Welcome to the Porters CA Blog.

Please enjoy our regular blog of relevant business, taxation and financial information. You can also follow us on Facebook, Instagram, Linkedin and Twitter.

October 2022 Federal Budget – your planning needs for the year ahead

The good news is there were virtually no tax or superannuation changes that affect small or medium size business. This is very much welcomed. The bad news is with interest rates rising, high inflation and labour costs rising, businesses looking for assistance from the Government will be very disappointed by this interim Budget. Based on our analysis, the big winners appear to be: Families – Childcare subsidies extended, increased benefits…  Read more

Farm management deposits

Farm management deposits Tax planning is aimed at farmers saving tax while banking the benefits of a good year while creating a safety net for difficult years. Farm management deposits allow you to build wealth, save tax and get ahead. Farm management deposits (FMD’s) are a useful tax planning tool that can be used to delay tax liabilities in the year a deposit is made with income and tax recognised…  Read more

Single Touch Payroll and Payment Summaries 2022 – what you need to know

The introduction of Single Touch Payroll (STP) requires more effort than usual on year end payroll finalisation. Under STP employers must report pay, taxes and superannuation information directly to the ATO every payday through STP. Employers using STP will not give employees a payment summary as they usually would at this time of year. Instead, employees will get an end-of-year income statement in ATO online services through myGov. Employers have…  Read more

What are franking credits? How do franking credits help you?

We regularly try to explain to clients the concept of a franked dividend – what are they, why do they matter, what does it mean for your tax and how can they work to your benefit. Some understand franking credits, some nod wisely but still feel confused, and some dream about doing something else, anything else apart from tax. We get that the concept is a challenge, so we’ll try…  Read more

Small business ownership – inside and out

We spoke with bookkeeper and business owner Tash Black about her thoughts on running a small business. What made you want to be a business owner? It was something that I had always wanted to do, I wanted to be my own boss. I wanted the challenge of making something mine and experiencing the rewards of reaching my goals and being successful. What impact did owning your own business have…  Read more

ATO Changes Rules on Common Trust Distributions

On 23 February 2022 the ATO targeted the tax benefits of family trust distributions with a focus on distributions to the adult children of trust controllers. It’s one of the most significant developments for the taxation of trusts in over two decades. The ATO’s attack on the potential tax benefits of trusts is comprehensive: • Draft Taxation Ruling TR 2022/D1 Income tax: section 100A reimbursement agreements • Draft Practical Compliance…  Read more

Trust Deeds – are you up to date?

The technical drafting and operation of a trust deed is becoming increasingly important. A trust deed is a legal document. Each has been drafted by a lawyer at a particular point in time on the basis of an understanding of key issues in the law. There is no standard template. As accountants we work with a simple rule of thumb: Read the Deed A well drafted deed is easy to…  Read more

Employee or contractor?

On 9 February 2022 the High Court released two decisions that changed our understanding of employee vs contractors. At the bottom of this article are the summaries provided by the High Court. For many years Australian Courts have increasingly followed a doctrine of substance over form. That is, look at the substance and reality of a transaction or relationship rather than the initial intent as documented in the legal drafting…  Read more

Covid contingency plan – Omicron is taking us back to the future

Risk management should be central to life and business. At Porters CA we see two simple key imperatives – (A) achieve your goals; (B) plan and manage the risk of not achieving your goals. With the WA borders set to reopen on 3 March it is time to start contingency planning. Absent a major surprise we are looking at a high and rapid incidence of Covid with: interruptions to business…  Read more

Bookkeeping job opportunity in Albany with Porters CA – Chartered Accountants

Are you looking for an opportunity to build your skills as a Bookkeeper in a professional and supportive environment? Porters CA offers you an opportunity to grow, assisted by strong systems and procedures in a supportive and friendly workplace. Training and career development is offered so you can become your best for a bright future. We are a boutique firm, mixing excellence in tax compliance and bookkeeping with a personal…  Read more

Understanding the new Director Identification Number

The Australian government announced the implementation of the Modernising Business Registers program as part of the 2020 Budget Digital Business Plan. The program will establish an Australian Business Registry Services (ABRS) to enhance how businesses register and manage their information with the government. The ABRS will roll out progressively between 2021 and 2024, with the first change being that business directors must obtain a Director Identification Number (DIN). For most…  Read more

Tax Planning

Tax Planning 2021 The end of financial year is fast approaching. Business and employment conditions alongside legislative change have thrown new considerations into the tax planning mix. Helping you achieve prosperity and pay less tax is our priority, so we have created guides for personal tax planning and business tax planning to help you get ahead before the end of financial year. The world is awash with government stimulus, debt and low interest rates. Asset…  Read more

Instant Asset Write Offs – what, how and when

Instant Asset Write Off (IAWO) and Full Expensing of Depreciating Assets (FEDA) Who doesn’t love a tax deduction? With IAWO and FEDA alongside low interest rates and a strong economy there is an opportunity to invest in productive assets to supercharge your business growth. In brief – when you buy an eligible asset you will claim 100% of the cost as a tax deduction. For a small business with assets…  Read more

Signs You’re Undercharging for Your Work

When it comes to the overall success of your business, one of the most important decisions you’ll face is what to charge for the work you do. Charge too much and you could scare away potential customers. Charge too little and you could run yourself out of business. Working out how much to charge is stressful, but it’s worth it. If your business doesn’t bring in enough money to pay…  Read more

Xero Errors Can Be Costly – How To Avoid Them

Xero is a fantastic business tool and you want to get the most out of it to maximise your financial management. If you’ve just started working with Xero, it is normal to make a few errors while learning. We see mistakes that are quite common – and unfortunately costly to go back and correct at end of year. We want you to get the most out of the system giving…  Read more

Wanted in Albany – Bookkeeper, problem solver

Our Albany office is looking for a full time Bookkeeper to join our growing team. Porters CA is a boutique Accounting firm with offices in Perth & Albany that operate as a unified team, mixing excellence in tax compliance & bookkeeping with a personal touch & a view that opportunities are everywhere. Our goal is to create Prosperity and GREAT experiences for our Staff and Business Clients. Work is meant…  Read more

Christmas parties, gifts and tax

There is no separate fringe benefits tax (FBT) category for Christmas parties. You may encounter many different circumstances when providing these events to your staff. Fringe benefits provided to, an associate, or under an arrangement with a third party to any current employees, past and future employees, and their associates (spouses and children), may attract FBT. Implications for FBT The following explanations may help you determine whether there are FBT…  Read more

Winning Together – lessons from the Richmond Tigers

Planning for success means taking control of your future. In 2010 Richmond CEO, Brendon Gale, laid out a 10 year plan for the club including three premierships by 2020. Following no premiership in 30 years, this was no easy task and bordered on fanciful. I am not a Richmond supporter, but I admire what they have achieved. The CEO laid out a plan for “winning together”. We think it is…  Read more

WA residential real estate

The past six years have been tough for Perth’s property market but maybe the tide has turned. Perth dwelling values fell by more than 22% from highs in June 2014. For any home or investment property buyers from 2008 onwards, breaking even on a subsequent sale has been a measure of success. Regional markets are also booming. You will struggle to find a rental property, a holiday home, a vacant…  Read more

Philanthropy and community

October has been a busy month for us. We have been fundraising for and participating in a range of community events to raise money for valuable charities, research and services. It is inspiring and rewarding to have the opportunity to participate in fundraising events. We have connected with so many like minded individuals who share a goal, to make a difference. Donating to a cause or participating in community events…  Read more

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