Where to next?

This is what we’re asked by many people and the reason why our clients chose Hayes Knight.

Our clients know we are good at the fundamentals – accounting, tax compliance, and audit – but they come to us because not only are we good at the fundamentals, we have the expertise to help them identify, structure, and secure, their future … their next step.

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Are big companies getting a better tax deal than you? And how you can fight back

Hauled in before a Senate enquiry, media mogul Kerry Packer famously said, “Of course I am minimising my tax. And if anybody in this country doesn’t minimise their tax, they want their heads read, because as a government, I can tell you you’re not spending it that well that we should be donating extra!”

The Tax Justice Network – Australia, recently created headlines when they released a report into the practices of the top 200 ASX listed entities ahead of the G20 summit. The report revealed that:

  • Nearly 1/3 have an average effective tax rate of less than 10%
  • 57% have subsidiaries in tax havens or low taxing jurisdictions
  • 60% report debt levels in excess of 75% of equity.

What this equates to is that 29% of ASX listed entities have an effective average annual tax rate of 10% or less and 14%, including James Hardie, have an effective tax rate of 0%.

21st Century Fox has a reported 117 subsidiaries in tax havens or low taxing jurisdictions. Responding to the headlines Mr Murdoch tweeted “NO tax avoidance by News, Fox or any Murdochs in Australia. Courts ruled, so move on!”

Tax is like any other cost in your business. It should be managed effectively so you don’t pay any more than you need to.  More >>>

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What happened to all of those Budget cutbacks?

If you’re confused about what happened to all of those announced Budget cutbacks then you’re not alone. Many of the Government’s initiatives are stalled in the Senate awaiting final negotiation.

Here’s a quick summary of where everything is up to:

What’s changed?

  • 2% debt tax on high income earners from 1 July 2014 (and FBT rate increase from 1 April 2015)
  • Superannuation guarantee rephased – now SG will remain at 9.5% until 1 July 2021
  • Mining tax repealed
  • The company loss carry back rules 
abolished
  • The instant asset write off threshold of $6,500 for small business entities under the simplified depreciation rules 
has reduced back to $1,000 from 1 January 2014
  • The accelerated deduction of $5,000 for motor vehicles has been removed from 1 January 2014
  • Schoolkids bonus repeal – moved to 31 December 2016 and a means test applied until the repeal date
  • Low income superannuation contribution repeal delayed until the 2017/2018 financial year onwards
  • Income support bonus repeal delayed until 31 December 2016

What’s still up for debate? >>>