JULY, 2018 VOL.

 3

Company tax change

in limbo
Although the end of financial year period has passed, there are
two keys concerns that business owners and investors must
grapple with in regards to tax: 
SNEAK PEEK
1. The tax rate that applies to companies for the year ended 30 June 2018 
While the Government introduced a Bill to Parliament back in October 2017 which
02
seeks to change the rules in this area, the Bill is still not yet law. Business to become
 As a result, it looks like we will need to apply the existing provisions for determining increasingly cash-less
company tax rates and maximum franking rates (which are based on whether the
company carries on a business), but also to be aware that the position might change if
and when the Bill passes through Parliament.   03
$20k accelerated deductions
Under current rules, a company would be subject to a 27.5% tax rate if it carries on a
for small business extended
business (which could include investment activities as long as there is a genuine
expectation of making a profit) and the aggregated turnover of the company and
another year

 04
certain related parties is less than $25m.

2. The maximum franking rate on dividends paid during the 2018 income year 
If the Bill passes in its current form then the tax rate and maximum franking rate A new CEO for Bentleys
position will depend on whether more than 80% of the company’s income is passive in National
nature (e.g., interest, rent etc.).  If so,  a 30% tax rate should apply.

05
Bentleys Newcastle Updates

PO BOX 411 HAMILTON, NSW 2303 0249406100

LEVEL 1, 241 DENISON ST
BROADMEADOW, NSW 2292  ADMIN@NEWC.BENTLEYS.COM.AU
 Business to become
increasingly cash-less
One of the interesting approaches to tackling the black economy in the recent 2018-19 Federal Budget was
the announcement of a $10,000 limit on cash payments to business.

Unrecorded and untaxed transactions that occur in the community are estimated at up to 3% of GDP or around $50 billion. We
have all seen examples of the black economy in action in the form of cash payments and money not ringing through a retailer’s
till. This initiative targets high value transactions that are generally used to avoid tax obligations or for laundering the proceeds
of a crime..

How will the new rules work? The cash payment limit targets larger cash payments - typically made for cars, yachts and other
luxury goods, agricultural crops, houses, building renovations and commodities - removing the ability of any individual or
business to make a single cash transaction of $10,000 or more.The limit would apply to all payments made to businesses with
an ABN for goods or services. The impending restrictions would not apply to private sales where the seller does not have an
ABN, or cash payments to financial institutions.

When will this all take place? The Australian limit on cash transactions is intended to apply from 1 July 2019. The legislation
enabling the measure is currently in consultation phase and is not yet law.

Fraud protection when taking your

payments digital
Despite the positive shift this limit intends to have on the Australian economy, for you an your business, this change could mean
your transactions will need to make a significant conversion to digital. When a business manages their payments online, it is
essential that the right security measures are put in place to ensure your business is protected by fraud.

The following are some simple but necessary steps that you can take to provide
protection to your business going forward:

Internet Banking and Cheques

Paying bills by the internet is certainly a more efficient way of managing the Accounts
Payable payments in a business, however it comes with some risks. Instituting the
following would provide some safeguards:
• Have two electronic signatures for every payment.
• Employ a system of Person A initiating a transaction and Person B authorising it.
• Protect Passwords.

Article cont. on next page

Passwords
Passwords are required for so many programmes on a computer and including internet banking.
The passwords used should be kept so that they are not accessible to non-intended users:
• Don’t store them on a computer where they could be accessed externally.
• If they are stored in hard form keep them secure or obscure so it is difficult to link the particular password to the programme
concerned.
• Rotate them so it keeps the password new regularly.
• Make them obscure e.g. not linked to your name.  

Segregation of Duties
To reduce the risk of fraud occurring in a business certain processes in a businesses should have different people doing different
components. Although this a measure that you should already be  taking when handling cash payments, it's worthwhile to
reconsider who deals with what regarding your business' transactions digitally.
As an example the person entering bills should be different to the person paying bills.  Hence it is more difficult for the bill payer
to pay a fictitious bill to themselves if they can’t enter it in the first place. Segregation can be difficult in smaller business’ but it
should be done as much as it possibly can be, and if it can’t then some form of checking should occur.

Exercise Care with Your Email

Your email can contain information that can be utilised in identity theft or just obtain access to bank accounts. Where you can you
should exercise care:
• On the way in – Collect your mail from a secure post box/office – don’t leave it sit there.
• After it is received – Securely destroy anything with sensitive information on it eg use security provided bins.
• Sending – Where it is possible hand deliver items with very sensitive information.

Bentleys Newcastle can help you get your digital transactions

safe, secure and easily managed. 
Although following these guidelines may appear simple enough, implementing these measures at all levels of your
business can not only be time-consuming but demands serious considerations to be made in the future operations
of your business or company as a whole going forward. 

At Bentleys, we understand that the financial nature of your company or business is important to you. 
We also know that the demands you're facing running your business each day can mean the time you have free to
commit to financial security can be very limited. 

Our Newcastle directors want to make running your business easier. While we can help you manage you business'
financial security,  management systems and overall capability moving into the future, you can focus on what you do
best leading the growth of your business. 

