1. Top 10 tax tips for 2012/13

    Tax TimeAs the final weeks of the 2012-13 financial year come around, it’s the perfect time to review our top 10 tips to minimise your tax. While you should maintain a year round focus on maximising your financial situation, some strategies need to wait until June to implement.

    The following key tax tips are worth investigating – after all, the money is better in your pocket than in the taxman’s!

    1. Maximise concessional contributions
    If you have the cash flow, it makes sense to make the most of concessional contributions to super without breaching the current $25,000 universal cap. Read more…

    Posted on May 29, 2013 Money Expert Tax Advice Leave a Comment

  2. Eastwoods named Licensee Select SA Practice of the Year!

    Congratulations to the Eastwoods Group  a subsidiary of Community CPS Australia Ltd who recently won the Licensee Select SA Practice of the Year 2013.

    Licensee Select is a division of Westpac and provides various financial planning support services to independent financial planning firms across Australia.

    Eastwoods Wealth Management has previously won seven SA/NT state based awards and one National award.

    By winning the State award Eastwoods is now eligible for the national title which is announced in May.

    The award represents an outstanding team effort dedicated to the provision of quality financial planning advice across Australia. I’m very proud of our team and the service we provide our clients.

    ^ Michael – Practice Development Manager

    Posted on February 25, 2013 Financial News & Updates Investing Money Expert Saving Tax Advice Leave a Comment

  3. Getting the Most out of your Tax Return

    Well, the weather is starting to feel wintery and the end of the financial year is coming closer. This means it’s that time of the year again when we need to start thinking about our Tax! Do you know what you’re able to claim back on your Tax Return? It’s important to understand exactly what you can and can’t claim to help you get the most from your return.

    Here are some handy hints from our tax and accounting experts to give you an idea of what you may be entitled to.

     

    Read more…

    Posted on June 1, 2012 Money Expert Tax Advice Leave a Comment

  4. Boost your super savings before the end of the financial year

    With the end of financial year just around the corner, there are many ways you can increase your retirement savings by implementing tax-effective super strategies.

     How you can benefit

    The end of financial year is a great time to think about how you can boost your super savings before 30 June, and get your financial affairs in order.

     There are many strategies you can implement before the end of financial year to boost your retirement savings and achieve tax savings, such as taking advantage of the government co-contribution scheme, or benefiting from spouse contributions and salary sacrificing.

     End of financial year planning opportunities are different for everyone, because they depend on your life stage and personal circumstances.

     A financial adviser is the best person to work out which strategy best suits your personal circumstances. They will also make sure you and your family don’t miss out on any opportunities at the end of the financial year.

     Pay less tax via salary sacrifice

    Salary sacrifice means putting part of your pre-tax income into your super and potentially paying less tax because concessional contributions are taxed at 15% (up to the concessional contribution caps). This is compared to investing your after-tax money into super which may have been taxed the highest marginal tax rate of up to 46.5% (inc Medicare levy).

     Whether salary sacrifice is right for you will depend on your personal circumstances and level of income.

     Take advantage of Government concessions

    Many people can take advantage of the Government concessions available to increase their super savings, such as the Federal Government co-contribution scheme.

     If you are a low to middle income earner and eligible for the co-contribution scheme, the Government currently contributes up to $1 for each $1 of personal after-tax contributions you make to your super. This could mean up to an extra $1,000 in your super account – a significant amount.

     Boost your spouse’s super savings

    If you have a low income earning spouse, you can help to top up their retirement savings by contributing to their super and reduce your income tax at the same time. You may be entitled to a tax offset of up to $540 if you contribute to their super.

     You could also split your employer super contributions or personal deductible contributions with your spouse. This strategy may reduce your tax liability, and if you contribute more into the older spouse’s super, it may mean accessing tax-free benefits sooner.

     Act now so you don’t miss out

    As you can see, there are many super strategies you can put into place to boost your retirement savings and achieve tax effective outcomes before 30 June and thereafter. “And even though there is a special focus on utilising these opportunities before 30 June, these strategies can actually be used all year round to grow your retirement savings.”

