Economic Update as at October 2020

Overseas shares posted negative returns in October 2020 as fears of a slowdown in the recovery materialised with onerous restrictions being re-imposed amid resurgence in COVID-19 cases. Overseas shares fell back into negative territory returning -3.2%, in hedged terms, over October. Global economic data for Q3 is showing a rebound from a similar sized economic collapse but forward looking data is already indicating another slowdown ahead, especially in Europe and the United Kingdom (UK) as further cases have brought back restrictions.

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The Financial Impact of a Furry Friend

There are over 29 million pets in Australia with approximately 61% of households owning one of these 29 million pets. Of that 61%, most are dog owners at 40%, followed by cat owners at 27%. In 2019, over 60% of dog and cat owners considered their pet as a member of their family[1] – which means we want to treat them well and keep them in good health for a long and happy life, but at what cost?

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Double check ABNs at natural disaster time

As the risk of natural disasters increases at this time of year, check your Australian business number (ABN) details are current and refresh if needed. Emergency services and government agencies can use ABN details to provide help to you in times of emergency.

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Federal Budget farm machinery write-offs

Under the Federal Budget handed down this month, farmers can instantly write off the full value of machinery purchases. Previously, a portion would have been tax-deductible in the first year, and the rest would have depreciated over future years.

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Activity supplement

You can claim an activity supplement if you get Farm Household Allowance. Activity supplements help pay for activities in your Financial Improvement Agreement and can add up to $10,000 in total.

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Succession planning: need and timing

There is a lot of good to be achieved when succession planning is taken on proactively and within a structured process. Having wholesome conversations that discover the objectives and desires of all involved and dealing with challenging decisions without delay makes the process much easier and rewarding for all.

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Economic Update as at September 2020

Over the month of September, markets experienced a reversal in investor sentiment. Apart from Overseas Small Caps and Emerging Markets, which returned 1.0% and 1.5% respectively for the month, equity markets broadly experienced negative returns.

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Impact of Cotton report

Cotton with a Conscience report examines the contribution that cotton makes to our economy, the investment in the health, safety, education and prosperity of its workforce, and the ways in which cotton community businesses and individuals give back locally through financial, time and in-kind contributions.

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Wage theft now a criminal offence in Queensland

The Queensland Criminal Code has been amended to enable employers to be prosecuted for stealing if they intentionally fail to pay or underpay their employees’ wages or other entitlements. If you’re an employer, do you know what’s required in relation to the new wage theft offence?

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2020/21 Federal Budget Summary

The Federal budget is out and it’s a once in a generation budget to rebuild and tame the recession. Business is at the heart of our economic recovery with a range of support measures and the creation of jobs.

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Succession planning for farming families

By failing to commence a transition, farming families could not only miss out on the business advantages that come from nurturing and developing another level of management autonomy, but also run the risk of missing out on real financial opportunities that have the potential to deliver a significantly enhanced the outcome for all.

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Know your boosts inside and out

If you’ve received a cash flow boost, you may be wondering if the amounts you’ve received affect your income or deductions this tax time. Here are the four essentials you need to know when lodging your tax return.

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Economic Update as at August 2020

For the month of August, growth assets performed well as investor momentum remained strong. Economic data continued to be encouraging with another strong set of US nonfarm payrolls. As the world continues to open up, retail sales for the US, UK and Eurozone are now back at pre-COVID-19 levels, following the worst quarterly GDP declines on record for most countries. Purchasing manager indices remain in expansionary territory. Australian small caps was the strongest performing equity market, returning 7.2% over August whilst overseas hedged investors realised greater relative gains from the continued appreciation of the Australian Dollar.

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2021 Science and Innovation Awards

Grant applications are now open for the 2021 Science and Innovation Awards for Young People in Agriculture, Fisheries and Forestry. If you’re 18-35 and want to make a difference in agriculture, this is your chance to apply for a grant of up to $22,000 to fund your project that will benefit Australia’s primary industries.

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QLD Volunteer grants open now

Volunteering Queensland, on behalf of the Australian Government, is offering 2020 Supplementary Volunteer Grants to organisations across Queensland to support the efforts of volunteers in building stronger, more resilient communities.

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Discuss Your Financial Goals Online!

If you are not able to visit us in person, or it is more convenient to work with us digitally, we have the capability and technology to make it easier for us to connect with you. We have also considered how we can do this in a safer online environment.

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Cash Boost for P&Cs

The ATO Not-for-Profit team are keen to ensure all eligible P&Cs receive their Cash Boost entitlement. In order to streamline the process, P&Cs are invited to complete a survey.

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2020 ‘mini-Budget’

On 23 July 2020, a ‘mini-Budget’ was delivered by the Treasurer Josh Frydenberg. We provide a summary including the announcements made in relation to the COVID-19 early release of super and more. Due to the COVID-19 pandemic, the full 2020-21 Federal Budget will be delivered on 6 October 2020.

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Economic Update as at July 2020

The month of July generally saw positive returns across asset classes, as growth assets continue to gain. Emerging Markets were the strongest performing market in equities, with the MSCI EM Index (UH) returning 4.6% over the month. On the domestic front, Australian small caps outperformed large caps and overseas hedged investors realised greater gains from the appreciation of the Australian dollar.

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Five Financial Moves to Make in your 40s

Being in your 40s often involves balancing many responsibilities that it becomes easy to neglect your own financial wellbeing. But it’s not too late to secure your future. Here are some tips that may help you financially make the most of your 40s.

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Get Insurance While You’re Still Bulletproof

According to research by TAL insurance provider the cost of personal insurance soars after the age of 35. This is also the time in our lives that you may be going through significant change such as marriage, children, a bigger mortgage and more responsibilities.

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Economic Update as at June 2020

Growth assets continued to recover over June, but at a slower and more volatile pace than in May. Markets were encouraged by the gradual reopening across the developed world and by economic activity indicators, such as non-farm payrolls, but the optimism was tempered by evidence of the pandemic regaining pace in the US and some large emerging market countries such as India and Brazil.

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Paid a tradie or other contractor to help you?

For anyone in building and construction, cleaning, courier, road freight service, IT or security, if you’ve paid a tradie or other contractor for building and construction services in the last year, check if you need to lodge a Taxable Payments Annual Report (TPAR) by 28 August.

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Small Steps to Great Success

If you want to get ahead, financially, it’s necessary to take some steps to get there. It may seem daunting and overwhelming but like anything, if you have a professional guiding you along the way, small steps can lead to something great.

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Tax time toolkit for agriculture employees

Carrick Aland’s own tax team is comprised of many local farmers who know firsthand that the devil is in the detail when it comes to getting your tax right. If you’re an employee in the agriculture industry it pays to learn what you can claim at tax time.

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Key FY21 changes to note

HAPPY FY21! Some changes help minimise tax. Others reduce exposure to an ATO tax audit. We have outlined these action points to assist you. Please carefully consider this information and contact us immediately if you have any questions we can answer or assist.

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Last Minute Tax Minimisation Tips

This has probably been the most difficult year ever for business owners due to the impact of COVID-19. And this makes Tax Planning for 2020 and key actions before 30 June more important this year than for any previous year. As a business owner, there are many obligations that you need to consider and action just before and after 30 June.

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Economic Update as at May 2020

Following the strong rebound in risk assets over April, the recovery continued into the month of May. Markets were encouraged by the slowdown in new COVID-19 cases and the gradual relaxation of lockdown restrictions across a number of US states, European countries and the United Kingdom.

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$150,000 instant asset write-off extended

Farmers have applauded the federal government’s decision to extend its $150,000 instant asset investment write-off offer until December after many businesses highlighted the previous deadline was too short to make practical use of the incentive.

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2020 Business Tax Planning Guide

Imagine what you could do with tax saved? Use our guide for strategies you can use to minimise your business tax and talk with us before the 30 June 2020 deadline for assistance to reduce your tax!

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Farm Financial Plans

Carrick Aland has farmers covered with Farm Advisory services including your Farm’s Financial Plan. Call us 07 4669 9800 to get your Farm’s Financial Plan underway with a free no-obligation demonstration to see your FY21 farm budget in a new light.

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QLD Small Business Adaption Grant Program

The objective of this program is to support small businesses subject to closure or highly impacted by the coronavirus (COVID-19) shutdown restrictions announced by the Queensland Government, to adapt and sustain their operations, and build resilience.

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Economic Update as at April 2020

The fiscal and monetary stimulus packages implemented by governments and central banks globally have helped markets rebound fairly strongly over the month of April. Central bank interventions and massive asset purchase programs, including high yield bonds and direct lending to companies, helped restore liquidity in the global financial system.

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JobKeeper Payment phone scam

⚠️ The ATO is receiving reports of scammers pretending to be from the ATO calling members of the public and asking them to provide their bank account details. They are saying that their employer has registered them for JobKeeper, but that the ATO needs their bank account details to deposit the funds into their account. Do not provide the information requested. If you are unsure if an ATO call is legitimate, hang up and phone 1800 008 540 to check.

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COVID-19 and residential rental property

The ATO has developed some information to assist clients with residential rental property to understand their tax obligations during COVID-19. Check the frequently asked questions link for help with answers to common questions.

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Western Downs Business Recovery Planning Initiative

Carrick Aland has been approved as professional service providers in Western Downs Regional Council’s Business Recovery Planning Initiative. Businesses operating for-profit and located in the WDRC Local Government Area will be eligible to apply for funding for a COVID-19 business recovery consultation session. Apply now.

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Queensland Small Business Month 2020

May is the month to show your support for Queensland’s small businesses. Shop locally and show how you support small business on social media with #supportsmall. Find information on immediate support available for small businesses as a result of COVID-19.

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Economic Update as at March 2020

COVID-19 has continued to spread rapidly around the world and was declared a global pandemic by the World Health Organisation. This has caused a severe shock to the global economy and financial markets have responded with sharp drops in share prices, a rise in credit spreads and a flight to defensive assets over March.

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COVID-19 and the Importance of Life Insurance

The advent of a global pandemic in COVID-19 has been a shocking event in many ways, more obviously from a health perspective. COVID-19 is clearly a highly dangerous virus for those over 70 and those with existing health conditions. Having said that there have also been cases of people who are both relatively young and…

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Increase in Scams Targeting Superannuation

The ACCC has advised that scammers are taking advantage of people financially impacted by the Coronavirus crisis by falsely selling products or services online and using fake emails or text messages to try and obtain personal data.

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Summary of COVID-19 stimulus announcements

Please review our summary of economic stimulus as each currently stands and contact Carrick Aland to discuss further your options and what may be available for you. We have outlined details for 13 Federal and State Government initiatives.

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Market Volatility and Your Portfolio Factsheet

Concerned about recent market volatility and the effect on your portfolio? Volatility is part of investing, and whilst we can avoid it, there’s typically a price to pay for doing so in the form of lower expected returns over the long term. This factsheet will give you some of the facts about taking a long-term…

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Understanding Changes to Centrelink Entitlements

Are you concerned about your Social Security (and Department of Veterans’ Affairs) pensions and other income support benefits due to the Coronavirus situation? Recent changes in the value of your investments due to market movements may increase your social security entitlements, or you may become eligible for a benefit.

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FREE Working from Home ATO factsheet

If you work from home right now, remember to keep records and receipts for your home office expenses, along with a record of the hours you work from home. Keeping good records now will help to get your deductions right at tax time. The ATO has a PDF poster you can download to help understand what you can claim.

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Coronavirus and Australian workplace laws

Find out about your workplace entitlements and obligations if you’re affected by the outbreak of COVID-19, including information about stand downs from work, working arrangements impacted by school closures, and pay and sick leave entitlements.

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Coronavirus JobKeeper Payment

The Government has announced a $130 billion JobKeeper payment to help keep more Australians in jobs and support businesses affected by the significant economic impact caused by the Coronavirus.

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QRIDA COVID-19 Jobs Support Loans

FACTSHEET: The Queensland Government $500 million COVID-19 Jobs Support Loans scheme is being provided to assist Queensland businesses and non-profit organisations financially impacted by COVID-19 retain employees and maintain their operations.

