Spring

In the LOOPThe Spring clean issueSEPTEMBER 2011

The Quarterly Newsletter for clients of Powers Financial Group

Director’s Messagewith Ian Congram

Let’s be honest. We would all like to have more money, and pay less tax. The good news is that the first few months of the new finan-cial year is always a good time to start with a ‘clean slate’ and give some thought to your tax and wealth creation strategies. There is no better season to do a ‘Spring clean’ of your finances, conduct some research, and get some advice for the rest of the financial year ahead.We hope this issue gives you some food for thought, but as always, if you have any questions please contact our office.

If you think finding a couple of dollars under your couch is excit-ing, imagine finding lost super you didn’t even realise you had. And the best part is that unlike doing a Spring clean of your house, finding lost super is super easy and can be done in a few minutes. All you need to do is enter your tax file number (TFN), family and given names at the Tax Office’s SuperSeeker website, or through their self-help line on 13 28 65 (Fast Key Code 1 then 2).

The SuperSeeker ser-vice is free to use and is available 24 hours a day, seven days a week.Once you’ve entered your details, Super-Seeker will provide you with a list of possible lost and unclaimed super matches and also help you lodge a request with your fund online if you wish to transfer your lost super to another account. ■To get started go to www.ato.gov.au

and follow the links.

Find some hidden

WIN a year’s free subscription to MYOB LiveAccounts!

Tax return facts you probably didn’t know

Latest business and superannuation news

A Spring clean may help your back pocket

Is there a story you’d

like us to cover? Let us

know by emailing

gemma.blair@powers.net.au

In this issue

money this

With the world continually changing, purchasing travel insurance is an important decision for companies and individuals with an ABN number.Corporate Travel Insurance is designed to give coverage to travellers through one easy to manage annual policy, covering all travel not only overseas but within Australia, pro-viding you are more than 100kms from your home address.The policy includes private travel cover for company directors, CEOs, chief financial officers/controllers and company secretaries of the insured, including any accompanying spouses or dependent children.Premiums start as low as $700 for a full 12 months cover and can vary depending on the amount of travel taken.

■ At Powers Financial Group, our affili-ates Tony Bemrose Insurance Brokers (TBIB) can help you with Corporate Travel Insurance. For more information phone Steve Weil at TBIB on (07) 3252 5254. Otherwise you can let us know you are interested, and we will arrange for TBIB to contact you.

Super update

Taxes and pensions

with Superannuation Services Director Charles Page

Did you know that if you die while in pension mode, you will now be taxed when the Tax Office calculates your final superannuation payout?A draft tax ruling clarifies the Tax Office’s view on the operation of income streams in superannuation funds. Their view is when a pen-sion ceases, any residual capital becomes a superan-nuation benefit and tax will be payable on any future income earned by the fund.On this matter they are quite categorical, as it con-firms their long held view, even if accepted industry practice has had a some-what different interpreta-tion.Many SMSFs are exempt from tax as they are only paying pensions, so the draft ruling will be a nasty shock. The ruling means that capi-tal gains tax will be paid as assets are disposed of and the income of the fund will be taxed at 15 per cent after the pension ceases. Quite harsh, especially if the fund has been accumulat-ing unrealised capital gains while paying pensions.At this stage it is only a draft ruling and submis-sions are being sought, but for members and trustees there are a number of strategies that can address future tax imposts when a pension ceases. Consider what you need to do now; do not wait until it is too late. ■Charles can be contacted

on (07) 3251 4444.

Powering on...Kochie’s final goodbye

Marketing Officer Tanya Sum-mers (who is currently on 12 months maternity leave) wel-comed little boy Jake Edward into the world on June 2. Little Jake weighed 7 pounds.

A+

Relay brings out bestThe Powers team will take part in Relay for Life in Biloela this month, and we’d like to thank everyone who helped us fundraise. Our team was able to raise more than $5000 for the Cancer Council!

What’s happening with the Powers team

Fly away with Corporate Travel Insurance

Good cuppaAt the Powers office we love our morning teas. It’s no wonder then that we raised more than $200 at our Australia’s Biggest Morning Tea.

Top MarksCongratulations are in order for Senior Accountant James Keller, who passed his CPA module with distinction. Senior Accountants Jaymie Bethel and David Butler also passed their CA modules.

New staffWelcome to our new Brisbane Client Services Co-ordinator Carol Hampson.

Hel

lo

Baby!

Corporate Travel Policy benefits include:

ӹ annual policy - no need to activate cover for each trip ӹ natural disasters covered, ‘acts of

God’ not excluded ӹ pre-existing conditions covered ӹ age limit to age 85 ӹ medical and evacuation expenses

included

You may have seen in the paper

that our Biloela office has been fitted out with 128 solar panels which will generate enough power for our office, plus push substantial surplus energy back into the grid. It is expected our panels will save 53 tonnes of greenhouse gases a year.

Powers goes green

Retiring Director Ian Koch was sent off with a party and a signed Rabbitohs jersey. The smile on his face says it all!

The ATO has identified some employers may not be paying super to their eligible employees or contractors.Employers need to pay super contributions for contractors they pay under a contract that is wholly or principally for the contrac-

tor’s labour - even if the contractor quotes their Australian business num-ber.

