Our Services

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Accounts and Tax Returns

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Companies

  • Separate Legal Entity – Assisting in protecting directors personal assets
  • Ability to retain profits and pay tax at company tax rate of 30%
  • Share holdings determine ownership and profit sharing percentages
  • Can be different classes of shares allowing for some flexibility
  • Shareholders and directors can be employees
  • Regulated under corporations Law

Tip!! A husband and wife should never both hold the position of a director

Warning!! Companies are not entitled to the 50% general discount on capital gains… however may be able to access other discounts through the small business concessions.

We don’t just crunch the numbers! We do ask the Questions!

  • look for all possible deductions
  • reduce tax payable
  • offer solutions
  • provide meaningful accounts and information to the business owner
  • assist with forward planning, tax planning, wealth creation and business growth and more
  • evaluate Small Business Concessions
  • complementary first meeting
  • experiences in both cloud and desktop accounting packages

 

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Individuals

Employees, investors, landlords, residents and non-residents tax returns encompass a wide ranging of tax rulings and regulations. We not only know all the deductions, tax offsets and concessions that legally reduce tax liabilities we have an eye for detail giving our clients peace of mind!

Qualified Accountants provide a personal service as your advisor all year round! Assisting in all areas of finance, insurance, investments, superannuation, tax and more.

We don’t just crunch the numbers! We do ask the Questions!

  • actively look for all possible deductions
  • reduce tax payable
  • provide solutions
  • assist with tax planning, budgeting and wealth creation
  • expert advice
  • personal service
  • minimise your stress
  • peace of mind
  • qualified accountants

Tip!! Don’t forget to claim your travel to and from your accountant and of course always keep your receipts – they do make a difference.

Warning!! The ATO data matching interest, stamp duty records, share registries and more so take care to declare all income including foreign income if you are an Australian resident for tax purposes.

 

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Partnerships (standard or normal)

  • simple and cheap to set up
  • not a separate legal entity
  • profits split equally unless otherwise determined by a partnership agreement
  • partners share all Assets and Liabilities – partners are joint and severally liable!
  • less complex than other structures to maintain
  • partners cannot be an employee of the partnership
  • superannuation and workers compensation not payable of partners drawings or profits
  • profits cannot be retained – must be distributed to partners
  • any capital Gain or Capital Loss is made by the individual partners – not the partnership itself
  • partnership does not pay tax as tax liability in incurred in the partners individual tax return
  • change of ownership generally require partnership to be dissolved
  • bankruptcy or death of a partner will require partnership to be dissolved
  • friction between partners often a common problem

Tip!! A partnership agreement although not a legal requirement is highly recommended

Warning!! Personal Liability unlimited – i.e. if the business has debts and a partner is unable to pay his or her share of debt the other partners are liable!

We don’t just crunch the numbers! We do ask the Questions!

  • business plans
  • budgets
  • provision of management accounts to partners
  • tax planning
  • evaluate Small Business Concessions
  • maximise possible deductions
  • reduce tax payable by partners
  • provide solutions

 

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Limited Partnerships

  • two types of partners – ‘general partners’ and ‘limited partners’
  • general partners are the managing partners – liability for its debt is unlimited.
  • has between 1 and 20 general partners.
  • limited partners have no say in management and liability for debts limited to the amount of money contributed.(registered with NSW Fair Trading).
  • minimum one limited partner with no maximum number restriction.
  • new limited partners can be added without consent of existing limited partners.
  • limited partners are In effect, ‘passive’ investors.
  • can be used by businesses raising capital and complexities of a company are not required.

Tip !! Most commonly used by industrial or real estate developments, agricultural schemes, mining projects, arts, theatrical and film ventures or other businesses needing to raise funds in a relatively straight forward way.

Warning!! Both general and limited partners need to ensure they understand their roles and liabilities

We don’t just crunch the numbers! We do ask the Questions!

  • business plans
  • budgets
  • provision of management accounts to partners
  • tax planning
  • evaluate Small Business Concessions
  • maximise possible deductions
  • reduce tax payable by partners
  • provide solutions

 

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Incorporated Limited Partnerships

  • a far more complex partnership structure
  • is a separate legal entity
  • generally used for high risk venture capital projects
  • expert legal advice should be sought if considering setting up one of the four forms of incorporated limited partnerships

 

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Incorporated Associations

  • generally used by small not for profit organisations as an alternative to forming a company or a co-operative.
  • is a separate legal identity separate from its members.
  • can trade however trading cannot be the main purpose.
  • Profits are not distributed to members – they are used by the association.

Tip!! – best suited to small community or special interest groups

Warning !! Governing rules or constitutions need to be implemented

We don’t just crunch the numbers! We do ask the Questions!

  • business plans
  • budgets
  • management accounts
  • provide solutions
  • Year end accounts

 

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Co-operatives

  • is owned by the members.
  • minimum five members.
  • NSW has more co-operatives than any other states
  • members pool resources and work together with the aim of increasing their competitive edge in their industry
  • democratic as all adult members have equal voting rights
  • formed primarily to provide a service to members so although a limited distribution of profits can be allowed this is not always the case
  • members can be under 18 however will not have voting rights and cannot stand for office

Tip!! Useful for benefiting from economies of scale by combining purchasing, marketing or distribution

Warning!! Members can become liable if proven that practices of the co-op are fraudulent, negligent or reckless

We don’t just crunch the numbers! We do ask the Questions!