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Income support for Individuals

To help with cash flow pressures during the coronavirus epidemic, the Commonwealth Government has made available an additional $550 per person per fortnight eligible for Farm Household Allowance as part of the updated economic stimulus package. We urge you to call us now on 07 4669 9800 to check your eligibility and for help with the application.

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Coronavirus Economic Stimulus Package UPDATE

The Commonwealth Government yesterday released the second stage of its stimulus plan to cushion the economic impact of the coronavirus and help build a bridge to recovery. A total of $189 billion is being injected into the economy by all arms of Government in order to keep Australians in work and businesses in business.

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Economic Update as at February 2020

Coronavirus fears drove losses across equity markets and sparked a flight to defensive assets over February. Global equity markets reached fresh highs in mid February, then sold off sharply alongside other risky assets shortly thereafter. The sell-off in markets stem from investor concerns regarding the spread of COVID-19, with an acceleration in reported cases outside mainland China, specifically in Italy, Iran and South Korea and the ramifications on global economic growth.

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PAYG instalment variations

The ATO is expected to adopt a ‘benign approach’ to PAYG instalment variations in the wake of recent disasters. Business and farm operators should seek assistance to talk with us about where your profit is year to date and what options you may have to vary instalments.

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Markets fall on coronavirus fears

Share markets fell last week with the Australian market experiencing one of its worst weeks since August 2011 (when people thought the EU would break up). Negative returns in any given period can happen in the share market with this week standing out for its severity. However, we also see historically shares have lost value in approximately 22 weeks out every 52 weeks since 1980. It is not a rare thing to see in the share market.

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Ergon Energy drought relief

If you’re a farmer living in a drought-affected area, Ergon Energy may be able to help. They offer drought relief in the form of waived charges and deferred payments.

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Strategies For Dealing With Market Volatility

Financial markets by their nature are volatile. However, the more worrying time for investors is during periods of high volatility when prices move rapidly and unpredictably.
Market volatility can be a curse or a blessing. It all depends on how ready you are to deal with it.

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Coronavirus: The Economic Impact

What do we know so far? Since late December 2019 a new coronavirus strain, the 2019-nCov virus, began to emerge from Wuhan, China. The outbreak has been predominantly focused in China with a total of 20,624 confirmed cases and 427 deaths reported, but the number is growing each day. Outside of China there have been…

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Economic Update as at January 2020

Global shares closed out the month with losses after reaching fresh highs in mid January 2020. Market sentiment has deteriorated since the coronavirus outbreak in mid January and its potential impacts. Emerging Markets suffered, specifically Latin America and China lagged in anticipation of economic growth fallout. Whilst UK and Japanese share markets fell, US shares…

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Income Protection Insurance Is Changing

From 31 March 2020, insurance companies must stop providing ‘agreed value’ policies that are based on the income you advise at the start of cover, regardless of any subsequent change in income. This means no more ‘agreed value’ contracts can be bought or sold after 31 March 2020.

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Economic Update as at December 2019

Global equity markets staged a strong finish to 2019, with investors favouring riskier assets amidst declining trade war concerns and easing geopolitical tensions. US equities posted solid returns over December, as Hedged Overseas Developed Shares increased by 2.3%.

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Economic Update as at November 2019

Equity markets extended their rally in November with major indices reaching new highs. Markets were encouraged by reported progress on trade negotiations between the US and China, coupled with stable economic readings in the US and initial signs that growth deterioration in Europe may have bottomed.

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Bushfires November 2019

If your business or residential address is in one of the bushfire impacted postcodes, the ATO will automatically grant a two-month deferral for activity statements lodgments and payments due.

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Scooters for Salvos

Carrick Aland is delighted to be able to donate scooters and balls with funds raised from our team so that the Salvation Army can give these out to deserving kids this Christmas.

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Fringe benefits tax and Christmas parties

Reminder of the potential fringe benefits tax (FBT) implications for celebrating with employees this festive season. FBT obligations depend on the amount spent, when and where a party takes place, who attends and the value and type of gifts given.

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Australian digital business growth

Almost half of Australian bricks and mortar small business owners (48%) predict their business will operate entirely online in the future, with more than a quarter (26%) of these businesses foreseeing this happening in the next three years.

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Economic Update as at 31 October 2019

Equity markets returned mixed results during October. The US equity market rallied higher with major US indices reaching fresh highs. Hedged Overseas Developed Shares increased by 1.8% over the month. Markets were encouraged by the progress made on the US-China trade negotiations front and economic readings, which suggest that global growth may have stabilised.

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The risks with log-books

Close enough is not good enough. This case shows how pedantic the ATO – and AAT – will (and can) interpret the rules re a valid log book. Get some dates wrong and double up some odometer readings and it is not a valid logbook.

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Successful Investor Secrets

Successful investing can be one of your biggest allies in the quest for long-term financial security. Unfortunately, unsuccessful investing can leave you wishing you’d kept your money in the bank.
So what are the secrets to making your investments achieve what you want them to achieve? Here are some of the tactics used by successful investors around the world.

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The Power of Regular Investing

One of the world’s most admired investors, Warren Buffett, is famous for saying “Don’t save what is left after spending; spend what is left after saving.”
While this approach may not always be possible, investing even just a small amount regularly can make a big difference over the long term.

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Cotton farm curbs bookkeeping with cloud upgrade

Xero Certified Renae was already proficient in operating Xero with Carrick Aland’s clients and had experienced very positive outcomes using it, so it was a no brainer when it came to bringing her family’s farm onto a cloud bookkeeping system. We look at some of the key ways Renae helped to streamline the cotton farm’s bookkeeping.

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Carrick Aland mentioned in Federal Parliament

Carrick Aland received a Federal Parliamentary mention from the Hon Dr John McVeigh MP, who congratulated our team for being announced as the winner of the Professional and Business category at this month’s Heritage Bank Business Excellence Awards.

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Economic Update as at 30 September 2019

Equity markets rebounded over September, closing out a mixed and volatile third quarter with Hedged Overseas Developed Shares increasing by 2.3%. Investors looked past global trade friction, softer global manufacturing activities and macro uncertainties, with additional monetary stimulus helping to alleviate investor concerns.

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Farming on the Front Foot Update

With unfavourable seasonal conditions expected to further reduce soil moisture levels in QLD cropping regions, we look at the impacts and the steps producers can take to plan and be prepared this summer.

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Toowoomba Accountant Renae Clapham

Cloud accounting technology is exciting for Renae, from mobile accessibility to intuitive learning and new features being added all the time. Working alongside Cameron Sorley in Toowoomba, cloud accounting is the predominant tool Renae reaches for when processing tax returns and doing BAS.

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When will I be a millionaire?

Many people dream of becoming a millionaire. For most people, it stays a dream. Why? A million dollars is certainly a lot of money, but despite how impressive it sounds it’s a target which is well within reach if you take into account the three key factors.

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Economic Update as at 31 August 2019

Volatility returned to markets in August, driving equities lower while safe-haven assets enjoyed solid gains. The downturn in equity markets was largely driven by increased trade tensions and geopolitical uncertainties.

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Four ways to teach children healthy money habits

As a parent, you try to ensure your children have the skills to make smart financial decisions. For example, you tell them about the importance of saving or the power of compounding interest. But did you know that you could be sending them negative money messages without meaning to?

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Free E-Book: Get Inspired to Become a Better Gift-Giver!

Did you know, Australia is a generous country and spends nearly $20 billion a year on gifts? That’s about $1,200 per person per year or equivalent to buying a $4 coffee every weekday! Discover interesting insights around Australians and their spending habits as well as attitudes towards giving and receiving gifts.

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The human cost of late payments

Small business owners have enough on their plates. Running a business is hard enough as it is, without losing sleep over a late invoice. But there are things entrepreneurs can do to better manage late payers and bring more positivity to your workplace.

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The value of having a financial adviser

Having an appropriate financial plan in place covers more than just investments and insurance. The same goes for a financial adviser – there are some you will just click with, who can help improve your financial future.

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Economic Update as at 31 July 2019

Global equities increased modestly in July, with Overseas Developed Shares rising 1.1% in hedged terms. US equities in particular reached fresh highs in the second half of July, largely driven by technology stocks, however markets pulled back following an indication from the US Federal Reserve (Fed) that the 0.25% rate cut, to a range of 2.00% to 2.25%, was not necessarily the beginning of an easing cycle.

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QRIDA Rural Economic Development Grants

Grants are available up to a maximum of $250,000 with a 50 per cent cash contribution requirement from applicants. Example projects eligible could include the development of new products or markets, or improved business processes where such investment creates employment.

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ABN applications

The ATO has tweaked its Australian business number application process to ensure applicants are entitled to an ABN, giving it greater visibility over an applicant’s history.

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Future Drought Fund

The Coalition’s Future Drought Fund passes the Lower House, clearing the way for farmers to access $100 million for drought preparations and response from next year.

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Deductions you can claim

Everyone wants a great tax refund (or the lowest tax to pay). We’re here to help you claim every last dollar you can, by working for you, not Mr Taxman. Here are 4 key essentials to get you started.

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Cotton grant program

Aussie Cotton Farmers Grow Communities is a grant program that aims to help support cotton-growing communities across Queensland and New South Wales. Applications close 30 August 2019.

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Economic Update as at 30 June 2019

Global equities rebounded in June following the sharp sell-off in May, with overseas developed shares rising 5.9% in hedged terms. Progress on trade talks and strong indications from central banks to move to more accommodative monetary policy supported the risk-on environment for investors.

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Let us know what you think to win

Competition time! Leave Carrick Aland a Recommendation on Facebook or a Review on Google MyBusiness by 31 August 2019 and you’ll go into the prize draw for a $250 gift card from RM Williams. Good luck!

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Tax, super and minimum wage changes

Another financial year dawns and already we’re inundated with changes to tax, superannuation and payroll. From tax concessions to a super overhaul, plus changes to the minimum wage and child care subsidies, use this guide to help you get across everything you need to know.

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Salary and wage earner deductions

You can claim a deduction for the cost of buying and cleaning occupation-specific clothing, protective clothing and unique, distinctive uniforms, but your record keeping needs to be spotless.

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EOFY Tax tips for primary producers

Learn why some of the best tax planning measures available to primary producers are effectively utilising the farm management deposits scheme, income averaging and other primary producer-specific tax concessions this tax time.

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Financial literacy case study

It can be easy for financial professionals to assume their clients understand their financial statements but we still come across those who don’t. Read why we’re redoubling our efforts to ensure our clients understand the basics from their financials.

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No tax deductions for unmet tax obligations

To ensure that you don’t lose your tax deduction for your employee or contractor payments, lodge your BAS on time, lodge your STP events every time you pay wages and withhold the correct amounts from your payments to employees and subcontractors. Read why.

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Economic Update as at 31 May 2019

Global equities experienced a sharp sell-off during May, with Overseas Developed Shares falling 6.0% in hedged terms. The turnaround in market sentiment, from the first four months of the year, was sparked by increased trade tensions between the US and China, as well as President Trump’s announcement of tariffs on Mexico.

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2019 Tax Planning

Now that the Federal Election has been won by the Coalition, our combined focus needs to be on how you can save tax before 30 June 2019! Read on for more information on how the tax offset may directly reduce the amount of tax you have to pay.

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New Minimum Wage announced

The Minimum Wage Panel on 30 May 2019 handed down its minimum wage decision for 2019. From the first pay period commencing on or after 1 July 2019, the National Minimum Wage will increase to $740.80 per week, or $19.49 per hour.

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Streamlining small business a key part of Emma’s role

Joining Carrick Aland in 2010, Emma learned her new profession from the ground up and is now a Xero Certified Adviser and a member of Jenny Lambley’s team. These days, she works with a range of businesses and not-for-profit organisations on their bookkeeping, typically BAS, data entry and payroll.

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Insurance Through Super

Purchasing Life insurance, Income Protection and Total and Permanent Disability (TPD) insurance through super may be tax effective and also provide you with peace of mind.

