http://www.trilogygroup.com.au/ Mon, 18 Jun 2012 09:46:18 Trilogy Professional Group Articles http://www.trilogygroup.com.au/articles/Changes-to-Private-Health-Insurance-Rebate.html http://www.trilogygroup.com.au/articles/Changes-to-Private-Health-Insurance-Rebate.html From 1st July, 2012 the private health insurance rebate and Medicare levy surcharge will be income tested against the income thresholds in the table below.      Unchanged Tier 1 Tier 2 Tier 3 Singles $84,000 or less $84,001-$97,000 $97,001-$130,000 $130,001 or more ... http://www.trilogygroup.com.au/articles/Hasta-la-vista:-when-you-should-exit-your-business.html http://www.trilogygroup.com.au/articles/Hasta-la-vista:-when-you-should-exit-your-business.html Hasta la vista: when you should exit your business Knowing the right time to exit your business is more important than the decision to start one up. When you start a business it’s often with an idea, a limited amount of capital, and a load of enthusiasm. By the time the business has grown and developed, it is likely to be worth far more than at the start.  But, a lot of business owners get the exit decision... http://www.trilogygroup.com.au/articles/5-Simple-Ways-to-Manage-Your-Tax-Downwards.html http://www.trilogygroup.com.au/articles/5-Simple-Ways-to-Manage-Your-Tax-Downwards.html Look at any company that is in financial trouble and you will probably see the Tax Office as one of the larger creditors.  The reality is that we all pay a lot of tax - some of it income tax, some withholding tax, PAYG instalments and GST.  There are two fundamental principles to managing taxation: 1. Don’t pay any more than you have to; and 2. Don’t pay it before you need to. Famously,... http://www.trilogygroup.com.au/articles/FBT---What-You-Need-to-Know-in-2012.html http://www.trilogygroup.com.au/articles/FBT---What-You-Need-to-Know-in-2012.html The FBT year runs from 1 April to 31 March.  FBT is one of those areas that many employers struggle with; not because the tax is complex but because of the level of detail required to fulfil your obligations. How do I know if I need to pay FBT? If you are not sure whether you are providing fringe benefits to your employees, here are some key questions you should ask yourself: • Do you make vehicles owned by... http://www.trilogygroup.com.au/articles/What-is-the-PPS-Register?.html http://www.trilogygroup.com.au/articles/What-is-the-PPS-Register?.html You might have heard the advertising about the Personal Property Securities Act (PPS Act) and the national register that opened on 30 January 2012.  But with a title like that it’s easy to think that the Act and the register are not something that the majority of us need to worry about.   But, if you intend to: borrow money against an asset; provide goods on consignment or on credit; supply goods... http://www.trilogygroup.com.au/articles/Is-the-Tax-Commissioner-one-of-Australia's-most-powerful-people?.html http://www.trilogygroup.com.au/articles/Is-the-Tax-Commissioner-one-of-Australia's-most-powerful-people?.html Is the Tax Commissioner one of Australia’s most powerful people?   Last month, the Government announced that they intend to give the Commissioner of Taxation up to 60 days to hold activity statement refunds – including GST and other indirect taxes such as luxury car tax, wine equalisation tax, etc. - while verifying the claims made.  For many businesses, waiting for up to an extra 60 days for the... http://www.trilogygroup.com.au/articles/The-Second-Coming-of-the-GFC?.html http://www.trilogygroup.com.au/articles/The-Second-Coming-of-the-GFC?.html Much has been made in the media about Australia surviving the global financial crisis (GFC) or Eurogeddon as some of the finance crowd labelled it.  On the ground however, the headlines concealed the reality of a patchwork economy where some industries pushed ahead while others were flailing in a sea of weakening consumer confidence, heavy discounting, tight lending conditions, and billowing debt cycles.   ... http://www.trilogygroup.com.au/articles/Tips-for-Improving-Cashflow.html http://www.trilogygroup.com.au/articles/Tips-for-Improving-Cashflow.html Even if you have not prepared your Cashflow budget you may get benefit from some of these suggestions which are by no means a complete list of actions you may take. Accelerate Your Cash Inflow from Customers Review your customers' credit history before the sale is made Consider whether you can reduce your trading terms Ensure your follow up of past due customer payments is swift and effective Issue... http://www.trilogygroup.com.au/articles/Investment-Property-Deductions.html http://www.trilogygroup.com.au/articles/Investment-Property-Deductions.html Investment Property Deductions You can claim a deduction for certain expenses you incur for the period your property is rented pr is available for rent. Some expenses can be claimed as an immediate deduction and others can be claimed over a number of income years. Immediate Deduction Expenses: advertising