Tax

Did you know the amount you can contribute to superannuation will decrease from 1 July 2017? Paying extra into your superannuation now may make a big impact later in retirement.

Making before-tax contributions

Right now the total amount you can contribute to your superannuation before tax, is capped at:

  • $35,000 per year if you are aged 50 or over.
  • $30,000 per year if you are aged under 50.

Your before-tax contributions include your Superannuation Guarantee contributions, any other employer super contributions, salary sacrificing (if you do this) and any contributions that you have claimed a tax deduction for.

The cap will reduce to $25,000 per financial year from 1 July 2017, regardless of age. There will be additional flexibility from 1 July 2018 if you have less than $500,000 in total superannuation which will allow you to carry forward your unused before-tax (concessional) contributions for up to five years.

Making after-tax contributions

Take advantage of the current higher after-tax contributions cap to boost your super before it changes. From 1 July 2017, the cap on after-tax contributions will reduce to $100,000 per financial year. It’s currently $180,000 for those under 65 years. From 1 July you will also only be able to make after-tax (non-concessional) contributions if your total super balance is less than $1.6 million. If you have spare cash on hand, whether an inheritance, dividend payments, a bonus or even just change after bills, you might consider contributing this to your superannuation sooner rather than later. And, if you are aged under 65, you can bring forward up to three years of after-tax contributions, allowing you to invest up to $540,000 in one go. This cap will change to $300,000 from 1 July this year.

Entering retirement

If you’re retired or about to retire, there are a few changes you should know about. From 1 July 2017, the maximum amount you can have invested in the retirement phase will be $1.6 million. If you’ve already retired and your balance exceeds this cap you will be required to either

  • Move the excess back to the accumulation phase or
  • Withdraw the amount as a lump sum by 1 July 2017 or have a tax penalty applied.

Note: This deadline is 31 December 2017 if the excess amount is $100,000 or less. If you’re currently invested in a Transition-to-Retirement (TTR) pension, from 1 July 2017, the earnings from this pension will be taxed at up to 15% pa (compared to its current tax-free status). Talk to your Financial Adviser to evaluate whether this style of pension is still right for you. To learn more about end of financial year strategies for your super, please don’t hesitate in contacting us.

General Advice Disclaimer

The information contained in this article is general in nature and does not constitute personal financial advice. It has been prepared without taking into consideration your personal objectives, financial situations and needs. Before acting on any information contained in this article you should consider the appropriateness of the information having regard to your objectives, financial situations and needs.

Read more

Here at Anne Street Partners we know that the month of June is often a busy one – as it is tax return time! It can instill fear in many as it can seem overly complicated, but we have a few tips to make it easier for you.

With tax returns due at the end of the month it is vital to ensure you have all the relevant documents you need. Start getting all your paperwork together and organize it in a folder so it is easy to refer to. For less-complicated tax returns there are several online options at the Australian Tax Office (ATO) website.

For more information please see: https://www.ato.gov.au/Individuals/Lodging-your-tax-return/Do-you-need-to-lodge-a-tax-return-/

Sending your tax return via mail is also an option for those that prefer paper forms. In order to complete your tax return you will need documents and records from throughout the year as well as your tax file number. For businesses you will need to lodge an annual company tax return. Depending on how your business is structured you will need to supply the ATO with more detailed information compared to an individual tax return.

For help lodging your tax return you can seek advice from a registered tax agent. Though we don’t provide tax advice, Anne Street Partners will help you strategically manage your tax risk, using legal and compliant processes. We can help plan for the year ahead and ensure you are maximizing your financial and revenue streams.

Read more

Owning a business for the first time is hugely exciting! The first year of any business is busy, challenging and can be a little bit daunting. There are so many areas you have to focus on that it can be quite a juggle!

Here at Anne Street Partners, we have helped many first time business owners navigate their way through the more complex matters of finance and taxation, allowing them more time to focus on what they do best.

