bottom line
Leighland Christian In total we will receive BER grants
Joke of the Season
the
totalling 3.1 million dollars toward the
School – the GFC three projects which will cost in total an There once was a business owner who
estimated 4.4 million dollars.
story from was interviewing people for a division
a school
We also upgraded
manager position. He decided to
select the individual that could answer
newsletter Summer 2010/11
Issue No. 48
Kindergarten facilities
the question “how much is 2+2?”
perspective in Ulverstone and the
relocated and developed The engineer pulled out his slide rule
and shuffled it back and forth, and
We have had a long
association with the
a new Primary playground
along with other providing finally announced, “It lies between Welcome to our Contents >>
school, providing equipment, furniture and 3.98 and 4.02”. December 2010 Newsletter The Big Issue
computing upgrades. The mathematician said, “In two hours Interest rates for
management accounting Our aim is to provide you with information that
I can demonstrate it equals 4 with the Small Business ......................... 1
& other services to the
The logistics of planning following short proof.” keeps you up to date and to assist you to run a
Board. This is their story.
and constructing these The physicist declared, “It’s in the better business.
No one dreamed at the start of 2009 projects has been a challenge for all Investment Allowance
magnitude of 1x101.” We trust you will find this information useful and
what was about to unfold and then concerned. The work done by our The Business Tax Break ............. 2
The logician paused for a long remember should you wish to explore anything
the unprecedented impact this would consultants GHD has been outstanding while and then said, “This problem is
have on schools around Australia. The given the short period of time to design further we are only a phone call away! Firm Update
solvable.”
GFC actually created an incredible and these projects and then bring them to We would like to wish all our clients and News about our Staff .............. 2
The social worker said, “I don’t know
unique opportunity for schools that will completion within schedule and close their families a very merry Christmas
the answer, but I am glad that we
probably never be repeated. to budget.
discussed this important question. and Happy New Year. New Staff
The announcement of the Building The attorney stated, “In the case Introducing
Our principal contractor De Jong
Education Revolution (BER) funding of Svenson vs. the State, 2+2 was Gene Medwin ........................ 2
and Son Construction have also been
stimulus package by the Australian instrumental in working around the declared to be 4.”
Government in February tipped all school often complex and difficult school The trader asked, “Are you buying or The Big Issue in the shares of the major banks either
directly or through their superannuation
Tax Effective Christmas
planning upside down and created environment. As usual there were selling?” Interest rates are hurting the owners of Benefits
a frenzy of development activity. savings. They are receiving fully Discussing Parties
hidden issues to face with construction The accountant looked at the business small businesses a lot more than they
Our Board took every opportunity to and services in and around the school franked dividends that are yielding an and Gifts ................................ 3
owner, then got out of his chair, went are home owners.
advance the Master Plan for both Burnie which had to be overcome. to see if anyone was listening at the average rate 6% at
The politicians would
and Ulverstone campus with three current share prices.
door and pulled the drapes. Then have us believe Leighland Christian
exciting building developments being The last two years have been amazing An article in The
funded through the BER program. journey and the result is fantastic new
he returned to the business owner, that all Australians School
leaned across the desk and said in Australian Financial
facilities on both campuses that improve are angry at the Building Stimulus ..................... 4
The projects include a new Library and a low voice, “What would you like it Review on 6
and create better learning environments banks for their latest
toilets for Burnie which was completed to be?” November quoted
for students and staff. There is no doubt round of interest rate Joke of the Season
by the end of November 2009, a new Reserve Bank
government stimulus has brought increases which have End the year on a
Science, Art and Special Education statistics showing that
forward our school planning by ten years been more than light note................................ 4
Centre in Ulverstone which was open the margin between
at least. Not everything with the GFC the Reserve Bank
just in time for school commencing the banks average
resulted in doom and gloom, we have benchmark interest
in 2010, and a new Multi Purpose Hall standard variable
been blessed at Leighland Christian rate.
development at our Ulverstone campus
School. mortgage rate and
which will be completed by the start of Only a third of Remember,
the official cash rate
the 2011 school year. homeowners have a mortgage and a by necessity
has increased by 1.1% since 2007.
lot of them are relatively small. the contents
Yet the margin on small business
There are about 2 million mortgage
Do you require any further information from this edition? holders in Australia, no doubt some of
overdrafts, personal loans & credit of this
newsletter are
cards have increased by 2.25%; 3.4%
them are angry. Particularly those who summary only.