for tenants bank charges body corporate fees and charges cleaning council rates ... http://www.trilogygroup.com.au/articles/Improving-Cashflow-for-Property-Investors.html http://www.trilogygroup.com.au/articles/Improving-Cashflow-for-Property-Investors.html One way in which a property investor can improve cashflow is by lodging a PAYG variation. A PAYG variation is an application to the ATO requesting that your employer reduce the amount of tax withheld from your regular salary or wage payments, to reflect the expected rental loss from your investment property. This is effectively a way of reducing the amount of tax you pay each payroll cycle, rather than receiving a large lump sum refund... http://www.trilogygroup.com.au/articles/Tax-Depreciation---An-Investors-Delight!.html http://www.trilogygroup.com.au/articles/Tax-Depreciation---An-Investors-Delight!.html If you own an investment property then the Australian Taxation Office (ATO) will usually allow you to claim a tax deduction for depreciation. Depreciation of investment properties include: As a general rule any property constructed after 18 July 1985 (residential) and 20 July 1982 (non-residential) is eligible for capital works allowance; If refurbishment or renovation works have been undertaken since 18 July 1985 (residential)... http://www.trilogygroup.com.au/articles/How-Do-I-Know-How-Much-My-Business-Is-Worth?.html http://www.trilogygroup.com.au/articles/How-Do-I-Know-How-Much-My-Business-Is-Worth?.html Business owners are often so invested in their business they lose sight of what the value of their business really is.  If you put your heart and soul, and sweat and tears into the business you expect it will be worth the effort. If you own a publicly listed company or an interest in one, you know what the market says your interest in that business is worth on any day of the year.  A private business is very... http://www.trilogygroup.com.au/articles/Making-Your-Investments-Successful.html http://www.trilogygroup.com.au/articles/Making-Your-Investments-Successful.html Did you know Australia not only has one of the highest home ownership rates in the world but it also has one of the highest investment rates in the world? Last year more than 1.4million people claimed rental deductions against their tax returns. The ATO says more than $25billion was claimed in deductions on rental properties making real estate one of the largest sources of claims. One of the biggest expenses claimed is interest... http://www.trilogygroup.com.au/articles/Land-Tax---The-Facts.html http://www.trilogygroup.com.au/articles/Land-Tax---The-Facts.html Land Tax is something we have written about previously this year but it is an area that we have considerable enquiries about so we thought we would provide information on the most frequently asked questions: What is Land Tax? It is an annual state government tax payable by the owner of the land. It is imposed in all states and ACT but not the Northern Territory. Each state and territory administers its own land tax laws. The laws are... http://www.trilogygroup.com.au/articles/Mine-Or-Yours?-Taking-Cash-Out-of-Your-Business.html http://www.trilogygroup.com.au/articles/Mine-Or-Yours?-Taking-Cash-Out-of-Your-Business.html The Tax Office is very interested in the way business owner’s access money from their businesses.  Trusts are currently in the spotlight. A common approach utilised by many businesses with a discretionary trust is to distribute income to a company, pay tax at the corporate tax rate but leave the distribution in the trust for use by the business owners.  In effect, the distribution only occurs on... http://www.trilogygroup.com.au/articles/Getting-Your-Finances-In-Order---Preparing-A-Will.html http://www.trilogygroup.com.au/articles/Getting-Your-Finances-In-Order---Preparing-A-Will.html What do you want to happen to your estate when you pass away? This is the very simple question that, hopefully leads you to a series of other very simple, yet important, questions. Do you have a Will? When did you last review it? Has anything changed since then? Here are some helpful tips: you should advise your Executor of the whereabouts of your Will if you marry after the date of making your Will, it will be... http://www.trilogygroup.com.au/articles/Preparing-For-Sale---Keeping-It-Neutral.html http://www.trilogygroup.com.au/articles/Preparing-For-Sale---Keeping-It-Neutral.html A full renovation of your home before putting it up for sale might not always be the best idea.  Maybe all that’s needed is a little clever decorating to get that potential buyer over the line.  The big question to ask is will a renovation add extra value?  Or will you spend too much money renewing the kitchen and bathrooms which you can never hope to recover.  