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Farming on the Front Foot Update Autumn 2019

When it comes to international trade, Australian sheepmeat and wool exports are benefiting most from Australia’s relationship with China. However, with the first importation of foreign wheat in a decade thanks to drought, grain and cattle exports have a longer road ahead and serious competition. Read why in our latest Farming on the Front Foot update.

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Australian Accounting Awards 2019

Carrick Aland partner business Intuitive Super has been named the AccountantsDaily 2019 Australian Accounting Awards SMSF Firm of the Year for their work that requires highly specialised self-managed superannuation advice in a constantly changing and regulated environment.

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The Savings Paradox

It sounds counterintuitive; how can a person who stops saving at 30 wind up with more in the bank than someone who diligently saves their pennies up to age 65?
It’s not magic – it’s maths.

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Surviving in business

A new business starting today has less than 30 per cent chance of being around in a decade. To reach the 10-year mark relatively unscathed, we recommend that business owners and entrepreneurs consider these 4 Quadrants of a Business.

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Xero’s Payroll Only plan

From 1 July this year, Single Touch Payroll (STP) will apply to all employers in Australia. Following months of development by Xero, they’ve announced the launch of Payroll Only plan to assist small businesses with STP. See if it can help you.

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Addressing sham contracting

The Government has announced that it will establish a sham contracting unit — within the Fair Work Ombudsman — to address sham contracting behaviour engaged in by some employers.

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Federal Budget summary 2019–20

The 2019-20 Federal Budget is designed to showcase the return to surplus (and by default the Government’s economic credentials) and engage voters with initiatives to make them feel like they are more prosperous. A massive infrastructure spend adds to this sentiment.

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Single Touch Payroll starts 1 July

The laws to extend the Single Touch Payroll (STP) reporting requirements so they apply to all employers with fewer than 20 employees has now passed the Senate and will be Law. This means the STP regime is mandatory for employers of more than 20 staff from 1 July 2018, and will be mandatory for all employers by 1 July 2019.

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P&C budgets

P&C Treasurers need budgets. So how do you go about setting one? What are the main things you need to put in? And what will it tell you? When you have to present your P&C budget at the AGM, we show you how to pull that together.

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Default interest charges

Read the changes to the charging of Default Interest recommended by The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.

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ALP key tax policies

We’re not recommending who to vote for, but it’s important that you have an understanding of how these potential tax and other changes could affect you.

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Economic Update as at 31 January 2018

The year 2019 began with a rebound in returns across a majority of growth asset classes, following significant drawdowns in equity markets and weak performances across most other growth asset classes during the fourth quarter of 2018.

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Home office expenses

If you’re an employee who regularly works from home, you may be able to claim a deduction for expenses relating to that work. We outline the ways you can work at home and the expenses you can claim.

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Instant asset write-off

The PM announced this week that the government will introduce legislation to increase the $20,000 instant asset write-off threshold to $25,000 from 29 January 2019 until 30 June 2020. (We’ll keep you posted as this proposal is not yet law.)

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Single Touch Payroll for all employers

From this week the ATO will write to small employers with <19 employees that already use payroll software to be told about Single Touch Payroll and reminded that you don’t need to wait for legislation to pass to start reporting through STP.

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Xero increased security

Xero have increased security on your data, and changed the way you login Just one easily guessed password can stop your business in its tracks. When it comes to keeping your Xero data secure, put an extra deadbolt on the door with two-step authentication (2SA), and stay safe online. Here are three steps to get…

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Single Touch Payroll for P&Cs

Single Touch Payroll for P&Cs with paid employees If your P&C has paid employees, you will have to comply with planned tax reporting changes in 2019. The Australian Tax Office is planning to extend its Single Touch Payroll (STP) system (for employers to electronically report wages paid to their employees, tax withheld and superannuation accrued…

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Holiday business cash flow

Managing your business cash flow over the holiday period December is usually the busiest time of the year for retail and hospitality businesses. But businesses in other sectors often find that their sales slow down and their customers stop paying them for a few months. So cash flow dries up. Whether your business is large…

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Meet Accountant Pauly Poulsen

Born in Chinchilla, Pauly grew up working on the family’s dairy farm at Warra From the young age of 15, Pauly began preparing the farm’s cashbooks which fired up her passion for farming combined with accounting. Upon finishing at Dalby State High School, she wasted no time and commenced work on 28 November 1994 with…

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National AgDay Dalby BBQ 2018

National AgDay Dalby BBQ raises serious funds for drought Queensland farmers might still be doing it tough in the current drought conditions, but the National AgDay barbecue organised by Carrick Aland and Queensland Audit Services in Dalby will end up sending some much-needed funds their way. A hungry crowd of about 50 lunchtime workers and…

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Holiday spending tips

How to keep your holiday spending in check There aren’t too many people who want to be a Christmas Scrooge just as there aren’t too many who want to spend the next 12 months paying off a hefty credit card debt either. It’s a good idea to do up a budget in the time leading…

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Employer super quick check

Super provides income for your workers in retirement Here’s how to run a quick check of your super obligations to make sure you’ve got everything sorted. 1. Check you’re paying super to all eligible workers.     Some contractors may be entitled to super. 2. Check you’re paying the right amount.     Currently, you…

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Fake Xero Billing Notifications

Be on the lookout for fake Xero billing notifications There have been several reports of people receiving fake Xero Billing Notification Emails, which claim to be from Xero or make use of Xero’s logo within the emails. Phishing emails are a favoured way for cybercriminals to gain access to your sensitive information, such as your…

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Property investment

4 Important property investment finance tips Since the lenders cracked down on popular options like interest-only loans, finding creative finance strategies for growing your property investment portfolio has become more important than ever. As an investor, how you set up your finances can have a huge impact on the success of your property portfolio. In…

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Cash in on direct debit for small business

What is direct debit? When you set up a direct debit with a customer, you can collect payments straight from their bank. Of course you have to notify them ahead of time what you’re taking and when, but the customer doesn’t have to do anything to make the payment happen. Benefits of direct debit for…

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Data security

Are you being data smart with your smartphone? Recently, the new shiny iPhone XS and XR entered the market. For all the Apple lovers out there, this might mean being the first to wrap your hands around the irresistibly smooth all-glass design, or finally upgrading your old glitchy iPhone to the new model. If this…

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National AgDay Dalby BBQ

Support Buy a Bale on National AgDay 2018 21 November 2018 is National AgDay and Carrick Aland with RaboBank in Dalby will be celebrating with a BBQ fundraiser to support Rural Aid Australia’s ‘Buy a Bale’ campaign. Carrick Aland Associate, Daniel Ellis, said it’s vital to support the campaign to provide much-needed financial assistance to…

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The ins and outs of getting paid

What is accounts receivable and where can it go wrong? What is accounts receivable (or trade debtors)? Accounts receivable is the money you’re owed by customers. Once you send an invoice (or bill), it becomes part of your accounts receivable – until it’s paid. Accounts receivable is the name given to both the money that’s…

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Single Touch Payroll and your business

What is single touch payroll and how will it affect your business? Summary of single touch payroll Single touch payroll is a new regulation that changes when and how small businesses report payroll activity to the Australian Tax Office (ATO). Businesses used to report this information to the ATO once a year. Now, they need…

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Xero login is about to change

Xero two-step authentication will soon be compulsory Nearly all data breaches start with compromised passwords – and could be easily avoided. No one wants to think about cybersecurity, but the reality is that one in four small businesses experienced a cyber attack or hacking attempt in Australia and New Zealand in 2017*. Keeping information secure…

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Tax Time Warning

The ATO – Don’t Say We Didn’t Warn You! The Australian Taxation Office (ATO) is closing in fast on everyone who doesn’t properly declare their income and pay the correct amount of tax. As your Tax Accountants, we want to help you be aware of what the ATO is doing and how you can protect…

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Support in Aged Care

As at 31 December 2017, there were 104,602 people waiting for a home care support package. A staggering 26.70% had been waiting for more than 12 months, although many had a lower care package in the interim. [1] How do you increase your chances of receiving the support you need to stay in your home? Arrange…

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5 ways to keep your business debt under control

Managing your business debt can help you steer clear of financial trouble Piling up a lot of debt could leave your business in financial difficulty or, worse, bankrupt. Here are five ways that may help you manage debt and avoid a financial mess. 1. Understand your business situation It’s important to keep track of your debt…

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Meet Trainee Accountant Lochie Monaghan

Lachlan Monaghan Trainee Accountant Lachlan ‘Lochie’ Monaghan knew that, after doing a work experience stint with us when he was still at school, Carrick Aland was the place he wanted to be. From a very early age Lochie knew he would have a career in numbers. He then went on to be named 2016 Dux…

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Primary producers’ deduction

New immediate deduction for primary producers Legislation that passed Parliament last month will enable primary producers to claim an immediate deduction for fodder storage assets such as silos and hay sheds used to store grain and other animal feed. The deduction is available if the primary producer first uses the asset or has the asset…

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Inherited property ‘safe harbour’

Tax ‘safe harbour’ for inherited property When someone inherits a dwelling there are some special rules contained within the main residence exemption provisions that can provide a full exemption if certain conditions are met. If the conditions are not met, the beneficiary might face a nasty capital gains tax (CGT) bill for their good fortune.…

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Car sharing scrutiny

ATO takes its share of car sharing The extra income earned by people taking part in car-sharing services such as Car Next Door or DriveMyCar has come to the attention of the ATO. The car sharing services work by making private cars publicly available in a similar way to other car hire services – it’s…

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ATO online rental blitz

190,000 taxpayers ‘examined’ in ATO online rental blitz The Australian Taxation Office (ATO) has announced a new data-matching program targeting taxpayers earning income from the exploding popularity of short-term rentals available on platforms like AirBNB and Stayz.  Utilising information from online platform sharing sites matched to information from financial institutions, the ATO is targeting 190,000…

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Meet Accountant, Shakira Elliott

Shakira Elliott B Ed, B Com (Acc), Xero Certified Advisor From being someone who came to accounting the long way round, we’re grateful to have Shakira back in our ranks. Despite loving accounting when she was younger, Shakira instead qualified as a teacher after she left school and travelled the state helping kids with special…

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Carrick Aland Front Foot Farming update

Carrick Aland Front Foot Farming – Q1 Update FY19 At the time of writing this update, severe drought is impacting so many of Carrick Aland’s staff, friends, family and clients. From an accounting point of view, this is the time for what newly appointed Associate Daniel Bartkowski calls ‘the heavy stuff’. “We’re doing a lot more to…

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Got a HELP debt?

Read how the Government has moved to put an end to ‘eternal students’ who constantly study and never earn an income and speed up the payment cycle for those with outstanding debt.

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Farm Household Allowance

The Farm Household Allowance provides eligible farmers and their partners experiencing financial hardship with assistance through planning and training for long-term financial improvements as well as income support for up to three years.

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Business and Farm Concessions and Funding

Take all the tax advantages you can For small business and farming enterprise, there is a range of concessions and funding you can access. Many business and farm owners don’t necessarily realise the opportunities available to them. A simple example is trading stock valuations. Your trading stock is an asset that is recorded on your balance…

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Drought help and support

Are you impacted by drought? Drought can put extra pressure on people and businesses. That’s why the ATO is making tax easier while times are tough. Help and support The ATO can help with: tailored payment plans with interest-free periods more time to pay your tax waiving penalties or interest you might incur during drought. Receiving…

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Meet Vicki Wilson, Assistant Accountant

Vicki Wilson, Assistant Accountant, Cert IV Business, Xero Certified Advisor With a passion for bookkeeping, Carrick Aland’s Vicki Wilson has loved working with accounting technology throughout her career, starting with MYOB and BankLink and now, Xero. So it’s convenient that Vicki gets to prepare financial and activity statements for business and primary production clients seated…

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Clothing Deductions

Clothing deductions hung out to dry The Australian Taxation Office is closely examining work-related clothing and laundry expense claims of taxpayers submitting their 2017-18 tax returns. The ATO says that clothing claims are up nearly 20% over the last five years with people either making mistakes or deliberately over-claiming. Common mistakes include people claiming ineligible…

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Are you holding back your business?

