As we start getting into the swing of Christmas parties, it is timely to remember the tax deductibility of entertainment, and the impact of FBT. Don’t go into the new year with a tax hangover!
Even though it is not yet the new year, it is also a good time to start thinking of plans for the year ahead. Why wait until January to make resolutions at the same time everyone else does? it might be because it is fashionable to make resolutions on 1 January, or maybe it is that they are made during the holiday season as to why most resolutions remain just resolutions and dreams, and don’t become reality.
Be a step ahead and make your plans for 2016 now. Not only will you have plans in place ready to kick start the year, but it also gives you an extra month to start working on those goals and give yourself some momentum to make 2016 your best yet.
As this is the last edition of the Value Add for 2015, we would like to wish you all a safe and Merry Christmas, and a happy New Year.
The Value Beyond office will be closed from Thursday 24 December 2015, reopening Monday 11 January 2016.
Have You Seen Our Free Tax Guides?
As a result, we have started putting together a number of guides that aim to act as a handy reference if you have any of those questions yourself.
In addition to the published guides below, we are currently working on a Tax Guide To Motor Vehicles, and a resource which explains our Roadmap to Business Success.
Tax Guide to Rental Properties
For the intrepid property owner, there are a myriad of tax considerations to contend with.
So, how do you take advantage of the tax rules to get the best refund you can?
Download our Tax Guide to Rental Properties to discover how.
Download the guide HERE
Ever wondered what a trust is? Or how they work? Or why people keep using them?
Taking the mystery out of trusts, this book will explain how this 500+ year old structure works, and how you can put them into action for yourself.
This book will take you through:
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When would someone use a trust?
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How does a trust work?
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Establishing a trust
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Operating a trust
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The benefits of a trust
Download the guide HERE
New Law Protects Small Business From Unfair Contract Terms
Has another business offered you a standard form contract? Or do you offer standard form contracts to other businesses? If so, you need to be aware of the new law that protects small businesses from unfair contract terms. Many businesses offer standard form contracts on a ‘take it or leave it’ basis where there is little or no opportunity to negotiate the terms. This new law will apply to standard form contracts entered into or renewed on or after 12 November 2016 where:
- at least one of the businesses employs less than 20 people, and
- the price of the contract is no more than $300 000, or $1 million if the contract is for more than 12 months.
The ACCC, Australian Securities and Investments Commission, and state and territory offices of fair trading will enforce this law, and if the court finds a term unfair, that particular term will be void and treated as if it never existed. Examples of terms that may be unfair are ones that:
- allow one business, but not the other, to change or cancel the contract, or to limit or avoid their obligations
- penalise one business, but not the other, for breaching the contract.
So if you offer standard form contracts, start reviewing your terms and conditions to make sure you’re doing the right thing. Or, if you’re a small business and you’ve been given a standard form contract which you think includes an unfair term, find out what your protections are under the new law. For more information
- Watch the video on receiving standard form contracts
- Read the online guidance at www.accc.gov.au/uct.
- Watch animated videos on the ACCC YouTube channel– one is about the rights of businesses that receive standard form contracts and the other is about the obligations of businesses that offer them.
- Read the media release.
- Call the ACCC small business helpline on 1300 302 021 if you have any queries
Claiming Your Website Costs
So what can you claim, and when can you claim it?
Start up costs
If you are building a website before you start your business, then the cost will be deductible over 6 years i.e. at 20% per year.
Business is already operating
Small Business
If your grouped turnover is less than $2 million per year, and the website cost is less than the instant asset write-off threshold (currently $20,000), then it can be written off immediately (this lasts until 30 June 2017).
if the cost is to maintain an existing website, it will also be immediately deductible.
if the cost is higher than $20,000, the website can be depreciated either in a small business pool, or it can be added to a software development pool.
Large business
for businesses with a grouped turnover greater than $2 million, any costs under $1,000 will be immediately deductible.
Any costs greater than $1,000 that are in-house software can be written off at 20% per year. If the costs are allocated to a software development pool, then they are written off over 4 years at 30%/30%/30%/10%, starting the year after the one in which the website costs were incurred.