There are many reasons why you may need to visit your friendly bank manager:
- To increase your working capital debt levels;
- To acquire a new business;
- To restructure your finances.
We can help you to visit your bank with confidence.
We have developed a Funding Requirement Report that will present your business in the best light possible. We use the same tools the bank will use to assess your business.
We work with you to prepare a report that will allow you to:
- Explain to the bank what you do, how you do it and why you are good at it;
- Provide copies of your accounts, tax returns, and any other documents the bank may require;
- Get on the front foot about your past results;
- Explain to the bank where you are going;
- Explain to the bank what you want;
- Shop around to make sure you get the best deal.
Depending on why you are borrowing, the banks are looking for different information:
Borrowing to buy property:
- Market value of the property you are acquiring;
- The rental returns the property will deliver;
- The equity you or the business can inject;
- The cash flow from you and the business to support the lending;
Borrowing to increase business debt levels:
- Past business performance and explanation of any one-off transactions affecting the result;
- Details of the future business performance, well documented and explained;
- Documented reasons for requiring future funds;
- Interest cover, debt cover and lock up ratios;
We have received many comments from banks regarding the Harris Black Funding Requirement Report including:
"It was nice to see a client well prepared for the meeting – we wish other clients would come to us so prepared".
"This report really helped me to present something tangible to the credit department to try and get the deal over the line".
Please contact your Harris Black team member if you would like to know more about our funding requirement report.
As announced in the 2016–2017 Federal Budget, the Government has proposed a lifetime non-concessional superannuation contributions cap of $500,000 to apply from Budget night (3 May 2016). This means that people who are planning to make non-concessional contributions now need to check their historical non-concessional contributions data back to 1 July 2007 (which will be counted against the $500,000 lifetime limit). To this end, the ATO can calculate non-concessional contribution amounts for the period 1 July 2007 to 30 June 2015, provided that the individuals and funds have met their lodgement obligations.
The ATO can only calculate the amount of non-concessional contributions based on the information it has. It may be prudent to review your own history of contributions. Please contact our office for further information.
Accounting add-ons have evolved recently in the world of accountancy. Each month we will feature a range of add-ons that will help you focus and become more efficient within your own practice.
Our featured add-on for this month will definitely give your business the automation you need. Running your business fully automated will save you hours of work and leave you with more spare time.
Why choose Magento?
- Your accounting is completely automated
Instantly track your sales revenue in MYOB or Xero. When a customer places an order on your Magento store, the invoice (complete with taxes and any discounts) is automatically created in MYOB or Xero.
- Customer information is always accurate
The customer is automatically created in MYOB or Xero when an order is placed in Magento. If the details have changed, they're updated.
- Effortlessly manage your stock levels
Stock levels are updated in MYOB or Xero when an order is placed on your Magento store. If you update stock levels in MYOB or Xero, they're automatically updated in Magento.
- Automatically keep your products up-to-date
Adding a product in Magento automatically adds a product in MYOB or Xero. Any updates to the product are also passed to MYOB or Xero.
To know more about this add-on or other add-ons in this space, please contact your Harris Black team member today.
Australian winter is the most popular time to travel. Whether you are embracing the crisp cold winter morning or chasing the warmth of summer, this is the best time for your next holiday trip.
In this month edition of Harris Black Top 12, we will feature our teams top favourite winter holiday destinations. So pack up your bags and enjoy as we tour you to different places around the world.
- Tasmania, Australia;
- Darwin, Australia;
- Jindabyne, Australia;
- Whitsundays, Australia;
- Cairns, Australia;
- Granite Belt, Australia;
Now, let's go further than our Australian border...
- Hakuba and Niseko, Japan;
- Vail, Colorado, USA;
- Queenstown, New Zealand;
- Grenoble, France;
- Lucerne, Switzerland; and
- Lake Como, Italy.
The ATO encourages people to check which work and rental property-related expenses they are entitled to claim this tax time, and to understand what records they need to keep.
Assistant Commissioner Graham Whyte has reminded taxpayers that there has been a change in the rules for calculating car expenses this year, and people need to use a logbook or the cents-per-kilometre method to support their claims.
"It's important to remember that you can only claim a deduction for work-related car expenses if you use your own car in the course of performing your job as an employee", Mr Whyte said.