Overcoming the biggest problems in business often comes down to simple things Here are a few simple things you can do to capitalise on your opportunities and reduce your risks. “I didn’t get time…” No more excuses Most people simply don’t set aside the time to do the forward planning they know they need to…

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Cash payments to business

$10k limit on cash payments to business One of the interesting approaches to tackling the black economy in the recent 2018-19 Federal Budget was the announcement of a $10,000 limit on cash payments to business. Unrecorded and untaxed transactions that occur in the community are estimated at up to 3% of GDP or around $50…

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Meet Noel Brownsey Business Manager

Carrick Aland’s Business Manager Noel Brownsey is a man of action in and out of the office. Having grown up on a sugar cane farm and working his way through the agricultural sector, Noel has built up extensive experience in manufacturing scheduling and human resources. When his international travel commitments started to throw out the…

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Beat the Stress of Redundancy

Don’t let losing your job throw you into deep difficulty. Sort out your finances early. Being made redundant doesn’t have to throw you and your family into financial trouble. Stay on top of your finances by planning and setting a budget with the help of your financial adviser. Know your financial status First, you need…

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3 new appointments at Carrick Aland

New Associates ensure continued premium service delivery at Carrick Aland Carrick Aland is delighted to announce that three Client Managers have taken small but significant steps to future proof the long-established accounting and advisory group. Accountants, Daniel Bartkowski and Cameron Sorley, along with Financial Planner, Daniel Ellis, became shareholders in Carrick Aland from 1 July…

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2018 Xero Awards

Carrick Aland are Xero’s QLD Accounting Partner of the Year 2018! The recognition also means automatic shortlisting as ‘Australian Accounting Partner of the Year’ Finalist in the 2018 Xero Awards. The announcement comes in the lead up to Xerocon 2018 to be held in Brisbane later this year. The Xero awards showcase the ‘Xero heroes’…

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$20k accelerated deductions extension

$20k accelerated deductions for small business extended another year The ability for small business entities to claim an immediate deduction for assets costing less than $20,000 has been extended for another 12 months until 30 June 2019. From 1 July 2019, the immediate deduction threshold will reduce back to $1,000. There are no limits to…

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Personal income tax cuts

1 July 2018 Personal income tax cuts New personal income tax rates come into effect from 1 July 2018. The top threshold of the 32.5% personal income tax bracket will increase from $87,000 to $90,000. Dovetailing into the tax bracket change is the introduction of the Low and Middle Income Tax Offset for those with…

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Company Tax Change Limbo

An issue that many business owners and investors will need to grapple with is uncertainty on the tax rate that applies to companies for the year ended 30 June 2018 and the maximum franking rate on dividends paid during the 2018 income year. While the Government introduced a Bill to Parliament back in October 2017…

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Super Guarantee Amnesty

One-off Super Guarantee Amnesty Employers that have fallen behind with their superannuation guarantee (SG) obligations will have 12 months to “self-correct” under a new amnesty announced late last month. The ATO estimates that $2.85 billion is currently owed in late or missing SG payments. Running from 24 May 2018 for 12 months, the amnesty encourages…

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Save Through Super for your First Home

A new scheme may help you make your dream of owning a home come true. High property prices have made owning a home unattainable for many prospective first‑time buyers. Butthe First Home Super Saver scheme, passed by the Australian Government in December 2017, may help keep their dream of buying their first home alive. The scheme helps you…

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Why Should I Care About Lost Super?

Did you know there is about 14.8 million Australians with a superannuation account, 40% of which hold more than one account? Some of that 40% make up the $18 billion in ‘lost super’. Is some of that yours? Find it Moved house? Changed jobs? Don’t know where your teenage self stashed your super? It’s easy…

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1 July Tax Cuts

Who gets a tax cut from 1 July? 1 July 2018 is the start date for the seven-year income tax plan announced in the recent 2018-19 Federal Budget. The seven-year plan benefits low and middle-income earners in the first few years before expanding out to a broader restructure of the tax rates and brackets for…

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EOFY Planning

Your essential EOFY checklist No one wants to pay more tax than they need to or face unnecessary risks. We’ve compiled a list of our top tips for you: 1. Donate If you are going to donate to charity, now is the time. Any donations you make to deductible gift recipients can be deducted this…

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Changes for Individuals and Businesses 1 July

What’s changing on 1 July 2018? Individuals Personal tax bracket changes – The top threshold of the 32.5% personal income tax bracket will increase from $87,000 to $90,000*. Introduction of the Low and Middle Income Tax Offset* providing a tax offset for those with taxable income of up to $125,333. GST on property developments and residential subdivisions –…

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6 Tips for the End of Financial Year

June 30 is around the corner, which means it’s time to start thinking about your tax return. Read on to learn how to prepare for the end of the financial year and maybe even increase your tax refund. You can take the pain out of the end of the financial year by being organised. With…

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EOFY Planning : Tax and Superannuation Strategies

As we approach 30 June, there are several end of financial year (EOFY) planning strategies you may wish to consider. Whether these are appropriate for you will depend on your financial situation, goals and objectives. Maximise your superannuation contributions  Some of the biggest EOFY planning considerations centre on the fact that the superannuation contribution framework…

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Mortgage Pricing Review

Mortgage pricing not strongly competitive The opaque pricing of discounts offered on residential mortgage rates makes it difficult for customers to make informed choices and disadvantages borrowers who do not regularly review their choice of lender, a report by the ACCC has found. The ACCC’s Residential Mortgage Price Inquiry is monitoring the prices charged by…

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Front Foot Farming FY18 Wrap Up

We live in a world where everything has become connected and integrated As such, business owners now expect their accountant to be involved in various aspects of their business rather than just provide them with a number for how much tax is due at the end of each year. Increasingly they want to work with…

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One-off Super Guarantee Amnesty

Superannuation Guarantee Amnesty Employers that have fallen behind with their superannuation guarantee (SG) obligations will have 12 months to “self-correct” under a new amnesty announced on 24 May 2018. The ATO estimates that $2.85 billion is currently owed in late or missing SG payments. Running from 24 May 2018 for 12 months, the amnesty encourages…

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Expats and Foreign Residents Beware

CGT and the family home Expats and foreign residents beware The family home of foreign residents and expats may be taxed if legislation before Parliament is passed by the Senate. If you are a foreign resident living in Australia or an Australian working overseas who owns residential property in Australia, this reform potentially has serious…

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Economic Update May 2018

The air of volatility remained over April 2018, following continued trade tensions which were escalated further under President Trump with the revelation that the United States (US) would withdraw from the Iran nuclear deal, reinstating all sanctions previously removed following agreement on the deal in 2015. European allies were disappointed, expressing their desire to commit…

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Foreign Residents Living in Australia

CGT and the family home: Expats and foreign residents beware Foreign residents living in Australia If you are a foreign citizen currently living in Australia but planning to leave Australia at some stage in the short to medium term then these new rules are likely to impact on you. If you owned your home at…

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Stay on Top of Your Business Finances

Finances can make or break your business It’s vital to keep them in check. Here are some tips. 1. Don’t lose out Take advantage of recent tax and regulatory changes, such as: the $20,000 instant asset write-off threshold, which has been extended until 30 June 2019 for companies with turnover of less than $10 million the new crowd-sourced equity…

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2018-19 Budget Overview

Reward for work a dominant theme in this year’s Budget The seven year personal income tax plan initially targets low to middle-income earners before making significant changes to the tax brackets. But, the devil is in the detail for advisers. SMSF Auditors are grappling with the proposed 3 year SMSF audit cycle. There are also…

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Federal Budget 2018/19: What it Means for FAMILIES

What you need to know The Budget is forecast to return to surplus in 2019/20 with a positive balance of $2.2bn Income tax relief for low-income and middle-income earners – up to $530 per annum via a tax offset– for four years commencing 1 July 2018 Addressed income tax bracket creep – as part of…

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Federal Budget 2018/19: What it Means for ACCUMULATORS

What you need to know The Budget is forecast to return to surplus in 2019/20 with a positive balance of $2.2bn Income tax relief for low-income and middle-income earners – up to $530 per annum via a tax offset for four years commencing 1 July 2018 Addressed income tax bracket creep as part of a…

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Australians Working Overseas

CGT and the family home: Expats and foreign residents beware If you are an Australian citizen working overseas but a non-resident for tax purposes, these new rules are likely to affect your main residence in Australia. If you maintain your main residence in Australia, you can use the absence rule to maintain the exempt status…

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Succession – Your Forward Plan

For most business owners, the idea of when to pass it on or sell up is an issue most tend to avoid. Unfortunately, often an event such as a death, divorce or accident forces the issue and mostly the best result isn’t achieved. By proactively planning for the future handover of your business and assets,…

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Single Touch Payroll for Employees

Single Touch Payroll What employees need to know Single Touch Payroll (STP) – the direct reporting of salary and wages, PAYG withholding and superannuation contribution information to the ATO – comes into effect from 1 July 2018. For employees While the Government and ATO are promoting STP as a way to improve the efficiency of payroll processes…

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Tax Deductions: The Danger Zones

A recent Parliamentary Inquiry into Tax Deductions created some fairly sensational headlines about what and how deductions are being claimed – $22 billion worth to be exact. In Australia, tax deductions are available for expenses incurred in producing assessable income. These are generally work-related deductions or investment related deductions. And, unlike some other countries, these…

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Economic Update April 2018

A Bumpier Ride Trump’s trade tariffs with possible repercussions in the form of a trade war and a shake-up in technology stocks, led by Facebook on the back of its privacy violation, meant March was a bumpy ride for Wall Street. The U.S. stock market finished the first quarter of 2018 with losses for the…

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2018 Investment Expenses

Investment expenses While expenses can be claimed for a wide array of income-producing assets, property is where most of the activity is centred. Investment-related expenses can include management fees for an investment, account-keeping fees, insurance, land tax, depreciation, maintenance expenses, and interest on borrowings used to purchase an income-producing asset. $41.7 billion in rental expenses were claimed in…

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Informed Newsletter – Q1 2018

Each week on our social media pages we share a topical article or infographic that we hope you find interesting and informative. If you don’t follow our social media pages, you should! Check out the links below and give us a follow. Our Facebook Page Our LinkedIn page ‘Informed’ is a quarterly publication which takes some…

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Tips to Help Start your Own Business

Starting a new business is exciting But there’s a lot to think about and organise Research If you are made of sterner stuff and you have the drive to make a success of your business idea, start by talking with others who have gone down the same path and can help you figure out your…

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Single Touch Payroll for Employers

Single Touch Payroll What employers need to know Single Touch Payroll (STP) – the direct reporting of salary and wages, PAYG withholding and superannuation contribution information to the ATO – comes into effect from 1 July 2018. For employers Employers with 20 or more employees at 1 April 2018 must use standard business reporting-enabled software from 1…

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The CAWP Podcast: What is a Separately Managed Account?

