plus

Payroll Tax Tables. MYOB Premier requires all computers accessing the same data file to have loaded the most recent compliance update as well as the current years tax tables, otherwise the link 'drops out'. In addition, if you (or anyone else) opens a previous years data file, and then reopen the current year, the tax tables will need to be reloaded on each computer. This is a simple as 'Setup'. 'Load Payroll Tax Tables.'

We recommend you check your Tax Table Revision Date before starting each payroll (Setup. Payroll Information)

Employee Information. Please check each individual's tax table setup including HECS and Tax Free Threshold. Unfortunately we have found with some files that the rollover from one year to the next caused some interesting changes in the appropriate tax table, especially if previously Leave Loading with invoked.

Payment Summaries. In some data files, there have been some 'missing links' in the Payment Summary Field. Please check each of your payment summary fields with the appropriate payroll categories as things may have changed in the update. At this stage we cannot see any obvious patterns.

MYOB Account Right

Keep an eye on the line items in your Profit and Loss. Negative values do not appear on the reports however, the Total's are correct.

As always, if you have any questions, please contact our office for assistance.

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Melissa Healy Talks About Balancing Work and Life

2012-10-12T00:00:00+11:00

Want to read more about the DFK Everalls Team?

Follow DFK ANZ on Youtube

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Refund on Superannuation Excess Concessional Contributions

2012-10-05T00:00:00+10:00

From 1 July 2012 there is a one off opportunity for individuals to gain a refund of excess concessional superannuation contributions if the breach is a first time offence and the amount is less than $10,000. If an individual is eligible for a refund, they will be contacted by the ATO with a letter which will detail the available options.
Each individual can only ever receive one offer of a refund and once a decision is made to receive a refund or decline a refund, this decision cannot be reversed. This once off opportunity will allow members who have made an honest mistake an opportunity to avoid an additional 31.5% tax on the contribution. If the refund option chosen by an individual, the amount of excess contributions will be added to the individual's assessable income and taxed at marginal rates, less a 15% rebate for the tax paid within the super fund.

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New National Business Name Register

2012-10-05T00:00:00+10:00

From 28 May 2012, the registration of business names will be administered through the Australian Securities and Investment Commission (ASIC) rather than individual state based administration bodies. Businesses which operate in multiple states will now only need to register a business name once and pay a single fee to own a business name across all Australian states and territories.
If your business operates under a registered business name, this registration will be automatically transferred to ASIC provided registration details and all fees are paid up to date. ASIC will contact all business name owners when their business name is due for renewal. If your business name expired prior to 28 May 2012, the business name will not be transferred to the national register and a re-application for a business name will be required.
If there are identical business names registered in different states, ASIC will allow a business to consolidate the registration into one name. If the identical business names are owned by different businesses, ASIC may add an identifier to a business name (such as NSW) to distinguish each business name.

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DFK Everalls Celebrates 50 Years

2012-09-14T00:00:00+10:00

DFK Everalls Directors Mark Hardy, Melissa Healy and Rob Shelton (pictured) attended the 50^th Anniversary celebrations of DFK International in Paris in July.

The international conference attracted many directors from the over 200 independent member firms from 80 countries that are now part of DFK International.
The key aim of the conference was the valuable exchange of ideas and networking between member firms. A conference highlight was a presentation on forecasts and predictions for the global society from 2012 to 2022 by Adjiedj Bakas.
DFK International is one of the world's leading associations of independent accounting firms and business advisors. It was founded in 1962 by three accountants from Sydney, London, and Paris.

The idea was to bring like-minded professionals together to service clients with international business needs. It was also to provide clients with an alternative to the "Big Eight" accounting firms.DFK International member firms now stretch across the Asia Pacific, the Americas, Europe, the Middle East and Africa.

Member firms like DFK Everalls are strong in their local market and provide quality accounting services to clients with cross border interests. Each member firm has its own identity and complete autonomy.

DFK International membership means firms can offer their clients additional assistance and advice with regards to a range of cross border issues. It creates opportunities to link with a trusted accountancy firm in a new country, for help with setting up a new business or expanding your business overseas, with acquiring a new firm or property, or with complying with international regulations.

Read more about DFK International: http://www.dfk.com

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How to Minimise Errors in Your Business

2012-09-13T00:00:00+10:00

Employees make mistakes, it happens in every business. But when errors become a common factor within the day-to-day running of your business you must take action to prevent further costs to the business as well as a loss of productivity.
To minimise mistakes, you should consider the following points:

Right Person for the Job: Errors can occur because the right person has not be put into the correct job role. Having the right person in the right role means that they have the knowledge to be able to add value to your business, able to complete tasks in an efficient manner and if mistakes are made, they are able to learn and correct them so they don't make them in the future. Be careful to make sure that when mistakes happen, that you think about what type of work have that employee has been asked to do and how they were told to do it ie review the system before you blame the person.
Communicate: There must be a constant flow of communication within your organisation. Each person must know the overall driving purpose of the business and where and their role fit into the big picture so they understand how they add value to the organisation. Your team members need to be informed on business activities as well as the key developments within their team or area. Managers should stress the importance of communication and teamwork with all employees so that there are no misunderstandings and no key bits of information are missed. The aim is to have everyone on the same page at all times.
Continuously Monitor and Measure: Each team member must know what is expected of them in their role, KPI's, times, responsibilities and consequences! Implementing methods to measure the work that is completed is a great way to determine how efficient an employee is in completing tasks. Methods can include timesheets, job costing and meetings. Monitoring and measuring the time it takes an employee to complete each task and the quality of work they produce will provide information on the areas of work where errors can occur. Once you have determined the areas that create issues for team members, you can review the systems and procedures to develop or create new practices that minimise mistake or errors employees have made in the past.

