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WINTER NEWSLETTER 2012

Welcome to our Winter 2012 Tax Time Newsletter where we hope to bring you some important updates to the tax system where you may benefit and share some exciting changes to our practice to provide you with a better service over the next tax year.

WE ARE GROWING

We are excited to announce the addition of 2 new members to our staff here at Camden Valley Financial Solutions.

We are pleased to announce the arrival of Kurtis and Rob to our teams.

Kurtis is an individual tax return specialist and will work closely with Geoff this year in ensuring that all individual tax returns are completed in a timely manner. As a trained accountant, Kurtis is also available as an alternative to Geoff in meeting those questions  and scenarios that we like everyone to ask before undertaking a big financial decision to make sure that the right outcome is likely.  

Rob has joined our team as a specialist financial planner. With his background working in both financial planning firms and as a technical specialist funds management and insurance, he will join Geoff in being able to provide our clients with an improved service in our Financial Planning division in dealing with Superannuation, Insurance and Investments

We also announce our new Michelle who has joined our team as our new admin and reception role who has replaced the previous Michelle and Melba in our office.  

Feel free to introduce yourself to our new staff and make them feel welcome.

CHANGES and UPDATES

Budget 2012 – This years Federal Government Budget brought about a number of important changes for the following tax year that will affect most clients

Tax Rate Changes

As a result of the carbon tax being approved, tax rate changes will occur for 2012-13 for the next 3 years. Note however the effect of the current Low Income Offset that currently allows tax free income below $16,000 will be reduced however most taxpayers below $80,000 will receive a small tax cut.   

Old Rate

%

New Rate

%

0-6000

0

0-18200

0

6001-37000

15

18201-37000

19

37001-80000

30

37001-80000

32.5

80001-180000

37

80001-180000

37

180001+

45

180001+

45

Medicare Levy of at least 1.5% may be applicable for most taxpayers above these rates.

Education Tax Refund

No Education Tax Refund can be claimed in the 2012 tax return. The Budget brought an immediate end to the Education Tax Refund for the 2012 tax return and beyond and replaced it with a new School Kids Bonus for applicable Family Tax Benefit A recipients. This new bonus will be paid directly from Centrelink and not through this years tax return.

Superannuation Contributions

The Budget has announced that all taxpayers including over age 50 will be only allowed to have up to $25,000 of "concessional" contributions. These contributions are made up of pre-tax or salary sacrifice or 9% employer contributions or tax deductible contributions to be taxed at 15%. Any above this amount are taxed at 46.5% in the super fund. Our suggestion is to check the arrangement with employers on current arrangements.

Super Co-Contributions

Maximum payout by the government has reduced to 50% or $500 for a $1000 after tax contribution for income less than $31,920.

Medicare Levy Surcharge & 30% Tax rebates

Changes have been made to taxpayers on income of $84,000 (singles) & $168,000 (couples) and above to reduce the tax rebate available on those with private hospital cover and increase the medicare levy surcharge on those without. Further details can be obtained from our office or ato.gov.au.

CURRENT POPULAR TALKING POINTS

We have noticed a number of new popular initiatives available now that can save money and make you money over time. These include:

Self Managed Superannuation Funds

These are becoming a popular way to run your super fund where you maintain the control and the investments instead of your current super fund. It has become a popular way to buy shares, property or cash deposits of your own choice as your own super fund. You can also now borrow through super funds to purchase super fund assets under certain conditions. Talk to us if you would like further information on whether a Self Managed Super Fund is suitable for you.

Income Protection & Trauma Cover

Most people tend to insure their cars, houses and contents but less insure the income that pays off these asset purchases. What would happen if you could not receive your income and have to sell these items. Income protection premiums are tax deductible and can provide up to 75% of your income if claimed upon. They can in many cases be funded through super. Trauma insurance is another worthwhile insurance policy that will provide a lump sum cover in the event of suffering common illnesses such as cancer, heart attack or stroke to name a few. Talk to us to discuss suitable policies and quotes for your situation.

Salary Sacrificing

Salary sacrificing or pre-tax payments to a private expense are still a popular way of paying less tax and receiving more income despite changes to Fringe Benefits Tax laws for employers. Talk to us to discuss what will be best in your situation or if you are planning to discuss these options with employers.

ATO Audits & Record Keeping

ATO have reinforced with us and taxpayers that they are increasing their auditing activities on both work related deductions for employees and expenses, income and GST for businesses. Ensure if you are looking to claim a tax deduction this year for your expenses, you can back it up with documentation (receipts or bank statements). Ask this year about our new documentation envelope that will make it easier in future to comply with the ATO requirements. We also enclose a handy checklist for documentation you may require for this year's return.

Feel free to share the above information with family and friends and work colleagues and we are always looking for new clients we can help.

Should you wish to discuss any of the above matters or to make an appointment to see us, please find below our contact details:

Phone:  02 4647 4088

Address: 3 Somerset Avenue, Narellan NSW 2567

Email: info@camdenvalleyfs.com.au

Website:   www.camdenvalleyfs.com.au

Regards

Geoff Rogers

Director

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