  • business plans
  • budgets
  • management accounts
  • provide solutions
  • Year-end accounts

Request a meeting for Accounts and Tax Returns for companies

 

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Sole Traders

  • simplest and cheapest form of business to set up
  • can trade using your own name with no need to register a business name
  • owner cannot be an employee however can still employ other individuals
  • Profit cannot be shared with spouse or other family members
  • A sole trader uses their individual Tax File number however must apply for an ABN
  • If non-commercial loss rules are passed if a loss is made the loss can offset PAYG income and reduce tax payable
  • Taxation disadvantages can result if income is high
  • If non-commercial loss rules are passed a loss can offset PAYG income and reduce tax payable
  • no requirement to pay superannuation on profit
  • profit not subject to workers compensation however other business insurance should be held
  • Your business structure can change so once business grows and requirements change the business can be restructured as required
  • Obtaining business finance is more difficult
  • Difficulties arise in the event you wish to sell, bring in partners or pass onto dependents

Tip!! As workers compensation benefits for sole traders are not allowed sickness and accident or income protection insurance should be taken out

Warning!! Owner personally responsible for all liabilities placing personal assets at greater risk.

We don’t just crunch the numbers! We do ask the Questions!

  • look for all possible deductions to reduce tax payable by partners
  • provide solutions
  • business plans
  • budgets
  • provide meaningful accounts and information to the business owner
  • assist with forward planning, tax planning, wealth creation and business growth and more
  • evaluate Small Business Concessions

 

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Trusts – Discretionary

  • popular structure for families in business – often referred to as a family trust
  • generally trust income is distributed to beneficiaries and taxed in the hands of the beneficiaries. In the unlikely event the trustee retains profit in the trust at year end penalty tax rates apply!
  • not a separate legal entity
  • is a legal relationship
  • four categories of the main players – trustees, settlors, appointers and beneficiaries (click here for blog)
  • profits required to be distributed at the end of each financial year
  • cannot distribute a loss
  • trustees maintain control of assets and determine which beneficiaries benefit from profit at year end.
  • beneficiaries not legally entitled to income as reliant on trustees decision
  • must have a trust deed
  • stamping of the trust deed is a state based tax so applied differently in each state
  • strict laws and special requirements apply to trusts and expert advice should be sought
  • can be an excellent vehicle for tax planning and distribution of profits
  • personal Services income rules need to be considered when distributing profits
  • offers increased protection of personal assets
  • facilitates the ability to pass business or wealth from generation to generation
  • trust deeds have a limited life
  • trustees powers determined by both the trust deed and law
  • trust deeds differ and expert advice should be sought
  • unlike a company a trust can generally access the 50% general capital tax concessions

 

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Trusts – Fixed and Unit

  • many of the rules applying to a family trust apply to a fixed or unit trust
  • the trustee cannot determine distribution at year end as the units held by each unit holders determine percentage of profits received
  • more commonly used for investors or business owners that are not family members
  • beneficiaries can exit the trust or increase/decrease unit holdings easily
  • new beneficiaries can be introduced through issue of new units or transfer of units from a current beneficiary

Tip!! A Corporate Trustee (a company as opposed to individual trustees) are recommended

Warning!! Losses are trapped in the trust and can only be offset against future gains

We don’t just crunch the numbers! We do ask the Questions!

  • look for all possible deductions to reduce tax payable by partners
  • provide solutions
  • answer questions
  • business plans
  • budgets
  • provide meaningful accounts and information
  • assist with forward planning, tax planning, wealth creation and business growth and more
  • evaluate Small Business Concessions

NOTE : there are other variations of trusts available such as hybrid trusts, Public Trusts and trusts listed on the stock exchange

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Self-Managed Super Funds (SMSF)

  • Largest sector of Australian Superannuation Industry holding 1.6 trillion in assets (December 2013)
  • Averaging 27,000 new funds each year since 1999
  • Between 1 and 4 members
  • Each member is a trustee or a director of corporate trustee
  • Trustee cannot receive remuneration for trustee services
  • Allows for greater control of investment strategy and retirement funds
  • Complex rules and regulations – expert advice needs to be sought
  • Investment Strategy essential
  • Insurance requirements need to be evaluated
  • Trust deed should allow for any future borrowing requirements
  • Corporate Trustee recommended over individual trustees
  • Stamp duty not applicable to SMSF trust deeds
  • Corporate Trustee generally a Special Purpose Company

 

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Not-for-Profit

  • can be structured as an incorporated association (click here) , company (click here) , trust (click here) or a co-operative (click here).
  • may have paid employees volunteers, or combination of above
  • management often a committee or board
  • special rules for charities
  • income tax exempt
  • may be entitled to fringe benefit concessions or exemptions
  • if registered as a charity generous salary packaging rules apply

 

Partners & Affiliations

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