     For more information on these super strategies and end of financial year planning, speak to your financial adviser or contact Eastwoods Wealth Management on 08 8132 9288

     This material is current as at March 2012, but may be subject to change. It has been prepared without taking into account your objectives, personal financial situation or needs. This information does not constitute tax advice and before making any financial decision, Eastwoods Wealth Management Pty Ltd recommends you obtain professional financial and taxation advice specific to your circumstances.

    Posted on May 16, 2012 Investing Money Expert Saving Tax Advice Leave a Comment

  5. PUPdate from Eastwood

    Hello to all of my friends!

    I have had a busy couple of months! I have just started doing shopping centre visits, which can be quite scary for a small puppy. But I am no ordinary puppy and took it in my stride! One of the most challenging things about shopping centres has been the travelators and elevators, but I have mastered them already!

    As you can imagine, I attract a lot of attention in the supermarkets and lots of people like to say hello to me. However, I am learning that when I have my coat on I need to focus on the task at hand. This is great training for someday when I might be a Guide Dog or Autism Assistance Dog. I need to stay focused while out working.

    I have also been into a café with my Puppy Raising family. It can be quite challenging to ignore all the distractions and to sit still under the table, but I am learning and I think I am starting to get the hang of it.

    I have attended some group puppy training sessions in the past few weeks. Of course I love to play with my littermates and friends, but now the challenge is to learn to walk side-by-side on lead and ignore each other. It’s very hard but I am picking it up!

    I am having lots of fun with my Puppy Raising family. I really enjoy playing with the kids and they are so happy to have me living with them. The family lives near the beach and I just love walking along the esplanade with the wind in my ears!

    I recently attended the “Lollipop Markets,” which is run by my Puppy Raiser. I ended up being one of the main attractions and even appearing in the event’s photo collage!

    Soon I’ll begin taking trips on public transport, a big step in a Guide Dog puppy’s life, so wish me luck and I look forward to telling you all about it soon.

    Love
    Eastwood the Guide Dog

    In 2012 Eastwoods sponsored a Guide Dog pup- called Eastwood, we will continue to provide updates on his progress here.

    Posted on May 4, 2012 Community Tax Advice Leave a Comment

  6. Education Tax Refund

    What is the Education Tax Refund?

    The Education Tax Refund (ETR) is the Australian Governments way of helping with the cost of educating primary and secondary school children. Eligible parents, carers, legal guardians and independent students are able to get money back on education expenses like computers, educational software, textbooks and stationery. Read more…

    Posted on March 28, 2012 Financial News & Updates Money Expert Tax Advice Leave a Comment

  7. Eastwoods named the Licensee Select SA Practice of the Year!

    Congratulations to the Eastwoods Group a subsidiary of Community CPS Australia Ltd who recently won the Licensee Select SA Practice of the Year 2012.

    Licensee Select is a division of Westpac and provides various financial planning support services to independent financial planning firms across Australia.

    Eastwoods Wealth Management has previously won five SA/NT state based awards and has won the “Licensee Select National Practice of the Year” award 2012.

    By winning the State award Eastwoods is now eligible for the national title which is announced in April.

    The award represents an outstanding team effort dedicated to the provision of quality financial planning advice across Australia. I’m very proud of my team and the service we provide our clients.

    John – General Manager Professional Services

    Posted on March 21, 2012 Financial News & Updates Investing Money Expert Saving Tax Advice Leave a Comment

  8. Income testing the private health insurance rebate

    If the legislation is passed, from July 1, 2012 the private health insurance rebate and the Medicare Levy surcharge will be income tested.

    The legislation gives effect to 2009 Federal Budget announcements concerning the private health insurance rebate and Medicare Levy Surcharge changes. The proposed changes mean than an income test to the 30% private health insurance rebate will apply for individuals whose income for Medicare levy surcharge purposes is more than $83,000pa and for families where that income is more than $166,000pa.

    What does this mean?

