00:10 - Having a bookkeeper - it’s a must!
01:10 - Make sure that your BAS is lodged on time

Hi there, it’s Sam Buckley from Wealth Safe and I’d like to welcome you to this week’s edition of Wealth Chat. Today, I want to talk to you about bookkeeping and why it’s really important to have a good bookkeeper in your team.

why having a bookkeeper is important for your business

00:10 - Having a bookkeeper - it’s a must!

Now, we all hate paperwork and compliances, it sucks and with all the rules and regulations today, it can take a day to a week just to deal with it all and it’s a really nightmare and headache for most business owners.

The thing I know you would rather be doing, is making more money with your business. You started a business because you love what you do and you want to help people. And if you are busy with paper work, you don’t have the mind or the headspace free to be dealing with the things you really want to do, and that’s working out new ways to help your customers and therefore help yourself.

Having a bookkeeper - it really is a must! They can help you do the paperwork, they can deal with that on a regular basis, they can also make sure your compliance is all sorted out. And if it ever comes the time to have tax ordered, you are covered and you don’t have to stress over that.

1:10 Make sure that your BAS is lodged on time

Probably one of the more important things, thought is to make sure that your BAS is done properly and lodged on time. Now, in june of 2012, a law came into play, that says this: “If you don’t lodge your BAS within three month of the due date, you can lose the protection against the tax office, if you run your business through a company or trust.

You may wonder: What that means, and what benefit is that to me? What that actually means is if you got a tax debt, and you are really struggling to pay for it, for instance, say you got 80 grand in tax debt, you can actually wipe that out, close your business down and the tax debt just dies with the business, which is awesome. That’s 100% legal, by the way, so if you are in that situation, feel free to talk to us about it and see if we can solve things out for you.

If you don’t, unfortunately, lodge your BAS within that 3 month period, they can chase you for that debt, personally. So if you have a company or trust and you run your business through it, make sure you lodge your BAS on time, within three months of the due date. Get a good bookkeeper on board, and help them look after your compliance for you.

That is it for me today, I am Sam Buckley from Wealth Safe, and this was the latest edition of Wealth Chat.

It’s one of those stories that give you goose bumps when you see how one thing led to the next …
I was working at the office when my mobile rang and it was mate Joe calling.

Now Joe is a die-hard Fremantle Docker’s fan. I’ve been to a few games with him and there’s nothing funnier watching this Irish man having a dig at one of the opposition’s fans!

Joe’s on the phone and to my surprise he wanted to come to the Wealth Safe Breakfast Club that he’d seen me post on Facebook.

Joe arrives on the day, and to be honest I wasn’t sure on how he was going to take it.

You see to my knowledge most who attend the Breakfast Club have been to a wealth seminar, are business owners or investors, and I wasn’t sure if Joe had been exposed to this sort of thing.

2On one side of me is sitting to one of my trading buddies, and Joe begins to tell me about the managed fund that his financial planner had set up for him. I listen and smile to myself knowing who our guest speaker is.

On the schedule was one of my personal mentors John who taught me how to put into action theory I’d learned through my own research on options trading. See John showed me a system that consistently gives him 8% percent return a month!

Now a few years ago with John’s account size that was equating to a very cool $40,000 a month. (He’s been a bit shy in recent times as to what he’s earning now!)

So John begins to talk about what he does, and Joe is listening.

John loves talking about options trading and goes well past Joe’s deadline as he has another appointment, so Joe whispers an apologetic goodbye and disappears.

The next day Joe tells me since attending the Wealth Safe Breakfast Club he’s discovered that his daughter, (a lawyer), is doing the same trading course that John did when he first started!

Before I know it Joe is enrolled in this course and is attending the same day his beloved Fremantle Dockers are playing their first ever grand final! This blew me away!

Australia’s Scary New Privacy Laws …Are You Affected (interview with Warren Black)Well, our regulators are at it again. Australia’s privacy laws have been radically overhauled.

Starting 12 March 2014, businesses now have a new set of laws to contend with.

