Frequently Asked Questions

Why choose Dewings? What’s so different about us?

We can sum it up in four words.

Proactive

We don’t stop thinking about you and your business, because that’s our business. When we come across things that may interest you, we pass them on. When we find an opportunity that might benefit you, we let you know. When a change in tax law is likely to affect you, we make sure you’re ready to face those changes. And when a deadline is looming, we make it our job to ensure you meet that obligation. It’s all part of our personal approach to partnering with you and your business. That way, you can get on with the job of running your business.

Creative

There is a difference between accountants and business advisers. And it takes more than a good head for numbers to provide creative business advice. Our approach to business is holistic. Sure, we understand numbers. But we also have a knack for being able to see the bigger picture. If you really want to see what we’re capable of, talk to us about your business and where you’d like to see yourself. That’s what we do best. That’s why we’re more than just accountants.

Professional

We want to be your professional partner in business. We take it personally if we get it wrong, and so we do everything we can to make sure that never happens. We continually strive for perfection and accuracy, and we keep up with all of the latest developments. It’s a costly and time consuming standard of excellence to maintain. The result is that you can have every confidence in what we do. We worry about getting it right so that you don’t have to. And we do it all while maintaining the highest of ethical standards. So you can rest assured that the answers that you get are the right ones, not just those you want to hear.

Accessible

We want our service to be complete and personal. We want to be there for you whenever you need us. We provide you with a team of people, all equipped and trained to our high standards. The reality of business is that you may not always be able to get through to one person straight away. But we know you may need to speak to someone immediately. If you can’t speak to the person you need, you can ask to speak to anyone else on your team. And if you need to leave a message, we promise to get back to you within 24 hours at the latest.

Why are accounting services so expensive? You might be inclined to think that this is a question that we're largely oblivious to. Nothing could be further from the truth! It is, in fact, one of our most significant challenges - how do we convey the value inherent in the work that we do?

Income tax law is extremely complex, and is literally changing daily. It has developed over many years into an ad-hoc, sometimes inconsistent and unfair, and always complicated tome of regulations, case law and rulings. As a provider of professional services, our product is time. It’s a costly and time-consuming process to make sure that we keep up with all of this. But as a firm, we pride ourselves on doing just that, so that we maintain our professional standard of excellence. We invest time, money and training resources into making sure our team is kept up-to-date with the latest developments.

Business advice is unlike anything else you purchase. No matter who you 'buy' this service from, the result will look exactly the same - on the surface. You won't notice the quality in the type of paper used or the water resistance of the print! But how can you be sure that the advice you have received is correct? Have all the complexities, opportunities and pitfalls been considered? How can you be certain that the reported financial result is an accurate reflection of your business's performance?

The answer, of course, is that you can't - unless you have complete confidence in your adviser. You should take the same approach when deciding who to see about your financial affairs as you do for any other purchasing decision. How can I get the best value?

We are always complete and thorough in the work that we do. Our staff are made aware from the moment they are employed that our philosophy has everything to do with the quality of our work. All of our work undergoes a rigorous review process to make sure that no stone is left unturned, and to give you confidence that our service is of the highest standard.

What’s more, we can actually add value to your business by going beyond your mere compliance obligations. We can help you to grow, develop and adapt to change. And we are proactive about identifying opportunities and letting you know where there may be potential problems. This requires a unique style of creativity and business nous.

We recognise that this standard of service may not be for everyone. As with anything you buy, there are quality products, and there are cheap products. We stand by the integrity and value of the work that we do.

We can’t promise you that we will be the cheapest. But we do promise you the best possible result for your money.

We provide a schedule of our charge rates to all new clients as a matter of course. However these rates are naturally subject to revision at various times. We are happy to provide you with an up-to-date schedule at any time upon request. Please contact us if you would like to know more.

A trust is a legal relationship in which a person or company (the 'trustee') holds an interest in property on behalf of someone else. The trustee is subject to an equitable obligation to use or keep the property for the benefit of another person (the 'beneficiary').

There are a number of different kinds of trusts. In a discretionary trust, for example, the trustee is able to exercise discretion as to who the beneficiaries are, and what proportion of the trust funds and/or income they are to receive. A non-discretionary trust is one where the trustee is not required to exercise any discretion as to what beneficiaries should receive. Instead, beneficiaries may be pre-determined, and their entitlement is always distributed in proportion to their unit holding (in the case of a unit trust) or other interest in the trust.

Advantages

• With a company as trustee - limited liability.
• Asset protection - assets are sheltered within the trust.
• In the case of a discretionary trust - flexible tax planning with the ability to distribute income and profits to family and other entities.
• In the case of a unit trust - flexible tax planning with the ability to issue income units and ordinary or capital units to different people, depending on their financial situation.
• Distributions from trusts do not attract Workcover and SGC.
• Capital Gains Tax discounting flows through to beneficiaries.
• Can distribute to a company, and thereby take advantage of company tax rates

Disadvantages

• Without a company as trustee - an individual trustee may be fully liable for the debts of the trust.
• Cost of maintenance.
• Constantly changing legislation.
• As opposed to a company structure - where the beneficiaries have significant other income, tax is paid at the beneficiaries' higher level thereby potentially losing the benefit of the 30% company rate (unless one of the beneficiaries is a company).
• A trust loses the Land Tax threshold if it owns property.
• In the case of a unit trust - Capital Gains Tax issues when issuing and redeeming units in the trust.

