FUEL TAX CREDITS

The fuel tax credits regime came into effect on 1 July 2006 and was expanded from 1 July 2008 to allow more businesses that use fuel as part of their business activities to claim a credit.

Subject to certain requirements, from 1 July 2008 all businesses that acquire fuel such as diesel and petrol for use in their business operations are eligible for a fuel tax credit. For businesses that were not entitled to a credit prior to 1 July 2008 and that use fuel for off-road purposes, the rate of the credit from 1 July 2008 is: 19.0715 cents per litre of fuel.

Note the following examples where a fuel tax credit entitlement may exist:

• A transportation business may be entitled to a fuel tax credit for the diesel purchased for its truck that has a gross vehicle mass greater than 4.5 tonnes and is used on public roads.

• A caravan park may be entitled to a fuel tax credit for the diesel used in its generator that supplies electricity to residents.

• A commercial forestry operation may be entitled to claim a fuel tax credit for the petrol acquired to run its machinery.

If you a not currently claiming fuel tax credits, and think you may be eligible, please contact us.

SECURITY ALERT

HACKERS AND CYBER CRIMINALS ARE NOW CONCENTRATING THEIR ATTACKS ON SMALL BUSINESS

At the recent 2009 Visa Security Summit, a new trend was revealed: hackers and cyber criminals are now turning their efforts to small "mum and dad" businesses instead of large enterprise corporations. Why? Because small business networks offer a much easier "lock" to pick, unlike large enterprises who invest far more man power and money into high security for their network.

"As the security becomes better at large companies, the small business begins to look more and more enticing to computer criminals," said Charles Matthews, President of the International Council for Small Business, "It's the path of least resistance".

Think your network is secure? Take a look at these surprising statistics:

• One-fifth of small businesses don't have up-to-date antivirus software installed.

• Sixty percent don't encrypt their wireless links.

• Two-thirds of small businesses don't have a security plan in place.

• Eighty-five percent of the fraud occurs in small and medium-sized businesses.

Why is security so poor for small business? Primarily for two reasons:

The first reason is ignorance. Most small businesses believe that nothing could ever happen to them, and therefore don't take the necessary precautions to secure their network, monitor their systems, and train their staff. They are also ignorant on HOW to get this done.

The second reason is that they are being cheap in the wrong places. Some simply refuse to spend money on securing their network. That's akin to having a beautiful home full of expensive furnishings and valuables, but refusing to buy a good lock for the door because it "costs too much".

So what should you do at a minimum to protect your company? Here are 7 fundamentals:

• Educate your users on security basics such as using strong passwords and not downloading "cute" screen savers and illegal music. Some companies make computer security rules part of their standard HR policies and make each employee sign that they understand the rules.

• Install web filtering software to police users and prevent accidental (or intentional) slip-ups on the above-mentioned usage policies.

• Install a good virus protection system on all computers on your network and maintain it.

• Install a firewall and check the logs periodically.

5 SIMPLE STEPS TO MORE PRODUCTIVE EMPLOYEES

Most business owners would agree that your most valuable assets (and possibly your most time-intensive resources) are your employees. No business owner is an island, and in order to run a successful company, we need to rely on quality people to help us get to our goals and beyond. So how do you make sure that you get the most out of your star players?

This easy to implement list can provide you with some noticeable differences in your employees' performance.

• Offer Incentives - To help drive your team toward important company objectives, you can structure a bonus program around meeting or exceeding those objectives. Though some incentives are monetary, you can also offer other rewards such as trips, days off, restaurant gift certificates, movie passes, or free parking for a month. Just the recognition for extra efforts can often be enough to motivate an employee to push beyond their previous performance.

• Tell 'Em That You Love 'Em - Make sure your employees know they are important. Business owners sometimes forget the power of sincere compliments. And, whenever possible, praise your employee publicly in front of their co-workers, spouses, or friends. If they know you will "pat them on the back" and notice their hard work and results, they will be more inclined to produce.

• Include Them In Company Decisions - Though most business owners are used to calling all the shots, there is definite power in allowing your employees to have some control. Make your employees feel like they are on the same level as you and that their opinions and feelings matter. It will have a big impact on how much they care about your organisation, and ultimately, how much effort they put into making it successful.

• Give Them More Responsibility - This one probably sounds like the easiest to do. If your people are top-notch folks, they will feel a sense of pride when you give them higher-level challenges than what they currently face. Typically, people will rise to the level of expectation you set for them.

• Show Them The Way - If you want your employees to act a certain way, respond to customers with certain flair, or support each other as a team, then you need to do the same. Do what you say you will do and expect the same from them. Let them feel that you are there for them through your leadership to keep them inspired.