The ATO will pay extra attention to people whose deduction claims are higher than expected, in particular those claiming car expenses (including for transporting bulky tools), and deductions for travel; internet and mobile phones; and self-education. Mr Whyte also noted that "the ATO will take a closer look at any unusual deductions and contact employers to validate these claims".
The ATO also encourages rental property owners to better understand their obligations and get their claims right. Mr Whyte said the ATO would pay close attention to excessive interest expense claims and incorrect apportionment of rental income and expenses between owners. "We are also looking at holiday homes that are not genuinely available for rent and incorrect claims for newly purchased rental properties", Mr Whyte said.
The ATO says advances in technology and data-matching have enhanced its ability to cross-check the legitimacy of various claims.
The ATO also reminds people engaged in the share economy (eg ride-sourcing) to include income and deductions from those enterprises in their tax returns.
Ride-sourcing drivers are likely to be carrying on a business and be eligible for deductions and concessions in their tax returns. This could include depreciation deductions and GST input credits.
The ATO has extended until 31 January 2017 the deadline for trustees of self managed super funds (SMSFs) to ensure that any related-party limited recourse borrowing arrangements (LRBAs) are on terms consistent with an arm's-length dealing. The ATO had previously announced a grace period whereby it would not select an SMSF for review for the 2014–2015 year or earlier years, provided that arm's-length terms for LRBAs were implemented by 30 June 2016 (or non-compliant LRBAs were brought to an end before that date).
The deadline extension to 31 January 2017 follows the ATO's release of Practical Compliance Guideline PCG 2016/5, which sets out "safe harbour" terms for LRBAs. If an LRBA is structured in accordance with PCG 2016/5, the ATO will accept that the LRBA is consistent with an arm's-length dealing and the non-arm's length income (NALI) rules (47% tax) will not apply.
The ATO requires arm's-length payments of principal and interest for the year ended 30 June 2016 to be made under LRBA terms consistent with an arm's-length dealing by 31 January 2017.
A new foreign resident capital gains withholding tax regime has been introduced. The new rules will apply where real property contracts are entered into on or after 1 July 2016, but will only apply to sales of residential property where it has a market value of $2 million or more. Where the new rules apply, the transaction will incur a 10% non-final withholding amount at settlement.
Withholding does not apply to sales by Australian resident sellers, but these sellers will need to obtain a clearance certificate from the ATO and provide it to the purchaser. Note that Australian resident vendors will need to obtain this clearance certificate before settlement to ensure they do not incur the 10% non-final withholding amount. Vendors can also apply for a variation if they are not entitled to a clearance certificate, if a vendor's declaration is not appropriate or if 10% withholding is too high compared to the actual Australian tax liability on the sale of the asset.
The ATO has talked to real estate agents, conveyancers and legal practitioners to ensure the industry is prepared to help its clients meet their withholding obligations.
A hotel owner has been unsuccessful before the Administrative Appeals Tribunal (AAT) in seeking a GST refund of $476,610.
The hotel owner had a management agreement with a hotel operator. Under the agreement, the operator was to "act solely as the agent" for the owner. The ATO ruled that the owner was making a taxable supply of accommodation in commercial residential premises for the purposes of the GST Act. The owner objected, arguing that it had incorrectly accounted for GST.
The AAT said the only issue it was required to determine was whether the supply of accommodation in the hotel by the owner was correctly described as a supply of accommodation in commercial residential premises, provided to an individual by the entity that owns or controls the commercial residential premises. If it was so, then the hotel owner could not claim that the supply was input taxed under the GST law.
The AAT concluded that the supply in this case was made by the hotel owner through its agent, the operator. Accordingly, the AAT affirmed the Commissioner's decision that GST was payable on the supply of the accommodation.
It is with great sadness that we advise of the passing of Robert Victor Harris on the 31st May 2016.
Rob was a founding partner of the Harris Black team and left a lasting legacy in the name of "Harris Black".
Some of our most loyal clients will remember Rob with great fondness, in fact after 21 years many still ask about his wellbeing and tell us stories of the "old days" at Harris Black.
Rob continued to be a client and long-time friend of the Harris Black team. Always on hand, willing to help and give advice when asked.
Our thoughts and sympathies are with his wife and family during this sad and difficult time.
If you have any messages you would like to pass on to the Harris Family please email us and we will pass them on.
- Super guarantee contributions must be paid by this date to qualify for a tax deduction in the 2015–16 financial year.