Platinum Accounting & Taxation Blog

Tax & Business Accountants Melton – Our services

admin — Mon, 04 Jul 2011 07:40:17 +0000

Here at Platinum Accounting & Taxation (Accountants Melton) we work with a large section of clients on personal and business advisory matters such as business management, tax minimisation and business expansion planning. Platinum Accounting & Taxation also assist clients with business valuations, acquisitions and sales. We have much experience in working with small and medium sized businesses in a range of industries including wholesaling, import/export, manufacturing, retailing, professional services, hospitality and primary production.

Platinum Accounting & Taxation provides the complete range of services to our clients including:

New business start-up
Reviewing and implementing tax effective structures for individuals and businesses
Establishment of self managed super funds
Asset protection through tax effective strategies such as negative gearing
Tax advice and tax return preparation
Business and management services to help our business clients though assisting them in determining and prioritising their business need

For more information about our extensive range of services please contact Platinum Accounting & Taxation on 03 9746 6479.

Car Expenses – Rates per Kilometre for 2010-11

admin — Fri, 24 Jun 2011 11:03:40 +0000

The Income Tax Assessment Amendment Regulations 2011 (No 3) were registered and set the “cents per kilometre” rates for calculating tax deductions for car expenses for the 2010–11 income year. Those rates are unchanged from 2009–10 and are:
Car expense rates per kilometre for 2010–11

Car expense rates per kilometre for 2010-11
Type of Car	Engine Capacity – non rotary engine (cc)	Engine Capacity - rotary engine (cc)	Kilometre rate (cents)
Small car	0 – 1,600	0 – 800	63
Medium car	1,601 – 2,600	801 – 1,300	74
Large car	2,601 +	1,300 +	75

The cents per kilometre method can be used for the first 5,000 business kilometres only. If a taxpayer wishes to claim for more than 5,000 business kilometres, they must use one of the other methods outlined in Div 28 of the ITAA 1997.
Source: Income Tax Assessment Amendment Regulations 2011 (No 3), 21 April 2011 www.comlaw.gov.au/Details/F2011L00634

FBT Rates and Thresholds for 2011-12

admin — Fri, 24 Jun 2011 10:53:37 +0000

The ATO has released five determinations dealing with FBT rates, thresholds, etc for the 2011–12 FBT year (ie the FBT year that commenced on 1 April 2011).
• TD 2011/2: for the purposes of s 135C of the FBTAA, the record-keeping exemption threshold is $7,391 (was $7,190 for the 2010–11 FBT year).

• TD 2011/3: for the purposes of s 28 of the FBTAA, the indexation factors for valuing non-remote housing are:
o NSW: 1.049; Vic: 1.042; Qld: 1.034; SA: 1.041; WA: 1.037; Tas: 1.036; ACT: 1.043; NT: 1.076.
8

• TD 2011/4: for the purposes of Div 7 of Pt III of the FBTAA, the following amounts represent a reasonable food component of a LAFHA for expatriate employees (for larger family groupings, add $140 for each additional adult and $68 for each additional child):
o 1 adult: $233; 2 adults: $373; 3 adults: $419; 1 adult and 1 child: $301; 2 adults and 1 or 2 children: $419; 2 adults and 3 children: $488; 3 adults and 1 child: $488; 3 adults and 2 children: $558; and 4 adults: $558.

• TD 2011/5: the rates to be applied on a cents per kilometre basis for calculating the taxable value of a fringe benefit arising from the private use of a motor vehicle other than a car are:
o 0–2500cc: 46 cents/km;
o over 2500cc: 55 cents/km; and
o motorcycles: 14 cents/km.

• TD 2011/6: the benchmark interest rate is 7.80% pa (was 6.65% pa for the 2010–11 FBT year). The benchmark rate is used to calculate the taxable value of: a fringe benefit provided by way of a loan; and a car fringe benefit where an employer chooses to value the benefit using the operating cost method.

