Compare Performance with Competitors

The Australian Taxation Office (ATO) has released updated benchmark data. This data allows small businesses to compare their business's performance against similar businesses in the same industry. It is also used as a flag for further investigation by the ATO if the business falls too far outside of the benchmark data for the industry.

The easiest way to work out how you compare is by using the business performance check tool in the ATO app, which does the calculations for you. This can be found by following this link.

We would encourage all small businesses to get online and have a look at where your business sits in comparison with the benchmarks, and get in touch to discuss your performance. Call 9854 2277.

Thinking of withdrawing your super?

Superannuation is one of your most crucial assets and major source of income once you have retired. There are a number of ways you can access your super including lump sum payment, drawing a regular income or purchasing an annuity.

If you are eligible to access your super or are looking at options for accessing your super early, you need to understand all the options available to you and the tax implications associated with each option. Seeking financial advice before you withdraw your super will assist you to make good decisions with your super and money and secure your income and lifestyle in retirement.

Contact Vawdrey Axton Turner and meet with one of our licensed advisers who can clearly explain when you can legally gain access to your super, what factors determine how much you'll get and how to ensure you secure your retirement so you can make it last as long as possible.

Stamp Duty Exemptions in Victoria

All transfers of land (including gifts) attract stamp duty in Victoria. A typical home purchase will often include tens of thousands of dollars in land transfer duties unless you are eligible for an exemption or concession.

The most common stamp duty reductions are for First Home Buyers and pensioners, however currently in Victoria concessions and/or exemptions of land transfer duties are also available for:

• Land transfers from deceased persons to their beneficiaries

• Transfers between spouses and partners, including transfers after relations breakdowns including part of a divorce settlement

• Certain corporate consolidations or reconstructions

• The principal place of residence (PPR)

• Off-the-plan purchases

• Charity and friendly societies

• Young farmers 

Visit the Victoria’s State Revenue Office for more information, eligibility criteria and how to apply for any stamp duty reductions relevant to your circumstance by following this link.

2018/19 Federal Budget: Influencer's Income Taxed

The Government has released a consultation paper with respect to the implementation of the 2018/19 Federal Budget announcement relating to the direct taxation of an individual’s fame or image at their marginal tax rates.

The proposed reform aims to ensure that all remuneration (including both cash and non-cash benefits) provided for the commercial exploitation of a person’s fame or image will be included in their assessable income. To read the full report click here.

MYEFO report

The Mid-Year Economic and Fiscal Outlook (‘MYEFO’) report was recently released.

It indicates that the underlying Budget deficit is expected to be $5.2 billion in 2019 (down from the $14.5 billion deficit estimated in the 2018/19 Federal Budget).

The substantial deficit reduction is reportedly a result of increased tax collections, with individual tax collections up $4.1 billion and company tax collections up $3.4 billion.

Additionally, the MYEFO report also provides a useful snap shot of what the Government is thinking when it comes to tax policy – particularly where previously announced reforms are still pending.

A few tax-related policy updates confirmed in the MYEFO worth mentioning include the following:

• GST compliance program – The Government is looking to provide $467 million of ATO funding from 2020 to 2024 to fund additional GST-related audits and the development of analytical tools to combat emerging risks to the GST system.

• $10,000 cash payment limit – The Government will delay the introduction of an economy-wide cash payment limit of $10,000 from the originally proposed 1 July 2019 start date, until 1 July 2020.

• Abandonment of the proposed changes to intangible asset depreciation – The Government has announced it will not be proceeding with the current proposal to allow taxpayers to self-assess the effective lives of certain intangible depreciating assets.

• Super access for victims of crimes – The Government proposes to introduce legislation to allow victims of certain crimes (i.e., serious violent crimes) access to their perpetrator’s superannuation to pay any outstanding compensation.

• Increasing the integrity of limited recourse borrowing arrangements (‘LRBAs’) – The Government is making an adjustment to the previously announced reforms requiring outstanding balances of LRBAs to be included in a member's total superannuation balance by extending the start date and limiting impacted taxpayers.

• Superannuation guarantee (‘SG’) penalty increase – Where employers fail to come forward during the 12-month SG amnesty, the Government is proposing to increase the minimum penalty from 50% to 100% of the Superannuation Guarantee Charge.