Fairwork Australia

From 1 January 2010, a Fair Work Information Statement is to be provided to all new employees by their employer as soon as possible after the commencement of employment. The Statement provides basic information on matters that will affect your employment. If you require further information, please click here.

Tax-smart investing

Tax-smart investing in overseas property for Australia residents takes more than making the right property choices.

Remember to keep proof of your income-related expenses from the beginning to ensure you can claim everything you're entitled to. If you require further information, please click here.

NSW Land Tax Threshold - 2010 tax year

The land tax threshold for the 2010 land tax year is $376,000. The premium land tax threshold for the 2010 land tax year is $2,299,000.

2009 land tax threshold

The Valuer General has determined that the land tax threshold for 2009 is $368,000.

The Valuer General used the following indexed amounts to determine the average of indexed amounts for the 2009 tax year:

What is land tax?

Land tax is a tax levied on the owners of land in NSW as at midnight on 31 December of each year. In general, your principal place of residence (your home) or land used for primary production (a farm) is exempt from land tax. You may be liable for land tax if you own or part-own:

• vacant land, including vacant rural land
• a holiday home
• investment properties
• company title units, or
• residential, commercial or industrial units.

If you are liable

If you own property other than your principal place of residence or primary production land, you need to register.

You can complete registration online, or contact us.

You will be sent a notice of assessment based on the information supplied in your registration showing any land tax payable on the land you own.

If you have previously registered for land tax, you do not need to complete another registration unless your ownership or usage details have changed. You can advise of any changes by using the online services or contact us.

Crackdown on Super

The ATO is cracking down on employers who fail to make the required superannuation contributions for their employees. The Tax Office has begun auditing around 22,000 businesses - mostly small - to ascertain whether they are making the correct, timely SGC contributions. The ATO can issue a default assessment if the auditor decides that insufficient superannuation contributions have been made for any employees.

If this happens, the employer is not able to include the additional SGC contributions as a tax deduction. The ATO will calculate the shortfall, and a nominal interest and administration charge is applied to all SGC assessments with an extra "failure to notify" penalty being added where the assessment arises from the ATO audit rather than a voluntary disclosure.

As an employer you are required to make superannuation guarantee contributions on behalf of your eligible employees at least once each quarter. Contributions are due by: 28 October, 28 January, 28 April and 28 July each year.

You now need to:

• Calculate 9% of the earnings base for each eligible employee (generally employees who are paid $450 or more per month).
• Pay this to a complying superannuation fund at least quarterly.
• Report in writing to your employees the details of the contributions you have made to their funds at least once every quarter on a pay slip, letter or email. You should note amount contributed, name of fund and, if known, the employee's account number.
• Keep a record of when, what and how you reported superannuation contributions to your employees.

If you don't make your superannuation contributions by the cut off dates you will face penalties. You may also face penalties if you don't report details to your employees.

Carrying on a Business From Home

The Tax Office has recently released a guide for taxpayers who carry on a business from their home. The guide discusses the taxpayer's obligations and other issues that need to be considered when operating a business from home. Some of these issues include:

• The implications of operating a hobby business as opposed to a business (for profit);
• Choosing the right structure to operate within; and
• Registration obligations of the taxpayer.

The full guide is available on the ATO's website at: www.ato.gov.au/print.asp?doc=/content/43191.htm

Accounting support services

Thompsons Australia has expanded its business to now include a separate bookkeeping service - Beancounter Australia.  Beancounter Australia ,operating in both Darwin and Sydney, has many great services and features available - these include:

• Bookkeeping services - on your site or in our offices
• Business Set-up and Bookkeeping consulting
• Payroll, BAS, GST
• QuickBooks Training

Please phone Beancounter Australia on 61 2 9579 3900 for more information or visit our website at http://www.beancounter123.com.au

Update on Superannuation Changes

The government has announced further changes to superannuation, since the budget announcement in May.  To help ensure that transition to the new system is easier, the government has allowed for the following:

• Individuals will be allowed up to $1million of post-tax undeducted contributions between 10 May 2006 and 30 June 2007
• Individuals under the age of 65 will be entitled to bring forward 2 years of contributions – enabling individuals to contribute $450,000 in one year
• In addition to the annual cap of $150,000 (applicable from 1 July 2007), individuals will be able to contribute a lifetime limit of $1million from the sale of small business assets held for 15 years and settlements for injuries resulting from permanent disablement.

Should you need any help or advice on how these changes will affect you then please call us on 61 2 9579 3600 and we can help you develop a plan to leverage these changes.