IN THIS ISSUE
• The floods, the floods….
• Claiming deductions for donations to flood relief
• Paid parental leave scheme
• Tax Office data matching program – building industries
• Super Funds: ATO targets loans and in-house assets
• ATO helps full-time students claim study deductions
• Changes to Trust laws
• Changes for farmers with trusts

THE FLOODS, THE FLOODS….

Due to the aftermath of the Queensland and Victorian floods the Prime Miniter announced that a flood levy will be imposed on individual taxpayers taxable incomes for the 2011-12 year.
The levy rates announced are:
Taxable Income.................Levy
$50,0001 to $100,000..........0.5%
$100,001 +.........................1.0%

Annual 2010 SMSF's tax returns must be lodged to the ATO by 28th February 2011. Please consider to allow enough time for us to prepare the tax return and organise the audit of the fund.

ATO Crackdown On Cash Economy

As part of the ATO's approach to managing tax risks, this financial year they will send around 110,000 letters to taxpayers who may be participating in the cash economy. The majority of letters will be sent to businesses reporting outside the 'small business benchmarks' for their industry. The letters inform taxpayers that they have been identified as a result of one of the ATO's cash economy indicators, and will encourage them to review their records to ensure they have correctly reported all income, especially cash transactions.

The 5 Things you need to know about in 2010 / 2011

• Stay cautious on the economy
• Plan or perish
• Honeymoon over for SMSF
• Mine of yours? Taking cash out of and into your business
• Watch your funding mix

What changed on 01 July?

• Superannuation pension relief extended
• New income tax rates
• Superannuation clearing house open for business

Stay Cautious On The Economy