If it wasn’t bad enough coping with the changes to the ACCC fair trading laws, and dealing with all the weird and
wonderful laws our government keeps coming up with, to put more compliance burdens on small business with
tax and paperwork and everything else, now businesses have onerous obligations on security of information.

Now … mind you … it doesn’t apply to all businesses.

Businesses under $3 million turnover may not be caught. It depends if the businesses do things like selling lists,
or are involved in certain types of direct marketing.

Watch this interview with Warren Black, leading lawyer on tax, asset protection and insane government compliance…

(Warren is a passionate crusader on this) and find out more about these laws and how they could affect you!

A big problem in society is bullying.

Are You Sick and Tired of Being BulliedIt’s something I am passionate because I have been through bullying. As a kid growing up, I was bullied in primary school. It was a horrible experience. Only those who have been through bullying know how humiliating, and shameful it really feels.

I knew I should be standing up for myself, and I wanted to … but it was like I felt powerless to do so.

It was that sense of powerlessness that made me feel a lot of shame. In fact, it was an incident at high school when I was 13 when I was bullied by a group of kids which made me vow I would learn to stand up for myself, and never be bullied again.

It was one reason I become a lawyer.

And one of the things people ask me all the time as a lawyer (and when I was a church minister many moons ago) is how to handle bullying. It’s something I get asked on private Facebook message, by email, or more commonly, in day to day conversation.

So I decided I was going to share some insight both as a lawyer and from experience how to handle bullying.

I am going to give a series of 10 tips over this month on how to handle bullying.

We have bullying on so many levels, like …

  • Bullying in school
  • Bullying in the workplace by bosses
  • Bullying by friends
  • Bullying in relationships
  • Bullying from parents or family

And the list goes on …

We will be looking at 5 tips dealing with the following topics:

  1. What do I do if I am being bullied by my boss in the workplace? Or by co-workers?
  2. What constitutes “bullying in the workplace”?
  3. What if my child is being bullied at school?
  4. If my neighbour is bullying me by making unreasonable demands, is there something I can do?
  5. What if I am being bullied and threatened by my partner? Can I stop it?

TIP 1:  What do I do if I am being bullied by my boss in the workplace? Or by co-workers?

There are a number of things you can do.

If it is by co-workers, you can always go straight to your bosses or management. Getting it dealt with in-house is always the best and easiest way.

I can remember I had a really bad boss years ago when I worked in a fast food restaurant. He used to terrorise all the staff, yelling and bullying them. My mother told me how she had stood up to a bullying boss at a newspaper she had worked at, which inspired me.

Finally, trembling and very nervous, I stood up to him. He came in and yelled at me to stop slacking around and get to work. Mind you, I was one of his best workers and he knew it. I responded by saying words to the effect of “excuse me, I am not slacking around, but I’m working hard, so lay off please”. He looked somewhat startled, looked at me, and didn’t reply. I thought I’d really pissed him off. However, next day, when leaving the shop he told all the staff to keep working hard, and put me in charge of the shop, and told the staff that anybody that disobeyed me would be in trouble!

It taught me a great lesson.

Mind you, not everybody has the courage to do that, and it doesn’t always work. Sometimes standing up for yourselves can cost you your job. (I was fully prepared for that possibility when I stood up for myself.)

Hence we have laws to protect workers from bosses who bully and treat workers badly.

Workers have protection under employment law, and the Fair Work Act, but until recently, workplace bullying was dealt with under health and safety laws, and discrimination laws.

In January 2014, the beginning of this year, the Government passed new anti-bullying laws under the Fair Work Act. These are quite broad in how they apply and give workers fantastic remedies.

They also show business owners to be very careful in how they treat their workers, and gives another compliance headache to worry about.

In the next tip, we look at the new anti-bullying laws, and how they work.

TIP 2:  How do the new anti-bullying laws work?

The new laws are very broad, and give you a lot of rights if you’re bullied at work. In fact, the laws are drafted so broadly that it is impossible to know exactly what kind of conduct will constitute “bullying”. Effectively it will be up to the Fair Work Tribunal to decide.

To me, it is another crazy example of laws going too far … but it’s certainly great for workers. It gives workers a lot of slack.

