Robert Barbariol
Chartered Accountants

TAX PLANNER

ITS TIME TO REVIEW YOUR FINANCIAL & TAX MATTERS ESPECIALLY IN THE LIGHTS OF SIGNIFICANT CHANGES TO SUPERANNUATION AND LOWERING OF INCOME TAX RATES.

1. Review of your financial affairs

BE PREPARED

Review documents required to substantiate expenses:

• INVOICES AND RECEIPTS
• PETTY CASH ITEMS
• WORKERS COMP
• VEHICLE LOG BOOK
• TRAVEL DIARY
• WAGES / GROUP TAX
• BANK STATEMENTS
• CHEQUEBUTTS / DEPOSITS
• DIRECTOR LOAN AGREEMENT

What To Do

• Write off any bad debts.
• Physically scrap any obsolete stock or plant.
• Consider the accelerating or delaying income or purchases.
• Don't forget to pay your Super, Group Tax and prepare the Group Tax reconciliation and issue Group certificates by the due dates.
• Also assess year-end wage and salary bonuses for working directors and superannuation requirements.

Note : Directors fees are also included for Worker's Compensation calculations.

• Director's fees need to be agreed at a Directors meeting with the details minuted.
• Prepare lists of Stock, Creditors and Debtors and director/shareholder loan accounts, where relevant.

ASIC Annual Returns

To avoid additional fees the Australian Securities & Investments Commission needs to be advised of changes in Office Holders, Registered Address etc prior to the lodgement of the Annual Return. Fines of up to $290 per late lodgement can be imposed.

Invoicing

To defer income received by cheque ensure that the cheque is not tendered to you before 30 June by delaying invoicing of customers.

Deductions

Incurring expenses at year end rather than at the commencement of the next year delays tax to 2005 whilst incurring of expenses after year end would ensure that the income is increase for 2006. Payment examples:

 
Repairs Insurance
Premiums General Expenses
Materials Stationery
Interest Office Expenses
Tools Travel

For a loss situation accelerate the receipt of income and defer deductions into the next year.

2. Superannuation

SUPERANNUATION CONTRIBUTION LIMITS

You should review the amount of superannuation contributions that need to be made for the 2007 year.

Maximum limits now apply for contributions to superannuation per year.

SUPERANNUATION CONTRIBUTIONS

AGE	CONTRIBUTIONS
Less than 35 years	$15260
35 to 49 years	$42385
50 years and over	$105113

SUPER GUARANTEE CHARGE (SGC)

The Rate for Compulsory Super is 9%.

SUPER SURCHARGE

This is now repealed

NEW SUPERANNUATION REBATE

From 1 July 1997, taxpayers making Superannuation Contributions on behalf of Dependant Spouses may be entitled to maximum rebate of $540.
Rebate is reduced to nil when spouse's assessable income is $13,800 or more.

SUPER CO-CONTRIBUTION

See separate information for eligibility.

NEW SUPER RULES

The May 2006-07 Federal Budget saw many significant changes to superannuation. One of the changes is the level of deductibility for super contributions for over 50’s to a maximum of $50,000 per year. In addition, there is also the prospect of the level of undeducted contributions being capped at $150,000 per year. The transitional rules are likely to allow over 50’s to continue to make deductible contributions of up to $100,000 for the 5 years to 2012, however the situation with the level of undeducted contributions is not that flexible.

3. Personal & Company

Personal

Tax rate per cent	New tax threshold from 1 July 2007 Income range $
0	0-6000
15	6001-25000
30	25001-75000
40	75001-150000
45	15000+

Company Tax Rate - 30%

* Medicare Levy Surcharge:
An additional 1% is payable by single taxpayers with a Taxable Income of $50,000+ or couples earning over $100,000 and who are NOT covered by Private Patient Hospital Insurance.


Private Health Insurance

A 30% tax rebate/benefit on private health insurance premiums is available if not claimed as reduced Private health Insurance premium from your Health Insurer.

The benefit could be received as a tax rebate or as a direct payment from the Federal government.

The new rebate/benefit will replace the existing Private Health Insurance scheme.