TIPS FOR BUSI­NESS

Port Douglas & Mossman Gazette - - ENTERTAINMENT -

Re­view salary sac­ri­fice ar­range­ments where em­ploy­ees have fore­gone gross salary to ob­tain a pack­aged car given re­cent changes to fringe ben­e­fits tax. Make and doc­u­ment trust res­o­lu­tions for the 2011/12 year by June 30, 2012, to en­sure a trus­tee is not taxed on the trust’s tax­able in­come at 46.5 per cent or de­fault ben­e­fi­cia­ries are inad­ver­tently sub­ject to tax. Stream trust cap­i­tal gains and franked div­i­dends where the trust deed al­lows the trus­tee to make a ben­e­fi­ciary “specif­i­cally en­ti­tled”. Com­ply with Di­vi­sion 7A as the Aus­tralian Tax­a­tion Of­fice is crack­ing down on busi­nesses that use the funds or as­sets of a pri­vate com­pany for per­sonal pur­poses. En­sure any un­paid en­ti­tle­ment owed by trus­tee to a pri­vate com­pany ben­e­fi­ciary is not treated as a deemed div­i­dend to the trust. Write off bad debts be­fore they are for­given to en­sure you can claim your bad debt de­duc­tions. If you’re an el­i­gi­ble small busi­ness en­tity, max­imise de­duc­tions for de­pre­ci­at­ing as­sets. If you’re an el­i­gi­ble small busi­ness, con­sider de­fer­ring work car pur­chases un­til July 1, 2012. If you’re an el­i­gi­ble small busi­ness, claim the en­tre­pre­neur’s tax off­set. This tax year is the fi­nal year this can be claimed by el­i­gi­ble tax­pay­ers. Pre-pay your pri­vate health cover. You may be aware the re­bate for pri­vate health cover will be means tested from July 1, 2012. If you are a sin­gle earn­ing more than $84,000 or a cou­ple earn­ing more than $168,000 a year, the 30 per cent re­bate will be scaled back on a slid­ing scale. If you know that your earn­ings in 2013 fi­nan­cial year will ex­ceed th­ese lim­its, you may be able to pay your pri­vate health cover in a lump sum now, and get the max­i­mum re­bate. From 2012-13 the small busi­ness in­stant as­set write-off thresh­old has been in­creased from $1000 to $6500. The long-life small busi­ness pool and the gen­eral small busi­ness pool have been con­sol­i­dated into a sin­gle pool to be writ­ten off at one rate. Small busi­nesses can claim an ac­cel­er­ated ini­tial de­duc­tion for mo­tor ve­hi­cles ac­quired in 2012-13 and sub­se­quent years. Th­ese amend­ments only ap­ply to small busi­nesses that have an ag­gre­gated turnover of less than $2 mil­lion. Ag­gre­gated turnover in­cludes the an­nual turnover of the small busi­ness and the an­nual turnovers of any con­nected or af­fil­i­ated busi­nesses.

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