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Tax tips to boost your tax returns!

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business tips for reducing tax

For Business, the best way to reduce your tax in Australia this year, is to take a closer look at the federal budget. Ticker’s money expert Dr Steven Enticott takes a look.

Treasurer Josh Frydenberg announced the government would be extending temporary full expensing and temporary loss carry-back (to the year 2019) for an additional year until 30 June 2023. 

Further, Mr Frydenberg said the government will deliver more than $16 billion in tax cuts to small and medium businesses by 2023-24 with around $1.5 billion flowing in 2019 20.

This, he said, includes reducing the tax rate for small and medium companies, from 30 per cent in 2014 15 to 25 per cent from 1 July 2021.

Startup funding
For the best tips to reduce your tax, keep an eye on the Federal Budget.

Prepay your expenses where you can and don’t be too hasty getting out your invoices prior to June 30 even more so if it’s been a great income year. Its also a great time to purchase a business asset of any value to really boost your returns (or lower your tax bills!). 

Stocktakes can be counted on Cost price, Replacement Price or even Actual values which is one of our greatest tax planning tools for those that carry stock. Get counting!

For Employees make sure you have paid for all your work-related expenses prior to June 30. Try to bring costs forward when you’ve had a great income year to smooth the tax pains.

Don’t forget – Sunglasses, Hats and Sunscreen for taxpayers that work in any outdoor occupation (including driving) they are tax deductible – Keep the receipts! 

Claim Everything

This one each year is a bit tongue in cheek, though correctly claiming expenses is our expertise. Your job is to think of absolutely anything that has a connection with your incomes and let us measure the appropriateness of claim. 

For Investors with repairs and maintenance on investment properties?Consider bringing forward so you can enjoy your tax deduction in the current financial year amongst other costs!

Pre-paying interest Say,on a loan of $300,000 it may cost $12,000 but it could get you up to $6000 back as a tax refund this year. Requires a negotiation with your lender!!

Made a capital gain during the past year, for example, the sale or part sale of a business (including investments the business has made), shares or a property.

If the answer is a ‘yes’ then you should be thinking about your options for managing the CGT liability.

Start by looking for capital losses (not hard at the moment) to offset the CGT liability (or losses carried forward from prior years) and consider selling out losses before June 30 to offset gains – call to discuss.

Medicare levy surcharge & Private Health Insurance Rebate thresholds

For the rates of Medicare levy surcharge that applies or the amount of rebate you are entitled to see the rebate and surcharge levels applicable are:

Single parents and couples (including de facto couples) are subject to family tiers. 

For families with children, the thresholds are increased by $1,500 for each child after the first.

Australian Treasurer, Josh Frydenberg

Superannuation

Whilst there are no major changes for 2021 tax year the scheduled ones are going ahead.

• The Superannuation Guarantee rate is increasing to 10%, effective 1 July 2021

• From July 1st 2021 the concessional cap into super rises to $27,500 which includes super SG and salary sacrifices. Don’t forget personal super contributions can also be claimed as a deduction under the same limit.

• For under 67’s they may be able to also contribute $300,000* Non-Concessional all at once. 

• For over 67’s they will need to pass the work test and be restricted to $100,000. Forget about it over 75 sadly. 

• The limits rise to $110,000 annually and $330,000 for 3 years (below 67’s) from 1 July 2021

Superannuation has become so complex

We recommend that you never contribute until you’ve cleared it with your advisors first.

Super contributions to be claimed in this tax year they need to be paid WELL before June 30 (i.e., by mid-June – Do it Now!) and yes in many cases you should contribute to super for example;

An average earner saves around 20% of tax on their contribution so even if they put the money into the safe cash option of the fund, they have already had one great investment year!

However, if you are bit on the younger side burdened with a lot of bad debt then speak to us about doing the numbers on super contributions before you do.  

Make larger super contributions

if you haven’t used all of your concessional cap in an earlier year. If you make or receive concessional contributions (CCs) of less than the annual concessional contributions cap of $25,000 pa, you may be able to accrue these unused amounts for use in subsequent financial years.