■ To help you determine if contractors are eligible for super, there are some tools at the ATO website (www.ato.gov.au).

Have you ever wondered who makes up Australia’s taxpayers? Here’s a quick snapshot. 12.3million people sent their tax returns to the Australian Tax Office in the 2009 income year. Here is that number represented as 100 people.

52 males and

48 females32 from NSW25 from VIC20 from QLD11 from WA7 from SA2 from TAS2 from the ACT1 from the NT

Taxation statistics 2008-09: 100 people. Information courtesy of the Australian Tax Office

71 lodged their tax returns through a tax agent 19 used e-tax 10 did it on paper

38 people donated to charities and then claimed deductions

4 people declared capital gains

4 salary-packaged a car

84 people received a refund 12 people owed tax 4 balanced perfectly

10 people received the government superannuation co-contribution

As of July 1, employers have been responsible for pro-viding parental leave pay to eligible employees who have, or adopt, a child. So what does it mean?1. Centrelink will contact you if you are required to pay parental leave to an employee, and will provide you with the required funds before you need to pay your employee.2. You will need to withhold the usual PAYG tax. How-ever, you don’t have to pay super on parental leave pay.

3. You don’t have to change your employee’s usual pay cycle, set up any special bank accounts or report back to Centrelink. Costs incurred in administer-ing the scheme will be tax deductible.4. It’s also important to note that parental leave does not increase your payroll tax li-abilities or workers compen-sation premium liabilities. ■ For more information

about the Paid Parental Leave Scheme, visit www.centrelink.gov.au.

6 from generation Z 21 from generation Y 33 from generation X 30 from baby boomers

10 from seniors

Business Corner

People with the top 3 taxable incomes paid 31% of all net tax The next 6 paid 18% of all net tax The next 31 paid 41% of all net taxThe next 35 paid 10% of all net taxThe last 25 didn’t pay any tax

8 people operated a business in their own name2 made a loss 6 made a profit

24 were blue collar workers 38 were white collar workers 14 came from theservice sector 24 didn’t specify their occupation or had no occupation

What’s in a tax return?

Paid parental scheme begins

Paying superannuation for contractors

BILOELA BRISBANEGladstone Rd (PO Box 98) Level 7, 269 Wickham St (PO Box 310)Biloela QLD 4715 Fortitude Valley QLD 4006Ph: 07 4995 6677 Ph: 07 3251 4444 Fax: 07 4992 1787 Fax: 07 3251 4422

Visiting Monto, Mundubbera and other locations by appointment

The information in this document is of a general nature and is provided for information purposes only. It does not take into account your particu-lar objectives, financial situation or needs and should not be used as a substitute for independ-ent advice from a qualified professional.Liability limited by a scheme approved under Professional Standards Legislation, except where financial services are provided by Authorised Representatives of Professional Investment Services Pty Ltd (PIS) AFSL 234951 ABN 11 074 608 558.*Financial Planning services provided by Authorised Representatives of PIS. #Valuation services provided by NPR Valuers Biloela Pty Ltd ABN 47141679576

Diary DatesSeptember

21 Monthly Activity Statements due for August

October21 Monthly Activity Statements due for September

28 Quarterly BAS due for Quarter 1, 2011-12 (lodging directly to ATO)

28 Super guarantee contributions due for Quarter 1, 2011-12

November21 Monthly Activity Statements due for October

25 Quarterly BAS due for Quarter 1, 2011-12 (lodging through Tax Agent)

Office opening hoursBiloela

8.30am - 5pm Monday to Friday

Brisbane8.30am - 5pm Monday to Friday

Monto10am - 2pm Monday to Friday or by

pre-arranged appointment

MundubberaBy pre-arranged appointment only

a one-year subscription

www.powers.net.aumail@powers.net.au

If you’d prefer to get these newsletters via email rather than snail mail, contact our office and we’ll arrange it!

The Powers team will be holding free information seminars especially for businesses - and we want your ideas for topics. If you have any questions relating to your business finances, or would like to see a certain topic showcased in such an event, please let us know by emailing gemma.blair@powers.net.au.

Want an electronic copy of our newsletter?

Free business seminars

with MYOB LiveAccounts!WIN

Designed for sole traders, startups and smaller businesses, MYOB LiveAccounts makes it super simple to raise invoices, track expenses, pay employees and manage your GST, online. Features include: »Access your accounts 24/7

LiveAccounts is an online solu-tion which means you can access your accounts anytime and from anywhere. You can even give your accountant access so they can work on your books with you. »Goodbye data entry

You can link your bank accounts and credit cards to LiveAccounts which means your transactions are securely transferred every day for you. »Up to date, secure and backed up

Being an online solution means you never have to worry about installs,

updates or backups again. »Help and lots of it

LiveAccounts comes with all the support you need - online help, email and LiveChat.

To take a FREE 30 day trial or to learn more, visit the MYOB web-site at myob.com.au/liveaccounts.

■ Thanks to our friends at MYOB, In the Loop has a 12 month subscription of LiveAccounts to give away. Anyone who is a member of the Powers website will be in with a chance to win. To become a member go to www.powers.net.au, click on ‘Click to Join’ and enter your details.