Taxation

TAXATION

Executing a business strategy in a way that is tax effective while trying to deal with increasingly complex taxation legislation is an ongoing challenge for many small businesses.


Need reliable accounting professionals to work out how to deal with it all?


At Wilson Porter we combine in-depth knowledge of taxation issues with an understanding of how tax fits into your business’ big picture.

OUR SERVICES

TAX PLANNING & ADVICE

Planning ahead is an important approach to a tax strategy that offers maximum benefits to your business. Many small businesses don’t have the time to look to end-of-financial-year and work out how they can make the most of their situation. This lack of time and expertise often costs thousands of dollars unnecessarily.

 

We provide end-of-year tax planning and advice in order to streamline your returns strategy and ensure you gain as much as possible. We will also take a look at the links between your business and personal finances and any other financial arrangements your enterprise may have with family, friends or other entities.

GST

GST-registered businesses are responsible for collecting goods and services payments and sending it through to the Taxation Office in a Business Activity Statement. Determining your GST income and keeping it separate from your regular earnings can become complex, especially over the course of a whole financial year.

 

While there are a number of solutions, using our Business Activity Statement preparation guarantees efficiency. We offer this as a full preparation service, handling all of the necessary administration, or we can offer expert consultation on how your business should be preparing your GST accounts for review.

INCOME TAX RETURNS

Many small business owners choose to handle their own tax returns as part of the freedom and responsibility in being their own boss. But tax deadlines can come around quickly, and if you are caught out unprepared, it can cost your business dearly.

 

We offer income tax return consultation services to help you meet your compliance obligations and keep you in the clear. Our friendly accounting professionals can help you ensure your returns are all in order, giving you peace of mind for another 12 months.

FRINGE BENEFITS TAX RETURNS

Fringe benefits tax is an area of tax legislation where complexity gets turned up significantly. Many small business owners confuse their inclusion of fringe benefits with their income tax returns. Fringe benefits tax is entirely separate, with a different financial year and deadlines.

 

Our expert knowledge of fringe benefits tax comes from over 20 years of exposure in the accounting and finance sector, meaning we can make filing your fringe benefits tax return as stress free as possible. We offer a full assessment of your business’ liability and work with you to develop strategies to minimise your tax obligations.

LAND TAX AND PAYROLL TAX

NSW authorities are taking a proactive approach to revenue collection these days through increasingly complex tax legislation, especially on mandatory state taxes like land and payroll tax. If you own your business’ site and your land is determined to be above the state threshold, you will likely need to pay land tax. Payroll tax, meanwhile, applies to all businesses who pay employees and have a wage bill higher than the NSW threshold.

 

We know how important it is that all small businesses are compliant with state tax obligations. Our accounting team have helped numerous clients over the years with tax issues to ensure they remain compliant, working with your business to develop a tax strategy that benefits you.

Is figuring out your tax obligations and getting everything together taxing you?

Wilson Porter have solutions for you. Simply fill out our contact form to find out more.

What is the current concessional superannuation contributions cap?

The concessional contributions cap for 2015/16 and 2016/17 is $30,000 per person. If you are aged 49 or over on 30 June 2016 then the cap is $35,000.

The concessional cap is proposed to be reduced to $25,000 for all individuals from 1 July 2017.

Contributions over the cap amount are subject to extra tax. This extra tax is called the excess concessional contributions tax.

All concessional contributions to all of your super funds in a financial year are counted toward the concessional contributions cap. If you have a defined benefit super interest, notional contributions are also counted towards the cap.

If you have a residential rental property are you claiming a building write off?

You can only claim a deduction for the capital works on residential rental properties you built after 17July 1985.

If you own a rental property, you may be able to claim a deduction (usually at the rate of 2.5% per year in the 40 years following construction) for the construction cost of:

buildings
extensions, such as a garage or patio
alterations, such as adding an internal wall, kitchen renovations or bathroom makeovers
structural improvements – such as a gazebo, carport, sealed driveway, retaining wall or fence.

If you carried out the construction or contracted a builder to do so, you should make sure you keep detailed records of the construction costs.

If you purchased the property and do not have a record of the construction costs – for example, where the vendor did not provide them – you will need to obtain this information from an appropriately qualified person such as a quantity surveyor.

Interest Deductions on Loans used for mixed use

Interest can only be claimed as a tax deduction when the funds borrowed are used for income producing purposes, that is to buy a rental property or shares, etc.

It is common practice for financial institutions to offer redraw facilities against existing loans. This leads borrowers to draw down against the loan for other purposes, which may or may not be income producing.

Example: Phillip borrows $250,000 to buy a rental property. After 5 years the loan has reduced down to $120,000, the bank notes Phillip’s good repayment record and offers him to re-borrow against the house for other purposes. Phillip does so and draws $50,000 for a car for private purposes. The loan is now at $170,000.

Phillip wants to claim a tax deduction for all of the interest, however Phillip can only claim interest on the $120,000 because the $50,000 was used for private purposes. Any future interest paid can only be claimed on a proportionate basis of 70% being the amount relating to an income producing asset over the total amount of the loan (120,000/170,000).

GET IN TOUCH

*First Name:
*Last Name:
*Email:
*Phone:
Message:

TAXATION AT A GLANCE

  • Tax Planning & Advice
  • GST
  • Income Tax Returns
  • Fringe Benefits Tax Returns
  • Land Tax and Payroll Tax