Admittedly, it might make the... http://www.trilogygroup.com.au/articles/When-Does-a-CGT-Event-Occur-In-the-Sale-of-Real-Estate?.html http://www.trilogygroup.com.au/articles/When-Does-a-CGT-Event-Occur-In-the-Sale-of-Real-Estate?.html The most common Capital Gains Tax (CGT) event that happens to real estate is its sale or disposal. The time of the event is: when you enter into the contract for the disposal if there is no contract – when the change of ownership occurs, or if the asset is compulsorily acquired by an entity; the earliest of : when you received compensation from the entity when the entity became the asset's... http://www.trilogygroup.com.au/articles/Changing-Rules-for-Trusts.html http://www.trilogygroup.com.au/articles/Changing-Rules-for-Trusts.html A lot of family businesses use discretionary trust structures.  These have been popular because they provide both a level of risk management, separating the business from your personal assets, and are also quite tax efficient.  A discretionary trust allows the trustee to appoint the income of the trust (this is typically the profit of the business) to any of its beneficiaries in the proportions that it determines from... http://www.trilogygroup.com.au/articles/Thinking-About-a-Self-Managed-Super-Fund-(SMSF)?.html http://www.trilogygroup.com.au/articles/Thinking-About-a-Self-Managed-Super-Fund-(SMSF)?.html Managing your own super is a big responsibility. There are strict rules that govern how you can use a self-managed super fund (SMSF), how you can invest your money and when you can get at it. If you want to manage your own super, there are many factors you need to consider. To work out whether an SMSF is right for you, it's important you take the       following six steps: ... http://www.trilogygroup.com.au/articles/ATO-Benchmarks---What-You-Need-To-Know.html http://www.trilogygroup.com.au/articles/ATO-Benchmarks---What-You-Need-To-Know.html The ATO use industry benchmarks to assess business performance and will take a closer look at businesses that fall outside of these benchmarks.  But what happens if you have a niche business or have unusual trading conditions that mean you will almost never fall within these benchmarks? This is the major problem with the current benchmarking approach. The ATO has a huge data base of information on business performance. When... http://www.trilogygroup.com.au/articles/Social-Media---The-Good,-The-Bad-&-The-Ugly.html http://www.trilogygroup.com.au/articles/Social-Media---The-Good,-The-Bad-&-The-Ugly.html Social media allows every comment, word, thought, and rant of an individual to be accessible to the world.  Everyone can have a say and much of what is said is often given credence regardless of the source or weight of evidence.  At its best, social media gives every David a forum to beat Goliath.  At its worst, the faceless pseudonym driven world of social media can be used to destroy reputations or spread... http://www.trilogygroup.com.au/articles/Directors-Face-Greater-Scrutiny.html http://www.trilogygroup.com.au/articles/Directors-Face-Greater-Scrutiny.html Draft legislation released last month will see Director’s become personally liable for the superannuation guarantee (SG) payments of employees.  The change is part of a suite of reforms designed to target phoenix companies but the reforms, if enacted, will have a much broader impact.  A phoenix company is the deliberate liquidation of a company to avoid paying liabilities including employee... http://www.trilogygroup.com.au/articles/How-To-Sell-Your-Business.html http://www.trilogygroup.com.au/articles/How-To-Sell-Your-Business.html We’re often asked the best way to sell a business. There are two key components at play in the sale of a business: structuring the transaction; and, positioning the business to the market. Both elements are important and can significantly impact your result. Structuring the transaction covers things such as pricing the business, the terms and conditions attaching to the sale, key terms in the contract, and ensuring the... http://www.trilogygroup.com.au/articles/5-Tips-to-Get-Great-Referrals.html http://www.trilogygroup.com.au/articles/5-Tips-to-Get-Great-Referrals.html As we all know, word of mouth is the best form of advertising and of course, the most cost effective. The following are 5 factors to considers to get more word of mouth referrals for your business: Communication - contact with your customers must be courteous  and knowledgeable which goes without saying but   it is important to remember it is also communication with everyone who comes into contact with... http://www.trilogygroup.com.au/articles/The-Ups-&-Downs-of-Christmas-Marketing.html http://www.trilogygroup.com.au/articles/The-Ups-&-Downs-of-Christmas-Marketing.html The Christmas decorations started going up in shops just after Father’s Day in September.  If it gets any earlier we’ll be experiencing Christmas in July. As many client focussed businesses know, Christmas has a psychology of its own.  