LISTEN TO OUR FIRST PODCAST! WHAT ARE SEPARATELY MANAGED ACCOUNTS? If you missed our recent Separately Managed Accounts information sessions, or want to know more about SMAs, you should listen to our first ever podcast! What is a podcast? It’s news and info on the go! A podcast is a voice-only recording that you can…

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A money-wise wedding: Creating a budget for the big day

Whether you’re planning a large, luxurious wedding or a small, intimate affair, smart budgeting could help free you from financial worries, so you can enjoy your special day. Following these steps may help ensure no one’s worried about debt on the honeymoon. 1. Plan early: Given that the average Australian wedding costs $36,200 [1], the sooner you start…

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How to Cope Financially with Illness or Injury

Bills still need to be paid even if illness or injury keep you out of work. But help is available if you need it. Dealing with a serious illness or injury is stressful enough without having to consider how to cope financially. However, making sure you get everything you are entitled to and offsetting bill…

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Meet Dyahn Werth – Carrick Aland Accountant

Dyahn Werth – Carrick Aland Accountant As a Chartered Accountant, Dyahn Werth supports Carrick Aland’s clients by preparing Business Activity Statements, Individual Activity Statements, financial accounts and income tax returns for individuals, partnerships, trusts and companies. She has a leaning towards clients who operate in the agricultural sector, possibly because she herself hails from a…

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2018 Work Related Expenses

Work-related expenses At $19.7 billion, work-related expenses accounted for nearly two-thirds of total deductions claimed by individuals in 2012-13. The most common claims were for car expenses ($8 billion or around 40%), followed by $7 billion in ‘other expenses’ comprising home office costs and tools, equipment and other assets. Work-related travel expenses counted for $2…

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GST on Property Developments

Big changes for developers and purchasers If a Bill currently before Parliament passes, from 1 July 2018, purchasers of new residential premises or new residential subdivisions will need to remit the GST on the purchase price directly to the ATO as part of the settlement process. This is a significant change from how GST is…

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Late Payments Worsen as Seasonal Trends Hit

Xero small business insights January is typically the worst month for on-time payments to Australian small businesses. Many families are on school holidays, some businesses shut for weeks and outstanding bills can sit unpaid. This year was no different, and the latest Xero Small Business Insights (SBI) data shows businesses waited an average 38.8 days…

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ATO Audit Targets

Will your business be audited? How the ATO identifies audit targets The ATO is very upfront when it comes to their compliance activity. Every year they publish small business benchmarks that outline what a typical business ‘looks like’ in different industries. If your business falls outside of those benchmarks, the ATO is likely to take a…

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Salary Sacrificing for a Fringe Benefit

Salary sacrifice or employee contribution? One issue that frequently causes confusion is the difference between the employee salary sacrificing in order to receive a fringe benefit and making an employee contribution towards the value of that fringe benefit. Salary sacrificing for a fringe benefit To be an effective salary sacrifice arrangement (SSA), the agreement must…

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FBT and LAFHA

Living away from home allowances Living Away From Home Allowances (LAFHA) continue to cause confusion for both employers and employees. A LAFHA is an allowance paid to an employee by their employer to compensate for additional expenses they incur, and any disadvantages suffered because the employee’s job requires them to live away from their normal…

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Fringe Benefits and Car Parking

Car parking We all know how expensive commercial car parks can be. The ATO has noticed that where car parking benefits are being declared (that is, where an employer provides parking to an employee), the value of what is being declared is significantly less than what you would expect to pay. Common errors include: Market…

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Key Person Insurance: Protection for your Business

How would your organisation cope if something happened to a key person? Unexpected events can play havoc not only with people’s lives but also with businesses. However, business owners are often so busy they don’t stop to consider the true cost of the loss of a key employee, business partner or even themselves. The knock-on…

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FBT, Utes and Commercial Vehicles

Utes and commercial vehicle exemption The new safe harbour to avoid FBT When an employer provides an employee with the use of a car or other vehicle then this would generally be treated as a car fringe benefit or residual fringe benefit and could potentially trigger an FBT liability. However, the FBT Act contains some…

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Diversity in Agriculture Leadership Program

Agriculture joins forces to forge a new pathway for women in ag leadership On International Womens’ Day, National Farmers’ Federation announces new pathway to leadership for women in agriculture. Applications are now open for the Diversity in Agriculture Leadership Program mentoring opportunity. Women have been the backbone of farming since agriculture began in our nation. However, the…

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Arnhem Global Growth SMA: February 2018 Performance and Comments

Dear Advisers, Consultants and Fellow Investors, Thank you for your ongoing support and interest in our suite of Arnhem Global SMA strategies. Please find attached and below our February 2018 performance for both the ‘Global Growth’ and ‘Australia+’ Portfolios. Given the heightened volatility in global markets witnessed at the beginning of the month, we thought…

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Separately Managed Accounts – Presentation with DNR Capital

Did you miss our Separately Managed Accounts Information Sessions, or just want to look at the presentation again? Our presentation covered the background of DNR Capital, what Separately Managed Accounts are, the benefits of SMAs, and a Market Review. Click the attachment for a copy of the presentation. If you’d like to know more please contact…

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What are Separately Managed Accounts (SMAs)?

An SMA is a type of managed investment which gives investors access to a portfolio of investments (such as direct shares and managed funds). the portfolios are professionally managed by a range of investment managers according to defined investment strategies. Click the attached flier for more, or if you would like to discuss SMAs with…

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Front Foot Farming – Q3 Update FY17

We caught up with Figured this quarter who flagged the Senate Enquiry into banking and lending to primary productions industries, including agriculture, fisheries and forestry. One of the key recommendations was that the banks should not have any control over farm budgeting and forecasting. The writing is on the wall, but what does it mean? At Carrick…

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What is Bitcoin?

Bitcoin is a type of digital currency known as a cryptocurrency. It operates on a decentralised peer-to-peer networked program on your computer, meaning that transactions can be conducted between a buyer and seller without the need for any third party oversight such as a regulator or bank. The underlying technology that makes all cryptocurrencies possible…

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FBT and Motor Vehicles

Motor Vehicles Using the company car outside of work Just because your business buys a motor vehicle and it is used as a work vehicle, that alone does not mean that the car is exempt from FBT. If you use the car for private purposes – pick the kids up from school, do the shopping, use it…

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Succession Insights and Lessons from Retired Farming Couple

Farm succession – insights and lessons from a retired farming couple We recently talked with retired farmer Jim and his wife over some homemade spiced carrot cake and a cuppa. They started out with 800 acres in the Western Downs in the 1960s and ended up with 5,000 acres in Balonne Shire before heading to…

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5 Tips to Take the Stress Out of Settlement Day

5 Tips to take the stress out of settlement day You’ve found your dream property, had your offer accepted and the all-important settlement day is the last hurdle to overcome. The anticipation has been building for weeks! Settlement day can be both exciting and stressful, as sometimes things can go wrong. In this article, we…

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Notifying a Data Breach

Notifying a breach If a breach is assessed to potentially result in serious harm, you are obliged to advise affected individuals and the Australian Information Commissioner. You have the option to: Notify all individuals whose personal information is involved in the eligible data breach Notify only the individuals who are at likely risk of serious…

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Economic Update January 2018

Emerging markets remained strong over January 2018, increasing 4.6% over the month to be up 32.2% for the 12-month period while global equities also continued their upwards climb. Confidence in China, following strong economic activity and increased emphasis placed on achieving sustainable growth continues to support emerging markets performance. Brazil also renewed confidence through the…

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Taking All Reasonable Steps to Assess NDB Risk

Taking all reasonable steps The Privacy Act already requires organisations to take all reasonable steps to protect personal information. The new data breach laws merely add an additional layer to assess breaches and notify where the breach poses a threat. For example, if you have not already, you should assess issues such as: How personal…

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New Data Breach Laws Come Into Effect

The Notifiable Data Breach (NDB) Scheme In October last year, almost 50,000 employee records from Australian Government agencies, banks and a utility were exposed and compromised because of a misconfigured cloud-based ‘Amazon S3 bucket’. AMP was reportedly one of the worst affected with 25,000 leaked employee records. ITNews reports that the data breach was discovered…

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Directors on ‘Hit List’ for Not Paying Employee Super

Directors on ‘hit list’ for not paying employee super Proposed legislation would see the ATO pursue criminal charges against Directors who fail to meet their superannuation guarantee (SG) obligations. An analysis by Industry Super Australia submitted to the Economics References Committee into Wage Theft and Superannuation Guarantee Non-compliance indicates that employers failed to pay an…

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What’s Changing in 2018?

1 January 2018 Vacancy fees for foreign acquisitions of residential land – An annual vacancy fee imposed on foreign owners of residential real estate if the property is not occupied or genuinely available on the rental market for at least 183 days in a particular 12 month period.  Foreign owners can avoid the fee by living in…

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ATO Transparency of Tax Debt Measure

ATO Transparency of tax debt measure The proposed Transparency of tax debt (TOTD) measure will require new law to allow the ATO to report tax debt information of businesses to CRBs. The measure will commence when the new law is given royal assent. In the 2016–2017 Mid-Year Economic and Fiscal Outlook (MYEFO), the government announced that…

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Front Foot Farming – Q2 Findings FY17

Carrick Aland Front Foot Farming – Q2 Findings FY17 One year after introducing higher level agricultural financial reporting, Carrick Aland reports that 89 per cent of farming business clients tapping in are already benefiting from better livestock movement tracking and integrated tax planning. “Closing stock on cattle was always a grey area and the question…

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ACCC Credit Card Surcharge

ACCC gets tough on credit card surcharge The Australian Competition and Consumer Commission (ACCC) has issued a warning to businesses charging excessive credit card fees. One large merchant has already been issued with four infringement notices and has paid $43,200 in penalties! The new rules, which came into effect from 1 September 2017, prevent merchants…

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Vacant Property Fee

Foreign property owners slapped with fee for vacant property Australia has followed the international trend of penalising foreign owners of Australian residential property who keep their property vacant for extended periods of time. Last month Parliament approved legislation that imposes an annual vacancy fee on foreign owners of residential real estate if the property is…

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Ruling Changes Understanding of Apprentice Pay

What changes are coming? Earlier this year, a Federal Court case about apprentice pay could result in many employers having to back pay apprentices. In November, the Federal Court in Brisbane dismissed claims from All Trades Queensland, Master Builders Queensland, and the Housing Industry Association that apprentices in the State should continue to be covered…

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Economic Update February 2018

Market corrects  Share markets continued late-January’s correction in February before a partial bounce-back saw global shares recover some ground, ending the month down 3.7% in hedged terms. New US Federal Reserve Chair Jerome Powell’s debut testimony flagged the Fed may raise rates 4 rather than 3 times this year. This, along with prospects of a…

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Santa’s Tax Crises

A light-hearted look at the complexity of Australian taxation laws Dear Santa, Thank you for the opportunity to provide tax advice for your operation. We are pleased you have initiated this advice as the Australian Taxation Office (ATO) is looking closely at any business or individual that operates within Australia but has significant transactions or…

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Other Tax and Renovation Issues

Other tax and renovation issues The main residence exemption is not the only issue that comes up with property flipping. Tax deductions for rental properties and renovating for profit inside a self-managed super fund (SMSF) are common topics: Can I claim a tax deduction for renovations on my investment property? It is not generally possible to…

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What is the Main Residence Exemption?

