Small business plays a central role in Australia's economic fortunes - so much so that the government has seen fit to give smaller enterprises a break on a range of tax considerations, including specific concessions for capital gains tax. Make sure you qualify - and if you do, make sure you don't miss out.
Thousands of Australians head overseas each year to work, but there is often confusion about one's residency status while doing so, and the tax implications that can arise. We run through the variables and clarify the issues.
There are self-managed superannuation funds (SMSFs), but another option for your retirement savings are small APRA funds (SAFs). We look at the differences, and the similarities, to see which one suits your circumstances. Also covered this month; the R&D Tax Incentive, the ATO's small business compliance "hit list", and how self-funded retirees can still get a concession card.
Should you require more information regarding any topic touched upon in this newsletter, please feel free to contact our office for personal advice.
Please CLICK HERE to open our Client Information Newsletter - October 2012 edition, which covers the following:
Going overseas? Your residency Status & tax:
If you have the opportunity to travel overseas for employment you need to be aware of the tax implications of your move. Australian residents are taxed on their worldwide income, whereas non-residents are taxed only on Australian-sourced income. In cases where an Australian goes overseas for employment, even for some years, the maintenance or relinquishment of resident status can be a key factor in maintaining a favourable, or otherwise, tax outcome. We outline the tax issues surrounding your residency status.
Are self-funded retirees entitled to a concession card?:
The Commonwealth Seniors Health Care Card can give self-funded retirees who do not qualify for a government Age Pension the entitlements that others receive from the Pensioner Concession Card. We outline the criteria for self-funded retirees to be eligible to apply for this card from Centrelink.
Small business CGT concessions:
the Federal government has provided small businesses with a range of tax concessions including a number relating to Capital Gains Tax (CGT). Many small business operators commit private capital to their business ventures. By limiting the tax liability attached to certain capital gains, the concessions will help business owners either expand or otherwise change their operations or to fund retirement. We outline & explain the 4 CGT related tax concessions that can be used by a business who qualify as a "small business entity".
R & D Tax Incentive:
The government's Research & Development (R & D) tax incentive offers businesses a way to get back come of their R & D spend. We provide you with "tips" on how to apply for the incentive.
SMSF or SAF: Which super fund option suits you? An Self Managed Superannuation Fund (SMSF) and a Small APRA Fund (SAF) are highly similar except for two pivotal facts - SMSFs are regulated by the Tax Office and SAFs are regulated by the Australian Prudential Regulatory Authority. We examine the benefits of both types of funds.
Should you require more information regarding any topic touched upon in this newsletter, please feel free to contact this office for personal advice.