We are delighted to announce “The Round Table Series” – A series of briefings on a range of topics by experts in their field.
Valuable information and insights from Investment Specialists, Economic Commentators and Legal Eagles, to Business Coaches and Motivational Speakers, to developing strong relations with the Bank Manager.
The setting is our Boardroom, in smaller, more intimate numbers, giving you the chance for a One on One with our guest expert presenters.
Watch this space for the June Series, and we’d love to see you there.
With the run up to 30th June, in this Edition, we provide timely tips in improving your tax result.
For the Self Employed, highlighting what the ATO is doing with Data Matching and how it will affect you.
In the Super Space, we touch on the changes to accessing your super and provide a commentary on borrowing within super.
And in Human Resources, Tips for Hiring New Talent. – a business’s most valuable asset.
Enjoy the read and wishing you a Happy New Financial Year.
Director - Optima Partners
Negative gearing is good, but positive gearing is better!
Most people understand the benefits of a negatively geared rental property or financial investment. An asset is usually negatively geared because the interest on the loan to finance the initial purchase, along with depreciation and holding costs, is greater than the income received. The investment loss allows taxpayers to reduce their taxable income by the loss incurred.
The overall objective of Negative Gearing is to, hopefully, achieve capital growth by an increase in property value or rise in share price. The tax benefit helps cash flow and allows taxpayers to get a foothold in real estate or equity markets.
If a taxpayer has a salary of $80,000 and a rental property that loses $10,000 pa, their taxable income will be $70,000. The $10,000 loss will result in a tax saving of $3,450, which is great…but not nearly as great as a positively geared investment!
Many people worry about having a positively geared investment because they may have to pay tax when they do their tax return. But those people are considering the wrong figure!
If a taxpayer has a salary of $70,000 and a rental property that generates a profit of $10,000 pa, their taxable income will be $80,000. The $10,000 profit will result in tax payable of $3,450, which sounds painful. But the comparison doesn’t end there: with a $10,000 loss you are down $10,000 of your own money. However, the tax refund means you are only down $6,550.
This means, if you have a profit of $10,000, you have to pay tax, but will still have an after-tax profit of $6,550 compared to $3,450. I know which I’d prefer!
Negative gearing is good, but positive gearing is better! A negatively geared property or investment is a great way to start but it shouldn’t be the goal and having to pay tax shouldn’t be something to fear if you’re making money!
Daniel Causerano - Senior Accountant
Optima Partners, April 2015
ATO Lodgements for May 2015
INCOME TAX RETURNS
Due date for all entities that did not have to lodge earlier (including all remaining consolidated groups), that are not eligible for the 5 Jun 2015 concession, to lodge 2013/14 income tax returns.
The due date for companies and superannuation funds in this category to pay income tax is also 15 May 2015.
The due date for individuals and trusts in this category to pay income tax is the date stated on their notice of assessment
Due date to lodge and pay monthly activity statements for April 2015. Tax obligations that may be payable include:
GST, wine equalisation tax and luxury car tax for April 2015.
PAYG withholding for April 2015 (medium withholders).
PAYG instalment for April 2015 for monthly PAYG instalment payers (corporate tax entities with instalment income (as defined) above $100 million).
Due date to lodge and pay quarterly activity statements for the March 2015 quarter (if lodged electronically through a tax agent or BAS agent). Tax obligations that may be payable include:
GST, wine equalisation tax and luxury car tax for the March 2015 quarter.
for March 2015 (medium withholders).
for the March 2015 quarter (small withholders).
PAYG instalment for the March 2015 quarter for quarterly PAYG instalment payers (3rd quarter of the 2014/15 income year).
FBT instalment for the March 2015 quarter (4th quarter of the 2015 FBT year).
IS IT THE END OF LRBA?
No, I’m not referring to the Little River Band of Australia. They went out in the eighties! Well, they’re still playing in some form or another, but not with the original crew. It all went downhill after Glenn Shorrock left, if you ask me.
I’m talking about Limited Recourse Borrowing Arrangements in Self Managed Superannuation Funds-..MORE
30TOP TAX PLANNING STRATEGIES FOR THE RUN UP TO 30 JUNE 2015
All taxpayers are allowed to arrange their affairs in a manner that remains legal but which minimises their tax. So here are 30 ways to minimise the tax you pay, and to leave a few dollars in your pocket!...MORE
OPTIMA PARTNERS HAS A TEAM IN THE HBF FUN RUN!!!!
Sunday 24th May.This year we are supporting the Cancer Council WA. Its a great way to raise money for WA health related charities, to get in some team bonding and just have some fun! Please support us in raising money for those in need. Feel free to come along and support!!!!!!!! Thanks in advance
2015/16 see’s the commencement of the phased increase in the superannuation preservation age for those born on or after 1 July 1960.
It not only impacts the ability to access preserved superannuation benefits, but also has implications for the taxation of superannuation benefit payments and employment termination payments..MORE
ATO DATA MATCHING IS TARGETING YOU!
The ATO is taking full advantage of their new data matching capabilities and have independent contractors firmly in their sights!
Industry lobbyists’ say the coalition is being just as hard on the self employed as the former Labour government was, despite promises to be friendlier to small business..MORE
REGISTER NOW!! SEATS ARE LIMITED
Venue: Optima Partners, Suite 3, 128 Main Street, Osborne Park Dates: Monday 15th June - Thursday 19th June
Time: 6:00pm DRINK AND NIBBLES PROVIDED