Source: Tax Office Taxation Determinations, 30 March 2011:
• TD 2011/2 http://law.ato.gov.au/pdf/pbr/td2011-002.pdf
• TD 2011/3 http://law.ato.gov.au/pdf/pbr/td2011-003.pdf
• TD 2011/4 http://law.ato.gov.au/pdf/pbr/td2011-004.pdf
• TD 2011/5 http://law.ato.gov.au/pdf/pbr/td2011-005.pdf
• TD 2011/6 http://law.ato.gov.au/pdf/pbr/td2011-006.pdf

Flood Levy for 2011-12 Income Year

admin — Fri, 24 Jun 2011 10:50:25 +0000

The Tax Laws Amendment (Temporary Flood and Cyclone Reconstruction Levy) Bill 2011 and the Income Tax Rates Amendment (Temporary Flood and Cyclone Reconstruction Levy) Bill 2011 both received Royal Assent on 12 April 2011 as Act Nos 16 and 15, respectively, of 2011. The Bills had been passed with a number of amendments (to simply ensure the levy covers reconstruction caused by both the floods and by Cyclone Yasi) and impose a one-year levy (tax) on taxpayers to assist reconstruction work from the floods and Cyclone Yasi.

The levy will operate as follows:
• individuals with a taxable income between $50,001 and $100,000 will pay a 0.5% levy on that part of taxable income above $50,000;
• individuals with a taxable income of $100,001 or more will pay a 0.5% levy on that part of their taxable income between $50,001 and $100,000 and a 1% levy on that part of their taxable income above $100,000; and
• no levy is payable where the taxpayer has a taxable income of $50,000 or less, or where they fall into an exemption category as specified in a legislative instrument that is made by the Minister.

New withholding schedules will be issued by the Commissioner to take account of the levy throughout the year.

TAX TIP: Employers will need to identify their employees who earn more than $50,000, and withhold the levy from their salary or wages. Employees who are exempt from the levy may lodge a flood levy exemption declaration form (NAT 73797) with their employer. (Note that the form will be available on the ATO website at the end of June.) The ATO has released flood levy information tailored for employers at www.ato.gov.au/businesses/content.aspx?doc=/content/00276940.htm and individuals at www.ato.gov.au/individuals/content.aspx?doc=/content/00216565.htm.

Where’s my tax refund?

admin — Fri, 24 Jun 2011 06:53:24 +0000

Depending on how your return is lodged the turn around time for receiving your assessment does vary. At Platinum Accounting & Taxation, tax accountants Melton, we utilise the most efficient technologies for lodging your tax return. Your tax return is lodged electronically with the ATO via a secure online system.

Under normal circumstances you can expect to have your tax refund with 14 days/two weeks. On some occassions this turn around time may vary and this all depends on your personal circumstances, complications with your income tax return and ATO processing issues.

Your tax return will be delivered directly to our office and will forward it to you as a matter of priority.

If you would like us to assist you with the preparation of your tax return this year please contact Platinum Accounting & Taxation, tax accountants Melton, on 03 9746 6479 or visit our website www.platinumaccounting.com.au

Platinum Accounting & Taxation – Winner 2011 Powercor Melton Business Excellence Awards, Mayoral Achievement Award

admin — Fri, 24 Jun 2011 06:37:57 +0000

Having entered the 2011 Powercor Melton Business Excellence Awards, Platinum Accounting & Taxation is proudly celebrating as a winner of the 2011 Mayoral Achievement Award.

The Mayoral Achievement Award is presented each year to a business that the mayor feels is a standout across several areas relating to business and community and Platinum Accounting & Taxation clearly impressed Melton’s Mayor Justin Mammarella.

Owner Corinne Cole started the business in January 2006 in Melbourne’s eastern suburbs and in decided to shift the small accounting practice ‘back home’ in 2009 to the Shire of Melton.

“We thought it was better to move the business back to Melton… The Shire of Melton provides an environment conducive to, and tremendous support for, the development of local small business”

“The move has been the best thing we’ve done for our business. The business has grown dramatically since our move. For this reason we felt we were at a point to enter the business excellence awards, we had something really significant to contribute”.

