Bookkeepers: Help your clients build value and save tax Private - PowerPoint PPT Presentation

Bookkeepers: Help your clients build value and save tax Private briefing Just one idea … could save you thousands!

Introduction • Facilities • Schedule • Attendees • LOVETTS 2

Content Index • Tax tips & knowing the right position • GST, tricky issues • Small business concessions • Tax incentives • Tax rebates for entities 3

Tax tips & knowing the right position Broad categories • Direct income to lower tax rate stakeholders • Active tax planning • Set off tax losses • Choice of structure • Manage GST, FBT, Div 7A, CGT & • Mix of funding for venture entity tax compliance • Small business concessions • Anti-avoidance provisions • Bring forward/increase • Avoid mass marketed schemes deductions • Delay/reduce assessable income Detailed tips http://lovetts.com.au/category/tax- • Maximise rebates insight/tips/ • Access lower tax rates 4

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GST, tricky issues • Input taxed residential • Reimbursements • Property transfers including • Pre company registration farm land, margin scheme & expenditure registration requirement • Vouchers • Going concern exemption • Security deposits • RCTI • Agents • International • GST groups, branches & joint • Export of services ventures 6

Small business concessions – who qualifies? Commencing, carrying on or Aggregated turnover winding up a business and • Consolidated annual turnovers • Aggregated turnover < $2m last of grouped entities year • Annual turnover is ordinary • Is likely to have aggregated income derived from carrying turnover for this year < $2m on business (catches to this including last 2 • Affiliates – Act in accordance years threshold) with controllers of business • Aggregated turnover calculated • Connected entities – Broadly, at end of year < $2m 40% interest • Discretionary trusts – special rules 7

Small business concessions – Budget changes Small Business Primary Producers • Immediate write-off for • <$20,000 immediate depreciation asset write-off fencing and water facilities from 13 May 2015 to 30 June from 13 May 2015 2017 • 3 year write-off for fodder storage (eg. Hay shed) from • 28.5% corporate tax rate from 13 May 2015 July 2015. Retain 30% franking • 5% tax rebate for unincorporated small business income recipients capped at $1000 from July 2015 • Immediately deduct professional business startup costs from July 2016 • FBT exemption for multiple work related electronic devices from April 2016 8

Small business concessions - general • Pooled depreciation • Trading stock • Pre-paid expenses • 2 year amendment period • GST – cash basis, annual apportionment and instalments • FBT car parking exemption • PAYG instalments method 9

Small business concessions - CGT Small business CGT concessions • 15 year asset exemption • CGT 50% active asset reduction • CGT retirement exemption • CGT rollover Available for • Small business entity stakeholders • <$6m net assets • Complex rules and care required 10

Tax incentives • R&D • Rental affordability scheme • Forestry • Film • Environmental protection • Shipping • Urban water • Infrastructure 11

Tax incentives, R&D Research & development • > $20k R&D expenditure incentive • Registration with AusIndustry • Company • New knowledge Benefit • Core is experimental – • Refundable offset of 45% if Hypothesis, experiment, results, aggregated turnover < $20m analysis, interpretation • Non refundable offset of 40% • Exclusions from core activities otherwise • Supporting activities • $100m cap on R&D expenditure 12

Tax rebates for entities • Franking offset • Foreign income tax offset • Primary production averaging • Plus those mentioned in incentives 13

Andrew Lovett - Speaker Contact details P. +61 7 3012 9580 F. +61 7 3012 9590 E. info@lovetts.com.au A. Level 2, 25 Mary Street Brisbane, QLD 4000 Post. GPO BOX 3323, Brisbane, QLD 4001 Disclaimer: The information contained in this publication is for guidance only and we believe it is correct at the time of publishing. It should not be relied upon without obtaining professional advice regarding your circumstances. No responsibility for loss occasioned directly or indirectly to any person acting or refraining from acting wholly or partially upon or as a result of the material in this online publication or for any error in or omission from or external broken links within this online publication can be accepted by the publisher or any author, editor, contributor or consultant of any company referred to herein. 27/07/2015 Just one idea … could save you thousands! 14