Newsletter - September 2007

THE YEAR IN REVIEW

We farewell Kelly and wish her the best of luck. Kelly is moving to Canberra and has found work in Insurance. We welcome a new team player in Melody Lovelace who worked previously as an assistant accountant in Wollongong. She is excited about coming to work for us.

UPCOMING DATES TO REMEMBER

* 21 September 2007 – lodgment and payment deadline for Instalment Activity Statements for clients who are on monthly reporting for Pay As You Go for employees.

* 21 September 2007 – lodgment and payment deadline for Business Activity Statements for clients reporting for the month of August.

* 21 October 2007 – lodgment and payment deadline for Instalment Activity Statements for clients who are on monthly reporting for Pay As You Go for employees.

* 21 October 2007 – lodgment and payment deadline for Business Activity Statements for clients reporting for the month of September.

* 21 October 2007 – lodgment and payment deadline for Annual Pay As You Go Instalments.

* 28 October 2007– lodgment and payment deadline for PAYG Instalments for the July to September 2007 quarter.

* 29 October 2007 – super guarantee – next quarterly 9% super payment due for the July to September 2007 quarter.

* 31 October 2007 – lodgment deadline for all entities where two or more prior years income tax returns were outstanding as at 30 June 2007.

* 21 November 2007 – lodgment and payment deadline for Instalment Activity Statement for clients who on monthly reporting for Pay As You Go for employees.

* 21 November 2007– lodgment and payment deadline for Business Activity Statements for clients reporting for the month of October.

* 25 November 2007 – lodgment and payment deadline for Business Activity Statements for the July to September 2007 quarter.

CHANGE TO TCC’S EMAIL ADDRESS

Please note that our email address has changed to reception@tcc-accounting.com.au.

NEW WEBSITE

We are improving our website at www.tcc-accounting.com.au and this should be fully operational by the end of October 2007.

SEMINAR

TCC will be conducting a seminar on ‘Better Superannuation’, incorporating the new rules from the Government post 1 July 2007 going forward. We will be looking at some of the capital gains tax consequences associated with investment in superannuation. This will include some strategies that may help you.

The seminar will be held at the Milton CWA Hall at a cost of $44.00 per person (including GST) at 12.00pm on Thursday, 18 October 2007.

I urge you to attend if you have an interest in securing your future.

Contact us on 44551338 or email us at reception@tcc-accounting.com.au if you would like to attend and please forward your payment to our office as soon as possible.

SUPERANNUATION & SELF-MANAGED FUNDS

The Tax Office highlighted several superannuation-related compliance priorities for 2007/08, including a major campaign to ensure people understand the Better Super changes. Highlights include –

SMSF’s – A tailored compliance program for Self Managed Super Fund’s will focus on requirements around in-house assets, loans to members and income tax issues such as special income. The Tax Office also indicated that it will continue to examine auditor contravention reports and expand its compliance reviews of approved auditors.

CASH BASIS REPORTING

The new small business entity test (SBE) replaces the STS System. This will be available to a business that turns over less than $2 million (previously $1 million). An entity that satisfies the small business criteria will receive special treatment for depreciation, pre-paid expenses and trading stock.

STAMP DUTY

The Office of State Revenue has issued updates on the abolition of mortgage stamp duty and a timetable for the abolition of all duties. See www.osr.nsw.gov.au.

SUBSTANTIATION OF FUEL COSTS

The Tax Office accepts that taxpayers can use one of two methods when calculating their motor vehicle fuel & oil expenses. Method 1 is based on receipts if they have been kept, and method 2 enables the taxpayer to make reasonable estimates based on odometer records of the total work related kilometers travelled.

To satisfy the substantiation rules, the taxpayer must record odometer readings of the car at the start and end of the period the car was owned or leased in the income year. The odometer records must be maintained for each and every year the car is used for business purposes.

SMALL BUSINESS 15 YEAR CONCESSION

A small business entity can disregard a capital gain arising from a CGT event in relation to a CGT asset that it has owned for at least 15 years. The entity can be:-

- An individual who retires

- A Company or Trust where the ‘significant’ individual owns the asset just prior to the CGT event.

The 15 year period does not have to be continuous, however it must be active and used in the business for ½ of the 15 year period. There are a lot of variations in using the 15 year test. If you are in this situation, please contact this office on 44551338.

STAFF UPDATES

Peter has been actively attending seminars and is now preparing for TCC’s seminar on Better Superannuation. He is continuing to bike ride although he hasn’t planned any trips at this point in time. He will keep you updated.

Claire recently travelled to Great Keppel Island for an extended weekend holiday, and has returned engaged. She is busy planning a party!!

Kelly is looking forward to moving to Canberra and starting a new chapter of her life. No holiday planned. She is starting a new job on 2 October. Adios Amigos!!!

Paul is studying furiously for an exam in November and looking forward to a holiday to the Gold Coast in December/January.

Janelle and her family will be spending a week at the Gold Coast in November to stay at a resort and visit some of the theme parks.

Kim has been very busy as usual studying and working.
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