Christmas, and the embedded message of gift giving (code for ‘spending’), is stretching well beyond the traditional Christmas months. For... http://www.trilogygroup.com.au/articles/Buying-A-Business---More-Than-Just-The-Sale-Price.html http://www.trilogygroup.com.au/articles/Buying-A-Business---More-Than-Just-The-Sale-Price.html If you thought reaching an agreement on price was difficult, wait until you get to the fine details of buying or selling a business. So you’ve reached an agreement on price.  But, there are differences between the parties on how the sale price should be apportioned across different assets. A solution that’s sometimes proposed is to simply show the sale price on the contract and let both sides manage... http://www.trilogygroup.com.au/articles/What's-The-Difference-Between-Price-&-Value?.html http://www.trilogygroup.com.au/articles/What's-The-Difference-Between-Price-&-Value?.html You are looking to buy a small business.  You see something you are interested in:  right industry, right location but is it the right price? In today’s market everyone is looking for a bargain.  The difficulty in assessing the price of a small business is that there may not be a lot of ready comparisons available in the market.  If you are looking to buy a business where there is a large and... http://www.trilogygroup.com.au/articles/Property-&-SMSFs---Loosening-The-Rules.html http://www.trilogygroup.com.au/articles/Property-&-SMSFs---Loosening-The-Rules.html If your SMSF has borrowed money (or thinking of borrowing money) to acquire ‘bricks and mortar’ property then there are a few things you need to know. A new ATO ruling released last month helps to clarify what you can and can’t do with property that is under a limited recourse borrowing arrangement (LRBA).  The ruling addresses three key areas: • Under the borrowing rules in the... http://www.trilogygroup.com.au/articles/What-Does-R&D-Tax-Credit-Offer-You?.html http://www.trilogygroup.com.au/articles/What-Does-R&D-Tax-Credit-Offer-You?.html Australia has progressively fallen behind in the Global Innovation Index for the last few years.  Last year alone, Australia slipped three places from 18 to 21 (Switzerland, Sweden and Singapore were the top performing countries).  Boosting innovation is a question that has plagued the Government for some time and the restructuring of the research and development incentives is an attempt to better target and encourage... http://www.trilogygroup.com.au/articles/Paid-Leave-for-Dads.html http://www.trilogygroup.com.au/articles/Paid-Leave-for-Dads.html If the Government holds on to power, Dads will qualify for two weeks paid parental leave from 1 January 2013. Like the existing paid parental leave scheme, the ‘Dads and Partner Pay’ is paid at the minimum wage - currently $589.40. The payment applies to Dads and partners sharing the care of a new born (including adopting parents and same sex couples).  The payment is likely to be administered by the... http://www.trilogygroup.com.au/articles/Juggling-Your-Tax-Losses.html http://www.trilogygroup.com.au/articles/Juggling-Your-Tax-Losses.html We are often asked whether it’s possible to offset a loss in one company against the profit in another.  The answer is that there is no automatic way of offsetting losses and profits between your companies.  Most people try to manage a situation like this by putting through charges between the companies after year end (for example, a charge from the profit making company to the loss making company for... http://www.trilogygroup.com.au/articles/5-Tips-to-Differentiate-Your-Business.html http://www.trilogygroup.com.au/articles/5-Tips-to-Differentiate-Your-Business.html Focus on the customer experience.  What’s it really like dealing with your business?  Do a blind test and see whether your business and your team really want customers and sales. For most businesses, you’re not delivering a product/ service, your delivering an experience. What do your customers really want and can you give it to them and still make a profit?  Starbucks closed 61... http://www.trilogygroup.com.au/articles/Preparing-for-the-Rollercoaster-Ride.html http://www.trilogygroup.com.au/articles/Preparing-for-the-Rollercoaster-Ride.html Standards and Poors has downgraded America’s AAA credit rating, local and international markets are volatile and easily spooked, picking changes in interest rates is more akin to crystal ball gazing, the carbon tax is coming, consumer sentiment remains tight and no one is feeling particularly confident. Welcome to the 2011/2012 financial year. Over the next 12 months business will be working with a range of domestic and... http://www.trilogygroup.com.au/articles/FBT---Things-You-Should-Know.html http://www.trilogygroup.com.au/articles/FBT---Things-You-Should-Know.html The FBT year runs from 1 April to 31 March.  FBT is one of those areas that many employers struggle with; not because the tax is complex but because of the level of detail required to fulfil your obligations. A problem area: Reportable superannuation contributions Reportable superannuation contributions need to be disclosed on employee payment summaries.  The need to report reportable superannuation contributions...