Unused cap amounts can be carried forward for up to five years before they expire.

2018/19 was the first financial year you could accrue unused cap amounts. To be eligible to make catch-up CCs, your total super balance at the prior 30 June must be below $500,000.

Superannuation Co-contributions for super is something you should still DO. Up to a 50% matching rate on up to $1,000 of after-tax contributions, so a maximum amount $500 FREE from the ATO into your super!! Income thresholds must be below $54,837 

Superannuation Pensions remember, you need to have made your annual drawdowns by June 30 and the good news for 2020 and 2021 the minimum amount to drawdown has been halved. Maximum drawdown limits are unchanged. 

Superannuation Spouse Contribution of $3000

The amount of the offset is 18 per cent of the spouse contribution you make (max. offset of $540) reducing your own tax. Spouse income must be under $37,000 to get the full offset, then it gradually reduces to zero at $40,000.

Again, there are always other conditions so check with CIA first or your Superfund to avoid disappointment.

You can watch Ticker Money weekly with Steve Enticott and Mike Loder on Ticker News.

Business

“Worse than the Suez Canal”: Global supply chain nightmare | ticker VIEWS

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The current disruption to cargo has surpassed March’s Suez Canal disaster. What does this mean for the shipping industry, businesses and consumers?

Well, be prepared for weeks on end of delays – and that’s just the beginning of this supply chain nightmare.

“WORSE THAN THE SUEZ CANAL’

Amazon Prime Day is coming up next week and it’s the biggest day of the year for the online retail giant.

As consumers increasingly turn to online retail, are freighting companies keeping up with demand?

Why are freight companies under stress?

In the wake of one of China’s busiest shipping ports closing down last month due to a COVID-outbreak, freighting companies find themselves at breaking point.

With the industry just getting back on its feet following the Suez Canal blockage, experts are concerned that this latest delay will have even more significant consequences.

China’s Yantian Port says it will be back to normal by late June, but it may be months before the cargo backlog clears and the global ripple effects subdue.

AP Moller MARSK is the world’s number one container carrier and says “the trend is concerning, and unceasing congestion is becoming a worrying problem.”

Ocean strategy company Flexport also shares these concerns, believing the congestion will take six to eight weeks to settle.

This is of particular concern because it extends disruptions into the peak Christmas and holiday seasons, as retailers and importers ramp up their shipments.

Maritime expert Alison Cusack says the knock-on effects from this delay are enormous and consumers will feel the pinch.

When will we see the shipping sector return to normal?

Well, don’t hold you breath. Cusack says at least 2022… “If we’re lucky”

What does increased cost of cargo mean for me?

Experts are warning that consumers may begin to feel the pinch from rising shipping costs, as the price of transporting goods by sea skyrockets.

Recetn figures show the transportation of a 40-foot steel container ship between Shanghai and Rotterdam now costs over $10,000, that’s a huge 547 percent increase on the average price.

Around 80 percent of the world’s goods are transported by ships, meaning the costs will be largely unavoidable for both consumers and businesses

Toy importer, Gary Grant says “during 40 years in toy retailing he has never known such challenging conditions from the point of view of pricing.”

It’s believed the rise in costs is associated with a number of factors, from soaring demand to a shortage of containers, busy ports and a limited workforce.

The disruption to the shipping industry could lead to shortages in the lead up to Christmas.

An outbreak of Covid-19 in a province in southern China is causing congestion at the region’s ports.

Shipments have now been delayed… adding to the tensions within global supply chains, the knock-on effects could take many months to resolve.

This is the latest in a series of severe setbacks for the industry and experts says that problems in just one region can have ripple effects around the world for several months.

The cost of cargo mishaps on the environment

Two weeks ago, a chemical-laden cargo ship sunk off the coast of Sri Lanka amid fears of a major environmental disaster.

Hundreds of tonnes of engine oil possibly leaked into the sea, with a devastating impact on marine life.

Sri Lankan and India worked together to put out the fire and prevent the ship from breaking up and sinking.

