Accounting * Tax * Business Advisory * Bookkeeping * Leasing

Issue 1 : 2009

In this Issue

Suite 226, 20 Dale Street BROOKVALE NSW 2009 Telephone: 02 9907 2733 Fax: 02 9907 2744 Email:info@obb.net.au Website:www.obb.net.au Can't view the email correctly? View it online You are receiving this email because you are a valued client of O'Brien Bousamra or you have subscribed. If you no longer wish to receive this newsletter, to unsubscribe click here.

Key messages...  Featured Articles   Government Stimulus Package - $900   Education Deductions   Additional 30% deduction for assets  Business Planning   Prepare for tough times  ATO Updates   Negotiate Outstanding Debts   Automatic Penalties for late lodgement   No more reminders

Key Messages

Welcome to the first issue of our newsletter for 2009. We are planning to send out our newsletter once a quarter to keep you informed of important changes in taxation that may impact you. Whilst there is a lot happening in the current environment, we have chosen to focus on the topics that we have been asked about most. The newsletter is not intended to be full of technical articles but rather, we hope that you will find it informative. If you would like to discuss any issues in this newsletter or any other developments, please contact us on 9907 2733.

Featured Articles

Government Stimulus package

The Australian Government has passed legislation on 18 February 2009 to provide eligible tax payers with a Tax bonus of up to $900. This was initially proposed as $950 but was revised down given the overall plans of the fiscal stimulus package. The amount is payable regardless of whether an outstanding tax debt exists. The ATO's factsheet can be found on our website, but for ease of reference, a summary is outlined below: Eligibility for payment You must have lodged your 2007/8 income tax return by 30 June 2009 You must have paid some tax in the 2008 year - i.e. [tax withheld + Medicare levy - rebates & offset] is greater than zero You must have been an Australian resident for the 2007/8 income tax year. Amount Payable based on 07/08 taxable income A $900 bonus will be paid to taxpayers with taxable income up to and including $80,000. A $600 bonus will be paid to taxpayers with income between $80,001 to $90,000. A $250 bonus will be paid to taxpayers with income between $90,001 to and including $100,000. Note: As long as you have lodged your 2007/8 tax return, there is nothing further you need to do, with the possible exception of updating your banking details. People can call the Tax Office on 1300 686 636 if they need to change or provide their details. Follow this link to the ATO website for a summary and an online tool to help you calculate your bonus entitlement.

Education Tax Deduction

In the 2008/9 and subsequent tax years, a deduction for eligible education expenses can be claimed for primary (expenses up to $750) and secondary (expenses up to $1,500) school children. Not all expenses can be claimed and there are some eligibility criteria. When submitting your 2008/9 tax information, please include a summary of the types of expenses listed in the online information on the ATO site as well as proof of purchase. Follow this link to the ATO site or download this fact sheet for more information. If you have any questions, please contact us on 02 9907 2733.

Investment Allowance - additional 30%

Draft legislation was released 25 February 2009 to allow businesses an additional deduction for new eligible assets. This measure is aimed at stimulating business investment in tangible assets. Small Businesses (defined as having turnover less than $2million) will be able to claim for assets over $1,000. All other businesses have a $10,000 threshhold per asset. This deduction is in addition to the deduction to which you are curently entitiled. In effect, qualifying assets will have a deduction of 130% or 110% over the life of the asset, depending upon when they are purchased. In it's current form, the legislation provides for: Additional Deduction Purchase Period Installed by 30% after 31 Dec 2008 & before 30 Jun 2009 30 Jun 2010 10% after 01 Jul 2009 & before 31 Dec 2009 31 Dec 2010 For more information, refer to the FAQ prepared by Treasury or contact us on 02 9907 2733 to discuss.

Business Planning

Prepare for tough times In the current economic climate, we would strongly urge all business clients to make sure they have a good grasp on their cashflow. Monitoring cashflow and forecasting, such as knowing when you need to pay your expenses as well as when you are expecting sales to hit your bank account, are invaluable tools for navigating your business through these turbulent times. Please contact our office if you would like assistance in establishing a cashflow monitoring system. Timing of payments and good control of debtors may be a key differentiator between businesses that survive this economic downturn and those that don't. To preserve your cash balances, it is also worth considering whether it is preferable to lease an asset than buying it outright. Leases can be arranged for business and for personal items. There are many options relating to leasing and we can help with: Chattel Mortgages Hire Purchase Finance Leases Operating Leases We will assist you in determining which is the best solution for your business needs. Whether you would like to get greater control over your cashflow, undertake business planning, are interested in leasing options or want to discuss how your business is performing, please contact us on 02 9907 2733.

ATO Update

Negotiate Outstanding Debts The ATO has advised that now more than ever, it is keen to review outstanding debts and may compromise and agree on a settlement or negotiate a better payment arrangement. They are particularly focussed on debts under $25,000, but in our discussions with the ATO, theyhave indicated that they will also consider negotiation for debts greater than this. Automatic Penalties for Late Lodgement The ATO also advised that from the 2009 tax year onwards, there would be automatic late penalties on late lodgements issues to taxpayers. This includes tax returns and activity statements. No more reminders The ATO has also announced that it will be discontinuing its reminder serivice. You will no longer be receiving letters or email reminding you of when your BAS, PAYG, FBT or any other returns are due.

Telephone: (02) 9907 2733	OBB.net.au	Suite 226, 20 Dale Street (Po Box 7330)
Facsimile: (02) 9907 2744		BROOKVALE NSW 2100

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