Let’s look at some of the basics of the laws and how they work …

  • “Bullying” … A  worker is bullied if, while at work, another individual, or group of workers, repeatedly behaves unreasonably towards him or her, in a way that creates a risk to health (including mental health) and safety. “unreasonable behavior” is not defined in the laws, meaning there is a lot of scope as to what is caught.
  • A worker has rights under these laws to stop the bullying (discussed in the next tip)
  • However, businesses do have defences in some instances (discussed in the next tip)
  • On what is a “worker”, employees, contractors, work experience students and volunteers are all covered. Workers can take action individually, or collectively as a group.
  • On what “businesses” are covered, the short answer is most of them. Only partnerships, sole traders, State government departments and volunteer associations with no employees are exempt from the laws.

So clearly, the new laws are very broad, and workers have a lot of rights. Many believe there’ll be an avalanche of claims under the Fair Work Act once people get wind of the laws.

Bullying in the workplace is very prevalent. With the greater awareness around bullying, and the fact that businesses will be nervous under the new laws, the mere mention of “bullying” to a boss or manager in the workplace is likely to send shivers down their spine, and quick action, in most cases. And in the cases that don’t, a straightforward low cost Fair Work application will do the trick.

In the next tip, we explore further your rights as a worker under the laws, and exactly what you can do under the new laws to bad bosses who bully you.

TIP 3:  What rights do you have under the anti-bullying laws?

In the last tip, we looked at the anti-bullying laws coming into place this year.

What rights do workers have?

Under these laws, if you as a worker have a reasonable belief that you’re being bullied at work, you can apply to the Fair Work Commission for an order to stop your co-workers or boss from bullying you.

Before making an order, the Commission must be satisfied that:

  • there has been bullying
  • the bullying has in fact occurred, and
  • there is a risk the worker will continue to be bullied by the individual or group.

As said in the earlier tips, the laws are drafted very broadly. It’s clear there is a lot of scope and flexibility to deem conduct to be bullying. The mere mention of the word “bullying” or “threats” will send shivers down most employers spines.

So for example, a bad performance review in itself may end up in a bullying claim if a worker felt they didn’t get adequate performance management and feedback on the job.

That said, workers should be aware that even if the Commission holds that a bullying claim is well founded, this doesn’t necessarily mean the business will be fined, or get an order against it. A business will be exempt from an order if the Commission is satisfied that reasonable management has been carried out in a reasonable manner. That is, if a business had really good grievance policies and procedures in place for dealing with bullying, including a good internal investigation process, that can be enough to defend against a bullying claim.

Even more important is good performance management, ie. ensuring workers get appropriate feedback. So if as a worker, you are not getting proper feedback on your performance from your boss, a sudden performance review that is bad can potentially give rise to a bullying claim.

One concern that may happen, however, is you as a worker get bullied and threaten to go to the Fair Work Commission, and you get fired. Suddenly there are complaints about your performance, and documents produced proving it, and you are fired.

In the next tip, we look at what you can do if you get fired after being bullied.

TIP 4:  What can I do if I lose my job at work from being bullied?

In the last tip, we looked at your rights as a worker when being bullied.

Now we’re going to look more closely as to what happens if you get fired.

If you get fired, you have a lot of rights in Australia. The Fair Work Commission have shown very clearly they are more in favour with workers than the bosses. Some case examples decided by the Fair Work Commission decided in favour of a worker include:

  • A paranoid schizophrenic who was sending “weird” emails to co-workers and scaring them, and didn’t stop despite warnings, was fired, and it was held he should not have been fired without more leniency for his situation
  • A worker who distributed porn material to his co-workers who was fired, it was held he should have been given a warning and treated more fairly
  • A gardener who was sloppy in his job, and received emails telling him his work was poor, as well as some discussions with his boss, was held to have been dismissed unfairly, because he should have been told he would be fired if he kept doing a bad job!

Personally I think the law is insane, and too far the other way. Nevertheless, as a worker, understand if you are treated unfairly, you have a lot of rights.

So what should you do if you get unfairly fired, or threatened with it?

