In this issue WIN a year’s free subscription to MYOB LiveAccounts! Tax return facts you probably didn’t know Latest business and superannuation news u’d stor y yo s a e r e h t tu Is over? Le c o t s u g like emailin know by owers.net.au lair@p gemma.b
The Spring clean issue
SEPTEMBER 2011
In the LOOP The Quarterly Newsletter for clients of Powers Financial Group
Director’s Message with Ian Congram Let’s be honest. We would all like to have more money, and pay less tax. The good news is that the first few months of the new financial year is always a good time to start with a ‘clean slate’ and give some thought to your tax and wealth creation strategies. There is no better season to do a ‘Spring clean’ of your finances, conduct some research, and get some advice for the rest of the financial year ahead. We hope this issue gives you some food for thought, but as always, if you have any questions please contact our office.
Find some hidden money this Spring A Spring clean may help your back pocket
If you think finding a couple of dollars under your couch is exciting, imagine finding lost super you didn’t even realise you had. And the best part is that unlike doing a Spring clean of your house, finding lost super is super easy and can be done in a few minutes. All you need to do is enter your tax file number (TFN), family and given names at the Tax Office’s SuperSeeker website, or through their self-help line on 13 28 65 (Fast Key Code 1 then 2).
The SuperSeeker service is free to use and is available 24 hours a day, seven days a week. Once you’ve entered your details, SuperSeeker will provide you with a list of possible lost and unclaimed super matches and also help you lodge a request with your fund online if you wish to transfer your lost super to another account. ■To ■ get started go to www.ato.gov.au and follow the links.
Fly away with Corporate Travel Insurance With the world continually changing, purchasing travel insurance is an important decision for companies and individuals with an ABN number. Corporate Travel Insurance is designed to give coverage to travellers through one easy to manage annual policy, covering all travel not only overseas but within Australia, providing you are more than 100kms from your home address. The policy includes private travel cover for company directors, CEOs, chief financial officers/controllers and company secretaries of the insured, including any accompanying spouses or dependent children. Premiums start as low as $700 for a full 12 months cover and can vary depending on the amount of travel taken.
Taxes and pensions
Corporate Travel Policy benefits include:
with Superannuation Services Director Charles Page
ӹӹ annual policy - no need to activate cover for each trip ӹӹ natural disasters covered, ‘acts of God’ not excluded ӹӹ pre-existing conditions covered ӹӹ age limit to age 85 ӹӹ medical and evacuation expenses included
■■ At Powers Financial Group, our affiliates Tony Bemrose Insurance Brokers (TBIB) can help you with Corporate Travel Insurance. For more information phone Steve Weil at TBIB on (07) 3252 5254. Otherwise you can let us know you are interested, and we will arrange for TBIB to contact you.
Powering on...
What’s happening with the Powers team
Kochie’s final goodbye Retiring Director Ian Koch was sent off with a party and a signed Rabbitohs jersey. The smile on his face says it all!
At the Powers office we love our morning teas. It’s no wonder then that we raised more than $200 at our Australia’s Biggest Morning Tea.
Relay brings out best
Welcome to our new Brisbane Client Services Co-ordinator Carol Hampson.
by! a B
The Powers team will take part in Relay for Life in Biloela this month, and we’d like to thank everyone who helped us fundraise. Our team was able to raise more than $5000 for the Cancer Council!
Top Marks
New staff
Marketing Officer Tanya Summers (who is currently on 12 months maternity leave) welcomed little boy Jake Edward into the world on June 2. Little Jake weighed 7 pounds.
Hello Good cuppa
A+
Congratulations are in order for Senior Accountant James Keller, who passed his CPA module with distinction. Senior Accountants Jaymie Bethel and David Butler also passed their CA modules.
Super update
Powers goes
green
You may have seen in the paper that our Biloela office has been fitted out with 128 solar panels which will generate enough power for our office, plus push substantial surplus energy back into the grid. It is expected our panels will save 53 tonnes of greenhouse gases a year.
Did you know that if you die while in pension mode, you will now be taxed when the Tax Office calculates your final superannuation payout? A draft tax ruling clarifies the Tax Office’s view on the operation of income streams in superannuation funds. Their view is when a pension ceases, any residual capital becomes a superannuation benefit and tax will be payable on any future income earned by the fund. On this matter they are quite categorical, as it confirms their long held view, even if accepted industry practice has had a somewhat different interpretation. Many SMSFs are exempt from tax as they are only paying pensions, so the draft ruling will be a nasty shock. The ruling means that capital gains tax will be paid as assets are disposed of and the income of the fund will be taxed at 15 per cent after the pension ceases. Quite harsh, especially if the fund has been accumulating unrealised capital gains while paying pensions. At this stage it is only a draft ruling and submissions are being sought, but for members and trustees there are a number of strategies that can address future tax imposts when a pension ceases. Consider what you need to do now; do not wait until it is too late. ■■Charles can be contacted on (07) 3251 4444.
