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Volume 3 - Issue 3
September 2005

Saward Dawson - Making a difference

Keeping you informed

No matter whether you are in small or large business, an investor or employed, there is a continual barrage of information that you need to be aware of to simply manage your financial affairs in the most effective way. This issue of InFocus looks at several issues that affect a significant number of our clients.

Our InFocus newsletter is one of the ways we use to keep you informed. We also encourage you to keep an eye on our website.

The Eiffel Tower might not appear to have a lot to do with your accountant but Brighton Travelworld are our Client InFocus this issue. The travel industry has been hard hit by world events and challenges over the last few years but here is an example of a small business that keeps on top of challenges and has thrived as a result. And who knows? By letting us help you manage your financial affairs, maybe one day you will be able to take that well deserved trip to Paris.

Client InFocus – Brighton Travelworld

When it comes to industries that have been affected by world events, the travel industry would have to be at the top of the list.

Many of the crises have made world headlines and been impossible to predict including September 11, the SARS epidemic and the tsunami in the Indian Ocean. On the other hand, people are travelling more than ever. Brighton Travelworld have responded to events that are “outside our control” and thrived.

Small business tax cuts

The ATO has introduced new rules, commenced on 1 July 2005, that cut tax payable on small business income by up to 25%. They apply to those businesses with a turnover of less than $75,000.

“Low doc” loans

"Low doc" loans require no proof of income to be established, only the signing of a Statutory Declaration stating your income. The ATO is examining these loan applications more carefully now to identify potential areas of fraud.

International Accounting Standards are here

The time has arrived when International Accounting Standards must be applied by certain entities.
If you are not sure if International Accounting Standards apply to your organisation, or if you do not have your implementation process ready, it is time for action. Please contact us if you need more information and assistance.

Personal services income

The PSI rules were designed to prevent average wage and salary earners claiming many of the incentives available to business.

The Federal Government set up the Personal Services Income (PSI) rules to specifically prevent normal wage and salary earners setting up a business and claiming deductions available to businesses. A recent case in the Administrative Appeals Tribunal demonstrates that there is much to understand.

It appears to be advantageous but it can be fraught with danger.

From time to time we find clients entering into property contracts thinking that it is easy to use the "and/or nominee" clause to later nominate an alternate purchaser of the property. The Stamp Duty laws are very stringent. This practice can be dangerous and may result in double stamp duty.

We recommend that clients speak with us before purchasing property. It will enable the most effective purchaser to be identified and the contracts can then be signed appropriately.

The Count Report

Read the September Count Report including articles on:

		10 years ago, Count invested $10,000 into each of 12 different investments. How did they fare?
		Promises of high returns on cash investments, but are they all that they seem?
		Should you sell your home to fund retirement?
	Read the report

FBT and Christmas benefits

FBT and how it applies to the company Christmas party can be complicated.

There is enough to do around Christmas time without having to worry about the FBT implications of putting on a staff Christmas party. We explain what you need to know.

Around the firm

Cathy Braun has recently commenced family leave and we wish her well over the next 12 months. Samantha Keats has taken over the reigns as Taxation Manager, working closely with Simon Dinér to serve our tax clients.

Joshua Morse has returned from a trip to Europe (he saw the Eiffel Tower) and can now devote his spare time to house renovations.

Kelly Mehlert joined us in our Administration team and will often be the first voice you hear when you call.

Alison Dovey and Miranda Starkey have both recently given birth to their second children. Alison delivered a girl, Paige Ella, to make “one of each” and Miranda now has Linton, making two boys; nine to go for a cricket team.

Disclaimer This publication has been prepared on the basis of information available at the date of preparation. The information is general in nature and is not to be taken as substitute for specific professional advice. We recommend that our advice be sought on specific issues prior to acting on transactions affected.