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Welcome to Gordon Mendes Accounting & Business Services newsletters. In this issue; Tax Rates for the 2009/2010 financial year 2009/2010 Checklist for Individuals 2009/2010 Checklist for Small Business's _________________________________________________ Tax Rates for the 2009/2010 Financial Year Income Threshold 0 - $6,000 $6,001 - $35,000 $35,001 - $80,000 $80,001 - $180,000 $180,001 and over Tax Payable Nil Nil + 15% on excess over $6,000 $4,350 + 30% on excess over $35,000 $17,850 + 38% on excess over $80,000 $55,850 + 45% on excess over $180,000 __________________________________________________ 2009/2010 Checklist for Individuals - Common work related claims made by individuals Depreciable plant, etc, costing $300 or less Clothing Expenses Self Education Expenses Other work-related expenses  union fees subscriptions to trade, professional or business associations magazine and newspaper subscriptions seminars and conferences income protection insurance (excluding death and total/permanent disability). - Information Required Income/Reciepts payment summaries for salary and wages lump sum and termination payments government pensions and allowances other pensions and/or annuities allowances (e.g., entertainment, car, tools) interest, rent, dividends distributions from partnerships or trusts details of any assests sold that were either used for income earning purposes or which may be caught by capital gains tax Deductions (in addition to those mentioned above): award transport allowance claims bank and government charges on deposits of income, and deductible expenditure bridge/road tolls (travelling on business) car parking (travelling on business) conventions, conferences and seminars depreciation of library, tools, business equipment, incl. portion of home computer gifts or donations home office running expenses - cleaning, cooling and heating, lighting, telephone, depreciation of office furniture interest and dividend deductions - account keeping fees, ongoing management fees, interest on borrowings to acquire shares, advice relating to changing investments (but not settling them up) interest on loans to purchase equipment or income earning investments motor vehicle expenses (business/work related) overtime meal allowances rental property expenses - advertising, council/water rates, insurance, interest, land tax, legal expenses/management fees, genuine repairs and maintence, telephone expenses, travelling to inspect property superannuation contributions by sole traders or substantially unsupported taxpayers sunprotection items tax agent fees telephone expenses (business) tools of trade __________________________________________________ 2009/2010 Checklist of Small Business's Maximising deductions for SBE taxpapers Deductions can be maximised for SBE (Small Business Enitity) Buisness taxpapers by accelerating expenditure and prepaying deductible business expenses. Former STS taxpayers using the STS cash method cannot accrue expenses, but other SBE taxpayers on an accruals basis can accrue expenses. Accelerating expenditure - SBE All SBE taxpayers can choose to write-off depreciable assessts costing less than $1,000 in the year of purchase. Also, assets costing $1,000 or more with an effective life of less than 25 years can be depreciated at 15% (which is half the full rate of 30%) in their first year (if such assets were required before 31 December 2009 and installed ready for use by the 30 June 2010, the SBE may also be entitled to and additional 50% deduction) Therefore, where appropiate, SBE business taxpapers should consider purchasing/installing these items by 30 June 2010.   Prepayment strategies - SBE SBE taxpapers making prepayments before 1 July 2010 can choose to claim a full deduction in the year of payment where they cover a period of no more than 12 months (ending before 1 July 2011). Otherwise, the prepayment rules are the same as for non-SBE taxpayers. The kinds of expenses that may be prepaid include: Rent on business premises or equipment Lease Payments on business items suchs as cars and office equipment Interest - check with your financier to determine if it's possible to prepay up to 12 months interest in advance. Business Trips Training Courses that run on or after 1 July 2010 Business subscriptions Cleaning Information Required We will need you to bring the following information to help us prepare your income tax return; Stocktake details as at 30 June 2010 Debtors listing (including a list of bad debts written off) as at 30 June 2010. Note: In order to claim a deduction, the debt must be written off on or before the 30 June 2010. Creditors listing as at 30 June 2010. Issue 6, June 2010 Key Dates 14 July 2010  Payers must issue PAYG withholding payment summaries to payees (ie. employees) 28 July 2010 Superannuation guarantee contributions for quarter 4 to be made to the fund by this date. _____________________ Key Points to Remember for the end of financial year: Record all cash on hand at 30 June 2010 Record all stock on hand at 30 June 2010 Record all odometer readings at 30 June 2010 ___________________ Quote of the Month " A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort" -Herm Albright