Compliance Requirements

• ABN registration (if applicable).
• Tax File Number registration.
• GST registration (if applicable).
• BAS - monthly or quarterly, if registered for GST.
• Tax Return - yearly.
• Financial records - financial accounts, balance sheet and profit and loss statement.

General Comments

A trust has a semi-permanent existence and can also be created by the will of a person who has died. Trusts should only be established after careful consideration of your circumstances. Trusts do not come as a "one size fits all" but need to be customised to individual circumstances.

A company is a separate legal entity and is administered by its directors. It is formed by the people and/or organisations that own its shares. The liability of a company, in the event of any financial claims against it, is limited to the value of the total assets of the company. That is, there can be no claim against anyone other than the company itself, unless the directors can be shown to have been negligent or fraudulent in their roles in administering the affairs of the company.

Advantages

• Limited liability.
• Corporate tax rate is lower than the top individual marginal rate.
• Some flexibility in the distribution of income (with some restrictions in the case of personal services income).
• No workers compensation insurance on director's fees or dividends.
• Imputation credits can be passed on to shareholders
• Superannuation contributions are deductible up to age base limits
• Retaining earnings in the company effectively limits the tax rate to 30%.

Disadvantages

• Cost of establishing and maintaining is higher.
• Directors are potentially liable in the case of negligence or insolvent trading.
• Compulsory Workcover insurance is payable on wages drawn by directors/shareholders.
• Superannuation contributions are required on wages paid to directors/shareholders.
• Losses cannot be distributed to shareholders.
• More compliance issues.
• Capital gains are not concessionally taxed.

 Compliance Requirements

• ABN registration (if applicable).
• Tax File Number application.
• GST registration (if applicable).
• BAS - monthly or quarterly (if registered for GST). 
• Tax Return - yearly
• Financial records - financial accounts, balance sheet and profit and loss.
• ASIC annual return required yearly together with a fee. 

General Comments

This structure is popular for people running a business where there is a requirement for asset protection and tax minimisation. Public liability insurance is recommended. The tax rate is 30% which is lower than the top individual marginal rate of 45% (plus 1.5% Medicare levy).

A partnership is brought into existence when two or more people enter into an agreement, either verbally or under contract, to conduct business and share in the risks and profits. Partners are jointly and severally liable for the debts of the partnership, and any litigation brought against it.

Advantages

• Simpler structure (than a trust or company).
• Less compliance.
• Lower maintenance costs.
• Income can be split to take advantage of lower individual tax threshholds.
• Minimises workers compensation and superannuation obligations for partners.
• Capital gains taxed at the partner's level.

Disadvantages

• No asset protection - partners are personally liable, jointly and severally.
• Partnership splits income at the same ratio each year.
• Joint tenant partners cannot dispose of their interest separately.
• Tenants-in-common partners do not have any right of survivorship, ie the partnership ceases to exist when one of the partners dies.

Compliance Requirements

• ABN registration.
• Tax File Number application.
• GST registration - depends on turnover.
• BAS - monthly or quarterly (if registered for GST). 
• Tax Return - yearly
• Financial records - Balance sheet and profit and loss.

General Comments

This type of structure is most suitable when two or more people are involved in the running of a business, and a more complex tax structure is not required. It enables the profits of the business to be split for tax planning purposes. The income tax is either paid at the end of the year after lodgement of income tax returns, or paid through an Income Activity Statement (IAS) during the year with an adjustment at the end of the financial year. The partners take drawings as opposed to wages and these drawings represent a distribution of the profits of the partnership.

As each partner is jointly and severally liable for the debts of the partnership, they should be mindful of asset protection. Public liability and other indemnity type insurances are recommended.

A person who wishes to go into business can simply trade under their own name. They can also trade under a business name by registering a trading name in the state(s) in which they wish to trade.

Advantages

• Simple.
• Lesser compliance burden.
• Lower maintenance costs.
• Capital Gains Tax discounts.
• Total control of assets.
• No set-up costs.

Disadvantages

• No asset protection - the individual person is liable for all business debts and potential litigation.
• The structure has a limited life, as on the death of the individual the investment must change hands.
• Taxed at the individual's marginal tax rates.
• Inflexible tax planning.

Compliance Requirements

• ABN registration - compulsory.
• GST registration - if turnover is over $50,000.
• BAS - monthly or quarterly, if registered for GST.
• Tax Return - yearly.
• Financial Records - income and expenditure statements.

General Comments

This type of structure is suited for someone with little or no assets,  and who is starting out in business with little turnover. The income tax is either paid at the end of the year after lodgement of tax returns, or paid through an Income Activity Statement (IAS) during the year, with an adjustment at the end. The owner takes drawings, as opposed to wages.