2010/2011 Need to Know – Watch your funding mix
If you have borrowings, take some time to review them to ensure that you have adequate funding for the coming year and the mix is right. Banks are lending, but with caution. A key criteria is whether the management of the business appears to be in control.
Loan applications made on an urgency basis or unexpectedly will get a tougher treatment than a business that identifies their requirements well in advance. Explaining why the funds will be required, how long they will be needed for, and the basis on which they can be paid, will advance your cause.
2010/2011 Need to Know – Mine or yours? Taking cash out of and into your business
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 paper. Owners then use the distribution as working capital to fund growth, or in some cases, to fund personal assets. The Tax Office intends to tax any of these distributions that remain within the trust (called unpaid present entitlements) under Division 7A.
FIND OUT MORE
2010/2011 Need to Know – Honeymoon over for SMSF
Over the last 12 months there has been a myriad of new interpretations and legislative tinkering to ensure that no one can take their superannuation early or use it for a purpose other than retirement. The key things to watch out for are:
- Any scheme or plan that allows you to take your superannuation early.
- Make sure that you know what you can contribute to your super and how much you can contribute. If you accidently put too much into your fund, you cannot simply take it back out. If you have a salary sacrifice agreement in place, make sure you review it for any salary changes so you don’t breach the caps.
- Make sure any actions you take are allowed by your trust deed. If you have not updated your trust deed lately you may not be able to take advantage of some options currently available. If it’s not in the deed, you can’t do it!
2010/2011 Need to Know – Plan or Perish
With a new financial year just under way you have the opportunity to financially map your business. If you get this financial mapping right, you reduce your risk and remove some of the surprises that can occur along the way.
FIND OUT MORE
2010/2011 Need to Know – Stay cautious on the economy
Australia survived the global economic crises relatively unscathed but be wary, it might not be over yet as our economy is still susceptible to international conditions. We’re predicted to grow at a comparably healthy 3.25% but that assumes that conditions remain reasonably consistent.
FIND OUT MORE
Loading ...