What is the main residence exemption? Generally, you do not pay CGT on the sale of your private home. A full exemption should be available if the following conditions are met: You are an individual who is selling a dwelling or an ownership interest in a dwelling; The dwelling has been your home for the…

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‘Property Flipping’ is Next ATO Target

Why ‘property flipping’ is the next ATO target The tax law does not allow you to ‘flip’ a property tax-free even if you are living in it. Most people think that they can move into a property, renovate it, and then sell it without paying tax. The main residence exemption – the exemption that protects…

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New Multinational Tax Crackdown

How small subsidiaries are being caught by Australia’s new multinational tax crackdown Entities with a global parent or that are part of a large group of companies are being caught in the multinational tax crackdown regardless of their size in Australia. With effect from 1 July 2016, many smaller entities connected to a larger parent…

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ASIC Penalties ‘the Cost of Doing Business’

ASIC penalties ‘the cost of doing business’ The Australian Securities and Investment Commission (ASIC) is set to increase penalties for corporate and financial sector misconduct to deter the fines being seen as the cost of doing business. The impact of the proposed changes would be to expand the range of civil penalty provisions and to…

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New Legislation Restricts Access to Reduced Company Tax Rate

New legislation restricts access to the reduced company tax rate Legislation restricting access to the small business company tax rate reduction entered Parliament last month. The changes specifically preclude companies with passive investments such as rental property income from qualifying for the small business entity tax rate of 27.5%. For the 2017 income year, a…

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Cleaners and Couriers Latest Black Economy Target

Cleaners and couriers latest black economy target From 1 July 2018, the taxable payments reporting system will extend beyond the building industry to cleaning and courier businesses. This means that these businesses will need to report payments they make to contractors (individual and total for the year) to the ATO. By ‘payment’ the ATO means…

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Interest Rate Outlook

Interest Rate Outlook At the November board meeting, the Reserve Bank of Australia (RBA) announced the official cash rate would remain at 1.50% for the 15th consecutive month. In his statement the Governor noted that while there are positive signs within the global and domestic economy and the labour market continues to tighten, inflation remains…

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Single Touch Payroll Starts 1 July 2018

Single Touch Payroll starts 1 July 2018 The ATO is changing the way employers report their tax and super You may need to use Single Touch Payroll from 1 July 2018. You’ll now be able to report this information to the ATO directly from your payroll solution. If you have 20 or more employees, you need to…

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Scams Targeting ASIC Customers

Scams targeting ASIC customers – be vigilant! Scammers pretending to be from ASIC have been contacting Registry customers asking them to pay fees and give personal information to renew their business or company name. These emails often have a link that provides an invoice with fake payment details or infects your computer with malware if…

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Tax Benefits for Investing in Affordable Housing

In the 2017-18 Federal Budget the Government announced a series of measures intended to improve housing affordability in Australia.  To entice investors, the Government is providing an increase in the CGT discount for individuals who choose to invest in affordable housing. The draft legislation enabling this change has now been released so we can see…

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Economic Update September 2017

Global developed equities, both large and small caps, were the key performers over September 2017, as consumer confidence bolstered following a subdued August. Strong gains in the energy sector as well as increased confidence in financials were the primary drivers of performance. AUSTRALIAN EQUITIES The broad Australian equity market was mixed over September, as the…

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Alert: What to Tell the ATO About your SMSF

Alert: What Trustees need to tell the ATO about your self-managed super The 1 July 2017 superannuation reforms introduced a new reporting regime for funds. SMSFs now need to advise the ATO of key events within the fund that impact on retirement income streams (pensions): When you start a pension When you stop a pension or…

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Five Tips on Giving to Charity

Feeling generous and want to make a difference? Here are five tips on giving to consider. An estimated 14.9 million Australian adults (80.8 per cent of the population) gave $12.5 billion to charities and not-for-profit organisations in 2015–16.[1] For many people, donating comes as a response to a specific request, but if you feel strongly about…

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Company Audit Crackdown

ASIC Targets Growing Companies In Audit Crackdown ASIC is in the midst of a concerted campaign targeting private companies that have outgrown the reporting exemptions. ASIC requires companies to prepare and lodge a financial report and a directors’ report each financial year, and have the accounts audited unless the company is exempt. Most small companies…

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New Laws for Franchisors with Vulnerable Workers

New laws hold franchisors responsible for vulnerable workers Franchisors and holding companies could be held responsible if their franchisees or subsidiaries don’t follow workplace laws. The Government has stepped in to protect workers following months of controversial headlines uncovering poor record keeping, questionable workplace practices and exploitation, underpayments, deception and superannuation guarantee fraud by employers.…

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Safe Harbour for Directors of Struggling Companies

Safe harbour for directors of struggling companies Australia’s insolvent trading laws impose harsh penalties on directors of companies that trade where there are reasonable grounds to suspect that the company is insolvent. Criminal and civil penalties can apply personally including penalties of up to $200,000, compensation proceedings by creditors or liquidators, and where dishonesty has…

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Money Hacks for Teens and Young Adults

Help your teens and young adults manage how they spend and save. So your teenagers and young adults know how to spend, but do they know how to budget for the things they really want? Learning good money management should be an essential life skill. A reason to save For many teenagers and young adults…

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Your Succession Plan

Your succession plan When it comes to passing on your farm to the next generation, do you have plans or just ideas? Succession plans are something many farmers and business owners have thought about, but don’t seem to find the time to sort out. To plan for the future, and ensure your hard work continues…

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Economic Update August 2017

Heightened geopolitical risks, brought on by weapons testing in North Korea and the accompanying political rhetoric, wove a cautious atmosphere for August 2017. The volatility caused some flight to quality as bond yields decreased across global markets and gold prices increased by 5.0%. The United States (US) Federal Reserve (Fed) was quiet over August, uncertain…

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Director’s Fees: What and How To Pay Them

Can you pay a Director? Directors who work in the company, executive directors, would generally have an agreed executive remuneration structure that takes into account their service including attending Board meetings (so, generally no extra fees for service outside of the agreed remuneration structure). For non-executive directors, companies can only pay Director’s fees if the…

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Carrick Aland Farewells Marion

Marion has been a familiar face at Carrick Aland’s office. Originally joining our firm to help with the implementation of GST and tax returns way back in May 2000, Marion worked in Tax & Audit up until the merge in 2010. She then became an assistant to Carrick Aland’s Accountants. With the introduction of cloud…

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Super Guarantee – What Happens When you get it Wrong?

The ATO receives around 20,000 reports each year from people who believe their employer has either not paid or underpaid compulsory superannuation guarantee (SG). In 2015-16 the ATO investigated 21,000 cases raising $670 million in SG and penalties. The ATO’s own risk assessments suggest that between 11% and 20% of employers could be non-compliant with…

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Better Car Buying

Vehicle Buying Service through RB Finance Through his relationship with Macquarie, Ryan Baddock at RB Finance offers a vehicle buying service. Through their extensive dealer network and significant volumes, Macquarie can seek the best possible quotes on new vehicles. They are facilitating hundreds of deals each month so they are always in the market and have their…

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Tax Commissioner’s Hit List

Every so often the Australian Taxation Office (ATO) sends a ‘shot across the bow’ warning taxpayers where their gaze is focussed. In a speech to the National Press Club, Tax Commissioner Chris Jordan did exactly that. Part of the reason for this public outing is the gap between the amount of tax the ATO collects…

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Economic Update July 2017

The recent trend of a weakening United States (US) dollar (USD) and rising commodity prices continued in July 2017. As a consequence, emerging markets equities once again outperformed their developed counterparts. The MSCI Emerging Markets (UH) index rose 1.8% in Australian dollar (AUD) terms despite an appreciation of the AUD over the month. Asian emerging…

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New Rules Claiming Plant and Equipment in Rental Properties

Proposed changes could impact investors On 9 May 2017 the Government proposed changes to the depreciation of plant and equipment assets in the Federal Budget. These new rules could impact on investors purchasing rental properties. The Government made major changes to depreciation legislation last in the mid-1980’s. As such, concerns are circulating about the impact…

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Your Chance to WIN $5,000!

Financial Planning Week is 21-27 August, and to celebrate the Financial Planning Association of Australia is giving you the chance to #getaplan and make your dreams come true! You could win $5,000 by telling us in 100 words or less how winning would bring your dreams to life.  Click here to enter. Good Luck!

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Selling Property Valued at $750k

What everyone selling a property valued at $750k or more needs to know Every vendor selling a property needs to prove that they are a resident of Australia for tax purposes unless they are happy for the purchaser to withhold a 12.5% withholding tax. From 1 July 2017, every individual selling a property with a…

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Main Residence Exemption Removed for Non-residents

The Federal Budget announced that non-residents will no longer be able to access the main residence exemption for Capital Gains Tax (CGT) purposes from 9 May 2017 (Budget night). Now that the draft legislation has been released, more details are available about how this exclusion will work. Under the new rules, the main residence exemption…

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Claiming Work-related Expenses?

The ATO is paying attention to people who are over-claiming work-related expenses. Get your deductions right by satisfying the following rules: you must have spent the money and were not reimbursed it must be directly related to earning your income, and not of a private nature you must have a record to prove it Things to…

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How to Use my Deductions on ATO’s App

Salary and wage earner tax tips How to use myDeductions on ATO’s App ATO’s myDeductions makes it easier and more convenient to keep your tax deductions and income records all in one place. Individuals claiming general or employee work-related expenses can use the tool. Sole traders with simple affairs can also use it to help keep track…

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Economic Update June 2017

The global equity market index continued to move slightly higher in June, closing out a solid first six months of 2017. The S&P 500 closed 0.6% higher despite a late-month fall; although this was countered by weak equities across Europe. Asian emerging markets were also positive as the Shanghai Stock Exchange (SSE) Composite (+2.4%) and…

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GST on Imports: New Rules for Goods Under $1,000

GST on imports New rules for goods under $1,000 Last month, Parliament passed legislation that will see GST applied to all consumer imports regardless of their value. Currently, imports below $1,000 are excluded from GST. The perceived preferential treatment of internet shopping has been a contentious issue for a while with the retail sector lobbying…

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What Did I Miss? 1 July Changes

What did I miss? 1 July changes GST applies to digital products & services imported by consumers Small business $20k instant asset write-off extended until 30 June 2018 Company tax rate reduction to 27.5% for entities with an aggregated turnover of less than $25m (companies with a turnover of less than $10m have been subject…

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Busting the $1 Million Retirement Myth

This article was wrtten by Brian Long, MLC Head of Retirement, and can be found here. It’s often been mentioned that $1 million or more in superannuation savings is needed to live a comfortable retirement. This is a daunting figure for most of us and, unsurprisingly, has many Australians concerned about the kind of retirement lifestyle they…

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Meet Carrick Aland Client Manager Beth Hall

How Carrick Aland Client Manager Beth Hall ended up as an accountant was purely by chance. But she has always had a curious mind and canny knack to pick up things quickly. After her foray into the accounting profession as a receptionist and then an office manager in Inverell, she moved with her family and…

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QLD State Government Funding Program Supports Manufacturing

Made in Queensland Made in Queensland is a Queensland Government initiative supporting our manufacturing sector to become more internationally competitive and adopt innovative processes and technologies. This program aims to: increase Queensland-based manufacturing businesses’ productivity and competitiveness encourage these businesses to adopt innovative processes and technologies encourage more of these businesses to become advanced manufacturers,…

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Single Touch Payroll Coming

Single Touch Payroll is coming from 1 July 2018 If you report payroll and super information to the Australian Taxation Office (ATO) and have 20 or more employees, here are some things you need to know right now. What is Single Touch Payroll? Single Touch Payroll is a government initiative to streamline business-reporting obligations. When…

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Water Facilities Defined for Tax Purposes

Water facilities You may be entitled to claim a deduction for capital expenditure incurred on a water facility if you are: a primary producer an irrigation water provider – for expenditure incurred on or after 1 July 2004. For you to be entitled to claim a deduction, your expenditure must have been incurred primarily and…

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Super Guarantee 8-point Health Check

Paying super is an important part of being an employer. At this time of year it is always a good time to review how you are going with your superannuation obligations, and if you find that you have fallen behind we can help you get back on track. It’s important that businesses employing staff understand…

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Minimum Wages will Increase by 3.3%

Get set for a 3.3% increase to base rates of pay The Fair Work Commission has announced a 3.3% increase to minimum wages following its 2017 Annual Wage Review. The increase will apply to base rates of pay from the first full pay period starting on or after 1 July 2017. The new national minimum wage…

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Investment Property: Pre And Post 30 June

No more deductions for travelling to and from your investment property The days of writing off the costs of travel to and from your residential investment property are about to end. From 1 July 2017, the Government intends to abolish deductions for travel expenses related to inspecting, maintaining, or collecting rent for a residential rental…

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Cameron Sorley B Comm (Acc), ASA, Xero Certified Advisor

Having grown up on his parents’ Brahman and Droughtmaster stud in Bell, Carrick Aland Client Manager Cameron Sorley is very well acquainted with the issues facing primary producers and local business. Based in Carrick Aland’s Toowoomba and Dalby offices, Cameron is currently on track to finish his CPA qualification this financial year. Cameron’s niche is…

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Imminent Changes to Crowdfunding

Crowdfunding uses internet-based platforms and other forms of social media to raise funds for projects or business ventures. Generally, the party trying to raise the funds (the promoter) will engage an intermediary (the platform) to collect funds from contributors. There are different ways this can be done and how the crowdfunding is raised will determine…

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Economic Update May 2017

Global equity markets continued to drift higher in April 2017, led by growth and small cap stocks. The global economy has strengthened, reflecting the strongest and most synchronised growth since 2010 among developed and emerging markets. The International Monetary Fund (IMF) revised its 2017 growth forecast for the world economy to 3.5% from 3.4%. Headline…

