The PRWIRE Press Releases https:// 2010-04-21T07:09:35Z Deadline for small business help 2010-04-21T07:09:35Z deadline-for-small-business-help Businesses with an annual turnover of less than $2 million have until 30 June 2010 to request a 12-month general interest charge (GIC) free payment arrangement for activity statement debts. Troy Wink of VBD Chartered Accountants said this is a very important opportunity for SMEs, especially those that are struggling. Eligible businesses can still apply to defer the payment due date for the following 2009–10 activity statements: Quarterly payers: quarters three (January–March) and four (April–June)Monthly payers: February–June inclusive “SMS business owners should be contacting their tax advisors now to maximise the remainder of this relief measure,” said Mr Wink. To find out if you’re eligible, or for any further information, contact VBD Chartered Accountants on 1300 823 123 or visit the ATO website at www.ato.gov.au. The tax effective retirement trifecta 2010-03-29T07:06:55Z the-tax-effective-retirement-trifecta Since 1 July 2007 we have had a large proportion of our self managed superannuation fund (SMSF) clients taking advantage of the change in rules that came under the Government's SimplerSuper regime. We like to refer to this as the ‘tax effective retirement trifecta’. The three legs of the ‘tax effective retirement trifecta’ are as follows:1. If you are over age 60, the pension payments you receive from your SMSF will be tax free if they are paid from a taxed super source. This has been beneficial for all of our clients over the age of 60, especially as the tax free status of this pension applies regardless of how much income is derived from other sources, e.g. employment income, interest, dividends, etc. This has been a fantastic setup for our clients at the height of their income earning capability, as it enables them to access monies from superannuation without losing any of it to the ATO.2. The tax rate on the earnings of the investments used to fund the pension becomes 0%. This includes any interest, dividends, capital gains or any other income the assets may earn. This allows your SMSF to accumulate wealth, on the assets used to fund a pension, at 15% faster than it otherwise would have. 3. You do not have to change your SMSF investments when you start a pension. Depending on the investment strategy and the earnings capability of the fund, the act of rolling a fund into pension phase can potentially have no impact on the actual assets held in the fund. This can come about via the ability of the fund to have cash earnings greater than the pension amount to be taken out. Thus no assets need to be liquidated to fund the required pension.A great example of how the ‘tax effective retirement trifecta’ is working for one of our clients is as follows:FactsFred and Cheryl are both 60 years of age.They own a successful business in the Newcastle area.Currently they each contribute $9,000 into their SMSF, from their wage of $100,000 each. VBD have previously discussed the benefits of maximising their superannuation contributions as they approach retirement with Fred and Cheryl, however the business has always needed all of its cashflow to operate successfully. Fred and Cheryl’s SMSF has currently has $800,000 in it. This is made up of various assets including property and shares. Its components are all from a taxed source.Fred and Cheryl came to VBD for suggestions to minimise their overall taxation obligation to allow them to free up some additional cash flow in their business.StrategyTo begin pensions for both from their SMSF. In their case, as they both still work full time, a transition to retirement pension would be appropriate as this would allow them to satisfy a condition of release.Their combined pension amount can be, in the 09/10 tax year, between $16,000 and $80,000 jointly. The pension amount drawn from the SMSF can be deposited into their business. This can then be withdrawn from the business and contributed back into the SMSF as a concessional contribution (tax deductible) for Fred and Cheryl. Net result If the maximum pension of $80,000 was taken from the SMSF and then re-contributed back into the it, the tax consequence would be as follows:The SMSF would pay an additional $12,000 tax on the contributions in the 09/10 tax year.The business would save $24,000 tax in the 09/10 year.Based on the fund earning approximately 5% per annum earnings on its pension assets, the fund would save $6,000 in income tax in the 09/10 tax year.The total net tax saving for Fred and Cheryl in the 09/10 tax year would be $18,000.The only cashflow short fall would be $6,000 in the SMSF.No tax would be payable on the pension drawn from the SMSF.For more information, contact VBD Chartered Accountants on 1300 VBD 123 Calling all golf enthusiasts to tee off for charity 2010-03-29T07:02:13Z calling-all-golf-enthusiasts-to-tee-off-for-charity The 7th annual VBD Charity Golf Day will be held on Friday 28 May 2010, with the aim to raise over $15,000 for The Fred Hollows Foundation and Rotary Club of Newcastle Sunrise. The golf day provides networking, promotional and social opportunities for businesses over a round of golf on the picturesque Merewether golf course. In the six years to date, VBD Chartered Accountants have raised over $60,000 for charities and organisations. With the golf day now in it’s 7th year, VBD invite business owners and managers to take part in what is increasingly seen as one of the best charity golf days in our region, as either a sponsor, a player, or simply by donating a prize or cash.Partner of VBD Chartered Accountants, Greg Valentine, believes that the event is a great opportunity for local business people to network, promote their business, relax and at the same time, contribute to worthwhile causes.“The Charity Golf Day is a great reason to pull out the clubs, and support two organisations that really need our funding to continue their great work.” says Valentine.“We are supporting The Fred Hollows Foundation and the Rotary Club of Newcastle Sunrise because our values really lie in what these two organisations are striving to achieve – The Fred Hollows Foundation in restoring sight to those suffering from avoidable blindness, and Rotary Club of Newcastle Sunrise for the projects they carry out locally, nationally and internationally.”