X-Press Shipping – the Singapore based company which owns the vessel – confirmed the crew had been aware of the leak, but say they were denied permission by both Qatar and India to leave the ship there before the fire broke out.

The fact that Sri Lanka allowed the vessel to enter the country’s waters after it was rejected by two other nations has led to widespread public anger.

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Major banks, airlines, hit with global tech-provider outage

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Multiple organisations, such as banks and airlines were hit with a global cloud platform outage on Thursday, due to a US-based tech provider Akamai being down.

The ANZ, Bank of Melbourne, Westpac and Commonwealth Bank, and Bank West had all reported system issues with their mobile banking apps.

Users had been served with error messages while attempting to log in.

Commonwealth Bank earlier advised its customers they are investigating, so did other major banks.

Airlines offline

There had also been reports that several other websites, including Virgin Australia, Southwest Airlines, United Airlines, American Air and Delta Airlines have gone offline.

Allianz Insurance and CMC Markets are affected. ME Bank also reported “server issues”.

Australian website tracker DownDetector displayed an upsurge in access complaints across several major websites around 2:10pm

Ticker News can confirm Telstra and NAB have not been impacted by this outage, despite reports from Down Detector.

The issue was believed to be linked to problems occurring with CDN provider Akamai.

Sites are now coming back online.

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How Telstra is expanding its media footprint

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Telstra, Australia’s biggest telco is expanding its footprint in the media broadcasting world

[Telstra] – Telstra Broadcast Services will broadcast some of the world’s biggest events to more parts of the globe and play a key role in delivering 24/7 programming to millions of people with the acquisition of the business and assets of MediaCloud Pty Ltd.

The acquisition of MediaCloud will provide TBS with a suite of significant software-defined and cloud-based capabilities, media cloud delivery experts and a London Master Control Room, that is equipped with the capability to support major global companies and events.

The addition of MediaCloud capabilities to TBS’s Professional Media portfolio will enable it to offer:

  • Managed Streaming – a complete as-a-service offering that enables broadcasters to specify, launch and monitor over-the-top services with minimal resources while maintaining broadcast-grade SLAs.
  • Internet Delivery – the ability to deliver high-quality video content and live broadcast streams including HD, SD and Ultra HD to any registered destination point, across the public internet. It is expected that this internet delivery capability will form a new entry-level tier of services, the Telstra Internet Delivery Network, available to broadcasters and media companies wishing to use TBS’s global networks but not requiring the premium service level agreements offered by its current solutions.
  • Media Management and Content Orchestration – a fully managed, or platform-as-a-service offering, providing media asset management, content orchestration of complex media workflows and localisation. This will also include the ability to import, manage and preview video, audio and subtitle assets, along with various transmission schedules.
  • Playout – a fully managed 24/7 service for the creation of broadcast-grade linear and complex television channels.

As part of the acquisition, Australian free-to-air TV channel SBS has renewed its playout contract for MediaCloud services for seven years. This means everything from SBS News to the latest primetime show will be assembled and played out via TBS. 

Darren Farnham, SBS Acting Chief Technology Officer said, “We’re pleased to have extended our agreement for MediaCloud services with the backing of Telstra, and to continue delivering SBS’s unique content to audiences on their device of choice.” 

Head of Telstra Broadcast Services Andreas Eriksson said that the addition of the MediaCloud platform will provide broadcasters with incredible flexibility to manage their content offerings through virtual environments.

Melbourne, Australia – Jul 27, 2019: The ABC Studios news collaboration room

“The global media industry is expanding to cloud-enabled and software-defined capabilities. Adding these leading new capabilities alongside TBS’s existing global fibre and satellite networks sets us up to meet the evolving needs of the broadcast market as well as expand our value proposition to our global client base by providing a world-class broadcast operations in London.”

“The new capabilities will help broadcasters deploy new services and channels to respond to special events, programming opportunities and new markets in these changing times,” 

Mr Eriksson said.

The MediaCloud acquisition is the latest offering from TBS, following recent expansion into new regions, as well as new advancements and partnerships to its Telstra Global Media Network.

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