Client in Focus – HUTCHEON & PEARCE Earlier this year Arron Hutcheon took control of the well-known Hutcheon & Pearce business from his father Ted Hutcheon. Hutcheon & Pearce was founded in 1953 by Arron’s grandfather, George Hutcheon in partnership with Cec Pearce and operated as a small business in Coolamon. George became sole Director in 1965 and purchased the business completely from Cec. In 1978 a new sales office was established in Wagga Wagga and then moved to its current premises in 1997. By this time Arron’s father, Ted was running the business which had expanded considerably. The business has prospered and now employs almost 100 staff members operating from offices in Wagga Wagga, Albury, Temora, Parkes, Cowra and Condobolin. Hutcheon & Pearce is now one of the largest John Deere dealerships in Australia, selling and servicing everything from the largest self propelled combine harvesters to the smallest ride-on lawn mowers and everything in between. The business also uses the latest business operating software to keep on top of the many transactions which occur throughout the 6 locations every day. Congratulations to Arron for this fine achievement and also to George and Ted who played such a vital role in developing the business to the position where it is today. HMA Twomey Patterson is proud to have been providing service to this family owned business for over 20 years. Co-contribution rate permanently reduced to 100% – The Government will provide a matching contribution of up to $1,000 for contributions made into superannuation from after-tax income. The maximum co-contribution is payable for taxpayers with adjusted taxable income up to $31,920 (and then phasing out for incomes up to $61,920). Medical Expenses Rebate Threshold Raised to $2,000 – The medical expenses rebate threshold will increase from $1,500 to $2,000 from 1 July 2010. Taxpayers will receive a 20% rebate of net medical expenses above $2,000. Coolamon • Cootamundra • Ganmain • Harden • Wagga Wagga • Young June 2010 News More than just Accountants. Business & taxation advisors - Registered company auditors 2010 Budget Update There were many changes to tax and superannuation announced in the 2010 Federal Budget – however the majority of these do not come into effect for several years. Changes that do apply from 1 July 2010 include:
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Client in Focus – HUTCHEON & PEARCEEarlier this year Arron Hutcheon took control of the well-known Hutcheon & Pearce business from his father Ted Hutcheon.
Hutcheon & Pearce was founded in 1953 by Arron’s grandfather, George Hutcheon in partnership with Cec Pearce and operated as a small business in Coolamon. George became sole Director in 1965 and purchased the business completely from Cec.
In 1978 a new sales office was established in Wagga Wagga and then moved to its current premises in 1997. By this time Arron’s father, Ted was running the business which had expanded considerably. The business has prospered and now employs almost 100 staff members operating from offices in Wagga Wagga, Albury, Temora, Parkes, Cowra and Condobolin.
Hutcheon & Pearce is now one of the largest John Deere dealerships in Australia, selling and servicing everything from the largest self propelled combine harvesters to the smallest ride-on lawn mowers and everything in between. The business also uses the latest business operating software to keep on top of the many transactions which occur throughout the 6 locations every day.
Congratulations to Arron for this fine achievement and also to George and Ted who played such a vital role in developing the business to the position where it is today.
HMA Twomey Patterson is proud to have been providing service to this family owned business for over 20 years.
Co-contribution rate permanently reduced to 100% – The Government will provide a matching contribution of up to $1,000 for contributions made into superannuation from after-tax income. The maximum co-contribution is payable for taxpayers with adjusted taxable income up to $31,920 (and then phasing out for incomes up to $61,920).
Medical Expenses Rebate Threshold Raised to $2,000 – The medical expenses rebate threshold will increase from $1,500 to $2,000 from 1 July 2010. Taxpayers will receive a 20% rebate of net medical expenses above $2,000.
