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Don't Lose Your Franking Credits

45 Day Holding Period Rule - Don't Give Your Money Wings

Next Saturday, May the 16th is an important day for all share investors. The reason this day is so important is that it is 45 days out from the end of the tax year.

So why is that important I hear you ask?

Because there is a little known provision in the tax law called the Holding Period Rule. In its very simplest form the Holding Period Rule denies shareholders credit for franking tax credits attached to dividends they earn on their shares when they have held those shares for less than 45 days. Therefore any franking credits attached to dividends on shares acquired cum dividend between May 16th and June 30th are potentially lost.

The Fine Print and the Solution

As with most things tax the rule is not as simple as summarised above, but the risk most certainly is that simple.

Don't let your money fly away, a 30% franking credit is a significant part of your income to lose, and remember you will still be taxed on the money you never received!!

The solution is quite simple though - If you are planning on buying shares between May 16th and June 30th and those shares are cum dividend then make sure you understand this rule and its technicalities. The easiest way to do this is to give us a call on (07) 5439 1600 or CLICK HERE TO MAKE AN APPOINTMENT to see one of our qualified advisers.

SuperStream - The Time is Ticking

SuperStream - Time is Ticking for All Employers

SuperStream changes the way all employers have to pay their superannuation contributions and it starts for ALL EMPLOYERS from 1 July 2015.

 

This video provided by the ATO contains more useful information. Alternatively just pick up the phone and give us a call on (07) 5439 1600 or CLICK HERE to make an appointment with one of our specialist advisers.

For more information:

CLICK HERE for a useful checklist also provided courtesy of the ATO.

CLICK HERE to read our previous post on SuperStream

 

 

Are the ATO Audit Sights Fixed on You?

The ATO Uses Industry Benchmarks to Target These 9 Industries for Benchmark Audits

Did you know the ATO use statistical data to target 9 Industries for special audit attention? Want to know if you are in their sights this year?

We think Benchmark Audits have the scope to cost our clients thousands of dollars in unnecessary audit costs even when they have done absolutely nothing wrong.The ATO call this statistical analysis Benchmarking and the 9 targeted industries are listed below.

Because of this we are helping our clients stay below the ATO Benchmarking radar by doing some preliminary checks on their financials before we finalise the figures.

To help our clients and those that are not yet our clients we have developed a simple analysis tool where we can enter a maximum of 5 numbers from your financial statements to get an indication whether or not you are looking down the barrel of a tax audit. Take the 5 minute test today and save yourself possible headaches in the future.

Don't get me wrong we aren't guaranteeing the ATO computer won't spit out a Benchmark Audit letter even if we do the preliminary checks. But, at the very least we will know what our chances are of being targeted so we can make some decisions about how to best manage that risk.

For more information or to take our SIMPLE AND FREE Benchmark Test give us a call on (07) 5439 1600.

1. Accommodation and food

2. Building and construction

3. Education, training, recreation and support services

4. Health care and personal services

5. Manufacturing

6. Other services

7. Professional, scientific and technical services 

8. Retail trade

9. Transport, postal and warehousing

 

 

Understanding Financial Reports - The Missing Link

Have Any Idea Where Your Cash Comes From or Goes?

Cash flowing through your business is like blood flowing through your body. Quite simply, without it you die!

This is the first in a series of articles we are publishing on your financial statements and how you can really understand the information in them to help make your business more profitable. It's easy reading and worth having a think about what information you need to make the right management decisions for your business.

CLICK HERE to read the full article.

For more information or to have a chat about how we can help you make your business more profitable give us a call on (07) 5439 1600 or CLICK HERE to make an appointment with our specialist team.

SMSF - Corporate or Individual Trustee?

Pay a Little Now for a Corporate Trustee or Potentially Pay Thousands More Later - Your Choice

Our advice is almost always to establish a corporate trustee.

We have included a useful video from the ATO at the bottom of this post which explains why a corporate trustee is almost always the best option and summarised the key points below:

  • All members must play an active role in managing the fund.
  • Single member funds must have 2 individual trustees but can have a single director of a corporate trustee so there is no need to get advisers, friends, or family involved.
  • The trusts is recorded as owner of all assets of the SMSF. If there are individual trustees this means that all names must be listed. If membership changes then there can be a significant cost and time attached updating all ownership documents to reflect the change.
  • Each trustee is fined for penalties so an SMSF with multiple individual trustees could be charged multiple penalties. A corporate trustee receives only a single penalty. 

If you would like any more information give our office a call right now on (07) 5493 1600 or CLICK HERE to Make an Appointment with our Qualified SMSF Team.

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