“If you're not in a position to sponsor, or you’re not a golfer, you can support the event by donating cash or prize donation on our website at www.vbd.com.au”Support the VBD Charity Golf Day by registering to sponsor, play or donate a prize at www.vbd.com.au/golf-day Many property investors miss out on thousands of dollars in tax deductions! 2010-03-29T07:01:40Z many-property-investors-miss-out-on-thousands-of-dollars-in-tax-deductions Depreciation is a legitimate tax deduction, yet many property investors don’t claim what they are legally entitled to; a costly mistake when it comes to tax time. This is baffling when you consider how extremely simple the process is. It all starts with a one-off report from a licensed quantity surveyor. The report itself is also fully tax deductible and better still, it’s probable that you will offset the quantity surveyor fee with the amount derived from the allowable deductions in the first year. We recommend that you obtain a quantity surveyor report now, so that not only will you be able to claim the report tax deduction in 09/10, you will also be in a better position to amend prior year income tax returns before the amendment period of (generally) two years expires. VBD can amend income tax returns starting from a small fixed price of $99. All properties, regardless of age, are eligible for depreciation. Residential properties built after 1985 are eligible for the most claims; building allowance (i.e. the building or any structural improvements) and plant and equipment (i.e. carpet, blinds, ovens, etc.) Properties built prior to 1985 are still eligible to claim depreciation on plant and equipment, so a report is still worthwhile. It doesn’t matter how long you’ve had your property, you can still have a report prepared. Building allowance write-off also has capital gains tax benefits, regardless of the age of the property.If you are interested in obtaining a quantity surveyor report, and/or amending prior year income tax, contact Troy Wink of VBD Chartered Accountants on 1300 VBD 123 or click here. Top 10 New Year’s Resolutions for Business Owners in 2010 2010-01-12T04:18:30Z top-10-new-year-s-resolutions-for-business-owners-in-2010 2010 is set to be a stellar year for Newcastle business owners, according to business expert, Phil Bamback. “This new decade presents exciting opportunities for businesses that want to really step up to the plate and supercharge their results. But what many business owners may not realise is that adopting the right mindset for 2010 will be critical to taking things to the next level.”Phil Bamback says that the focus of the New Year should be on working smarter, not harder, and offers his Top 10 New Year’s resolutions for every business owner:1. Leverage your time – Phil says that business owners need to prioritise their time to work on their business, rather than it, to focus on achieving their big-picture goals. He suggests delegating tasks, steering clear of less important jobs, giving more responsibility to employees and implementing efficient systems. 2. Look after your lifetime customers – “Your most loyal customers are your most profitable - they spend more each time and they purchase more regularly,” Phil says. “Do whatever you can to create and maintain these long-term relationships; the value they will offer in return is worth the effort.” 3. Make marketing a priority – Phil says that spending money to market to customers is the best way to boost your revenue, and the only way to let them know that you exist. Creative, cost-effective ways of marketing are becoming increasingly accessible - take the time to research them, or hire a marketing expert to help. 4. Take advantage of social media –“Using social media sites such as Twitter, Facebook, LinkedIn, and blogs can be a virtually free way of positioning yourself as the expert, creating meaningful networks and collecting valuable feedback,” Phil says. 5. Manage your cashflow – 92% of business owners frequently stress about cashflow, but this doesn’t have to be the case. Phil says that there are countless methods of ensuring that you are never short on cash, and that each business needs to implement effective cashflow management policies and practices. 6. Spend time on your self-education – The business environment is evolving so rapidly that it’s hard to be an expert in every area of business. Phil suggests reading, attending seminars and workshops, and following the market to sharpen your skills and keep your business moving. “A business will never outperform its leadership,” he says. 7. Empower your team – “Business owners are responsible for creating a company culture where employees are encouraged to go above and beyond their duties to create a fantastic customer experience,” says Phil. “In allowing them to use their initiative, this actually increases employee satisfaction at work, and so is beneficial for your customers, your staff, and your business all around.” 8. Ask for help – “It often takes an outsider to see your business objectively and to know what needs to be done. Seeking the help of a business coach or mentor can both help you identify and achieve your goals, and build your accountability. Hiring professionals to help you in the areas of your business that you struggle with will also be beneficial.” 9. Cut your losses – Phil stresses the importance of testing and measuring the effectiveness of certain management policies, marketing strategies, and working styles. “If something you’ve always done isn’t working, drop it - the sooner you do, the sooner can move onto something bigger and better.” 10. Make time for yourself – In line with the recent debate surrounding the work/life balance, Phil says that the key to achieving this resolution is to make it measurable and specific – aim to spend 10 nights a month with your family, or 5 hours a week on a hobby. Phil Bamback says that “Now is the perfect time to start the new decade off on a positive note. Working on your mindset is an incredibly important but often overlooked factor in achieving business success, so setting and working towards New Year’s resolutions is a great way of kick-starting the year.” It is much easier to keep your Business New Year’s Resolutions when you have someone to hold you accountable. Mr Bamback provides tailored advice and support for Newcastle business owners who want to fast-track their results in 2010. Contact 10X Newcastle on 02 4942 5839 for a complementary Discovery Consultation in January. -ENDS-