NEWSLETTER MARCH 2014

2014 ECONOMIC CONDITIONS

Even though 2014 started with some negative headlines, there are many reasons to be optimistic.  The Mid Year Economic and Fiscal Outlook predicts that economic growth will remain strong at 2.5% and unemployment will fall to 6%.  The newly released National Australia Bank’s monthly business survey indicated businesses are experiencing the best trading conditions in 2 ½ years in the weeks after Christmas.  Australian retail spending rose 0.5% in December alone.  This was the eighth consecutive monthly rise.  And interest rates are tipped to remain at historic lows.

Sourced from ABN Business Bulletin Autumn 2014

SMSF NEWS

The ATO is calling on trustees to be aware of changes to SMSF administration.  Administrative penalties will apply to breaches of super law from 1 July 2014.  This means a trustee will be personally liable for penalties between $850 and $10,200.  Loans, borrowings, sole purpose breaches, in-house assets, arms-length and related party investments are the most common contraventions.  The following are a couple videos to investigate further into this topic.

http://www.youtube.com/watch?v=-wsA7wZhAAQ

http://www.youtube.com/watch?v=LnT8xeBzkbo&list=PL6A16705031A9AB9C

Sourced from ATO Media Centre

How long am I required to keep my tax records?   What is the time limit to amend my tax return?

Small Businesses – You are required to keep your records for five years from when the return was prepared.  And you have two years to amend those returns.

Individuals – You are required to keep your records for five years from when you lodged your return and two years to amend.

All other tax payers – You are required to keep records for 5 years from when they were prepared and four years to amend.

Sourced from ABN Business Bulletin Autumn 2014

CASH IS KING

Cash on hand is required at all times in order to pay bills.  Many studies suggest that cashflow is one of the leading causes of small business failure.  It is vital to prepare a cashflow forecast with your bookkeeper.  A cashflow forecast tracks sources and amounts of cash coming into and out of your business over a given period.  It will allow you to foresee peaks and troughs.  Forecasts also allow you to foresee when you have large cash surpluses which may indicate you have borrowed too much or have money that ought to be ploughed back into your business.

Sourced from ABN Business Bulletin Autumn 2014

FYI

In order to claim a capital gains tax (CGT) concession you must keep the market value of relevant assets just before the CGT event (to show eligibility for the $6 million net asset value test).

Sourced from ATO News and Updates