This month, the Australian Tax Office (ATO) has published a warning to tax practitioners to ensure their reporting of client income to claim the small business income tax offset is entered correctly after mistakes have been found. The small business income tax offset can help small business clients reduce the tax they pay on business income by up to $1,000 per year, per person. This offset has been available from the 2015-16 income year, and from the 2016-17 income year small businesses with an aggregated turnover less than $5 million were granted access to the concession. The ATO has noted some common errors by tax practitioners and given guidance on the specific categories the differently types of income should be reported. It also includes a reminder that certain types of income are not eligible for the offset such as salary, wages, or directors fees; and dividend income of directors. The ATO has been increasing its scrutiny of small businesses who claim excessive and incorrect deductions. A small mistake can and will attract the attention of the ATO so to avoid an audit it is advisable to engage with a professional tax accountant. [...]

It’s a good exercise to list your goals into big ticket items such as buying a house, getting married, saving for your children’s education, and retiring, and then smaller things that you can improve/change now to help you reach your larger ambitions in the future. 1. Set up a budget (and stick to it) Yes, this is an arduous task but believe us, it makes for an interesting and eye opening read after a month or two. You will be able to see exactly where your spending in specific categories can be reduced, and it can be as simple as making slight lifestyle changes. And, there are some great apps you can download to do this, so you have your new ‘budget’ with you all day! 2. Learn about money and finances Often it’s not until you are looking at buying one of your big ticket items that you actually have an in-depth look into what the financial system is offering you. What is off-setting? If interest rates go down, how does that effect my savings? What factors influence my super? Is investing in shares [...]

Near the top of your new year’s resolution list you probably have ‘save more money’ or ‘get out of debt’. But, do you have the tools in place to know how? Personal debt is increasing, and it’s country-wide. Australia is now reported to have some of the highest personal debt levels in the world. Mortgages, investments, business loans, personal loans, car loans, student loans, and credit cards all adds up, so it can become a constant battle to make ends meet. We are trying to tackle this issue head on, and education is key! Budgeting and the real cost of debt is an essential life skill, however it wasn’t until 2011 that the Australian Government included financial literacy in the national school curriculum. Sometimes, we just may not have enough knowledge of the financial system to make informed choices and it is significantly more complicated now than it was a few decades ago. To make things worse, money is becoming invisible. You pay with a card or phone, you pre-pay over the internet, and can have up to three years of store credit. These [...]