Firstly, ask for reasons if you are fired, or if you are threatened, ask for a performance review, and for detailed feedback as to what you did wrong. Once you get it in writing, reply back in writing to the company if you disagree with anything that is said.

Secondly, if you are fired unfairly, you can lodge a claim with the Fair Work Commission. It is a straightforward process. You pay a fee of $65.50. The only catch is you must lodge within the prescribed time limit, which is 21 days after 1 January 2013.

Once it goes to the Commission, you put forward your case from there.

As a personal comment, they say with great power comes great responsibility. If your boss or co-workers are treating you unfairly, then use these laws. In my business, we are very family friendly with my staff, understanding they want time with their families, and always believe in basic courtesy and respect. If a boss is not willing to do that with their workers, and respect them as people, they deserve what they get. At the same time, if you have a boss who is trying to be reasonable and simply discuss your poor performance with you to improve things, don’t use the laws to avoid dealing with the real issue, or to try and get money out of them or punish them.

In conclusion, I hope these tips have helped you understand the anti-bullying laws, and realized if you are being unfairly bullied, there are things you can do.

If you want more information about these, please contact us and one of our specialists would be glad to assist.

TIP 5:  What do I do if my child is being bullied in school?

This is always awful for the child, and for the parents, they feel shame, failure and frustration.

I remember hearing a story 40 years ago about a family friend (let’s call him Joe) whose son was badly bullied one day after school. Joe got in his car with his son, found the two bullies riding their bikes, chased them until they jumped off their bikes and ran and climbed on top of a wall to get away from him, Joe drove his car over their bikes, and wound down the window and said “next time you bully my son, that will be you, you cowards”.

It was effective, as the bullying never happened again. But for reasons I’m sure you understand, it is not my recommended strategy for dealing with bullying!

The good news is, there are effective ways of dealing with bullying without doing what Joe did.

What can you do?

A very interesting case has been decided by the ACCC about companies using debt collectors and how far they can go in chasing a debt, in particular, using fake profiles.

How Far Can Debt Collectors Go … and are Fake Profiles Legal
How Far Can Debt Collectors Go …
and are Fake Profiles Legal

Credit: Clipartof.com

This was a particularly interesting case. It involved Excite Mobile creating a fake profile of a debt collection company to chase debts.

They set up a fake profile of a debt collection company. They sent letters to their customers to chase them for debts, using the fake letterhead for the debt collection company. When customers called, someone from Excite answered the phone, but pretended to be from the debt collection company.

On top of that, Excite Mobile also said people had coverage from home, when they did not.

The ACCC went to court, and it was held that they had been misleading, and their conduct had been “outrageous” and “unjustifiable”.

They were fined $455,000, and the directors were personally fined $55,000 and $45,000 and were given bans on managing a company for a certain period.

This case serves as a sober warning that courts are becoming less tolerant on marketing exaggeration, or hyperbole, used to promote a business, or to collect monies.

Businesses would be well advised to use the smell test … if something feels funny or does not sit right, then it probably isn’t, and you should get advice from a professional before proceeding further.

(Source)

Cyclists Will Be Free To Go Bareheaded On Bike Paths And Motorists Will Have To Give Bicycles At Least 1m Clearance, Under Recommendations Made To The State Government.

image001
Cyclists will be free of the dreaded helmet

However when it comes to breaking the road rules, cyclists will be treated the same as motorists.

The Transport, Housing and Local Government Committee will today table its 200-page report on cycling laws after a five-month inquiry.

The report includes 68 recommendations on issues from cyclists running stop signs to the disparity between penalties for cyclists and motorists.

As well as relaxing helmet laws for people aged 16 and over on bike and footpaths, the report recommends:

  • Minimum safe passing distance of 1m on streets up to 60km/h and of 1.5m on roads signed at higher speeds.
  • An equalisation of penalties for cyclists and motorists.
  • Giving cyclists permission to treat stop signs as give-way signs when it is safe to do so.
  • A major public education campaign about cycling safety.

Motorists will have to give cyclists a wider berth on the roads under the proposed new laws.

