up to 150% tax deductions available on research & development expenditure … · 2013-04-10 ·...
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Up to 150% Tax
Deductions
Available on
Research &
Development
Expenditure—
Registrations Close
30 April 2013
Family Councils
(Part 2)
Superannuation
Guarantee Rate to
Increase From July
2013
Minimum and
Maximum
Superannuation
Pension
Withdrawals
eMarketing
Tax Deduction for
Fundraising Events
Client News
Brentnalls SA News
Issue 66 — December 2011 Issue 78 — April 2013
Up to 150% Tax Deductions Available on Research &
Development Expenditure - Registrations Close
30 April 2013
What is the Research & Development Tax
Incentive?
If you are a company with an aggregated turnover
of less than $20 million with research and
development (R & D) expenditure you could be
eligible for a 45% refundable tax offset, which is
equivalent to a 150% tax deduction.
The offset is available under the research and
development tax incentive and is run by
AusIndustry.
If your company’s turnover is more than $20 million,
the tax offset is reduced to 40% and is non-
refundable, which is equivalent to a 133% tax
deduction.
Companies must have incurred expenditure of at
least $20,000 in the financial year to claim the
offset.
What Expenses are Eligible?
Research & Development expenses
Decline in value of Research & Development
assets
Balancing adjustments for Research &
Development assets
Goods and materials expenditure incurred
during Research & Development activities to
produce marketable products
Contributions to the Cooperative Research
Centres program
What Expenses are Ineligible?
Interest
Expenses not at risk (e.g. that have a
guaranteed return under a financing
arrangement or indemnity, or could
reasonably be expected to return an
amount of consideration)
Core technology expenses
Expenses relating to the cost of a
depreciating asset
Expenses to acquire or construct a
building
Example:
A manufacturing company with an annual
turnover of $5 million has spent $100,000 on
eligible research and development expenses
during the 2012 financial year. Once the
company has been registered and the claim
included in their income tax return, the company
could potentially receive a tax refund or tax
offset of $45,000 when it lodges its 2012 tax
return under the Research & Development Tax
Incentive (noting normal entitlement would be
$30,000 non-refundable).
How Do I Claim the Tax Incentive?
If you believe your company is eligible to claim a
tax offset for the 2012 financial year, you need
to act fast and register with AusIndustry prior to
30 April 2013. The claim is made within the
company tax return, which cannot be lodged
before the registration.
If you believe you may be eligible, contact your
advisor at Brentnalls SA for assistance.
Quote:
“There is one quality
that one must
possess to win, and
that is definiteness
of purpose, the
knowledge of what
one wants and a
burning desire to
achieve it”.
Napoleon Hill
Family Councils — Part 2 In Part 2 of Family Councils, we focus on
family codes of conduct and the benefits of
structuring family meetings.
Family Code of Conduct
A family code of conduct is a written
document which sets out expectations
regarding how family members will behave
both inside and outside of the business.
Having a written code of conduct which is
agreed upon by family members helps to
guide behavior and helps in providing
feedback and holding each other accountable
for desired behaviors.
A family code of conduct might address issues
such as:
Communication
Conflict management
Decision-making
Personal development
Information sharing
Family Meetings
Family meetings are structured opportunities
for family members associated with a family
business to discuss personal hopes and
concerns regarding the business and for the
family to come to agreement on issues which
can then be communicated to the board of
directors or senior management. In a more
structured form, family meetings can become
a Family Council.
There are many benefits to having a family
business meeting. It is an opportunity to teach
ownership and responsibilities to the family
members in a more formal yet unassuming
way. If done right, family meetings can help
strengthen a business and a family. It can
create unity and can diminish problems by
facilitating more communication, which can in
turn establish the family business continuity.
Family meetings help involve the whole
family together by having an open
environment to share ideas, problems and
solutions. It can be a great way to set aside
time to re-establish how the business is going
from each family members’ perspective and
specific job in the business. This helps to keep
everyone involved and keeps the business
running smoothly. It helps provide opportunity
for family members to share any frustrations or
successes they have experienced.