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QRAA 4 Things to Know Before EOFY

End of Financial Year Four Things to Know from QRAA With the End of Financial Year (EOFY) fast approaching, QRAA would like to share four key things that might be of value to rural businesses before 30 June 2017. #1 Extra drought money Drought-affected primary producers in Queensland can take advantage of an additional $15 million…

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The Deal to Pass the Enterprise Tax Bill

The tax rate reductions for business and changes to the small business threshold were announced in the last Federal Budget but have been stuck in the Senate with concerns that it was merely a ‘sugar hit’ for the top end of town. However, a last-minute deal between the government and Senator Nick Xenophon will see the…

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Simpler BAS from 1 July

From 1 July 2017, the Australian Tax Office (ATO) will reduce the amount of GST information required for BAS to simplify GST bookkeeping and reporting requirements. From that date, small businesses will only be required to report the following GST information on their BAS: GST on sales (1A) GST on purchases (1B) Total sales (G1) The requirement to…

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$20k Immediate Deduction Extended Another Year

Small business gets a shot in the arm with extension of $20,000 asset write-off Ø  Date of effect: extended until 30 June 2018 The $20,000* immediate deduction threshold for assets purchased by businesses with an aggregated turnover of under $10 million will be extended until 30 June 2018.  Assets will need to be used or installed…

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How the 2017 Budget may Affect Families

The announcements in this update are proposals unless stated otherwise. These proposals need to successfully pass through Parliament before becoming law and may be subject to change during this process. The Medicare levy will increase by 0.5%to 2.5% from 1 July 2019 The Government will spend $37.3 billion on child care over four years Additional…

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How the 2017 Budget may Affect Wealth Accumulators

The announcements in this update are proposals unless stated otherwise. These proposals need to successfully pass through Parliament before becoming law and may be subject to change during this process. First-home buyers have the opportunity to save a deposit through voluntary contributions to superannuation No changes to negative gearing or capital gains tax Accommodation and…

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Work-related Travel Claims

Why work-related travel claims are easy pickings for the ATO The Australian Taxation Office (ATO) is on the warpath over work-related travel expenses and is prepared to test the boundaries of claims in court. A recent case before the Administrative Appeals Tribunal (AAT) highlights many of the issues that commonly occur. In this case, a…

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The 2017 Federal Budget Overview

The announcements in this update are proposals unless stated otherwise. These proposals need to successfully pass through Parliament before becoming law and may be subject to change during this process. Budget projected to return to balance in 2020–21 and remain in surplus over the medium term Growing consensus that the global economic outlook is improving…

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How the 2017 Budget May Affect Small and Medium Businesses

The announcements in this update are proposals unless stated otherwise. These proposals need to successfully pass through Parliament before becoming law and may be subject to change during this process. Small businesses with a turnover up to $10 million can write off expenditure up to $20,000 for a further year No changes to negative gearing or…

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How the 2017 Budget May Affect Retirees and Pre-retirees

The announcements in this update are proposals unless stated otherwise. These proposals need to successfully pass through Parliament before becoming law and may be subject to change during this process. Over 65s will be able to make a non-concessional contribution of up to $300,000 each into their superannuation fund from the proceeds of the sale…

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How the 2017 Budget May Affect High Net Worth Individuals and Families

The announcements in this update are proposals unless stated otherwise. These proposals need to successfully pass through Parliament before becoming law and may be subject to change during this process. Growing consensus that the global economic outlook is improving Australians over the age of 65 will be able to make a non-concessional contribution of up…

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Trusts, Timing and Getting it Right

Trusts, timing and getting it right Trustees (or directors of a trustee company) need to decide on the distributions they plan to make by 30 June 2017 at the latest. It’s also important to check your trust deed – most trust deeds require resolutions to distribute trust income to be made by 30 June each…

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Access the $20k Instant Asset Write-off this Year

Why 90,000 more businesses can access the $20k instant asset write-off this year The popular $20,000 instant asset write-off for small business ends on 30 June 2017.  This concession enables small businesses to immediately write-off depreciable assets which cost less than $20,000. Until recently, this instant write-off was only accessible to businesses with an aggregated…

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Are You Paying More Tax Than You Need To?

What can you do to reduce your tax and the tax paid by your business? The answer is quite a bit, but it takes planning pre-30 June and timing is everything.  Here are our four top tips: 1. Accelerate deductions For businesses, if your cash flow is good, make the purchases you need before the…

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A Skinny-dip Into Business Technology

Meet Kent Gripske CPA, B Comm, C dec “I started as a bookkeeper in my early teens, graduated as an Accountant, learnt how to be an Auditor and became a Tax Agent”, says Carrick Aland Partner Kent Gripske. “All along the way employing technology to make my life easier.” Since joining Carrick Aland in 1999,…

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The CAWP Update Newsletter: Negative Gearing, CGT & Aged Care

Hello readers, The year seems to be hurtling along at a quick pace, in some ways it’s hard to believe it’s April. In this month’s edition, we discuss the CGT concessions available to small business owners. Our animated video explores negative gearing for wealth creation. We look at goals-based portfolio construction. With aged care services…

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Economic Update April 2017

Australian equities continued their strong run over March 2017, spurred on by a solid February reporting season and favourable global conditions. The S&P/ASX 300 increased 3.3%, outperforming international developed markets as the MSCI World ex Aus index gained 1.8% (unhedged AUD). Utilities and Healthcare were the key contributors to Australia’s performance while Materials and Telecom…

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Research and Development Tax Incentive

The research and development (R&D) tax incentive has been around for a while in various forms but it’s worth considering. The Government provides this tax offset to encourage companies to conduct R&D activities that benefit Australia. The current tax-offset rates that apply to qualifying companies are: A 43.5% refundable tax offset for companies with an…

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Employee Share Schemes Help Fast-growth Business Attract Talent

Employee share schemes, if structured correctly, can be an effective way of incentivising staff by linking personal reward to company growth. They are also very useful for fast growth start-up and innovative companies that want to attract top talent but lack the capital to compete on salary alone. Recent changes to how Employee Share Schemes…

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FBT Audits

FBT Audits and Negotiating a Suitable Settlement Having been the subject of an FBT audit – or any other type of audit for that matter – one must consider negotiating a suitable settlement of the case if circumstances allow. Further, there may also be some scope for a settlement on the level of penalties that were applied by…

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Tax Relief for Business Changing Structures

It is common for a business to outgrow its business structure. Alternatively, changes in circumstances over time might mean that a business structure is no longer as effective as it could be. Small business entities can now rollover from one business structure to another without triggering adverse implications under the income tax system. Under new…

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When Can I claim Self-education Expenses?

Normally, if you undertake study that is connected to your work you can claim the costs of that study as a tax deduction, assuming your employer has not already picked up your expenses. There is also no limit to the value of the deduction you can claim. While this all sounds very encouraging there are…

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New Carrick Aland Business Partner RB Finance

Carrick Aland partners with new, progressive finance business for holistic banking and finance services RB Finance QLD is a new and progressive finance business that focuses on providing holistic banking and finance advice and support to individuals and businesses, and with whom Carrick Aland is delighted to announce a preferred business partnership. Principal Ryan Baddock…

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State Tax Warning for Family Trusts

Recent changes to State laws may trigger a surprise tax bill for family trusts (discretionary trusts). The problem for family trusts stems from recent legislative changes in New South Wales (NSW), Victoria (VIC) and Queensland (QLD) that impose a surcharge on foreigners purchasing residential land. While that might not sound like a problem, the issue…

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QLD Farm Management Grants

Grants of up to $2,500 now available to Queensland farmers Farm Management Grants are now available to assist eligible Queensland primary producers or their relatives offset the costs of professional advice associated with succession planning. Costs eligible for the rebate include those for professional advice provided by suitably qualified professionals including for example, accountants, succession advisors or…

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Commercial Websites: Navigating Capital and Revenue Deductions

Australian businesses are increasingly adopting websites as essential sales and marketing tools. The Australian Bureau of Statistics (ABS) has reported that just under half of businesses have a web presence, and online ordering has increased, generating $286 billion in revenue in 2015. Similarly, social media engagement is trending upward, with a third of Australian businesses…

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The Update: Super Changes Coming – Are You Ready?

Hello readers, March is here, the first month of autumn. Hopefully we edge away from those volatile summer temperatures and see more stable weather. Although, in this newsletter edition we’ve decided to turn up the heat on a few hot topics in the world of personal finance. This month we review the upcoming changes to…

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What to do about Debt

Dealing with delinquent debtors is painful, particularly when you can’t afford to lose the customer. The most obvious tactic is to stay on top of debtors: Ensure that your contracts and invoices have clear payment terms, and you have a procedure to follow through once a customer breaks these terms. Importantly, ensure you keep a…

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Why Big Businesses Don’t Pay Small Business on Time

Managing the Debt Drain The critical issues for small business February and March are traditionally the worst cash flow months for small business – the Christmas rush is over, the Business Activity Statement is due, and payments slow down with a dip in consumer spending. You might be ok but your customers could be under…

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Economic Update March 2017

Following the late January 2017 waver in sentiment, it was back to good news for growth market investors over February, as markets continued along the now labelled ‘Trump rally’. Health Care and Information Technology (IT) were large contributors to the performance of global markets, while Energy and Materials contracted over the month following a period…

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FBT: Review Salary Packaging Opportunities for High-income Earners

Review salary packaging Salary packaging has been less attractive over the last few years with the higher FBT rate and restrictions being placed on some of the popular FBT concessions.  With the FBT rate changing again on 1 April 2017, it’s important to review all existing arrangements and make sure that everyone understands – employers…

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Managing the Log Book Just got Easier

Log books need to be kept by employers using the operating cost method for FBT purposes so that they can estimate and validate the business use percentage of a car.  The more personal use the more tax paid. Anyone who has been through this process knows it is time-consuming, particularly where there are multiple cars.…

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ATO Adding Tax Debt to your Credit Record

From 1 July 2017, the Australian Taxation Office (ATO) will inform credit rating agencies of businesses that have outstanding tax debts. Given 65.2% ($12.5 billion worth) of these late payers are small businesses, the move will put significant pressure on business operators to prioritise tax debt above other creditors. Announced in the Mid-Year Economic and…

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What the ATO is Targeting this FBT Year

Businesses that have bought cars and living away from home allowances Datamatching has become more sophisticated over the years to the point where there very few transactions you can make without the ATO knowing about it. While the officers at the ATO don’t go through data line by line they do look at anomalies.  These…

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What Employers Need to Know About FBT 2017

We know that no one likes to pay tax and certainly no more tax than they should. But very few people want to be on the wrong side of an Australian Taxation Office (ATO) audit where fees and penalties are paid for neglecting your obligations. The Fringe Benefits Tax (FBT) year ends on 31 March…

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The FBT Rate is Changing

The FBT rate will decrease on 1 April 2017 The rate change is because of the 2% Debt Tax (Temporary Budget Repair Levy) on high-income earners which imposes a 2% levy on every dollar of a taxpayer’s annual taxable income over $180,000 from 1 July 2014 until 30 June 2017. The FBT rate was brought…

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Penalty Rates and the Impact of Change

The Fair Work Commission (FWC) has moved to cut Sunday and public holiday penalty rates. The changes to penalty rates are not yet in force – see When will the changes take effect? Flagged back in 2014, the review into penalty rates was part of the FWC’s four-yearly review of all Modern Awards. Hearings, submissions and…

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Daniel Bartkowski CPA, B Comm

CPA, Daniel Bartkowski, is a Carrick Aland Client Manager who works with all the partners to look after key relationships with clients. Daniel originally joined the team as part of Carrick Ashmead. He has always enjoyed tinkering with numbers and followed his calling into the profession. He believes the combination of his time at Carrick…

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Year End Tax Planning Reminder

Your 2016-2017 taxation estimate In the past many of our clients have found that an analysis of their tax position prior to 30 June can be very useful. Not only from a forward-planning point of view, but also because such an analysis at this time of the financial year gives rise to an opportunity of…

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TRUSTEES Important Planning for your Trust before 30 June

Trustee responsibilities Trustees are required to have made a determination or trustee resolution as to the definition of income, any streaming of that income and the allocation of income to beneficiaries of the trust by 30 June or the year to which the resolution applies. This means that a review of the income of the…

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Employing Someone on a 417 or 462 Visa?