    It means individuals and families may not be eligible for the full 30% rebate for their private health insurance premiums. In conjunction with this, also from July 1, 2012, the rate of Medicare levy surcharge for individuals and families without private patient hospital cover may increase depending on their level of income.

    The effect of these new tiers would be no rebate where individual income is over $129,000pa and families over $258,000pa.

    For the purpose of calculating your income threshold, it is based on the definition of income used to calculate Medicarelevy surcharge for individuals or families.

    Singles
    Families    		 = $83,000
    = $166,000    		 $83,001-96,000
    $166,001-192,000    		 $96,001-129,000
    $192,001-258,000    		 > $129,000
    > $258,000
    REBATE
    < Age 65 30% 20% 10% 0%
    Age 65-69 35% 25% 15% 0%
    Age 70+ 40% 30% 20% 0%
    MEDICARE LEVY SURCHARGE
    All ages 0.0% 1.0% 1.25% 1.5%

    Information and Table sourced from the Department of Health and Aging website

    http://health.gov.au/internet/main/publishing.nsf/Content/currentissue-P11000027

    Note: These thresholds are based on projected growth in Average Weekly Ordinary Time Earnings (AWOTE). The actual 2012-13 levels will not be known until the December AWOTE are released in February 2012. Thresholds increase by $1,500 for each child after the first. The family thresholds apply to single parent families.
     

    If you are unsure on how you may be affected, contact the team at Eastwoods Accountants & Taxation on 08 8132 9222 to speak to us to see how you may be impacted.

    John- Executive for Professional Services

    Eastwoods Tax & Accounting

    Things you should know>

    Posted on March 14, 2012 Financial News & Updates Money Expert Tax Advice 3 Comments

  9. How to get the most out of your tax return

    Tax time is here so it is time to start getting together your PAYG summaries, statements and receipts. Once you’ve gathered all your paperwork, it’s important to understand exactly what you can claim to help you make the most of your return.

    WORK-RELATED EXPENSES:

    According to the ATO, approximately 7.3 million Australians claimed an average of $2,008 in work related expenses last year, making them one of the most commonly claimed deductions.

    Things to remember when claiming work-related expenses:

    • You must have incurred the expense in the year you are claiming it.
    • The expense must be work-related and not private and if the expense has been reimbursed by your employer it can’t be claimed.
    • Receiving an allowance from your employer does not automatically entitle you to a deduction.
    • If your claims total more than $300 you need to keep written evidence.

    USE THE EDUCATION TAX OFFSET

    If you have bought computers, textbooks or stationery for your children’s schoolwork you can take advantage of the 50 per cent education tax offset.

    You qualify for the Education Tax Refund if you receive family tax benefit Part A. This financial year you can claim expenses of up to $794 for each child in primary school and up to $1,588 for each child in high school and get half your money back.

    CLAIM YOUR CHARITABLE DONATIONS

    Don’t forget your donations to charity – everything from the Queensland Flood Appeal to your sponsor child. Any donation over $2 is tax deductible but you’ll need a receipt to claim for the donation.

    UNDERSTAND YOUR OFFSETS

    There are a lot of offsets available and it’s a good idea to check whether you are eligible for one. These include the dependant spouse tax offset, the private health insurance rebate or medical expenses over $1500.

    If you can’t find receipts, but know where you spent the money, see if you can get a copy of the receipt or invoice. Statements from your financial institution showing details of purchases can be used in some cases.

    Posted on July 16, 2011 Financial News & Updates Money Expert Tax Advice Leave a Comment

  10. Are your retirement plans safe?

    If you are approaching retirement you should consider protecting your retirement plans and finances by ensuring your children have sufficient cover for their own families.

    In the event something was to happen to your son or daughter which left their family without any means of support, it would most likely be you who the family turns to for support.

    Circumstances such as this could place serious financial pressure on your retirement funds and in turn your overall retirement plans, as it did for David and Susan.

    David was 15 when he started an apprenticeship at his local steel works. Forty years later, he was still working at the same factory.

    His wife Susan had kept the family ticking along, having raised four children to become independent adults with their own families.