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Small Business and Dealing with Debt

2012-09-07T00:00:00+10:00

In such a tough economic climate, small businesses must stay on top of their cash flow in order to remain healthy. If your cash flow is poor, your business will struggle to meet obligations of suppliers, banks and customers.

During any time of economic uncertainty, small business owners must answer this question: How exposed is my business to an economic downturn?

Small businesses should take the time to examine their customer base to determine the effect this downturn may have on revenue sources. Businesses must focus on maintaining relationships with those customers or clients who can return a positive cash flow. A business must also implement contingency plans for alternative sources of income to replenish those traditional sources of income that may have dried up.

Failure to generate a profit is critical to a small business, though it is only one cause of business failure. Just because you have a profit does not guarantee a positive cash flow. A business is at risk of insolvency if it cannot finance working capital. Therefore you must manage the timing of cash inflows and outflows to support your working capital, payments to staff, suppliers and banks, so your business can function. AT ALL TIMES you must have sufficient funds available.

If your cash flow is faltering please read further to make sure you small business has a positive cash flow.

Want to find out what DFK Everalls can do for you? Get in contact with us today to work on the cash flow of your business.

Don't forget, we have more resources to help business owners.

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ATO Compliance Activities: Tax

2012-08-31T00:00:00+10:00

The ATO has highlighted a number of areas that it will focus on compliance activities this year. This includes:

Incorrect claims for work related expenses. In particular, the ATO says it will focus on claims made by plumbers, IT managers and defence personnel. Taxpayers must keep written records for all their work-related expenses if their claims total more than $300.
Unrecorded and unreported cash transactions in the cafe and plastering industries. The ATO is stepping up its use of third party information, such as information from suppliers, to identify under-reporting of income.
Incorrectly treating employees as contractors, particularly in the construction industry. The ATO notes that from 1 July 2012, businesses that make payments to contractors in the building and construction industry are required to report these payments to the ATO each year.
Treatment of private company profits, particularly in relation to loan arrangements and superannuation obligations of employers.

TIP: The ATO's main tool for detecting non-compliance is matching information reported to it by taxpayers and third parties, such as financial institutions both in Australia and overseas. The ATO says its matching capabilities have grown strongly over the years. This financial year, the ATO expects to match over 600 million transactions.
Don't forget, if you are unsure about your individual tax, or company tax compliance please contact our DFK Everalls office.

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How Long Should You Keep Your Tax Records?

2012-08-31T00:00:00+10:00

Generally you must keep the written evidence of your income and expenses for five years from the date you lodge your individual tax return. Though there are instances that the date you must hold onto your record can be confusing. For example:

If you have claimed depreciation on equipment etc - you must keep the receipt for that item for 5 years from the date you lodged your tax return that had the LAST depreciation claim on that item.
If you have acquired or disposed of an asset that could be subject to capital gains tax - you must keep the records for 5 years after tax return is lodged for the year in which the asset is sold.
If you have a dispute with the ATO - you must keep the records 5 years from the finalised date of the dispute.

Since 2004-05 new rules have been put in place for individuals who have simple tax affairs. Simple tax affairs are those classed when:

Your income consists only of:
- Salary or wages (other than from associates)
- Interest paid by a financial institution or government body
- Dividends from an Australia company listed on the Australian Stock Exchange (ASX)
You claim deductions only for:
- The cost of managing your tax affairs
- Bank fees and charges, including tax and duties
- Donations
You are not:
- A foreign resident for the year of income
- Entitled to a foreign tax credit
- Required to adjust your taxable income because of payments to or from your associates
- In receipt of a capital gain or loss that must be taken into your account in your tax return
- In receipt of foreign employment income, or income from service on an approved overseas project that is exempt from tax in Australia.

If you are classed as a simple tax affair, records only need to be obtained for 2 years for returns lodged 2004-onwards.

If you would like to find out more, please call us or have a look at the ATO website.

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Top 10 Cash Flow Rules: Part 2

2012-08-24T00:00:00+10:00

6. Don't Manage From the Bank Balance:

The bank balance and cash balance are two different things. Rarely will the two ever be the same. DO NOT confuse the two. It is futile to attempt to manage your cash flow using the bank balance. It is a prescription for failure. You should focus on reconciling your bank balance, not managing it.