We have put together our top 5 tips to help you manage your first year in business:

1) Organise, organise, organise! We cannot stress this point enough – organisation is key to success. Keep folders for every aspect of your finances as it really helps organise you. It helps to make an effort early on in your business so that it becomes habit. Keeping organised helps with planning for your tax return…

2) Keep all receipts for your tax returns – This is again very important. In order to help your accountants, make sure you keep all your receipts – especially those larger business purchases. Organise them by month in a folder. This allows you to easily flick through months and work out average spend by month – as well as help your accountants. Start a basic spreadsheet of outgoings and use this as a benchmark of spending.

3) Know what you do, do what you know: This old adage rings very true in business. Starting a business is quite easy. But making it a success is more likely if you do what you know – if you have passion for what you do and if you do it because your heart is in it. Know your strengths and weaknesses and focus on building your business around your talents, rather than just profits.

4) Learn from your mistakes – In a new business you will undergo a steep learning curve and you will make mistakes. That is part of what makes the first year in business an exciting one! How you handle problems and issues is what makes all the difference. Remember, no one can plan for everything!

5) Talk to our business team here at Anne Street Partners: We can help you in organising your finances, business plans and your first tax return. Our financial planners have a wealth of experience in helping business owners make a success in their first year. Contact our team today for more information and impartial advice on 135 444

Read more

Tax returns can be a major source of stress for people, and they come back around every year. There is simply so much information to be filled out and so many rules and regulations that can trip you up as you work through the forms, it can be completely overwhelming. It’s no wonder so many people resort to hiring a tax agent or purchase tax software to complete their taxes each year.

However, with some planning and a couple of tricks, you can make your tax return much easier. The first step is taking responsibility for your finances from day to day. Keeping a record of your purchases and expenditures—that means keeping the receipts and purchase confirmation emails from everything all year—can make your taxes easier and save you some extra money in the end. It’s always worth checking if your purchases qualify for some deduction or rebate on your taxes.

You can also make your life easier at tax time by keeping your finances organized and easily accessible. If that means recording everything in a paper ledger, in financial software, or through an online service, take the steps you find useful in organizing your thoughts and figures.

Having a full record of where your money is and how much is in each location will provide quick, easily accessible sums for most sections of your tax return and save you time in the end. Be sure to include investments, savings, loans, and more in these records as all can play into a tax return in some way or another. It is best to start organising as early as possible so that come July you are ready to file your tax return.

Anne Street Partners make your tax return less taxing!

The team at Anne Street Partners have a wealth of experience when it comes to managing finances. Our advisers help with all aspects of financial planning and help make sure you make the most out of your tax return. Contact us today on 135 444 for a chat and see how we can make your money work for you!

Read more

The term “tax risk management” is usually used in reference to large corporations and simply refers to a deliberate strategy to minimize tax liabilities while complying with all relevant laws and procedures. But putting strategies in place to manage tax risk is a smart idea for small businesses and individuals as well.

In large enterprises, the board of directors, management and other key players must come together to develop the best tax risk management strategy. For smaller organizations or individuals, this could be a one-person assessment of issues and risks.

Risks examined involve uncertainties in tax laws and how to deal with them as well as financial reporting decisions, how acquisitions are handled, tracking sales properly and a host of other issues.

Since an ATO audit can be costly and time-consuming, the primary tax risk to consider is proper compliance with tax laws. A tax professional can’t accurately prepare a return for a company or individual without a complete understanding of how the numbers provided were reached.

Like so many other aspects of business, tax risk management simply comes down to making a plan, following it and constantly reassessing this plan to make sure it complies with all laws, takes into account all eventualities and adequately serves the needs of the person or the organization.

Without good planning, the person or organization is open to undesirable and unnecessary risk — and this kind of risk is a bad business decision.

For advice and strategy, get in touch with our team at Anne Street Partners today and speak to one of our friendly team on 134 977 

Read more