What's New @ Dewings?

In this issue we take a look at the Board of Taxation's report into the Australian tax system and some of the tax impediments facing small business, and report on the axing of the Government's Paid Parental Leave proposal. We also welcome Claire back after 12 months' maternity leave.

You can read the full version here.

In this our last newsletter for the year, we review the final report of the Financial Services Inquiry, which contained some concerning news for those with Self-Managed Superannuation Funds who are thinking of borrowing to buy property. Our newsletter also contains our office closing times for the Christmas break.

You can read the full version here.

The Financial Services Inquiry (FSI) headed by David Murray has handed down its final report. The report included a recommendation that direct borrowing by superannuation funds should be abolished.

Currently, borrowings are allowed as a part of a superannuation strategy under limited circumstances. This can be beneficial when, say, looking to buy property as a part of an overall wealth creation plan.

For those in business, there are good structural, tax and asset protection reasons for buying property in superannuation, particularly when it involves a business premises. Often, however, the balance in super alone is not sufficient to acquire a more costly asset like a property. Even if it were, having a significant proportion of member balances tied up in one asset may not be ideal, from a diversification and risk management perspective. Borrowing within super expands the investment possibilities with respect to property.

The FSI, however, is concerned that too much borrowing within the superannuation sector as a whole increases the risk to the financial system. Overall, borrowings are currently relatively low, however they are increasing, and it is suggested that this could potentially have a destabilising effect. Further, the report suggests that superannuation should first and foremost be about saving for retirement, not generating wealth more broadly.

Although by no means law yet, the Government is likely to implement some of the recommendations of the report. Those with self-managed superannuation should watch this space closely, especially those who may have intentions for using it to buy property in the future through borrowings.

Between now and 31st December Intuit is offering its QuickBooks Plus Online accounting product for only $4.99 per month for the lifetime of the subscription.

QuickBooks Online is a fully featured cloud-based accounting product from Intuit. The 'Plus' edition includes inventory and payroll for up to 10 employees.

A subscription to the 'Plus' edition of QuickBooks is normally $35 per month. As a comparison, the equivalent product in Xero may cost up to $60 per month without inventory (although Xero is still a great product).

Plus, if you already have your data in another product, Intuit will convert your data file for free!

Intuit is working hard to establish itself in Australia and this pricing is part of its push to unseat the incumbent players. Business consumers are the big winners from this increased competition, but only for a limited time.

To take advantage of this pricing, you must establish a new subscription by 31st December 2014.

The only catch is that this offer is not available direct to users. It has to be taken up through an accountant.  All you need to do is contact us and let us know, and we'll set up a file for you.

Even if you're a little unsure at the moment, why not take out the subscription now and then cancel it later if you don't end up using it? For the price of a cup of coffee a month, you can park your subscription while you work out your transition strategy and test whether it's the right product for you. You can cancel your subscription at any time.

If you'd like to talk about it or take out a subscription, please contact our Managing Director John Manning on (08) 8291 7900 or email us.

We pride ourselves on our professional independence. We never endorse any product to the exclusion of others, but rather endeavour to work with whatever works best for our clients. That's why it's important to us that you know that we are not QuickBooks accredited advisers, we are not recommending this product and won't make any margin or be otherwise remunerated for your subscription.

 

In this issue we take a look at the Financial System Inquiry that is currently underway. We also provide a warning about a recent increase in so-called 'ransomware' computer attacks, and we farewell Margaret who has recently retired after 24 years with the Dewings team.

You can read the full version here.