What’s in a tax return? Have you ever wondered who makes up Australia’s taxpayers? Here’s a quick snapshot. 12.3million people sent their tax returns to the Australian Tax Office in the 2009 income year. Here is that number represented as 100 people. 32 from NSW 25 from VIC 20 from QLD 11 from WA 7 from SA 2 from TAS 2 from the ACT 1 from the NT
71 lodged their tax returns through a tax agent 19 used e-tax 10 did it on paper
4 people declared capital gains
84 people received a refund 38 people donated 12 people owed tax to charities and then 4 balanced perfectly claimed deductions 24 were blue collar workers
38 were white collar
workers 14 came from the service sector 24 didn’t specify their occupation or had no occupation
52 males
and 48 females
4 salary-packaged a car
People with the top 3 taxable incomes paid 31% of all net tax The next 6 paid 18% of all net tax The next 31 paid 41% of all net tax The next 35 paid 10% of all net tax The last 25 didn’t pay any tax
10 people received the government superannuation co-contribution
6 from generation Z 21 from generation Y 33 from generation X 30 from baby boomers 10 from seniors
8 people operated a business in their own name
2 made a loss 6 made a profit
Taxation statistics 2008-09: 100 people. Information courtesy of the Australian Tax Office
Business Corner Paying superannuation for contractors The ATO has identified some employers may not be paying super to their eligible employees or contractors. Employers need to pay super contributions for contractors they pay under a contract that is wholly or principally for the contrac-
tor’s labour - even if the contractor quotes their Australian business number. ■■ To help you determine if contractors are eligible for super, there are some tools at the ATO website (www. ato.gov.au).
Paid parental scheme begins As of July 1, employers have been responsible for providing parental leave pay to eligible employees who have, or adopt, a child. So what does it mean? 1. Centrelink will contact you if you are required to pay parental leave to an employee, and will provide you with the required funds before you need to pay your employee. 2. You will need to withhold the usual PAYG tax. However, you don’t have to pay super on parental leave pay.
3. You don’t have to change
your employee’s usual pay cycle, set up any special bank accounts or report back to Centrelink. Costs incurred in administering the scheme will be tax deductible. 4. It’s also important to note that parental leave does not increase your payroll tax liabilities or workers compensation premium liabilities. ■■ For more information about the Paid Parental Leave Scheme, visit www. centrelink.gov.au.
WIN
a one-year subscription Diary Dates September with MYOB LiveAccounts!
Designed for sole traders, startups and smaller businesses, MYOB LiveAccounts makes it super simple to raise invoices, track expenses, pay employees and manage your GST, online. Features include: »Access » your accounts 24/7 LiveAccounts is an online solution which means you can access your accounts anytime and from anywhere. You can even give your accountant access so they can work on your books with you. »Goodbye » data entry You can link your bank accounts and credit cards to LiveAccounts which means your transactions are securely transferred every day for you. »Up » to date, secure and backed up Being an online solution means you never have to worry about installs,
updates or backups again. »Help » and lots of it LiveAccounts comes with all the support you need - online help, email and LiveChat. To take a FREE 30 day trial or to learn more, visit the MYOB website at myob.com. au/liveaccounts. ■■ Thanks to our friends at MYOB, In the Loop has a 12 month subscription of LiveAccounts to give away. Anyone who is a member of the Powers website will be in with a chance to win. To become a member go to www. powers.net.au, click on ‘Click to Join’ and enter your details.
Want an electronic copy of our newsletter? If you’d prefer to get these newsletters via email rather than snail mail, contact our office and we’ll arrange it!
Free business seminars
The Powers team will be holding free information seminars especially for businesses - and we want your ideas for topics. If you have any questions relating to your business finances, or would like to see a certain topic showcased in such an event, please let us know by emailing gemma.blair@powers.net.au.
www.powers.net.au mail@powers.net.au BILOELA BRISBANE Gladstone Rd (PO Box 98) Biloela QLD 4715 Ph: 07 4995 6677 Fax: 07 4992 1787
Level 7, 269 Wickham St (PO Box 310) Fortitude Valley QLD 4006 Ph: 07 3251 4444 Fax: 07 3251 4422
Visiting Monto, Mundubbera and other locations by appointment
21 Monthly Activity Statements due for August
October 21 Monthly Activity Statements due for September 28 Quarterly BAS due for Quarter 1, 2011-12 (lodging directly to ATO) 28 Super guarantee contributions due for Quarter 1, 2011-12
November 21 Monthly Activity Statements due for October 25 Quarterly BAS due for Quarter 1, 2011-12 (lodging through Tax Agent)
Office opening hours Biloela
8.30am - 5pm Monday to Friday
Brisbane
8.30am - 5pm Monday to Friday
Monto
10am - 2pm Monday to Friday or by pre-arranged appointment
Mundubbera
By pre-arranged appointment only The information in this document is of a general nature and is provided for information purposes only. It does not take into account your particular objectives, financial situation or needs and should not be used as a substitute for independent advice from a qualified professional. Liability limited by a scheme approved under Professional Standards Legislation, except where financial services are provided by Authorised Representatives of Professional Investment Services Pty Ltd (PIS) AFSL 234951 ABN 11 074 608 558. *Financial Planning services provided by Authorised Representatives of PIS. #Valuation services provided by NPR Valuers Biloela Pty Ltd ABN 47141679576