We’re Stomping again!
As we head into the winter months, the team at Value Beyond will be hitting the stairs to get in some much needed training for the 2017 Stadium Stomp at the Gabba on 30 July 2017.
Climbing over 5,000 stairs, this year we will be raising money for the Leukaemia Foundation. Each year, The Leukaemia Foundation helps more than 750 families from regional and rural Australia by providing free accommodation in our capital cities so they can access life-saving treatment at major hospitals.
They also provide counselling, comprehensive information, education and support to help the 60,000 Australians who are currently living with a blood cancer.
Don’t Miss Out On Your $20,000!
The immediate write off of assets under $20,000 for small businesses with group turnover of less than $2 million, ends on 30 June 2017.
Subject to any announcements in the upcoming budget, the threshold for being able to immediately deduct the full value of assets purchased will drop to just $1,000 from 1 July 2017.
This means that if you are considering purchasing any assets for your business, you should consider doing this before the end of the financial year in order to take advantage of the deduction, and to maximise the tax benefit of any asset purchase.
How much of a benefit will I get?
Assume you buy an asset that is related to your business for $20,900. After claiming back the $1,900 of GST in the price, the remaining cost is $19,000.
Assuming you are on a 30% rate of tax, this will save you $5,700 in tax. The net cost therefore, is $20,900 – $1,900 – $5,700 = $13,300.
The end result is that you still have to spend $13,300 in after tax cash in order to purchase the asset, so you need to ensure that you are spending wisely and not just buying things for the sake of saving tax.
Having said that, if your business needs new items in order to continue operating or to open up new opportunities for revenue, then purchasing before 30 June 2017 may be just the benefit you are looking for!
Tax Officers To Hit The Streets
The Australian Taxation Office (ATO) is visiting more than 400 businesses across Perth and Canberra over the next month as part of a campaign to help small businesses stay on top of their tax affairs.
Assistant Commissioner Tom Wheeler said the ATO has a focus on businesses operating in the cash and hidden economy to ensure fairness for all businesses and the community.
“Our officers will be visiting restaurants and cafés, hair and beauty and other small businesses in Perth and Canberra to make sure their registration details are up to date. These industries are on our radar because they have ready access to cash, and this is a major risk indicator,” Mr Wheeler said.
“Visiting these businesses in person is about helping them to meet their obligations. Through the visits we can quickly identify who needs extra support and make it easier for them to comply.
“We know that the majority of businesses get it right, so our first aim is to help businesses by checking they are properly registered and provide them with an opportunity to ask questions in person.
“We then work to protect honest businesses from unfair competition by taking action against those who do the wrong thing.”
Mr Wheeler said the community plays an important role in making the tax system fair for everyone.
“We take reports from the community very seriously. The industries we’re visiting have some of the highest rates of concerns reported to us from across the country,” Mr Wheeler said.
“The visits are part of an ongoing program of work, which is making its way around the country.
“We are taking the time to educate and support small businesses and their representatives who might not know how to meet their obligations. So far we’ve met businesses in Sydney, Adelaide, Melbourne and the Gold Coast.”
How Will Higher Interest Rates Impact You?
There is plenty of talk about the levels of supply of housing and inner city apartments, soaring prices and the future of interest rates across this year and next year.
Some banks have already hiked up rates in a move that is out of sync with the Reserve Bank, which indicates that recent rate cuts to historically low interest rates may be at end and we may be starting to the start in rising rates.
How will rising rates affect you?
Given that a number of banks have been assessing loans for the last 6-12 months using interest rates of 7.5% to determine serviceability, would you be able to handle a rate rise of that much?
If you have any concerns about your loans, contact us at Value Beyond to put you in touch with finance specialists who can help you review your borrowings, and find the best deals and options for you.