December 2019 Newsletter
A message from the Director...
Christmas is here again and what a year it has been! Our team at Milanese & Co Accountants would like to wish all of our clients, business networks and local community a safe and very Merry Christmas and a happy and prosperous 2020.
Last year we put out a challenge out to all readers to set goals and see what you have achieved. How did you fair? Have you achieved your goals? Are you still working towards them? Do you now have new goals and a plan in place to help you achieve them?
We’ve seen some amazing results with our clients over the past 12 months. A common theme with the majority of clients that have had success, is that they set their targets and take the steps required to make them a reality.
We would like to welcome all of our new clients that have come onboard over the past 12 months and we will continue to provide them with professional service to assist them in achieving their goals.
We have had three new staff members that have been a huge part of our successful year.
Adam Taylor – who will be officially signing on as a director in the new year has aided with the ability of providing mentoring of his experiences to our team and has also been able to provide back up to myself as a sounding board. Those of our clients that have had the opportunity to work with Adam would be aware of his knowledge, experience, service ability and the results he is able to deliver for our clients.
Sam Desmond – has added a huge benefit to our team in her role of reception and administration. Sam treats our clients and team with the warmth and respect they deserve and has added a huge support for our whole team with her second to none work ethic.
Shavone Schedewy – has added another level of depth to our team with her accounting and taxation knowledge. Shavone has a strong client relationship focus with our clients and is building solid relationships with those that have had the privilege of working with her.
Over the Christmas and New Year break we hope you all get to enjoy the hard-earned rest and relaxation with loved ones and take the time you deserve to reflect and refresh in order to prepare for the beginning of the new year.
Economical Changes
There have been a number of major changes that have impacted the business landscape over the past 12 months which has impacted us all in some way. The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry was finalised. Land Tax changes in South Australia have now been passed and interest rates have continued to decrease. The ATO have continued to make changes with Single Tax Payroll now fully in place, recent changes to the deductibility of expenses relating to vacant land holding costs and changes to capital gains tax on the sale of a main residence for foreign residents to name a few. It has been a big year!
Festive season trading hours
Milanese & Co Accountants’ office will be closed from 1pm Friday 20th December 2019 and re-open again at 8:30am on Monday 6th January 2020.
Facts you probably didn't need to know
The total number of gifts listed in "The 12 Days of Christmas" is 364 — nearly one gift for every day in the year.
Jingle Bells was originally titled "One Horse Open Sleigh" and was arguably written for Thanksgiving, not Christmas.
The first artificial Christmas Tree wasn’t a tree at all. It was created out of goose feathers that were dyed green.
Vacant Land Changes
New legislation has passed for owners of vacant land owned by individuals, self-managed superannuation funds and the commonly referred to ‘family trusts’ limiting deductions even if the vacant land is used in a business or for income producing purposes.
These new rules came into effect from 1 July 2019 (this current financial year) and will impact a large number of property holders including primary producers.
Common deductions that are claimed to offset income for vacant land include interest expenses, council rates, water rates, land tax and insurance which can reduce your tax liability substantially.
Deductions are still available for income producing land that has a substantive permanent building / structure that is in use or available for use or where the land is being used or available for use in carrying on a business of the taxpayer or its related entities.
Primary producers that lease land to a non-related arms-length party will now be denied deductions for the expenses incurred relating to the vacant land.
We suggest if you own vacant land used for income producing purposes contact us and we can review your circumstances.
Tis the season to FBT
Fringe Benefits Tax is a common subject that we have a lot of questions about at this time of year as many businesses find it a suitable time to reward their staff, colleagues and clients with a nice Christmas show and/or gifts as a thank you for their efforts over the past 12 months. As business owners, you must also be cautious and consider the possible impact of Fringe Benefits Tax (FBT). Where possible, we want to avoid the tax consequences that can arise at this time of year.
When planning your Christmas party list & gifts, make sure you consider the following:
The cost ($300 limit applies to each benefit)
Where and when it’s held (a party held on business premises on a normal work day is treated differently to an event outside of work.
Who is invited (is it just for employees, or are partners, clients or suppliers also invited)?
If you have any questions, we urge you to contact our office and let one of our accountants assist you.
Tax Planning?
With the new year sneaking up on us so fast, the end of financial year will be here before we know it. We would like to remind you that our services are available for the whole financial year and if you have questions throughout the year please do not hesitate to contact us as required. The steps you take throughout the whole financial year in planning your tax affairs can have a major impact on building and increasing your wealth.
This is not a new change, but did you know employees earning salary and wages are able to contribute money into superannuation and claim a tax deduction (total contributions into superannuation including employer contributions can not exceed $25,000 in total, in one financial year)? Please note this is not financial advice or a suggestion that you contribute funds into superannuation.
If you have any questions about planning your tax affairs please do not hesitate to contact us.
A Christmas joke, better than what will be in your Christmas Bon-Bon!
One particular Christmas season a long time ago Santa was ready for his Christmas run... but there were problems. Four of his elves got sick, and the trainee elves did not produce the toys as fast as the regular ones, so Santa was beginning to feel the pressure of being behind schedule.
Then Mrs. Claus told Santa that her Mother was coming to visit. This stressed Santa even more. When he went to harness the reindeer, he found that three of them were about to give birth and two had jumped the fence and were out, heaven knows where.
More stress.
Then when he began to load the sleigh one of the boards cracked and the toy bag fell to the ground and scattered the toys. So, frustrated, Santa went into the house for a cup of coffee and a shot of whisky.
When he went to the cupboard, he discovered that the elves had hid the bottle and there was nothing to drink. In his frustration, he accidentally dropped the coffee pot and it broke into hundreds of little pieces all over the kitchen floor.
He went to get the broom and found that mice had eaten the straw it was made from.
Just then the doorbell rang and Santa cussed on his way to the door. He opened the door and there was a little angel with a great big Christmas tree.
The angel said, very cheerfully, "Merry Christmas Santa. Isn't it just a lovely day? I have a beautiful tree for you. Isn't it just a lovely tree? Where would you like me to stick it?"
Thus began the tradition of the little angel on top of the Christmas tree.