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Level 10 Toowong Tower, 9 Sherwood Rd, Toowong QLD 4066
07 3371 7166
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Budget 2018: living stronger

Posted on May 8, 2018 by FP Accountants

The Government is focused on encouraging older Australians to better grow and secure their personal retirement funds. Retirees exempt from work test An exemption from the work test will be established to allow retired Australians aged between 65-74 who have total super balances below $300,000 in their first year that they do not meet the work test criteria, to make voluntary payments into their superannuation funds. Retirement income strategy Superannuation trustees will now be required to produce a retirement income strategy for their superannuation fund members. This is due to new amendments to the Superannuation Industry (Supervision) Act 1993. The […]

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Who is a ‘related party’ in an SMSF?

Posted on Mar 29, 2017 by FP Accountants

Self-managed super funds (SMSFs) have a number of investment restrictions which apply to transactions conducted within the fund. One such restriction applies to transactions involving ‘related parties’ of the fund and ‘relatives of members.’ No one associated with the SMSF should obtain a present-day benefit from the fund’s investments. The fund needs to meet the ‘sole purpose test’ of providing death or retirement benefits to the SMSF members or their dependents. A breach to the investment restrictions may result in significant penalties, such as the disqualification of a trustee and even prosecution. The Tax Office considers a ‘related party’ as: […]

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Investing on arm’s length

Posted on Mar 23, 2017 by FP Accountants

Running a self-managed super fund requires trustees to adhere to complex laws and follow a number of onerous rules. One of the most fundamental investment rules for SMSFs is that the trustees must transact on an arm’s length basis to ensure no conflict of interest arises. An arm’s length transaction requires trustees to conduct on a commercial basis as if there was no relationship between the parties. This means the purchase and sale price of fund assets should always reflect the true market value of the asset, and the income from the assets held by the fund should always reflect […]

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Investing on arm’s length

Posted on Mar 23, 2017 by FP Accountants

Running a self-managed super fund requires trustees to adhere to complex laws and follow a number of onerous rules. One of the most fundamental investment rules for SMSFs is that the trustees must transact on an arm’s length basis to ensure no conflict of interest arises. An arm’s length transaction requires trustees to conduct on a commercial basis as if there was no relationship between the parties. This means the purchase and sale price of fund assets should always reflect the true market value of the asset, and the income from the assets held by the fund should always reflect […]

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Investing on arm’s length

Posted on Mar 23, 2017 by FP Accountants

Running a self-managed super fund requires trustees to adhere to complex laws and follow a number of onerous rules. One of the most fundamental investment rules for SMSFs is that the trustees must transact on an arm’s length basis to ensure no conflict of interest arises. An arm’s length transaction requires trustees to conduct on a commercial basis as if there was no relationship between the parties. This means the purchase and sale price of fund assets should always reflect the true market value of the asset, and the income from the assets held by the fund should always reflect […]

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Preparing for the FBT year-end

Posted on Mar 23, 2017 by FP Accountants

With the fringe benefits tax (FBT) year ending 31 March 2017, now is the time for business owners to get their FBT affairs sorted. When calculating FBT liability, employers must gross-up the taxable value of benefits provided to reflect the gross salary employees would need to earn at the highest marginal tax rate (including Medicare levy) to buy the benefits after paying tax. To calculate fringe benefits taxable amounts, employers must use two separate gross-up rates: Type 1: Higher gross-up rate is used where employers (or other benefit providers) are entitled to a GST credit for GST paid on benefits […]

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Preparing for the FBT year-end

Posted on Mar 23, 2017 by FP Accountants

With the fringe benefits tax (FBT) year ending 31 March 2017, now is the time for business owners to get their FBT affairs sorted. When calculating FBT liability, employers must gross-up the taxable value of benefits provided to reflect the gross salary employees would need to earn at the highest marginal tax rate (including Medicare levy) to buy the benefits after paying tax. To calculate fringe benefits taxable amounts, employers must use two separate gross-up rates: Type 1: Higher gross-up rate is used where employers (or other benefit providers) are entitled to a GST credit for GST paid on benefits […]

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Transitional CGT relief for SMSFs

Posted on Mar 14, 2017 by FP Accountants

Self-managed super funds can access Capital Gains Tax (CGT) relief to provide temporary relief from certain capital gains that might arise as a result of individuals complying with the transfer balance cap, and Transition to Retirement Income Stream (TRIS) reforms, commencing on 1 July 2017. The transitional CGT relief is designed to preserve the income tax exemption for certain, accrued capital gains which would have been exempt, if the underlying CGT assets had been disposed of before the changed treatment of TRIS’s and before a member transfers to comply with the transfer balance cap starting. CGT relief is available for […]

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Easier GST reporting for food retailers

Posted on Mar 14, 2017 by FP Accountants

Many small food retailers buy and sell products that are both taxable and GST-free. Depending on the point-of-sale equipment used, identifying and recording these sales can be difficult for business owners. The ATO has introduced a series of simplified accounting methods (SAMs) to make it easier to account for GST and work out the amount of GST that is liable at the end of each tax period. There are five SAMs to choose from. The SAM you choose will depend on your business’ turnover, the nature of your business and the nature of your point-of-sale equipment (except for the purchases […]

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Are your website costs tax deductible?

Posted on Mar 1, 2017 by FP Accountants

The ATO has provided business owners with further guidance on the deductibility of website costs in a recent Taxation Ruling. The Tax Office considers a commercial website as a website which is used in the course of a business, irrespective of whether it is used directly to produce income. This does not include software provided on the website for installation on the user’s device. Hardware, the right to use the domain name and content available on or incorporated into a website that has independent value to the business are considered separate from a commercial website. The tax deductibility of a […]

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Contact FP Accountants

Address:
Level 10 Toowong Tower,
9 Sherwood Rd, Toowong QLD 4066

Postal: PO Box 453, Toowong QLD 4066

Phone: 07 3371 7166

Fax: 07 3371 7838

Email:

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