Having an online presence can be essential for many businesses, especially as nowadays most consumers hit the keyboard first when looking for services or supplies. But the proper tax treatment of the expenditure in setting up and then running a website require careful consideration.
With SMSFs we run over all the information and requirements generally expected from trustees at tax time. As well, there are some new obligations SMSF trustees will need to be aware of and cover.
You may have heard of the Tax Office's performance benchmarks, so it could be helpful to get to know how the Tax Office uses industry benchmarks - and how to stay under the benchmark radar. We run through the mechanics. There has also been a delay, again, of reform to the taxation of trusts income.
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 - September 2012 edition, which covers the following:
Paid Paternity Leave set to become a reality:
The Government's newly legislated Dad and Partner Pay provides fathers - including adopting parents and parents in same sex couples - with two weeks paid paternity leave. We provide you with the details of this new legislation which becomes effective from January 1, 2013.
Tax and your business's website costs:
The internet can be a crucial tool for small business, and many businesses are essentially just 'online' enterprises (no web, no business). The costs involved in creating, running and maintaining a website can vary greatly, and estimating the the financial side of website development can be far from straightforward. Similarly, the tax treatment of these costs can also be nowhere near straightforward. From a tax treatment point of view, the sticking point with website expenditure is determining whether such costs are essentially of a 'capital' nature, or operational outgoings. We analyse the various components of websites to determine how the expense may be treated from a tax point of view.
Business performance benchmarks:
The Tax Office's business performance benchmarks provide a snapshot of an average business by providing a measure of costs and income that the Tax Office would normally expect a business to report when operating in a particular industry. So far benchmarks have been developed for small businesses in over 100 industries. We explain how the benchmarking system works and how to stay under the benchmark radar.
Choosing the right business structure:
Starting out in business means you have to make the important decision of what type of business structure suits your needs the best. We examine the four basic business structures of - sole trader, partnership, company or trust to help you determine the most appropriate business structure for you to operate under.
SMSF tax return: Individuals and self-managed superannuation funds (SMSF) trustees alike are often embroiled in a race to finish their annual returns for lodgement by October 31 - however, if we prepare and lodge your SMSF tax returns you have until May 15, 2013 for them to be lodged with the Tax Office. The deadline of October 31 will only apply to your SMSF if we prepare your tax return and for some reason you have still not finalised and lodged your 2011 tax return. We explain some new obligations that have been imposed on trustees which are intended to address potential risks and strengthen the SMSF framework.
Should you require more information regarding any topic touched upon in this newsletter, please feel free to contact this office for personal advice.