INFOTELLIGENCE

What does the new R&D tax incentive offer you

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 true innovation.

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Paid leave for Dads

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).

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Tax consolidation – Juggling tax losses

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 ‘management fees’). This is not an effective strategy and creates a risk position for you.

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NSW only – Payroll tax rebate for creating new jobs

Did you know you can get a payroll tax rebate for employing more staff? A new scheme by the NSW Government gives employers a payroll tax rebate of up to $4,000 per employee (equivalent to the annual payroll tax bill for one employee on an average wage).

So, if you added five new team members in new jobs that could be $20,000 less to pay in payroll tax over the next two years. The rebate is paid on the first and second anniversary of the team member’s employment. But, as always, there are a few provisos:

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5 tips to differentiate your business

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.

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