Business & taxation advisors - Registered company auditors
2010 Budget UpdateThere were many changes to tax and superannuation announced in the 2010 Federal Budget – however the majority of these do not come into effect for several years. Changes that do apply from 1 July 2010 include:
Have you visited our website?
www.hmatp.com.au
1. ConCEssionAl suPERAnnuATion CAPsThe concessional superannuation caps for 2010 are $25,000 for persons under age 50, and $50,000 for persons aged 50 and over. Do not go over these limits!Note that employer super guarantee contributions are included in these caps. Where a contribution is made that exceeds these limits, the excess is taxed to the fund member’s account at an effective rate of 46.5%.in order to claim a tax deduction in the 2010 financial year, the contribution must be received by the super fund by 30 June 2010.
2. Tools oF TRAdE / FBT ExEMPT iTEMsThe purchase of Tools of Trade and other FBT exempt items for business owners and employees can be an effective way to acquire equipment with a tax benefit. Items that can be packaged include Handheld/Portable Tools of Trade, Notebook Computers, Personal Electronic Organisers, Mobile Phones, Digital Cameras, Briefcases, Protective Clothing, and Computer Software.If structured correctly, the Employer will be entitled to a full tax deduction for the reimbursement payment to the employee (for the cost of the equipment), and the employee’s salary package will only be reduced by the excluding GST cost of the items purchased. You should buy these items before 30 June 2010.
3. EMPloYEE suPERAnnuATion PAYMEnTsTo claim a tax deduction in the 2010 financial year, you need to ensure that your employee superannuation payments have ClEAREd your business bank account by 30 June 2010. For any last minute superannuation payments, we recommend that you arrange for a BANK CHEQUE made payable to your employee super fund prior to 30 June 2010. This ensures that your payment has actually cleared your bank account prior to 30 June, and will allow you to claim a full tax deduction in the 2010 financial year.
4. dEFER inCoME Where possible, defer issuing further invoices and/or receive cash until after 30 June 2010.
5. BRing FoRwARd ExPEnsEs Purchase consumable items BEFORE 30 June 2010. These include stationery, printing, office and computer supplies.
6. REPAiRs & MAinTEnAnCE Make payments for repairs and maintenance (business, rental property, employment) PRIOR to 30 June 2010.
7. MoToR VEHiClE log Book Ensure that you have kept an accurate and complete Motor Vehicle Log Book for at least a 12 week period. The start date for the 12 week period must be on or before 30 June 2010. You should make a record of your odometer reading as at 30 June 2010.
8. dEFER inVEsTMEnT inCoME & CAPiTAl gAinsIf possible, arrange for the receipt of Investment Income (e.g. interest on Term Deposits) and Contract Date for the sale of Capital Gains assets to occur AFTER 30 June 2010. The Contract Date is the key date for working out when a sale has occurred, not the Settlement Date!
9. inVEsTMEnT PRoPERTY dEPRECiATionIf you own a rental property and haven’t already done so, call us to arrange for the preparation of a “Depreciator” Report to allow you to claim the maximum amount of depreciation and building write-off deductions on your rental property.
10. YEAR End sToCk TAkE / woRk in PRogREssIf applicable, you need to prepare a detailed Stock Take and/or Work in Progress listing as at 30 June 2010.
11. wRiTE-oFF BAd dEBTsReview Trade Debtors listing to write off all Bad Debts BEFORE 30 June 2010.
12. sMAll BusinEss ConCEssions - PREPAYMEnTs
For Small Business Concession taxpayers you can make prepayments (up to 12 months) on expenses BEFORE 30 June 2010 (e.g. Rent, Interest on Loans) and obtain a full tax deduction in the 2010 financial year.
Talk to us TODAY before the 30 June 2010 deadline for assistance to reduce your tax!
June 2010News
2010 Tax Planning StrategiesThe end of the 2009/10 financial year is almost here, so now’s the time to review what strategies you can use to minimise your tax.
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www.hmatp.com.au
June 2010News
Free Superannuation Clearing HouseThe government is offering a free superannuation clearing house service to small businesses with less than 20 employees. The service will be available through Medicare Australia from 1July 2010.Key features of the service include:
> superannuation contributions made to numerous super funds will be electronically paid to a single location [the clearing house] which will process the transactions
> small businesses that use the clearing house service will have their super guarantee obligation discharged when payment of the correct amount is made to the clearing house
Employers can register on-line at www.medicareaustralia.gov.au/super.
