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VOLUME THREE - March 2011
Business Matters Newsletter
Welcome to our March edition of the Mollee Murdoch & Vail Newsletter. This month we look at the changing rules for trusts, understanding if you have the right business structure and the rules of when you can borrow in your self managed super fund. Also a reminder of our upcoming seminar on the 4th May 2011.
Read on for more details.
Upcoming Seminar - Director and Trustee Issues
If you are a company director or trustee of a trust, make sure you attend our upcoming seminar "Company Director and Trustee Issues".
The seminar will cover how the ATO intends on applying the High Court’s decision in Bamford to your trust, and how this may impact distributions and which members of the trust will be entitled to income?
This seminar is essential to ensure you understand the impact of the lastest changes.
Tax Advice Matters
Changing Rules for Trusts
Last year the Tax Office announced changes to the rules where there is an unpaid present entitlement between a company and a trust. The implication of this is that it could trigger Division 7A of the Tax Act and cause the amount to be a deemed dividend. In most cases you want to avoid this situation.
If you need to know more about this change - Click here to read the full article.
If you would like to attend a seminar and learn more about the impact on your trust, book now for our May Seminar.
Business Advice Matters
Knowing when to change your business structure
For successful businesses, simple business structures often do not work. They leave you risk exposed, are ineffective for tax purposes, and are not efficient for succession or sale. In the early stages of business life the philosophy often is; keep it simple and low cost. This may mean trading as a sole trader, in partnership, or through a simple company structure. Where the business stays small this can be entirely appropriate and may serve you well for the lifetime of the business.
However, if your expectations are greater than this, or if you can see that your business is likely to grow in a significant way, then you will need to change structure at some stage. Successful fast growth businesses typically operate through a mix of company and trust structures. These structures are not for show. They create separation, tax efficiency, help to risk manage your business interests and allow for orderly transfer at the appropriate time. The challenge is; when is the right time to put in place a more efficient structure?
Need to know more? Click here and read on..
Wealth Creation Matters
Your SMSF and borrowing
Knowing what assets your Self Managed Superannuation Fund (SMSF) can own is an important part of being a fund trustee. You should also know what assets your fund can acquire from you or related parties. New rules recently introduced may give more scope for your SMSF to borrow funds to acquire these assets but there are unique rules and guidelines that need to be adhered to.
As the trustees of your SMSF, you need to ensure that all assets held in the fund are consistent with the fund’s investment strategy. That is, as trustee you need to consider issues such as risk and return, diversification of the fund’s assets, liquidity within the fund, and of course, the ability of the fund to discharge liabilities.
Click here to read the common questions we’re often asked about borrowing..
Stratacore - Next Business Academy Program
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Have you and your key team members ever had training on Intellectual Property?
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Does your strategy set you apart from your competitors?
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Are your marketing methods still relevant?
If you answered no to any of the above, then you and your key team members may be interested in attending the Stratacore Business Academy. The content of the Stratacore Business Academy is designed to address some of the critical needs of business competency that are frequently neglected or misunderstood. This is a very powerful program and an absolute must for any person who wants to lead a successful business.
The next Business Academy will be held on Monday 4th and Tuesday 5th April 2011, at Level 14, Corporate Centre One, Corner Bundall Road and Slatyer Avenue, Bundall. For further enquiries and registration please contact Mollee Murdoch & Vail or you can call Stratacore on 07 5526 3550 or visit www.stratacore.com.au to register.
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