HMcR Blog

Do you want to improve and grow your business through research and development? With the introduction of the R&D tax incentive you can, with access to significant tax savings.

From income years beginning 1 July 2011 the government has introduced the Research and Development (R&D) Tax Incentive (replacing the R&D Tax Concession) which offers potential substantial tax savings. The incentive has been received Royal Assent from the Governor-General on 8th September 2011.

Tax Offset amount

A 45 per cent refundable tax offset is available for eligible R&D entities with a turnover of less than $20 million per annum. If the offset reduces the company's tax liability to zero, and there is a remaining offset amount, this remaining amount may be refunded to the company.

Occasionally we are contacted by clients unsure about a phone call or email they may have received implying they may be owed a sum of money or requiring confirmation of personal details but the call content rings alarm bells.

Many of us have received the “email from Nigeria”, or “the business directory promising to continue your business listing if you fax back confirmation of your details”.

There is a great government website available called ScamWatch which keeps you up to date on the latest scams and provides the contact point for reporting a scam. They also run an information centre phone line 9am to 5pm weekdays where you can inquire about your concerns.
 

As we are all aware by now, the government has plans to put a price on carbon. The proposed carbon tax scheme will set the price of carbon at $23 for each tonne of carbon pollution released into the atmosphere by Australia’s biggest polluters from 1 July 2012.

The government predicts that around 500 of the biggest polluters in Australia will be charged per tonne of carbon pollution produced. For the first three years of the scheme the price will increase by 2.5% per annum, with the charge resembling a tax. From 1 July 2015 the scheme will become known as an emissions trading scheme and the carbon price set by the market.

How will the carbon tax affect you?
 

In the 2011 budget the government announced it would provide a 50% tax discount on up to $1,000 of interest income earned by individuals from July 1, 2011.

The government has since deferred the start date to July 1, 2012 and reduced the amount of interest income the tax discount will apply to - $500 for the first year. Subsequent years will remain at $1,000.

Individuals (including minors) will be eligible for the discount. The government proposes the discount will cover interest received and assessable in the hands of an individual. This also includes trust distributions, annuities and partnerships.
 

Funded by the Australian Government, the “Paid Parental Leave” scheme came in to force on the 1st January 2011.

The aim of the scheme is to provide financial support to new mothers (or fathers), or the primary carer of a newly adopted child, to spend more time away from their place of work to care for their child full-time during the important early months following birth or adoption.

It encourages parents or carers to stay in touch with their workplace, whilst being able to establish a strong maternal bond with the child and maintain a sound work/family balance. 

Last issue we discussed the importance of having a business plan.

They are essential but how do we find the time! Every small business operator has heard the old adage ‘‘Business don’t plan to fail they just fail to plan’’.  

Some of you may remember and may have even participated in South Australia’s Biggest Sausage Sizzle in early April. Hattam McCarthy Reeves thought it was a noble cause and we got out not one, but two BBQ’s on the day.

It was all about raising awareness for Mens Health and raised money for the Prostate Cancer Foundation of Australia (PCFA). Operating since 1996, PCFA have supported projects such as; National Audit of Prostate Cancer Research, National Prostate Cancer Tissue Bank, scholarships for urologists and researchers to travel overseas to further their studies and prostate nurse scholarships. The PCFA now operates over 100 support groups across Australia. Which provides support and encouragement for men and families affected by the disease.  

One of the biggest changes to the business world over recent years has been the trend to run your own business.

This decision is often made as a result of disillusionment with the employment market, or with the desire to ‘be your own boss’.

Whilst these might seem to be valid reasons for going into business, it is a fact that many businesses fail for the simple reason that the person in question shouldn’t have started it in the first place. Business failure tends to cost a lot more than simply losing your job. 

Tax time again and if you think you are safe from the scrutiny of the ATO because you aren’t rich and famous, think again.

The ATO has been enforcing penalties and interest charges more rigidly than usual in recent months. Penalties and interest charges are applied where you have not complied with your tax and payment obligations. Some of the penalties for these offences can be extremely severe, particularly for deliberate evasion of tax. Therefore, you must be aware of your tax obligations and observe them.  

Currently the Keith & District Hospital is undertaking a business plan with Mr John O’Connor, as suggested by the South Australian Labor Government. The business plan has been initiated by the Board in it’s ongoing efforts to work with the Government to keep the hospital open.