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Welcome to our July issue of Business Bulletin.

In this issue ...

Super funds excess contributions tax

Now that the new financial year has begun, we strongly encourage super fund trustees to consider the new contribution and pension limits for the year ahead.

The last few financial years have seen a high number of taxpayers caught out due to excess contributions from salary sacrifice arrangements and members not keeping track of the dates on which employers have paid contributions on their behalf.

The concessional cap for 2012-13 has been reduced to $25,000 for members over the age of 50 and remains at last year's level of $25,000 for members who are not yet 50.

From 1 July 2012, those earning over $300,000 will pay tax on their contributions at a 30% tax rate.

Read more about this by clicking on this link.

 

For further clarification on the above or for information on how we can help you, give our Super Specialists a call. 

Phone 03 5144 4566.

   

Annual wage review

Under Fair Work Australia's National Minimum Wage Order 2012, from 1 July 2012 Federal minimum wages will increase.

The 2012 Minimum Wage Decision applies to all employees covered by the National Workplace Relations system.

If you are not sure of the appropriate pay rate under the new award, you can check with Fair Work Australia.

  • The minimum full-time wage will increase to $606.40 per week ($15.96 per hour) from $589.30 per week ($15.51 per hour).
  • The minimum hourly rate for casual employees working under a modern award is still subject to the standard casual 25% loading.
  • Casual employees not working under a modern award or agreement will have the default casual loading increase to 23% from 22%, with their minimum hourly rate increasing from $18.92 per hour to $19.63 per hour.

The order takes effect on the first full pay period on or after 1 July 2012.

 

   

Time to get the ATO off your back

... and some cash back in your pocket!

The ATO says that will start full processing of 2011-12 tax returns on 5 July 2012 and expects to start paying refunds from 13 July 2012.

Its aim is to finalise most electronically-lodged current year individual returns within 12 business days of receipt, with the remainder expected to be finalised within a month.

For electronically lodged returns for non-individuals, the aim is to finalise the returns within two weeks of receipt; while returns lodged on paper could take up to two months from receipt.

Don't delay!

Contact us now for your Tax 2012 appointment.

Phone 03 5144 4566  today.

   

The future of the family farm

Recent research has revealed that the majority of  small family farms in Victoria are struggling to survive, with just under 30% earning enough to support the families who own and manage them.

A high proportion of farms have to rely on family members supplementing the farm income with jobs off the farm. Low turnovers make it difficult to turn a profit, resulting in many farms' income being below the median income of Australian households.

If you are in the fortunate position of the minority of family farms turning enough of a profit to support your family, that's great! However, if you are in the difficult position of most small family farms, we might be able to help you work out some strategies for improving the health of your business.
 

 

Talk to Colin Wright, our Farm Business Specialist, for the right advice. Alternatively, have a chat with your usual Phillipsons accountant.

Phone 03 51444 566

 

 

Dancing With Our Stars - a success!

The stars were out at the Wellington Sports Centre in Sale on 16 June, as  our very own Wayne van der Heide competed in the recent charity event Dancing With Our Stars.

Wayne and dance partner Megan Paterson (who represented Gippsland Paediatrics), competed against five other couples in front of a 1,100-plus strong audience. After a three heat dance-off they finished second, being pipped at the post by Daniel Smolenaars from Laser Plumbing and Jodie Willis from WorkHire.

Mark Wilson, a former judge from the TV series Dancing With The Stars, was host of the evening. Mark was full of praise for our local talent throughout the night. All competitors were complete amateurs until about 12 weeks before the event, but showed surprising talent on the night.

Well done, Wayne – we are very proud of your efforts.

The event was very well supported by the local community, raising over $60,000 for the Five Star Project, who provide opportunities for young adults with disabilities to live independently, and the Sale Elderly Citizens Village.

   

Heading North: Sam Alexander is now just south-east of Tamworth

... and expects to be in Queensland by the end of July.

We introduced you to Sam Alexander in early 2012. He is undertaking a solo 5,330km journey on horseback on the Bicentennial National Trail (BNT), to raise money for the Royal Flying Doctor Service.

Phillipsons has already donated to the cause. You too can donate! To donate, for more info and to follow his progress, go to: http://www.headingnorth2012.com/

   

Coming up

  • Next in our Phillipsons Forums focussed on accounting systems and record keeping requirements – Tax Workshop 'Keeping on the right side of the ATO's new blitz'
Best wishes,

Kurt Best
General Manager
Phillipsons.com.au