Employee V Contractors – new on-line toolThe ATO has recently released an on-line decision tool that business owners can use to determine whether their workers are employees or contractors.After answering a series of simple questions, business owners receive a decision about whether the worker is an employee or a contractor, and a summary of their tax and superannuation obligations for the worker.To access the tool, visit: www.ato.gov.au/employeecontractor.
Tax TriviaIn 1979, a single taxpayer earning $30,000 paid $10,620 tax. In 2010 that same taxpayer would pay $2,250 tax on $30,000 income.
Small Business Benchmarkssmall businesses can now check the performance and costs of their business against ATo industry benchmarks. The ATO has benchmarked key industry ratios for over 100 industries. Businesses that perform outside the benchmarks may attract the ATO’s attention.The performance benchmarks contain up to five ratios:
> cost of goods sold to turnover
> labour to turnover
> rent to turnover
> GST free sales to turnover
> Motor vehicle expenses to turnoverThe input benchmarks are used by the ATO to calculate expected income based on the labour and materials used. The ATO will then use this information to select businesses for audit or review, as they try to identify businesses that are not declaring their cash income.The ATO’s Small Business Benchmarks can be accessed at www.ato.gov.au/businessbenchmarks. Please contact your advisor at HMA Twomey Patterson if you have any concerns about your business’ performance.
Free Tax Returns for under 18’sDid you know that we prepare income tax returns for FREE for children under 18 at the 30th June 2010?
2010 Tax Return ChangesThe 2010 individual tax return will be more complex than ever, with 26 new labels required to be completed. The main areas affected will be:
> new income tests for Government benefits and rebates> tax exemption for foreign employment income> entrepreneurs tax offset> superannuation co-contribution> employee share schemes> non-commercial loss rules
The ATo has announced that it will be targeting the following occupations in 2010:
Relay for Life Team Members from the wagga office participated in the wagga Relay for life fundraiser that was held on the 30th and 31st March. The team managed to walk for almost 24 hours to raise funds for the Cancer Council. Everyone who walked put in a fabulous effort. We collected a total of $2,303 from donations and raffle ticket sales. And after selling 250 raffle tickets we even sold one of the winning tickets to Ian Webster of Foodworks Turvey Tops! Pictured in the photo from back left to right are:Kate Selby, Tanya Musgrave, Kate Buchanan, Andrew Pryor, (front) Lucy Musgrave, Dimity Johanson and Kirsty Siegert.
Lock up Your Boss – Wagga PCYC FundraiserMatt woolnough was “locked up” in the wagga Marketplace recently.
A total of $700 was raised to set Matt free with all funds being directed to the Wagga PCYC.
New Team MemberChristie Humphreys joined our Wagga reception team at the beginning of May.
AccountingAdvanced Tax Planning
Asset Protection & Business Structures Audit & Assurance
Business AdvisoryFinance
Information TechnologySelf-Managed Superannuation
TaxationWealth Creation
Wealth Protection
HMA Twomey Patterson is an Authorised Representative of Count. ‘Count’ and Count Wealth Accountants® are the trading names of Count Financial Limited, ABN 19 001 974 625. AFS Licence Number 227232. Lending Services provided by Count’s subsidiary, Finconnect Australia Pty Ltd, ABN 45 122 896 477.
June 2010News
Liability limited by a scheme approved under Professional Standards Legislation. Please note that any taxation and accounting services are not endorsed nor the responsibility of Count Financial Limited. The articles contained in this newsletter are intended for information only and not for advice.
For further information or advice, please contact your nearest office.
Have you visited our new website? www.hmatp.com.au
Online access to your reportsdid you know that you can login to your own secure area on our website to access your financial statements, income tax returns, accounting data and other reports? You can also send us files and documents in a safe and secure environment.To register for this free service, logon to our website www.hmatp.com.au, click on the Secure Client Login button and follow the prompts.