One of the most important parts of the family
meeting is that it can create a sense of vision.
The family meeting is often where owners may
try to stabilise the balance between
management, ownership and family.
Some family businesses have family members
working for the business from a distant location
or only for minimal tasks. The family meeting
helps to bridge that gap in communication and
day to day operations by providing those family
members an opportunity to hear about financial
status, management challenges, changes and
strategies going on inside the business.
Learning and sharing about a business success
can also help motivate and create pride in
family members in their various roles.
Other benefits for having a family meeting
include the opportunity to share the
business’s history and values to the younger
generation. One way to bring a new
perspective into a meeting and a certain level
of professionalism is to invite respected non
family members as mentors. They can provide
advice that may prove highly beneficial to a
family business.
In our experience family councils should be
chaired by a family member who can be the
point of interaction with the business, although
in getting started and setting the framework
right an external perspective is often best, and
should be likewise available for ongoing advice
as needed.
Minimum and Maximum
Superannuation Pension
Withdrawals
For clients currently receiving a pension
from their superannuation funds, it is
important that the minimum withdrawal is
made by 30 June each year. The minimum
amount is calculated as a percentage of
the opening member balance based on the
member’s age at the beginning of the
financial year or pension start date. For
those members receiving a Transition to
Retirement Pension (between 55 and 65,
not retired) there is also a maximum
pension amount of 10% of the opening
member balance.
Reminders will be sent to affected
Brentnalls SA self managed
superannuation fund clients during April
and May 2013. If you have any questions
about your pension, please contact our
office.
eMarketing
What is eMarketing?
Very simply put, eMarketing or
electronic marketing refers to the
application of marketing principles and
techniques via electronic media and more
specifically the Internet. The terms
EMarketing, Internet marketing and online
marketing, are often interchanged, and
can be considered synonymous.
eMarketing is the process of marketing a
brand using the Internet. It includes both
direct response marketing and indirect
marketing elements and uses a range of
technologies to help connect businesses
to their customers. Examples are
newsletters via email, advertising online,
social media and search engine
optimisation.
By such a definition, eMarketing
encompasses all the activities a
business conducts via the worldwide web
with the aim of attracting new business,
retaining current business and developing
its brand identity.
Why is eMarketing important?
When implemented correctly, the
return on investment (ROI) from
eMarketing can far exceed that of
traditional marketing strategies.
Whether you’re a “bricks and mortar”
business or operating purely online, the
Internet is a force that cannot be ignored.
It can be a means to reach millions of
people ever year. Using eMarketing will
mean your business is at the forefront of
interacting with your
customers.
Considered Value Issue 78 – April 2013
This month Brentnalls SA
is supporting Rotary Clubs
of Adelaide West - Hat Day
Tax Deduction for
Fundraising Events
Individuals are able to claim a tax deduction
for contributions to fundraising events in
some circumstances if the contribution is
made to a deductible gift recipient (DGR).
You can check whether an organisation is a
DGR by visiting the Australian Business
Register at www.abn.business.gov.au
The contribution can be either a purchase of
a ticket to attend an event or a successful
bid at a charity auction. Typical events
include fetes, balls, gala shows, dinners and
performances.
To be tax deductible, the contribution must
be over $150 and the benefit received must
be no more than the lesser of 20% of the
value of the contribution or $150. If the
event is a fundraising auction, only
contributions of money are eligible for a
deduction. In some cases, a contribution of
property or shares may also be deductible
but specific rules apply to these
contributions.
For example if you paid $800 for a ticket to
a fundraising dinner (value $140) and a
successful bid at the auction of $550 for a
football guernsey (value $100) you would
be entitled to a tax deduction of $1,110.
This is made up of the cost of the ticket and
the amount paid for the guernsey less the
market value of each.
To claim the deduction please ensure that
you retain a copy of the receipt issued by
the DGR showing the amount paid and the
market value of the benefit received.