Transport and Main Roads Minister Scott Emerson will get the final say, and yesterday he was yet to be convinced of the need to relax helmet laws.

Committee chairman Howard Hobbs said he hoped the Minister would consider all recommendations after the extensive investigation by the LNP-dominated committee.

"I expect he'll take some time to digest the massive amount of information (in the report) and I would encourage people to look at the reasonings behind the recommendations we've made," Mr Hobbs said.

"They need to look at each recommendation and why we've made them."

The 1m rule for roads up to 60km/h and 1.5m for roads signed at higher speeds was sought by cycling groups.

The Courier-Mail understands there will be provision for motorists to cross double-white lines to move around cyclists in these situation.

Penalties for cyclists will be increased to match those for motorists.
Currently cyclists are fined $110 for offences such as running red lights and ignoring level crossing signals while motorists cop $330 fines.

However cyclists will be given leeway to treat stop signs as giveway signs when safe.

Mr Hobbs said the committee had examined "best practice" for cyclists worldwide.

"It will basically lead the nation with new road rules which will see cyclists and motorists share our road network, rather than be out there in a confrontational way," he said.

"That's been the problem we've had in the past - the road rules haven't been looked at seriously for the vulnerable road user."

Warren Black: I cannot believe it ... a government finally seeing sense and bringing in sensible regulation. Start of a new trend ... ?

images
Why Poaching Lance Franklin is a classic
example of what NOT to do in Business!

I may eat my words. And will be happy to.

But I believe that poaching Lance Franklin for $10 million over 9 years is a poor business decision by the Sydney Swans.

Here’s why …

When Ross Lyon was poached as a coach by the Fremantle Dockers football club, I said at the time it was a brilliant business decision.

The reason? Mark Harvey had not delivered the goods. Ross Lyon is one of the top coaches in the league. His club St Kilda had been procrastinating on renewing his contract. A brief window of opportunity opened. The Board of Fremantle swooped and hired him in a shock move, that devastated Mark Harvey and angered many of the Fremantle fans.

I said they would get over it when Fremantle reached a grand final or won a premiership within 2 years. They reached the Grand Final this year.

Now Fremantle are the talk of the town. Sure they lost the Grand Final. But they will be back.

Why was this a smart decision?

A coach is the key in leading a team. There is only one coach. Fremantle had real problems with a coach. And in 17 years they had never come close to winning a premiership.

By contrast, I believe the Buddy Franklin decision is a poor one.

Why? Many reasons, but here are some.

Perhaps I am being unfair. At least Sydney are investing in a proven star. Gold Coast did it with Gary Ablett and it has been a spectacular success.

But mostly, these decisions don’t work.

What is the lesson on this?

Smart investors and business people are always looking to buy at an undervalue. And won’t put all their eggs in one basket when it can jeopardise their other interests, eg. putting all focus into one project and neglecting other legitimate projects which increases their risk.

Let’s hope I am wrong … But at least some valuable lessons here about investing and about managing risk as a business owner and investor. Any business reliant on one contract is vulnerable to failure. Likewise Sydney have made themselves a lot more vulnerable all of a sudden.

The lesson? Don’t put all your eggs in one baskets where it is going to jeopardise your other baskets, and make you more vulnerable and dependant.

I’d love to hear your comments on this post.

1380683968041
ATO Now Snooping On Its Employees
… Start of a New Trend?

With the unprecedented growth of the worldwide web and social media, other consequences inevitably arise …

Unauthorized use by employees in the workplace!

Companies are benefiting from the worldwide web and social media to access information faster, gain more exposure and increase its profits. But it also has the challenge of employees who are now tempted to use work time to check Facebook, Twitter, research property prices for investment purposes, go on dating sites, etc.

And like everything else, it’s the ATO who are on the front foot in dealing with this.

Firstly, they have installed screen shot technology to randomly monitor its employees and what they are doing in work time. And enforcing it too as one employee recently found out.

Secondly, they have introduced standards of conduct for employees on their Facebook page. They have told staff not to identify themselves as ATO employees or if they do, bad language and other inappropriate conduct will not be tolerated, and considered in breach of the Code of Conduct for Public Servants.

