In this newsletter, we discuss recent changes to the tax system, provide some suggestions to prepare for the 2009 tax year and explain why vision and values are not just consultant waffle, but are the foundation of a solid well run business. There is also a timely warning from the ATO to be on the look out for dodgy schemes. The old saying. "if it's too good to be true..." is perhaps the most valuable advice a person can follow in these challenging times. As suggested in the ATO advice, please consult the appropriate professional before making a big decision as an ounce of prevention is worth a pound of cure.

We welcome any feedback, suggestions for artices or comments and look forward to working with you in the coming months. As always, if you would like to discuss any issues in this newsletter or any other developments, please contact us on 9907 2733.

Following are some actions you may like to consider before 30 June is here to prepare for your 2009 tax return. As always, please download the checklist on our website for individuals and / or businesses as a guide.

For Employees...

√	Stock up on stationery, print cartridges, etc.
√	Prepay professional subscriptions, union fees, etc (provided prepayment extinguishes by 30 June next year)
√	Purchase capital items costing < $300 each such as phones, briefcases, organisers, GPS, etc and obtain full deduction this year.
√	If you are feeling charitable, consider making a donation prior to 30 June, which is socially good as many charities are feeling the effects of the downturn.
√	Consider personal contribution to superannuation – if your assessable income & reportable fringe benefits is < $30,342 you will receive a government co-contribution of $1,500 if your make a personal contribution of $1,000. This phases out at $60,342.
√	Consider spouse contribution to superannuation. Maximum contribution of $3,000 to receive $540 rebate – spouses income & reportable fringe benefits must be < $13,800 to qualify for some rebate and < $10,800 to qualify for full rebate.

For STS Taxpayers...

√	Prepay expenses for next 12 months such as insurance and subscriptions.
√	Purchase assets costing < $1,000 each prior to 30 June to obtain full deduction this year (e.g. printers, fax machines, tradesman’s tools).
√	Purchase high cost assets prior to 30 June and receive the government's tax incentive plus 15% depreciation.

For Employers with Staff...

√	Pay all staff superannuation by 30 June. It must be received by the fund by 30 June in order to claim a tax deduction this year.

We would like to introduce and welcome Sarah Taylor to our O'Brien Bousamra team. Sarah has joined us to enable OBB to provide bookkeeping services at the competitive rate of $60 per hour.

If you are finding that keeping your MYOB or Quickbooks file up to date is taking you away from doing the things you enjoy, then consider delegating the chore to Sarah. In addition, you have the comfort that Sarah's work is reviewed by qualified Accountants before any BAS or IAS is lodged with the ATO.

Increasingly, we are being contacted by finance professionals and other parties with whom our clients are dealing to obtain information required to complete applications or other activities. Whilst we are always more than happy to help, we would like to remind our clients that we are unable to provide any information to anybody other than yourself, without your express authorisation.

This is largely because we are governed not only by general privacy provisions but also the secrecy provisions of the tax act. This means that we are also not able to discuss your affairs with your spouse - unless you give us permission to do so.

Many of you will also notice that we require documents to be signed for if they are being collected. For this reason, if you are not going to collect your own documents, would you please let us know who is authorised to do so.

Whilst we included this article in the previous newsletter, it is worth repeating as this is a new deduction and will require you to keep records of amounts spent in educating your children. As mentioned, in the 2008/9 tax year and onwards, 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. We have updated the ATO link to direct you to more up to date information.

Follow this link to the ATO site or review the FAQ section of the site for more information.

If you have any questions, please contact us on 02 9907 2733.

On 22 May, the small business and general business tax break (investment allowance) legislation received Royal Assent. The Treasurer announced the Small Business Tax Break Boost which saw the bonus tax deduction rise from 30% to 50% for small businesses. This deduction is for NEW eligible assets acquired and installed, ready for use by the dates outlined in the table below. 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 (large) businesses have a $10,000 threshhold per asset, but will only be able to claim 30% or 10% depending upon when the asset is purchased.

As mentioned in last quarter's email, the deduction is in addition to the deduction to which you are curently entitled. The legislation provides for:

Additional Deduction	Purchase Period	Installed by
Small Business - under $2mill. Min asset purchase $1,000.
50%	between 13 December 2008 & 31 December 2009	31 December 2010
Other Businesses. Min asset purchase $10,000.
30%	between 13 December 2008 & 30 June 2009	30 Jun 2010
10%	between 01 Jul 2009 & 31 Dec 2009	31 Dec 2010

If you have any questions, please contact us on 02 9907 2733 to discuss.

In the 2008 Federal Budget the government announced that there will no longer be an option to claim the family tax benefit through the Australian tax office (ATO). From the 1st of July 2009, the ATO will no longer accept any FTB claims for the current and all prior years. To claim family tax benefit, you need to apply to the Family Assistance Office by either lodging:

• online at www.familyassist.gov.au, or
• a paper claim form in person at a Centrelink customer service centre or Medicare office.

The Tax Office is conducting a national awareness program to help taxpayers protect themselves against promoters marketing dodgy tax schemes. In the current financial climate, they are concerned promoters may increase the marketing of high risk tax schemes and scams, taking advantage of the recent financial vulnerability of many taxpayers.

The ATO is urging people to take prudent precautions before investing and has prepared a fact sheet entitled investigate before investing. The key message that the ATO would like to convey is:

• investigate carefully
• seek independent advice from a professional advisor and / or the Tax Office
• Check information and warnings about investment schemes and scams on the ASIC and ACCC website SCAMwatch

Often a Business Advisor will start by asking you to tell them what your values are and perhaps if you have thought about it, what your vision is for your business. These questions are as relevant for an individual as they are for a business - and just as hard to answer. More than just filling out a section in the Advisor's form, they actually have real tangible implications that spell the difference between successful businesses and those that seem to keep doing the same thing.

A definition of Values is a good starting point. Values are quite simply, those things that are important to you. Like it or not, your business reflects who you are, telling the world, how you value it and what you expect of it. The way you approach people, the way you interact with your clients tells them what is most important. Is it closing a deal quickly, is it building a long term relationship, is it enjoyment of what you are doing? Once you know what drives you, you then need to have that reflected in your processes. People will notice and the upside is that you will be happier. Importantly, if you have staff, they will be able understand and reflect your values as well. Values are now, the binding cement that all other actions in your business are built from. If ever you have a question as to which way to go, look at your values and think about what action expresses them the best and the choice should be clearer.

What about Vision? Without an idea of where you want to go and what you want to achieve, two significant symptoms in your business occur. Firstly, you end up spending countless hours assessing opportunities and strategies that you find hard to evaluate because they lack a context. The second symptom, is that those around you, can't alert you to opportunites or take action that you would be thrilled with, as they also don't know where you would like to be headed. The best way to illustrate this point is to imagine your reaction when your teenage child informs you that he/she is going overseas (location unspecified) for a while (time unspecified), and not to worry because some friends are gong as well. They are not sure what they'll be doing, but they're sure they'll be able to find something given they have all just left school with a first rate education.

Without an idea of what is important to you (and your business), it is very very difficult to create a vision of what you want your life and your business to be. Those around you will find it hard to support you in this quest and those you deal with also, can't help you. When people know what you want to achieve, and it is clear to them and you, my experience is that people will help you in unexpected and generous ways.

If you would like to learn more about strategy formulation from a values based approach or discuss any aspect
of business planning, please call me on 02 9907 2733.

This newsletter is prepared for the information of our clients. The information contained in this newsletter is general in nature and does not take into account client's specific needs or circumstances.