Contact our Newcastle office today to ensure your business has the tools it needs
to go digital simply and securely. 
 $20k accelerated deductions
for small business extended
another year
The ability for small business entities to claim an immediate deduction for assets costing
less than $20,000 has been extended for another 12 months until 30 June 2019.
From 1 July 2019, the immediate deduction threshold will reduce back to $1,000.  

There are no limits to the number of times you can use the immediate deduction assuming your cashflow supports the
purchases.

If your business is registered for GST, the cost of the asset needs to be less than $20,000 after the GST credits that can be
claimed by the business have been subtracted from the purchase price. If your business is not registered for GST, it is the GST
inclusive amount.

Second hand goods are also deductible. However, there are a number of assets that don’t qualify for the instant asset write-off
as they have their own set of rules. These include horticultural plants, capital works (building construction costs etc.), assets
leased to another party on a depreciating asset lease, etc.

If you purchase assets costing $20,000 or more, the immediate deduction does not apply but small businesses have the ability
to allocate the purchase to a pool and depreciate the pool at a rate of 15% in the first year and 30% for each year thereafter.

1st July Personal Income Tax Cuts

New personal income tax rates come into effect from 1 July 2018.

The top threshold of the 32.5% personal income tax bracket will increase from $87,000 to $90,000. Dovetailing into the tax
bracket change is the introduction of the Low and Middle Income Tax Offset for those with taxable incomes up to $125,333.
The offset is a non-refundable tax offset that you receive when you lodge your income tax return.

If your annual taxable income is $80,000 in 2018-19, then the personal income tax changes provide an annual tax reduction of
$530 per year. If your annual taxable income is $120,000, then the changes give you an annual reduction of $215.

"I thought I was done

with my taxes..."
Although we might have just seen the end of financial
year, keeping on top of your business' finances is an
on-going job. 

With new tax legislation continually entering

Parliament, you want to be sure you're paying and
claiming the right amount of tax for your business.

Bentleys Newcastle have a selection of leading tax

specialists who can personally advise you to ensure
you and your business have peace of mind, end or
beginning of financial year.
 A new CEO for Bentleys
National
Bentleys has appointed Tony Sacre, former head of the Sydney Stock Exchange,
as its new Chief Executive Officer (CEO).

Tony brings to the role almost 25 years’ experience in banking and financial markets,
including senior roles with ANZ, Commonwealth Bank, the Bank of Sydney, the AME
Group, NAB, JP Morgan and HSBC.

He also has extensive international experience, having worked in financial markets in New
York for five years and is a regular financial commentator on Chinese television. Tony said
he was looking forward to continuing to build Bentleys’ capabilities to achieve sustained
growth across its Australian, New Zealand and Chinese operations.

“The accounting and advisory sector, particularly in the mid-tier, is undergoing a period of
significant change as new technologies and increased competition re-shape the way
services are delivered,” he said.

“With an extensive footprint in Australia, New Zealand and China, Bentleys is well-placed
to capitalise in this changing environment. In addition, our relationship with Kreston
provides a broader network of global capability for our clients.
“With significant experience in
financial markets, Tony has
“The SME sector continues to emerge as the engine room in many economies around the
world, and particularly so in Australia. Advice is critical to SME success, and Bentleys is at
experienced business from all
the forefront of providing this guidance to business. perspectives – from mum and
“I am delighted to be joining such a proactive and innovative accounting and business
dad operations through to
advisory firm, and look forward to working with the National Management Board and the major companies and large
Bentleys team to continue and enhance our growth trajectory.”
hedge funds,”
Tony will commence in the role of CEO for Bentleys on 1 August 2018. - Martin Power, Chair of Bentleys
National Management Board
Tony holds a Bachelor of Business (majoring in accounting), a Masters of Business
Administration (MBA), is a qualified CPA and has qualifications from the Australian
Institute of Company Directors. He is a lecturer in executive leadership and finance at
Kaplan.

Outside of work, Tony is a dedicated runner and will compete in his first New York
Marathon later this year. Tony, his wife Emma, and their children, live in Sydney.

Article cont. on next page

 Inspired?
Join Bentleys Aspire Program
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business owners and entrepreneurs reach the goals they aspire to
– both professionally and in their personal lives.
As well as providing regular advice, tips, news and opinions, the
Bentleys Aspire program provides regular touch-points with
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reports and awards.
The Bentleys Aspire program will help you become a better leader,
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Trust Bentleys to take the isolation out of leadership and provide
high-value advice to help drive your business forward.Stay ahead
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Bentleys Newcastle Updates

Jamie Rossington promoted to Partner

At the beginning of the month, Bentleys Newcastle were proud to officially

assign Jamie Rossington the newly promoted title of Partner.

Having worked as a dedicated CPA for close to two decades now, Jamie is
ecstatic about the growth in his career and looks forward to many more exciting,
challenging, and rewarding years to come. From everyone here at the Newcastle
office, congratulations Jamie on your very well-deserved appointment. 

It's a girl!
On Wednesday the 4th of July, our Client Manager
Kim Lambert gave birth to a healthy and beautiful
baby girl. 

Weighing in at just over 8 pounds, she's happy,

healthy and way too cute.

Welcome to the world baby Ellie!