Wednesday, March 21 2018
Single Touch Payroll is a government initiative to streamline business reporting obligations, which is due to become compulsory from 1 July 2018. When a business pays its employees, the payroll information will be sent to the ATO via the business’s payroll software.
Reporting under the Single Touch Payroll (STP) system removes the requirement to issue payment summaries, provide annual reports and tax file number declarations to the ATO. During the first year of its introduction, the ATO says employers will not be liable for a penalty for a late STP report.
Important points to keep in mind for the transition to STP include...... Read more
Monday, March 19 2018
If you are operating a small business and at the end of the income year you estimate that your trading stock's value has not changed by more than $5,000, remember (especially if you are new to business) that you can choose not to conduct a formal stocktake.
By making a decision to do this, you will not be required to account for the changes in the trading stock's value. The estimate you use to make this decision (known by the ATO as an "election" to use the "simplified trading stock rules") will be deemed to be reasonable by the ATO if either...... Read more
Sunday, March 11 2018
The days of a lax approach to valuations are over.
While there is not always the need to employ a qualified independent valuer for each valuation, there are important circumstances where it is mandated, and others where it is recommended. Where one is not used then appropriate documentation needs to be kept of how valuations were determined. Back-of-the envelope or simply made-up valuations will not suffice.
Whilst in the old days the ATO had little it could do against SMSF trustees, the current penalty rules provide...... Read more
Thursday, March 01 2018
Every investor goes in with dreams of a pot of gold, but there is a fundamental difference between investor types - one looks to line their pockets with investment returns along the way, and the other has the patience to wait until the end of the rainbow to reap the rewards.
The distinction between investing for growth or investing for income should not be seen as a "them or us" battle. Rather, investing for growth or investing for income will depend on the personal circumstances of the individual.
The needs of each person naturally differ, and the type of investment they prefer will depend on these needs. Many investors simply need capital growth, and are looking to grow their portfolio for later use, say with the aim of securing a more comfortable retirement. Others, for example...... Read more