Corinne said “Winning the Mayoral Achievement Award was quite unexpected as this was our first time entering the Melton Business Excellence Awards, but we are so proud of our achievement. The nomiation process was demanding but, at the same time, extremely rewarding. Yes, we know our business, but having been through this process we feel we really know our business. The nomination process helped us to identify areas for improvement and it also highlighted those many areas in which we a performing extremely well. I would certainly recommend all businesses to nominate, as the experience is invaluable”

And here’s what the judges of the 2011 Powercor Melton Business Excellence Awards had to say about Platinum Accounting & Taxation:

ATO withdraws 2009 cash sales benchmarks

admin — Fri, 24 Jun 2011 06:20:03 +0000

The ATO’s cash sales benchmarks for the following 15 industries, released in November 2010 for the 2009 year, have been withdrawn from use:

Beauty services;
Fuel retailing;
Meat retailing and butchers;
Clothing retailing;
Garden supplies retailing;
Newsagents;
Coffee shops;
Grocery retailing and general stores;
Pubs, taverns and bars;
Florists;
Hairdressers;
Restaurants;
Fruit and vegetable retailing;
Hardware and building supplies retailing; and
Takeaway food services.

A review of the data used to calculate the cash sales benchmarks has identified inconsistencies in the way in which cash-outs* paid by businesses to their customers were recorded.

Note(*): An example of a cash-out is when a customer requests additional cash when purchasing goods or services.

The ATO is refreshing the data used to calculate these benchmarks and will release updated cash sales benchmarks for 2010 later this year.

If you have questions in relation to the information presented here please contact Platinum Accounting & Taxation, tax accountants Melton, on 03 9746 6479 or visit our website www.platinumaccounting.com.au

2011/12 Individual Tax Rates

admin — Fri, 24 Jun 2011 06:15:37 +0000

The Flood levy has been passed and will impose a 0.5% levy on incomes from $50,001 to $100,000 and 1% above $100,000.

For ease, the levy has been included in the following table setting out the tax rates for the 2011/12 income year, even though it will be assessed separately in the same way as the Medicare levy.

Taxable Income¹ $	Tax Payable² $
0 – 6,000	Nil
6,001 – 37,000	15% of excess over $6,000
37,001 – 50,000	$4,650 + 30% of excess over $37,000
50,001 – 80,000	$8,550 + 30.5% of excess over $50,000
80,001 – 100,000	$17,700 + 37.5% of excess over $80,000
100,001 – 180,000	$25,200 + 38% of excess over $100,000
180,001+	$55,600 + 46% of excess over $180,000

1 The tax-free threshold may effectively be higher for taxpayers eligible for the low-income tax offset, the Senior Australians Tax Offset and/or certain other tax offsets.

2 The above rates do not include the Medicare Levy of 1.5%.

Editor: Note that the above tax rates are for resident individuals.

If you have any questions in relation to the information presented here, please contact Platinum Accounting & Taxation, tax accountants Melton, for further information on 03 9746 6479 or vist our website www.platinumaccounting.com.au

Excess Contributions Tax – Refund Option for Contributions up to $10,000

admin — Thu, 12 May 2011 06:15:59 +0000

The Government will provide eligible individuals who breach the concessional contributions cap by up to $10,000 with a one-off option to request that these excess contributions be refunded to them. This new refund option will only apply to first time breaches from 1 July 2011.

The changes will give individuals the option to take excess concessional contributions out of their superannuation fund and have them assessed as income at their marginal rate of tax, rather than the excess concessional contributions tax rate of 31.5% (in addition to the 15% contributions tax for the fund).

Minimum Pension Drawdowns – 25% Reduction for 2011/12

admin — Thu, 12 May 2011 06:15:27 +0000

The minimum annual payment amounts for pensions and annuities will be reduced by 25% for 2011-12 and will return to normal in 2012-13. In this respect, the Government will begin to phase out the 50% pension drawdown relief that has been provided for 2008-09, 2009-10 and 2010-11 financial years.

Reducing the minimum payment amounts by 25% for account-based, allocated and market linked (term allocated) pensions from 1 July 2011 seeks to provide some assistance to holders of these products to recoup capital losses incurred as a result of the global financial crisis.

The minimum annual payment amounts are as follows;

Age	Minimum withdrawal for 2009/2010 and 2010/2011 years	Minimum withdrawal for 2011/2012 year	Minimum withdrawal for 2012/2013 year
Under 65	2%	3%	4%
65 – 74	2.5%	3.75%	5%
75 – 79	3%	4.5%	6%
80 – 84	3.5%	5.25%	7%
85 – 89	4.5%	6.75%	9%
90 – 94	5.5%	8.25%	11%
95 or older	7%	10.5%	14%

If you have any queries in relation to the information presented here, please contact Platinum Accounting & Taxation on 03 9746 6479.