So even the ATO’s own employees can’t escape their crackdowns! That gives businesses some comfort I’m sure …

I myself worked for the ATO for 10 years and it sounds like more rigorous days from when I worked there!

Is this the sign of a growing trend for big companies? Or is it already entrenched? I’m not sure.

But it sure raises some interesting issues.

For example, if an employee works in the social media marketing department of a company, and has to post on Facebook, Twitter, Pinterest, Instagram, how would a business distinguish between their private use and between company use? Will they need permanent monitoring of the computer?

Perhaps the answer lies in becoming more results focused with employees.

In my business, my policy it is too difficult to strictly enforce this. So I allow a reasonable amount of private use in work time, provided my employees deliver me results, and they make up the time later on. Apart from a few isolated instances, this has worked well, staff appreciate the trust, and I have happier more productive staff.

But with bigger companies, I can appreciate it would not always be so clearcut.

Anyway, it will be interesting to see what happens in the coming days as more and more social media sites arise …

{Source}

Have the ATO Gone Way Too Far This Time
Have the ATO Gone Way Too
Far This Time?

I woke up today and I couldn’t believe my eyes.

The ATO have announced they are cracking down on SMSFs moving into pension phase.

Now, mind you, the ATO losing their marbles is nothing new. But the reason they’re going ape this time is almost unbelievable, and beyond insanity.

Very simply, the ATO have released a new draft ruling about SMSFs. They’re saying if you transfer shares, property or other assets into a SMSF just before retirement, and sell shortly after to get out of CGT, this could be tax avoidance.

I mean seriously, you’ve got to be kidding me.

Whatever happened to the famous statement of the House of Lords in the Duke of Westminster case in 1936 when Baron Tomlin said …

Every man is entitled if he can to order his affairs so as that the tax attaching under the appropriate Acts is less than it otherwise would be. If he succeeds in ordering them so as to secure this result, then, however unappreciative the [Tax Office] or fellow taxpayers may be of his ingenuity, he cannot be compelled to pay an increased tax …

Or as the House of Lords also said in 1929 …

“No man in this country is under the smallest obligation, moral or other, so to arrange his legal relations to his business or to his property as to enable the [Tax Office] to put the largest possible shovel into his stores … “

It is everyone’s right to minimize their tax in Australia in the best way possible!
Retirement tax planning has been common since Jesus was a boy. Well maybe an exaggeration … but I am sure you get the drift!

Anyway you’ll have to be especially careful when planning your tax for retirement. That is now abundantly clear thanks to the ATO and their abundant wisdom!

Have a read for yourself …

{Source}

TIP 1: Prepay your expenses

You can pay up to 12 months of tax-deductible expenses in advance. For example, magazine subscriptions are common, but also, prepaying interest on investment property loans or margin loans for stock, income protection insurance. A great time is to do it before 30 June.

TIP 2: Claim Everything You Possibly Can

It’s very important to keep all of your receipts. If you are in doubt, keep the receipt and ask your accountant. You would be very surprised as to what you can claim!

For example:

  • A truck driver can claim suntan lotion and sunglasses
  • A locum can claim home to work expenses, even though employees and contractors can’t

TIP 3: Claiming Air Flight Deductions on a Private Holiday

Have you ever wanted to go on a private holiday and still claim a tax deduction?

Well you can … sort of.

If you go on a business or work related conference and then on a holiday afterwards, you can claim a tax deduction for the expenses related to the business or work related part.

However, here is a little known fact.

You can claim 100% of a flight for a conference which is mainly to do with work, EVEN IF you also did a private holiday while on the trip, provided the main purpose of the flight is for work.

So make sure you tell your accountant this at tax time!

TIP 4: Eligible write off rules

In the past when you bought assets in a business, you could not claim an immediate tax deduction. You had to depreciate the cost of the asset over time.

If you own a small business, you can write off assets that cost less than $6,500 in the first year as an IMMEDIATE tax deduction, and not depreciate it.

So for example, if you buy a laptop or a high level scanner, you can claim it upfront.

This can make a very big difference to your tax at the end of the year.