Superannuation
Guarantee Rate to
Increase From July 2013
As promised in the 2011 Federal Budget,
the superannuation guarantee rate will
increase on 1 July 2013 to 9.25%. All
employers must increase their
employees’ superannuation accordingly.
Further increases are due each year until
the rate reaches 12% as per the table
below.
Year Rate (%)
2013-14 9.25
2014-15 9.5
2015-16 10
2016-17 10.5
2017-18 11
2018-19 11.5
2019-20 12
BreConsidered Value Issue 78– April 2013
Brentnalls SA Chartered Accountants
and Advisors
Partners
John Crouch Craig Farrow
Rick Albertini Karen Nyberg
Matthew Holden
Associates
Sharon Lloyd Shali Manolev
Renee Feltrin Aimee Campbell
Gavin Mitchell Sally Storey
Brentnalls SA Advisors Pty Ltd
Australian Financial Services Licence Number 264083
Directors
John Crouch Craig Farrow
Rick Albertini Karen Nyberg
Matthew Holden
255 Port Road
PO Box 174
HINDMARSH SA 5007
Tel: 08 8241 8444
Fax: 08 8241 8488
Email: [email protected]
We welcome the opportunity to assist
you and discuss any matters in our
newsletter
Should you wish to receive our
Newsletter electronically, please
E-mail us with ‘Newsletter’ in the
Subject line.
Disclaimer
The information provided in this
newsletter does not constitute advice. The
information is of a general nature only and
does not take into account your individual
objectives, financial situation or needs. It
should not be used, relied upon, or treated
as a substitute for specific professional
advice. We recommend that you contact
Brentnalls SA before making any decision
to discuss your particular requirements or
circumstances. Brentnalls is not a
partnership or a joint venture. Instead, the
business of Brentnalls SA is independently
owned and operated and it is an
independent member of the Brentnalls
Affiliation of Accounting Firms. Individual
member firms do not accept responsibility
or liability for the actions or inactions
of any other individual member firm.
Client News
Our congratulations go out to the
following clients on their outstanding
achievements:
Redgum Vet & Pet Boarding have
recently won the Best Medium-Sized
Business 2012 in the Business Port
Augusta Business Awards. Roger and
Louise Absalom achieved this
recognition after one year of full-time
business which is really amazing.
Ardrossan Foodland recently won the
Foodland Service Department of the
Year (for the second year running) and
the Foodland General Merchandise
Department of the Year at the 2013
Retailer of the Year Awards.
Congratulations to the Sandercock
family and their team.
Happy Birthday John
Crouch
Recently we helped one of our
founding partners, John Crouch,
celebrate his 60th birthday.
John qualified as a Chartered
Accountant in 1980 and co-founded
Brentnalls SA in 2000.
John is a Fellow of the Institute of
Chartered Accountants Australia, and is
an affiliate of FINSIA.
Brentnalls SA News
Congratulations to Stefan Sapio and Lilia
Zhou who recently passed their latest CA
modules.
We recently welcomed back Shannon
Sims (formerly Tyrrell) who has returned
from her year-long honeymoon in
England.
We further welcome back Jessie Guan
from maternity leave. We also
congratulate Jessie and Man H Tsun on
their recent wedding.
Brentnalls SA Team Building Session is
on again this year on Friday 12th April.
The session will be run by Katrina Webb
and Wayne Enright and will be held at
ETSA Park from midday onwards. Please
be aware we will be out of the office for
the duration of the afternoon to
participate.
Meet Anthony Staltari
Hello my name is Anthony.
I started at Brentnalls SA in September
2011 as a graduate. I’m currently
working in the accounting and advisory
team.
I graduated from university in 2009
working for one of the big 4 banks.
During 2010 I was lucky enough to
travel to Europe for 6 months before I
joined the team at Brentnalls SA. I’m
currently studying the CA program which
I hope to complete in 2014.
I enjoy travelling, photography and
sports. My favourite sports include AFL,
volleyball and snowboarding. I also do
volunteer work for Colonel Light Gardens
Football Club, USC Lions Volleyball Club
and Disable Surf South Australia.