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Farm management deposits Tax planning is aimed at farmers saving tax while banking the benefits of a good year while creating a safety net for difficult years. Farm management deposits allow you to build wealth, save tax and get ahead. Farm management deposits (FMD’s) are a useful tax planning tool that can be used to delay tax liabilities in the year a deposit is made with income and tax recognised…  Read more

The introduction of Single Touch Payroll (STP) requires more effort than usual on year end payroll finalisation. Under STP employers must report pay, taxes and superannuation information directly to the ATO every payday through STP. Employers using STP will not give employees a payment summary as they usually would at this time of year. Instead, employees will get an end-of-year income statement in ATO online services through myGov. Employers have…  Read more

We regularly try to explain to clients the concept of a franked dividend – what are they, why do they matter, what does it mean for your tax and how can they work to your benefit. Some understand franking credits, some nod wisely but still feel confused, and some dream about doing something else, anything else apart from tax. We get that the concept is a challenge, so we’ll try…  Read more

Scrapping the $450 per month super guarantee threshold was a parting gift of the Liberal Party. From July 1, employers must make super guarantee payments for all employees regardless of an employee’s total monthly earnings. As announced in the 2021–22 federal Budget, the Australian Government the $450 per month threshold will be scrapped from July 1 to expand coverage of super guarantee to eligible employees regardless of their monthly pay. The…  Read more

As a parent, you may worry about how to ensure your child can receive a post-secondary education. Costs are constantly rising, and you may face high tuition fees as well as cost of living expenses if your child has to live away from home. Here are some steps you can take to save for your child’s education. Be clear about what you can and cannot afford to pay Being clear…  Read more

We spoke with bookkeeper and business owner Tash Black about her thoughts on running a small business. What made you want to be a business owner? It was something that I had always wanted to do, I wanted to be my own boss. I wanted the challenge of making something mine and experiencing the rewards of reaching my goals and being successful. What impact did owning your own business have…  Read more

Lodge your FBT to REDUCE ATO AUDIT PERIOD. Many small businesses manage their business to avoid fringe benefits tax using methods such as director contributions to ensure no tax is payable – this method is low cost and pragmatic however leaves an unlimited timeframe open for ATO. We recommend our clients to complete and lodge an FBT return, even if it is a nil result so as to draw a…  Read more

In April and May 2022, we assist clients with Tax Planning to provide specific actions to reduce your tax and manage your business and personal profits. REDUCING YOUR TAX and PLANNING FOR YOUR TAX PAYMENTS We have annual tax planning guides that will help you succeed: FY22 Tax planning tips and ideas for business FY22 Tax and wealth management tips and ideas for individuals When is a tax plan essential?…  Read more

On 23 February 2022 the ATO targeted the tax benefits of family trust distributions with a focus on distributions to the adult children of trust controllers. It’s one of the most significant developments for the taxation of trusts in over two decades. The ATO’s attack on the potential tax benefits of trusts is comprehensive: • Draft Taxation Ruling TR 2022/D1 Income tax: section 100A reimbursement agreements • Draft Practical Compliance…  Read more

The technical drafting and operation of a trust deed is becoming increasingly important. A trust deed is a legal document. Each has been drafted by a lawyer at a particular point in time on the basis of an understanding of key issues in the law. There is no standard template. As accountants we work with a simple rule of thumb: Read the Deed A well drafted deed is easy to…  Read more

On 9 February 2022 the High Court released two decisions that changed our understanding of employee vs contractors. At the bottom of this article are the summaries provided by the High Court. For many years Australian Courts have increasingly followed a doctrine of substance over form. That is, look at the substance and reality of a transaction or relationship rather than the initial intent as documented in the legal drafting…  Read more

Risk management should be central to life and business. At Porters CA we see two simple key imperatives – (A) achieve your goals; (B) plan and manage the risk of not achieving your goals. With the WA borders set to reopen on 3 March it is time to start contingency planning. Absent a major surprise we are looking at a high and rapid incidence of Covid with: interruptions to business…  Read more

Are you looking for an opportunity to build your skills as a Bookkeeper in a professional and supportive environment? Porters CA offers you an opportunity to grow, assisted by strong systems and procedures in a supportive and friendly workplace. Training and career development is offered so you can become your best for a bright future. We are a boutique firm, mixing excellence in tax compliance and bookkeeping with a personal…  Read more

Solid cash flow management is vital to ensuring your business survives and thrives but not everyone understands what cash flow is or how to manage it. That’s likely what makes it a leading cause of stress for small business owners. Cash flow refers to the movement of money into and out of your business. It is based on the amount of money you bring in minus the amount you spend.…  Read more

A Quick Overview The Superannuation Guarantee (SG) is scheduled to increase to 10% from 1 July 2021. If you have employees, you need to be ready for this legislated increase. What is Superannuation Guarantee? The Superannuation Guarantee is the minimum super an employer must pay to their employees super fund. The current SG percentage rate is 9.5% of employees Ordinary Time Earnings, but this is changing. Ordinary Time Earnings or…  Read more

Treasurer Josh Frydenberg has released the 2021 Federal Budget and confirmed Australia’s economy is performing more strongly than was expected six months ago. This article has a summary of the “Winners and Losers” of the Budget and we’ve compiled a recap of the key points below. Get in touch with us if you have any questions. A Quick Overview This budget assumes our international borders won’t reopen until mid-2022. $1.9…  Read more

Instant Asset Write Off (IAWO) and Full Expensing of Depreciating Assets (FEDA) Who doesn’t love a tax deduction? With IAWO and FEDA alongside low interest rates and a strong economy there is an opportunity to invest in productive assets to supercharge your business growth. In brief – when you buy an eligible asset you will claim 100% of the cost as a tax deduction. For a small business with assets…  Read more

When it comes to the overall success of your business, one of the most important decisions you’ll face is what to charge for the work you do. Charge too much and you could scare away potential customers. Charge too little and you could run yourself out of business. Working out how much to charge is stressful, but it’s worth it. If your business doesn’t bring in enough money to pay…  Read more

It is impossible to predict the future of a business with 100% accuracy however a cash flow forecast can help you prepare and plan for a range of possible future scenarios, good and bad otherwise. A cash flow forecast and scenario plan will help you make better financial decisions, help you keep on top of your finances and improve financial outcomes. Cash flow forecasting involves estimating how much cash will…  Read more

Xero is a fantastic business tool and you want to get the most out of it to maximise your financial management. If you’ve just started working with Xero, it is normal to make a few errors while learning. We see mistakes that are quite common – and unfortunately costly to go back and correct at end of year. We want you to get the most out of the system giving…  Read more