TIP 5: Use Independent Contractors or Outsourced Workers

You can slash costs such as superannuation or PAYG tax (which is a pain for cashflow management in a business) by hiring independent contractors through a family trust or PAYG.

It is very important that contractors work for you through a family trust. The ATO specifically recognises that superannuation does not have to be paid in that instance. Whereas if you engage a contractor through an individual ABN, you run the risk of an audit and paying super later on.

You can also hire outsourced workers and get the same result. For example, hiring staff in the Philippines under a contract of service avoids superannuation, lowers wages, and PAYG tax.

TIP 6: Avoid contributing and claiming more than $25,000 tax deductible super contributions

This is less a tax saving tip, and is more a warning of what can cost you a fortune.

The cap on concessional contributions pre-tax is $25,000. If you exceed your contribution cap, you will be up for a significant amount of penalty tax.

So be very careful when you salary sacrifice.

TIP 7: Use 3 Generational Testamentary Trust Wills To Save Tax for your Loved Ones

When you draft up your will for your kids or loved ones, make sure you use a 3 generational testamentary trust will.

In a simple will, your kids will pay tax as normal but with a tax free threshold even if under 18. That is a great tax benefit.

But it gets better. If you have a 3 gen will, let’s say you die and leave your assets to your kids. Let’s say you have grandkids. Your kids can distribute money from your estate to your grandkids to further save tax. Something that they can’t do with a simple will.

So make sure you have a proper will on death so your kids get the money, not the government!

TIP 8: Work Related Car Expenses

This is one of my personal favourite.

The usual rule is to claim car expenses, you need a logbook. This is to work out the percentage of business use. You also need to do it now for fringe benefits tax purposes where you are claiming your car through the business.

However, there are 2 ways to claim car expenses without going to all that hassle:

  1. Set rate per km method. This enables you to claim a set rate per km travelled for business use. You don’t need receipts, just a reasonable estimate. The catch is you can only do this for up to 5,000 business kms per year. But a great tip for someone who does a small amount of travel for work or business, and doesn’t want to keep a logbook.
  2. 12% of cost. This allows you to claim 12% of the actual cost of the car, provided the cost is less than the luxury car threshold. So for example, if you had a $50,000 car, you can claim 6,000 as a tax deduction. No receipts, and your explanation only has to be reasonable.

See your accountant about this at tax time.

TIP 9: Computer and Mobile Phone Expenses

If you have a computer or mobile phone, and use it for work related use as well as personal use, you can claim the cost of your mobile phone plan as a tax deduction.

If you have a mixture of private or business use, you have to apportion it.

For example, assume you have a Telstra plan and you are paying $99 per month. You can claim that payment as a tax deduction. If you spent half the time on the phone for business use, you can claim $49.50 per month as a tax deduction.

TIP 10: You may have Lost Super!

This is not so much a tax tip but can help you find some hidden money.

Many people have had a job for a short time and have no idea who their superannuation was paid to.

The good news is, there is a service called the Super Seeker website. In this website, you can find out any superannuation that was paid to you by anyone. And then you can rollover it to a self managed superannuation fund, or consolidate it into one fund.

The link is:

http://www.ato.gov.au/Calculators-and-tools/SuperSeeker/

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Frequently Asked Questions

What are my risks?

Wealth Safe is Australia's leader in offshore tax planning. When you work with us, you are selecting a creative out-of-the-box team. We can reduce your tax to as low as 5%, even 0%, while remaining 100% legal and ATO compliant.

Please note when dealing with Australian tax issues around offshore or higher level planning, you must work with an Australian tax expert. You will expose yourself legally and financially in doing so as many overseas structuring companies are based overseas and don't understand Australia's unique requirements.

Are there any hidden or ongoing expenses?

Not at all. At all times we remain transparent with our costs from planning to implementation ... and work on a fixed price basis where possible. Our commitment is for your tax savings to outweigh your costs in working with us and setting up your structures, and accelerate you on your journey to financial freedom.

Do I have to hire a new accountant?

No. We can work with your accountant. If you don't have a creative accountant who can implement our creative solutions in your day to day tax returns, we have accountants we can recommend to you.

