Crucial tax changes

		Crucial tax changes
		You have not heard about this shift in rules through the media - it is part of the tax reform as a result of the Ralph report.  I have always forecasted that when tax reform arrives, it will make GST appear insignificant.  I am afraid I have to confirm that is it now here and it HAS to be dealt with. Due to the intensity and complexity of the legislation I have employed a new member of staff to assist me.  Nick Fardoulys is a Certified Practicing Accountant (CPA) who joins us with a wealth of knowledge gained through many years in the commercial world.  Nick has worked on all levels of the commerce sector, and has developed a wonderful affinity with small business in particular.  He has a lot of experience, and I am sure you will find Nick's immense knowledge and proffessional manner very reassuring. Please do not delay in attending to this issue, as time is extremely limited.  We will be doing our very best to assist in making the optimum decisions for you and your business.
		Knowledge - the key to success...
		Capital Gains tax	Super Guarantee Levy
		This is another area which has seen the introduction of new rules, which definitely favour the structure of an individual.  If you are looking at purchasing a business or investment, please seek advice from us.  You need to be clear on the tax situation before any decisions are made.  Also, before selling an asset you should have us do calculations in both Capital Gains Tax methods available, so that you get the most tax effective rate.	The levy is 8% of gross for the current year.  Remember that if you have not physically paid the amount to the fund by 30th June, you cannot use the outstanding amount as a creditor for 30.06.01.

		Depreciation changes for the 2001 financial year
	Small business will stay as is for another year. New changes to the Depreciation rules will only affect medium to large business, individual wage earners and rental property owners.  With the new rules, items under $300 will still remain deductible.  Items purchased over $1000 will be depreciated at a set effective life rate rather than the old percentage rate. If you fit into one of the above categories, you can POOL your items purchased for a value of between $301 and $1000.  New items purchased through the year will be depreciated at a rate of 18.75% then 37.5% for future years. Likewise any items already on your depreciation schedule which were purchased after 21st September 1999.  These can be pooled into the one sum if the written down value is below $1000.  This will clean up your depreciation and get a better claim.  The winners will be the rental property owners.
		Subcontractors
		You may be employing subcontractors who have an ABN.  Rest assured that you still have a commitment with Workcover even if these people have there own income protection policy.  In many cases there is also a superannuation responsibility for you. Many of your subcontractors are no doubt also caught under the new rules.  You may wish to inform them to see an Accountant about their position.

Copyright 2001 Winn Stone, All Rights Reserved.