    After a company restructure was announced, David took the opportunity to ask for a redundancy and succeeded in getting a healthy redundancy package. This, together with his superannuation and accumulated benefits, meant David and Susan were sitting pretty for an early retirement.

    Both David and Susan viewed this as a great opportunity to enjoy time with their grandchildren and to travel around Australia.

    On Boxing Day of that year, David’s eldest son Rodney had a massive brain haemorrhage and passed away.

    And because he was young and didn’t see the need for any life insurance, Rodney left his wife Erin and their three children without any means of support.

    As any parent or grandparent would, David and Susan took in Erin and the kids into the family home.

    The unplanned financial impact on David, Susan and their retirement plans was devastating and they were unable to do most of the things that they had hoped 40 years of work would allow them to do.

    Whether you are already retired or about to retire, talk to your son or daughter about their financial obligations, and make sure they have a plan in place to protect their family’s financial future.

    Posted on April 14, 2011 Financial News & Updates Investing Money Expert Saving Tax Advice Leave a Comment

  11. Henry Changes for Business

    Given all the recent discussion in the media abouth the Henry Review we thought it was important to share a summary of proposed changes that will impact on local businesses. Here it is;

    1. Changes to Company Taxation

    The company tax rate will reduce form its current level of 30% down to 28%, implemented sooner for ‘eligible small business companies’:

    untitled3

     

     

     

     

    2. Changes to Small Business Write-Offs

    From 1 July 2012, small business will be able to:
    • Write off immediately assets valued at under $5,000 (currently the limit is up to $1,000)
    • Write off other assets (i.e. those valued at over $5,000) in one deprecation pool at the rate of 30% (currently they may be allocated to 2 different depreciation pools). This will not apply to buildings.

    3. Resource Super Profits Tax

    The government’s progress on other elements of its tax reform agenda will be largely dependent on the revenue derived from the RSPT.

    The RSPT will be introduced on 1st July 2012 at a rate of 40% on profits made from exploitation of non-renewable resources. It will replace the crude oil excise, and operate in parallel with State and Territory royalty regimes. Under the RSPT a refundable credit for royalties paid to State and Territory governments will be available. The refundable credit will eliminate investment distortions associated with the state royalty systems and ensure there is no ‘double taxation’ of resource profits.

    The Government will consult extensively with stakeholders on the design of the RSPT.

    Further information on the above changes and the Henry Tax Review can be found under the ‘Strong, Fairer, Simpler’ link contained on the Treasury website, www.treasury.gov.au or follow this link: http://www.futuretax.gov.au/pages/default.aspx

    Posted on May 17, 2010 Financial News & Updates Money Expert Tax Advice Leave a Comment

  12. Henry Super Changes- a Summary

    Making sense of the Henry Review- what does it mean for me?

    There will be four main changes to superannuation:

    1. Superannuation increased to 12%
    The Superannuation Guarantee Charge will increase from the current 9% up to a maximum of 12% by the 2019/20 financial year. This will happen in increments as shown below:
    untitled2.Superannuation cut-out extended to age 75
    The entitlement age for the SGC will be lifted from age 70 to age 75 for workers. This change will commence for the 2013/14 financial year.

    3. New concessional contribution cap for over 50’s with low super balance
    Eligible workers who are 50 years of age and older who have super balances of under $500,000, will be able to make contributions of $50,000 per year (indexed annually according to Treasury).

    This low balance cap applies from 1 July 2012 and effectively replaces the current transitional cap for workers aged 50 and older which expires on 30 June 2011.

    4. Low income workers government contribution
    From the 1st July, 2012, the Government will provide a contribution equal to 15% of concessional contributions made, up to $3,333, for low income earners with an adjusted taxable income (ATI) of up to $37,000. The maximum Government contribution paid will be $500 (not indexed).

    This will mean that a person with an ATI of up to $37,000 will effectively not pay contributions tax on their SG contributions. The measure makes super contributions tax neutral for those on a 0% and a 15% marginal tax rate, as shown in the following table:untitled2

    Posted on May 10, 2010 Financial News & Updates Money Expert Tax Advice Leave a Comment