2013 - 2014 BUDGET UPDATE

The Federal Treasurer, the Hon Wayne Swan MP, handed down his sixth, and depending on the upcoming election in September, his last, Budget last night. Although promising a return to surplus in the 2012/13 financial year when making his Budget announcement last year, and even as recently as last November’s mid-year economic forecasts, struggling revenues and higher expenditure have dented current year’s performance with estimates now placing the 2012/13 deficit at $20bn, a turnaround from last year’s forecast of nearly $22bn. Although the Treasurer was at pains to stress that the turnaround is due to a revenue shortfall of $17bn, it did not go without notice that revenue collections had actually risen from the 2011/12 financial year by more than 6%. Expenses however remained constant with that in 2011/12, resulting in the blow out to the budget numbers.

Spending increases are expected to continue in coming fiscal years with expected increases in revenues eventually offsetting these increases, although we will need to wait and see if the Government can return to power in the forthcoming September election to determine if these Budget numbers are just an election window dressing of the numbers before a new Treasurer needs to deal with the mounting debt.

The Treasurer announced a return to surplus is now not forecast for 4 years, and Australia is expected to endure deficits totalling $18bn in 2013/14 and a further $11bn in 2014/15, with a balanced Budget expected for 2015/16. Australia will now need to wait until 2016/17 before a return to surplus.
Although the major packages in the Budget were, the already detailed Gonski education reform package and the National Disability Insurance Scheme, the Treasurer’s focus was also on Growth and Jobs, although the Shadow Treasurer could not refrain from pointing out that the current Budget forecast a reduction in both key politically sensitive indicators.

2012 Personal Tax Return Checklist

It will assist us to maximise your refund if you review the following checklist and bring all relevant information with you to your appointment.

Download a printable PDF version of this newsletter here

Income

• Payment summaries for wages.

• Centrelink Statement in respect of:

1. Tax-free Exempt Pension income received. (e.g., Disability Support Pension, Carer payments and Invalidity Service Pension etc.)
2. Taxable support payments such as Newstart

• Payment summaries for superannuation pensions, lump sums and employment termination payments.
• Payment summaries for govt pensions & allowances.
• Interest received from banks etc.
• Dividends received or reinvested (bring statements).
• Partnership and/or Trust income.
• Managed Funds (investments) Tax Statements.
• Details of business income and expenses, including GST information where applicable.

From 1 July 2012, businesses in the building and construction industry need to report the total payments they make to each contractor for building and construction services each year. You need to report these payments to the Australian Taxation Office (ATO) on the Taxable Payments Annual Report.
 
To make it easier to complete the annual report you may need to change the way you currently record your contractor information.

Background

As part of the 2011-12 Federal Budget, the government announced the introduction of taxable payments reporting for businesses in the building and construction industry.

The aim of the system is to improve compliance with tax obligations by those contractors who are currently not doing the right thing.

The information reported about payments made to contractors will be used for the ATO's data matching to detect contractors who have not:

•     lodged tax returns

•     included all their income in returns that have been lodged.

Who needs to report?

From 1 July 2012 you need to report if all of the following apply:

•     you are a business that is primarily in the building and construction industry

•     you make payments to contractors for building and construction services

•     you have an Australian business number (ABN).

You are considered to be a business that is primarily in the building and construction industry if any of the following apply:

•     in the current financial year, 50% or more of your business activity relates to building and construction services

Tax Returns

• Individuals Personal Income Tax
• Rental Properties
• Sole Trader Business Returns
• Partnerships
• Companies
• Trusts
• Self Managed Superannuation Funds
• Small Business Tax Returns Penrith
• Penrith Accountants

Business Activity Statements ( BAS ) Returns

Tax Planning

With the provision of up to date accounting information for small businesses, we can project likely end of year tax estimates and discuss with you options to reduce your tax bill in the current year.

Taxation Advice

Small business tax advice in the Penrith region.

Including taxation advice on the purchase of new business ventures, appropriate tax structure alternatives, associated registration requirements and small business bookkeeping in the Penrith region.

Management Accounting

Monthly Financial Analysis of actual accounting results to assist small business in Penrith with the ongoing management of the business.

Bookkeeping

• Small business bookkeeping in the Penrith region, including MYOB support.

Loans and Business Finance