7. Know What You Expect the Cash Balance to be 6 Months from Now:

What do you expect your cash balance to be 6 months from now? This one question will transform the way you manage your business. This question gets to the heart of whether you are managing your business or whether you business is managing you.

8. Cash Flow Problems Don't "Just Happen":

You would be shocked and amazed at the number of businesses that fail because the owner did not see a cash flow problem in time to do something about it. The key is to always be able to answer - What do I expect my cash balance to be in 6 months from now?

9. You Absolutely, Positively MUST Have Cash Flow Projections:

Cash flow projections are the key to making wise and profitable business decisions. They give you the answer to the all-important question from Rule #7. It is impossible to run your business properly without them.

10. Eliminate Your Cash Flow Worries So You Are Free to Do What You Do Best - Take Care of Customers and Make Money:

This is the real key to your success in business. The reason you have to make sure you have the cash flow of your business under control is so you are free to focus all your time and talents where you can make the most difference in your business.

When you have your cash flow under control, you are free from worry, doubt and concern. You have the cash flow information you need to make sure that everything you do each day in your business is clearly focused on making your business better.

You have the information you need to measure your progress using the amount of cash you generate (and keep) for yourself and your business as your ultimate financial measurement. In subsequent columns, I will delve into the specifics to help you achieve each step.

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Top 10 Cash Flow Rules: Part 1

2012-08-22T00:00:00+10:00

1. Never Run Out of Cash

Running out of cash is the definition of a failing business. Make sure you understand your current situation so you can avoid becoming another business statistic.

2. Cash is King

It is important to realise that cash is what keeps your business running. Manage your cash very carefully as it can have a disastrous effect on the success of your business. Don't forget NO CASH = NO BUSINESS!

3. Know the Cash Balance Right Now

Do you know what your current cash balance is? At all times you must know exactly what your balance is. If you do not know your current balance, you cannot make informed business decisions, which can lead to business failure.

4. Do Today's Work Today

Doing today's work today means keeping your accounting records up to date so you will have the most current numbers, whenever you need them.

5. Either You Do the Work or Have Someone Else Do It

Work must be done. You cannot ignore an aspect of your business that you do not want to do. So, if you don't want to do it, make sure you have someone else doing it for you.

Stay tuned as in the next week we will complete the list with the 5 additional rules!

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Next Boardroom Briefing

2012-08-17T00:00:00+10:00

Don't forget, our next boardroom briefing is held on 21 August (next Tuesday) from 5:30pm and seats are still available. The briefing will cover the topic "Looking After Your Team".

Our presenter will run through several key points that impact your success or failure when dealing with your people strategies. The presentation covers how to implement a recruitment program to grow new inductee's within the organisation, how to cultivate your business and culture while creating trust and respect with staff and ways to encourage growth and learning by encouraging innovative thinking.

If you are interested in attending you can RSVP by clicking here.

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BAS Lodgement Dates

2012-08-15T00:00:00+10:00

Full payment is also due on these dates.

QUARTERLY ACTIVITY STATEMENTS

Period	Due Date	Agent Electronic Lodgement Extended Due Date
4^th Quarter: 1 April to 30 June 2012	28 July 2012	25 Aug 2012
1^st Quarter: 1 July to 30 September 2012	28 Oct 2012	25 Nov 2012
2^nd Quarter: 1 October to 31 December 2012	28 Feb 2013	28 Feb 2013
3^rd Quarter: 1 January to 31 March 2013	28 Apr 2013	26 May 2013
4^th Quarter: 1 April to 30 June 2012	28 July 2013	25 Aug 2013 to be confirmed

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Why Have a Board?

2012-08-13T00:00:00+10:00

Having a Board and getting serious about your performance is truly a long term investment in your business. For most of us our business is one of our most important and valuable assets. We must ensure that we give our business every chance to succeed. One of the strategies to help make your business work better and one that can help you reach the targets you set is to have a Board of Directors.

Please read more to find out about the importance of a board.

Don't forget, we can sit on your board. Find out more by contacting your accountant.

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Tip: Cash Flow is KING!

2012-08-09T00:00:00+10:00

Analysing cash flow is a key determinant on whether your business is heading towards success or failure. Invoicing, getting paid promptly and keeping costs down affect your cash flow. To understand the state of your cash flow, analysing your business with these things in mind will help you maximise cash flow and ward of any unseen catastrophes.

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Changes for Tax 2012

2012-07-31T00:00:00+10:00

Need a reminder about the changes in tax??? Check out this great article to catch up on anything you may have missed.

Click here

Update to the "Reasonable Travel and Meal Allowance" 2012-13

2012-07-25T00:00:00+10:00

The ATO has announced the amounts the Commissioner considers are "reasonable" for the 2012-13 income year in relation to claims made for:

Overtime meal allowance expenses;
Domestic travel allowance expenses;
Travel allowance expenses for employee truck drivers; and
Overseas travel allowance expenses.

The amounts vary, depending on your current income and where you are travelling. So next time you are travelling or if you are travelling within the next 12 months on business please be aware of the new "reasonable" allowances. Click here to view tables that demonstrate the amount you can claim when travelling.