Things have changed for working holiday makers. From 1 January 2017 they now pay 15% tax on all income up to $37,000 after which foreign resident tax rates apply. This means that things have changed for the employers of working holiday makers. Where you have existing employees prior to 31 December and who are continuing…

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Economic Update January 2017

Following a period of equity market momentum fuelled by expected fiscal stimulus at the hands of President Trump, risk sentiment tapered towards the end of January 2017 as uncertainty surrounding political promises gathered. As such, equity markets gave back some of the November and December 2016 gains and bond markets were able to benefit late…

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‘International’ is Still a Dirty Word

Australia’s residency tests don’t necessarily work on ‘common sense’. Just because you work outside of Australia for a period of time does not mean you are not a resident for tax purposes. And, for those with international investments, it’s important to understand the tax status of earnings from those assets. Just because the asset and…

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For Business: Innovate or Perish

Part of this is the Chinese Government’s concern about investment outflows (Australia has been a significant beneficiary with Chinese Direct Foreign Investment growing by 72.5% over 2010-15). One of the most alarming statistics comes from the Boston Consulting Group Global Manufacturing Cost-Competitiveness Index. The BCG analysis demonstrates that Australia was the least competitive of the top…

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Pride & Prejudice: Top 3 Predictions for 2017

1. Trumponomics will impact on our region Business is business – either an opportunity makes sense or it doesn’t. The biggest pressure from the new US President is unlikely to be the much discussed Trans-Pacific Partnership (Australia’s current Free Trade Agreement with the US (AUSFTA) has been in place since 2005), or President Trump’s controversial…

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Protect Your Business Goods and Register Your Interest

Registering your business goods and interest is good risk management. The Australian Financial Security Authority has released a new Personal Properties and Securities Register (PPSR) business guide to help business owners better understand the PPSR and how it can protect their business. What is the PPSR? The PPSR is a 24/7 national online register that…

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The Update: Start 2017 Off on the Right Financial Foot!

Start 2017 off on the right financial foot! In the first edition of the Wealth Planning Update for 2017 our goal is to help you make and keep Financial New Year’s Resolutions that will put you on track to achieving your goals and give you peace of mind! Check it out at the link: Click here

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Deadline for Current Backpacker Employers Fast Approaching

From 1 January 2017, the working holiday maker tax rate, also known as the backpacker tax, of 15 per cent applied from the first dollar earned to any workers with 417 and 462 visas. Assistant Commissioner Michael Gleeson said that employers of working holiday makers must register with the ATO and check their worker has…

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Taking ‘Reasonable Care’ with Your Tax?

It is important to take reasonable care when complying with your tax obligations. The ATO has steadily increased the amount of analysis, reviewing and auditing it does in relation to individual and business tax self-reporting. In some circumstances this activity has revealed that taxpayers have a tax shortfall; that is, they have not paid enough…

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Economic Update December 2016

The market continued its positive form over December 2016 following the initial panic and rebound triggered by Republican candidate Donald Trump’s successful election victory in November. Attention is now drawn to the impact of the President Elect’s possible policy initiatives, which have the potential for both negative and positive market outcomes. Trump’s rhetoric from his…

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The Update: Merry Christmas!

The last edition of The Update for 2016! This month we look at building your personal finance team, retirement investing, TPD insurance, Advanced Care Directives and Donald Trump. We also discuss the importance of checking your superannuation balance regularly, and finish up with a helpful checklist to make sure you start the new year on…

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Economic Update November 2016

Against many expectations, Republican Party candidate, Donald Trump, won the United States (US) election. Following an initial bout of sell-offs, many developed share markets calmed after the election as Mr Trump’s victory speech of unity instilled confidence ahead of his induction in the New Year. Equity markets and commodities rallied on the back of expectations…

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Taxman Treatment of Serious Hardship Cases

Serious hardship exists when payment of a tax debt would leave you unable to provide basic living necessities for yourself and your dependants. The Tax Commissioner has the discretion to release you from eligible tax debts. However, the Tax Commissioner is not obliged to exercise the discretion in your favour, even if he is satisfied…

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Royalty Withholding Rules when Outsourcing

Australian businesses looking to outsource offshore need to be aware of the royalty withholding rules under the tax law. Depending on the substance of an Australian business’s contracts for services, agreements could create a royalty withholding obligation. It is therefore important for businesses to distinguish between payments for services and royalty payments. This article gives…

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Would you Buy a House with Friends or Relatives?

The Housing Industry Association shows that it now takes 2.04 average full-time salaries to comfortably service a standard mortgage on a median priced detached house in Sydney. So why not pool your assets? The tax issues Capital Gains Tax applies to any change of ownership of a CGT asset, unless the asset was acquired before…

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Christmas Party Fails

Getting beyond merry: parties and alcohol An employee has a few drinks before the work Christmas party, is served and helps himself freely to alcohol during the party, and then retires to a public bar with a few colleagues. This scenario sounds normal for many work Christmas parties. But, in his wake, this employee apparently…

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Super Changes Receive Royal Assent

Super changes The changes to the superannuation (super) system, announced by the Australian Government in the May 2016 Budget have now received Royal Assent. These changes were designed to improve the sustainability, flexibility and integrity of Australia’s super system. Most of the changes will commence from 1 July 2017. Your super is your future –…

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Holiday Home Owners: Take Note of ATO Scrutiny

The ATO is increasing its focus on holiday home investors and, in particular, whether they are correctly claiming deductible expenses. In the past, the ATO has written to taxpayers reminding them to only claim the deductions they are entitled to, for the periods the holiday home is rented out or is genuinely available for rent.…

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Economic Update October 2016

October 2016 saw a turnaround from recent market trends as expectations rose for a rate climb in the United States (US) and inflation showed signs of firming. Global bond returns were weak, and growth markets failed to pick up the slack; instead displaying signs of investor timidity and uncertainty. AUSTRALIAN EQUITIES The Australian equity market…

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Payroll Tax Grouping: Know the Rules

The payroll tax grouping rules are complex and many employers across Australia are not aware of their existence or of employers’ obligations under these rules. The rules require employers to group the payroll tax liabilities of the businesses they control, deeming those businesses to be a single entity for payroll tax purposes. Wages of the…

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Applying for a GST Private Ruling

An entity may obtain a GST private ruling to provide certainty about how a GST provision applies to that entity’s particular circumstances. Before making an application for a GST private ruling, an entity should consider the following issues. Application must be in approved form The application must be made in the approved form. The application…

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Instant Asset Write-off: Buying a Car for Your Small Business

A small business entity purchases a vehicle for $22,500. The purchase price includes GST, registration, compulsory third party (CTP) insurance and stamp duty. The GST component of the purchase price is $1,960 and the registration and CTP component is $1,300. Does the vehicle qualify for the $20,000 instant asset write-off? The $20,000 threshold applies to…

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GST Treatment of Credit Card Surcharges

GST Ruling GSTR 2014/2, issued by the ATO, explains the goods and services tax (GST) treatment of a surcharge imposed by a merchant on a customer in respect of a credit card transaction concerning supplies of goods or services by the merchant to the customer. According to the ruling, a credit card surcharge imposed by…

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Work-related Deductions Still on ATO Compliance Hit List

Expenditure you incur as an employee in the course of your employment is generally deductible under the tax law. However, the ATO is aware that not all claims are genuine or made correctly, and has warned that it is becomng easier for it to detect noncompliant expense claims. In the past, the ATO has paid…

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Travellers with Student Debts Must Give Contact Details to ATO

Australians with a Higher Education Loan Programme (HELP) debt and/or a Trade Support Loans (TSL) debt who are moving overseas for longer than six months will need to provide the ATO with their overseas contact details within seven days of leaving the country. The requirement follows recent legislative changes. ATO Assistant Commissioner Graham Whyte has…

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Claiming Mobile, Home Phone and Internet Expenses

The ATO has released information on claiming deductions for mobile, home phone and internet expenses for work purposes. The following are some key points made by the ATO. Substantiating claims Taxpayers need to keep records for a four-week representative period in each income year to claim deductions of more than $50. These records may include…

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Protect Your Business from False Billing Scams

Small business owners should constantly be alert for scams involving false billings. Small businesses are a particular soft target as scammers recognise they are busy and have fewer resources than larger businesses. False billing scams include attempting to trick busy businesses into paying for unwanted or unauthorised listings or advertisements in magazines, journals or business…

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Impact of GST on Stamp Duty and Land Values

In a development that was criticised at the time, many of the Australian states and territories legislated to ensure that stamp duty was imposed on the GST-inclusive value of dutiable instruments. This clearly results in greater stamp duty than if it were imposed on a GST-exclusive basis. The prospect of higher stamp duty may increase…

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ATO Data matching and Industry Benchmarking Programs

Data matching enables the ATO to compare amounts shown in people’s income tax returns and activity statements with data from external sources such as other government departments, meaning it can quickly identify taxpayers who might not be complying with their tax obligations. Data matching can also help to identify taxpayers who are not (but should…

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Employee or Contractor? Know the Key Indicators

The growing need for workforce flexibility and to reduce business costs means that the line between an employer/employee relationship and a principal/independent contractor relationship is often blurred. It is important for businesses to correctly classify their employment relationships, given the marked difference in employer obligations when engaging an independent contractor rather than an employee. This…

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Carrick Aland Can’t Wait for this Smart Cookie in 2017!

Carrick Aland Accountants in Dalby were thrilled to help our school-based member of the team, Lachlan ‘Lachie’ Monaghan, to celebrate when he was recognised for academic and sporting achievement at the OLSCC Awards 2016! Lachie was awarded prizes for Maths A, Accounting and Religion, as well as a Bronze Sports Award. He topped it off with a…

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What’s Involved in Selling your Business? Part 2

Selling your business can be a stressful time and unless you’ve done it before, it’s hard to know what to expect or what’s required to get the right result. We’ve put together the top issues for business owners or investors to maximise their results. Control the flow of information During the sale process it’s not unusual…

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What’s Involved in Selling your Business? Part 1

Selling your business can be a stressful time and unless you’ve done it before It’s hard to know what to expect or what’s required to get the right result, so we’ve compiled the top issues for business owners or investors to maximise their results. Understand what you are selling and the tax implications What you…

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Parental Leave. Where are we up to?

How did paid parental leave get to be so contentious? The current debate is not about parental leave in general; the entitlement to 12 months with a potential for 24 months of unpaid leave with your job guaranteed (or an equivalent position) remains. It’s about who pays for paid leave. According to a recent report,…

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Economic Update September 2016

Despite many markets finishing relatively flat for September 2016, there was still plenty for investors to contend with during the month. The Bank of Japan unveiled possibly the biggest news to the market in September, releasing its plan to target 0% for the 10-year JGB yield and an intention to overshoot its 2% inflation target.…

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Carrick Aland Congratulates 2016 Dalby BEA Winners

Carrick Aland Accountants were proud to be sponsors at the Dalby Business Excellence Awards (BEA) and gala dinner ceremony held Saturday 15 October at Dalby Showground Pavilion. Carrick Aland, sponsors of the Home-Based business category, were thrilled to hand the award to the People’s and Judge’s Choice recipients, Dalby’s DanZFit with Ness. On giving out the…

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Purchasing Real Property: New Withholding Tax Obligations

The new foreign resident capital gains withholding (FRCGW) regime, as it is commonly known, has been operating since 1 July 2016. This new measure is contained in Subdiv 14-D of Sch 1 to the Taxation Administration Act 1953 (TAA 1953) and imposes withholding obligations on purchasers of certain Australian CGT assets. Broadly, for transactions entered…

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