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.

Discretionary Trusts – roles, trustees, responsibilities

In a discretionary trust structure, several key roles play distinct and important parts. Understanding the functions and interrelationships of the Appointor, Guardian, along with the Trustee, Directors and Shareholders (or the alternative of an individual trustee) is crucial. Let’s break down each role: Appointor Primary Function: The Appointor is the most powerful figure in a discretionary trust. Their key role is to appoint or remove trustees. Control: Through the power…  Read more

Striking a Balance: Monthly Reconciliations and Profit and Loss Analysis

In the world of business accounting, two critical practices stand out for ensuring clarity, accuracy, and long-term financial health: monthly balance sheet reconciliations and profit and loss (P&L) comparisons. We’re looking to answer a few questions: are your assets and liabilities accurate and complete? are your income and expenses accurate and complete? are you consistent and correct with your bookkeeping? what can you do with this knowledge to improve your…  Read more

Managing your Business Activity Statement

Your Business Activity Statement (BAS) is a form submitted to the Australian Taxation Office (ATO) by registered businesses to report their GST obligations, Pay As You Go (PAYG) withholding (PAYGW) and Pay As You Go (PAYG) instalments (PAYGI). Many business owners and their bookkeepers do a good job of preparing and lodging their own BAS, however recording the BAS payment back into the accounts is where things go astray. When…  Read more

Navigating the Unpredictable: Mastering Risk Management

How many things can go wrong? We don’t have an exact number, but at a guess, quite a lot. Enough to take notice and manage risk as a process and with intent. Not so many that we need to wrap ourselves in cotton wool and stay indoors. What have we seen in recent years? This is probably not the full list, but it’s a pretty good start: Payment sent to…  Read more

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

The evolution of Single Touch Payroll (STP) requires more effort than usual on year end payroll finalisation. Under STP employers must report pay, allowances, 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…  Read more

Discovering the Possibilities of ChatGPT: How AI Can Help You Create, Communicate, and Work Better

ChatGPT – more exciting than crypto currency, bitcoin and the metaverse put together. More useful than Instagram and TikTok. AI generative language models are a transformational leap forward. I’ve had a chat with ChatGPT to write this article… You will see my input and ChatGPT responses. write a 4 line poem to get a business owner interested to use chatgpt With ChatGPT by your side, Your workload will subside, Efficient,…  Read more

Charge Ahead: Fringe Benefits Tax Savings on Electric Cars

Legislation passed in late 2022 removes Fringe Benefits Tax (FBT) on eligible electric cars provided by employers to current employees for private use. Before we dive into the detail, ask yourself a few questions to see if the tax concessions on an electric vehicle might be right for you: Do you need or want a new car? With a cost of say $50,000 to $85,000 a tax benefit will rarely…  Read more

Tax Deductions for working from home

The ATO has recently released a draft tax guidance (PCG 2023/1) for claiming tax deductions for working from home. You need to be aware of these changes so that you can keep the appropriate records to maximise your tax claims in your 2023 Tax Return. You need to implement improved record keeping starting immediately. The ATO record keeping requirements are onerous for what are usually relatively low value claims.  Example…  Read more

How to be a good client of an accounting firm – save money and derive more value

As a client of an accounting firm, it’s important to remember that you are a vital part of the team working towards your financial success. Here are some tips on how to be a good client and get the most out of your relationship with your accountant: Communicate openly and honestly: It’s important to be upfront and honest about your financial situation and concerns. We are to help you, and…  Read more

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

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

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