If you’ve made it to now and haven’t yet lodged your tax return…it is quite possible that you have misplaced your group certificate?

Don’t panic, this is not an uncommon occurrence and there are a few solutions at your disposal!

Your first port of call may be your employer.  All employers are required to keep copies of this type of documentation, however it may not be an easy thing to do if you are no longer on friendly terms!

Another alternative is to reconcile your bank statements with your pay slips and determine the full year figures of gross wages, tax withheld and net received – who has time for that?

Your best bet at obtaining this information is by contacting your registered tax agent!

All registered tax agents have access to the Australian Taxation Office (ATO) Portal – this Portal provides registered tax agents with a wealth of information that can be used to support the preparation of your tax return.

The report provided by the ATO Portal is prepared using information provided to the ATO by employers, banks, health insurance funds among others – and while it shouldn’t be relied upon as the sole record for preparing a tax return, it is certainly of great assistance!

PS For completeness I really feel that I should remind you all that the new name for “Group Certificate” is “PAYG Payment Summary – Individual”…even though most of us still call them group certificates!

Regards

Do you remember the early days of e-mail?

In the not so distant past, it was more common to receive letters and bills in the post, and only the odd e-mail – these days I find my letterbox looking rather bare, but my e-mail inbox is almost out of control!

But the ease and cost effectiveness of sending an e-mail brings an equal amount of risk…to your professional reputation that is.

Below are The Tax Chic’s top tips for appropriate e-mail etiquette in a business or professional setting:

Subject – the subject line gives the recipient a view to the content of the e-mail, and it can be the difference between them reading it promptly or leaving it until later.

Level of formality – consider your e-mail, including your e-mail signature, the equivalent of your letterhead.  While e-mail has a tendency to be more casual, always consider the recipient and your relationship with them.

Addressing – always ensure you have your recipient’s name saved in your e-mail contacts in the correct format (ie: Bron Levett, not bron levett or BRON LEVETT), anything else could give an unfavourable impression.

Privacy – when e-mailing a group of unrelated people, remember to use the Bcc (Blind carbon copy) function to keep e-mail addresses private.

Attachments – most importantly…include them!  But also check with the recipient if you are intending to send a large file.

Common courtesy – proper salutations and signing off of e-mails is common courtesy, as is responding promptly!

I totally understand the need to often send e-mails in haste, and quite often to business associates with whom we have a good relationship – but if you can at least keep the above points in mind, it might help with consistency and to maintain your reputation!

Does anyone have any other e-mail tips they’d like to share?

Regards

It has been 18 long months since the Reserve Bank of Australia (RBA) made a change to interest rates…but yesterday they reduced rates by 25 basis points to 2.25 per cent.

In the preceding days, there was much hype in the media regarding the first interest rate decision for the year, and few leading economists tipped a rate reduction.

The intention of the RBA in making a rate reduction is to stimulate spending – no doubt you’ve seen lower petrol prices lately, but those alone have not been sufficient to lift our economy.

What does a rate reduction mean to you? 

It all depends on the amount of your mortgage, who you have your mortgage with and how much of the rate reduction they pass on – by way of example: if your lender passes on the full reduction, and you have a mortgage of $300,000, you will save approximately $47 – $50 per month.

Should I change lenders if I don’t receive the full benefit of the rate reduction?

While changing lenders is certainly worth investigating…the final decision will depend on a number of factors such as:

• whether your loan is fixed or variable
• the effective interest rate (you should never compare advertised rates as they usually don’t take into account other fees and charges)
• the relationship you have with your lender

The Tax Chic’s tip:

If financially viable for you, it may be prudent to “ignore” any interest rate reduction provided by your bank and maintain your repayments at their current level – this will help reduce your overall interest and the life of your loan – just a thought!

Regards

Whether it’s a new car, a truck or tractor, a suite of computer equipment or some other large scale item – when you pay for these things with finance, there is some information that you should provide to your Accountant!

Significant items, such as the ones mentioned above, need to be capitalised and depreciated in your financial statements – but the finance transaction also has an impact with regards to an interest deduction.

I always recommend the following:

• if you are not sure how to process the transaction in your accounting system, contact your Accountant for their advice – this will help ensure you claim the correct GST throughout the year, and avoid unnecessary amendments at year end
• enter as much detail as you can in the “Memo” section in your accounting system – this includes make and model information, as well as registration numbers if applicable
• keep a copy of the invoice in a separate “year end” folder to give to your Accountant – this makes it easier (read – cheaper) for them to get any information they need without them having to come back and ask you
• also include a copy of the “finance summary” with your “year end” folder – the “finance summary” will provide details of any charges by the finance company, the number of payments and the amount of payments as well as the total interest for the term of finance

If you need help creating a “year end” folder, or processing these transactions, Contact The Tax Chic!

Regards