Do I have to live in a different country?

Not necessarily. It depends on what you're looking for. We will design strategies to meet your desired lifestyle. Keep in mind, however, that as a rule, you can get better tax savings if you leave Australia and become a tax resident overseas in a country like Panama, Costa Rica, Malta or somewhere like that. The Australian tax laws are super strict when it comes to offshore and it can be costly and expensive to comply with them.

Do I have to learn about difficult tax laws?

Not unless you want to. We will take care of all the difficult parts and teach you whatever else you need to know.

What if the tax laws change in the new country?

Laws are always changing. We keep a close eye on changing tax laws and requirements and we conduct regular webinars to keep our clients up to date with all the changes.

Results – Our Client Tax Savings

Our Client Tax Savings

Listed below are real results we have achieved for our clients. While there is an unlimited number of tax issues we can assist with, we have broken the list of our clients into 2 columns...

1. Traditional (bricks and mortar companies)
2. Online business (including ecommerce, traders and crypto investing)

To find out if we can assist your situation, enquire with us by clicking here!

Business Consultancy

Situation

Martin ran a company in Australia making a profit of $1 million. His profit was about to increase to $5 million yet he was paying 27.5% tax, ie. $275,000 to increase to $1,375,000 in tax.

Solution

We moved the structure of his entire business to Hong Kong with offices servicing Australia and Singapore.

Saving:

Saved $220,000 in tax now, and a $1.1 million future tax saving (tax reduction of 72%)

Instagram Business

Situation

Linus lives in Australia and makes money through Instagram. He made a $1,000,000 profit and had a tax bill of $443,232.

Solution

We set up Linus in a family trust and got the business out of his own name. This gave him the ability to split income with his family plus with companies and charities (plus the added benefit of protecting his credit rating). From there, we set up a bucket company and finance company for his investments. We also streamed his charitable gifts through his family trust.

Saving:

$88,000 tax saving (reduced by 54%)

Stock / FX Trader

Situation

Helen made $500,000 / per year trading Forex, CFDs and stocks. However Helen wasn’t willing to move overseas. Her tax bill was $208,000.

Solution

We set Helen up in a jurisdiction where foreign sourced income was not taxed. Although Australia had strict requirements, we structured it in a way to ensure we met the CFC and CMC rules. We did explain that once her money came back to Australia, she'd have to pay tax.

Saving:

$200,000 tax saving (reduction of 96%)

E-Commerce Business

Situation

David ran an e-commerce business overseas making $400k net profit but paying taxes of $130,000.

Solution:

We helped David gain Panamanian citizenship and become sovereign (whilst being free to travel and live anywhere). We also set up a Malta company to run his business to avoid falling into that “Grey zone”.

Saving:

$110,000 tax saving (reduced by 95%)

Our Process

Our Process

After a thorough analysis of your data and unique circumstances we advise you of all oppotunities. We guide you towards the best path and take control of implementation. Through every stage, we ensure full tax compliance and ongoing support.

Initial Consultation

Initial Strategy Session

It's a no-obligation risk-free assessment with a full money back guarantee (conditions apply).

Strategy Development

Analyse Your Situation

Financially modelling your situation. We present your options and outline the possible tax savings.

We provide a written report with options to minimise your tax along with our recommendations.

Full Implementation

Create Tailor-Made Solution

WWe have a follow up meeting and create a strategic tax plan based on your choices.

We outline the process, costs and tax savings, and what you need to do from your side.

Ongoing Support

Full Implementation

We fully implement your tax plan to ensure you meet all local and international legal requirements.

For those moving overseas to flee the Australian tax robbers, we help in the whole process from beginning to end.

Ongoing Support

Ongoing Support

Our service continues after we've implemented everything for you. We provide ongoing training to update you on changes as well as providing options to work with us on an ongoing basis.

From The Blog

From The Blog

Free Initial Strategy Session

Speak with our team about your tax situation and see how we can put more money in your pocket. See if you qualify for a strategy session to discover what we can do for you. Simply click the adjacent button and complete the enquiry form.