by clicking the arrows at the side of the page, or by using the toolbar.
by clicking anywhere on the page.
by dragging the page around when zoomed in.
by clicking anywhere on the page when zoomed in.
web sites or send emails by clicking on hyperlinks.
Email this page to a friend
Search this issue
Index - jump to page or section
Archive - view past issues
News Bulletin : ADA News Bulletin July 2011
57 July 2011 SBE’s can choose to access certain concessions including: • CGT concessions on disposal of the practice; • immediate deductions for certain prepaid expenditure; • simplified depreciation. This is an important tax consideration if you are starting a practice. sMall business caPital gains tax (cgt) concessions Four specific small business concessions may apply to reduce capital gains from the sale of your practice (or active business assets). These are: • a 15 year exemption; • a 50% reduction for active assets; • $500,000 retirement concession; • replacement asset roll-over relief. If the 15 year exemption does not apply, you may apply one, two or all three of the remaining concessions. If you are proposing to sell your practice or the entity that carries on the practice, prior to entering into any agreement discuss eligibility and planning to access these concessions in advance with a tax advisor. SUPERAnnUATIOn Contributions paid by the practice entities in respect of each quarter must be made before the 28th day after quarter end. Consider maximising concessional contributions for key individuals. Concessional contributions are limited to $25,000 up to the age of 50, and $50,000 over 50 years. Contributions above these caps are subject to tax at the top marginal tax rate. Manage available cashflow to enable you to maximise the contributions for the year. incoMe Individuals aged over 60 will not be taxed on any payments from a superannuation fund. Individuals aged between 55 and 60 will generally be taxed concessionally. Discuss with your financial advisor of the requirements if your circumstances have changed to access these concessions. non-concessional contributions Undeducted contributions can be made up to $150,000 pa or a total of $450,000 on ‘a bring forward’ basis over a 3-year period. Personal DeDuctions Deductions are also limited to $25,000 pa up to the age of 50 and $50,000 pa over 50 years. To be deductible in 2012: • You must be under 75; • The amount you earn as an employee must be less than 10% of your combined assessable income, reportable fringe benefits and reportable superannuation contributions; • Contributions must be made by 30 June 2012; • You must notify the trustee of your fund in writing of your intention to claim a deduction; • The Federal Budget also announced changes to the contribution limits from 1 July 2012. transition to retireMent incoMe streaMs If you are 55 years old or older, you may be eligible to commence a ‘Transition to Retirement’ pension. Benefits may include: • Receiving pension income while still working ability to salary sacrifice to superannuation to access lower tax rates; • Concessional tax treatment within your super fund. PERSOnAL ITEMS MeDical exPenses rebate The minimum threshold for the has increased. To be eligible for a 20% tax offset, net medical expenses must exceed $2,000 pa. caPital gains tax Realised capital losses are able to be offset against realised capital gains and reduce tax. Review your portfolio and crystallise capital losses during the 30 June 2012 year. Caution – the ATO has issued a ruling that relates to ‘wash sales’. The ruling considers that the ATO can apply Part IVA anti-avoidance provisions to cancel offsets and apply penalties. Donations Donations or gifts of $2 or more to approved organisations and charities are tax deductible. Contributions or donations to political parties/politicians are no longer tax deductible. Ensure you retain receipts for donations made. PrePaYMents In limited circumstances an immediate deduction is available for non-business prepaid expenditure, i.e., interest on investments. Motor vehicle exPenses There are four methods which can be used to claim a deduction. These are: • the cents per km method • the log book method (log book kept over 12 weeks and updated every five years) • one-third of actual car expenses • 12% of original value method detailed records assist in maximising deductions. These methods should be considered early in the year especially if you have purchased a car to maximise the tax deductions available. Taxation regulations change regularly and therefore it is important that you review your taxation risks and plan for the coming year for your practice. Andrew Chen is a Principal at Crowe Horwath. He specialises in improving financial and taxation incomes for dental professionals and professional practices. Phone: 02 9619 1626; or email: firstname.lastname@example.org Readers should not act only on the basis of material obtained in this newsletter because the contents are of a general nature and therefore do not take into account each person’s individual circumstances and may be liable to misinterpretation. Do not act upon any of the information contained within this article without first obtaining specific advice from a tax advisor. Crowe Horwath assumes no obligation to update this publication after it has been issued. Whilst every effort has been made to ensure accuracy, information contained may not be complete, may have changed or may not be relevant to, or appropriate for your circumstances. practice management
ADA News Bulletin June 2011
ADA News Bulletin August 2011