Simply tick which of the The Big Issue Investment Allowance & 4.2% respectively.
have taken out mortgages in the past Clients should
items interest you and we 18 months or so, when interest rates in
The banks have obviously jacked up
Tax Effective Christmas Benefits the less politically sensitive rates to contact us on
will be pleased to send Australia have been at an all time low,
cross subsidise their margins on home 6431 3933 to discuss matters prior
you further information and they haven’t allowed a buffer for to acting.
mortgages.
future interest rate rises.
Name: ............................................................. Postal Address: ................................ ............................................................................... However there are a lot people who
are enjoying higher deposit rates on
Phone: .............................................................Fax: .................................................... Email: ............................................................................... their term deposits with the banks. Then
there are those that have investments
Fax back: 6431 8668 • Phone: 6431 3933 • Email: mail@elst.com.au • Post: PO Box 362 Burnie Tas 7320
Firm Update In August Gene Medwin also began
his accounting career at Elphinstone
Providing associate is each less than $300
inclusive of GST but no tax deduction
a tax deduction or a GST credit.
However, a tax deduction and GST
We are very pleased
to announce and
Stevens replacing Tax Effective or GST credit can be claimed. The cost credit claim should be available on
would like to
Danni Flint who has
moved into industry as Christmas the cost of the hamper as
this is not considered to be
congratulate Alysha
McCreadie who has
an Accountant. Benefits “entertainment”.
graduated from her More recently, due to Gifts
Bachelor of Business our expanding business, The income tax laws on
Ashlee Duniam joined the provision of fringe Non-entertainment gifts
this month. Alysha
our team as a school benefits to employees, their provided to employees are
has completed most
Investment Allowance of her degree part leaver after completing associates and clients are usually exempt from FBT
some work experience very complex, especially at where the total value is less
(aka the Business tax break) time in addition to
Alysha McCreadie earlier in the year. Christmas time. In addition than $300 inclusive of GST.
working full time after
First use & installation deadline to the Christmas party, A tax deduction and GST
starting work with the In the New Year, Adrian Swinoga who
approaching. businesses normally provide credit can also be claimed.
firm in August 2006. All that study has is on the verge of completing his
If you are a small business (i.e. have various types of gifts to their These include skincare &
paid off and she is looking forward to Accounting degree is joining the
an aggregated annual turnover of less staff and clients. beauty products, flowers,
starting her CPA (to become a team. He replaces Mitchell Smith who
than $2 million) and want to claim the wine, perfumes, gift vouchers
qualified accountant) early in 2011. has decided to join the Waratah- Christmas parties
50% investment allowance deduction and hampers as mentioned
Wynyard Council as an Assistant above.
for the 2010/11 tax year, you need to We would like to also advise of some
Accountant. Christmas parties constitute
ensure that to be eligible to claim the team changes. Firstly, we would like
“entertainment benefits” Non-entertainment gifts
deduction you have until 31 December to welcome Kellie Dicker to the team We wish Danni and Mitch all the best
and as such are subject given to clients and suppliers
2010 to first use or install the asset ready at Elphinstone Stevens. Kellie joined in their future employment and thank
to FBT unless specifically do not fall within the FBT rules
for use in their business. the team in July in the administration/ them for their dedication and hard
exempt, or the “minor as they are not provided to
reception position. work.
The 31 December 2010 first use or benefits” exemption apples. employees. Generally a tax
installation deadline also applies to A minor benefit is one that deduction and GST credit
other businesses (i.e. those that have This issue we introduce as well as his college education is provided to an employee can be claimed for these
an aggregated turnover of $2 million was completed at Marist Regional or their associate (e.g. gifts, provided they are not
or more) that want to claim the 10% Gene Medwin College. In his spare time Gene spouse) on an “infrequent” excessive or overly valuable.
investment allowance deduction in Gene recently joined the team at enjoys racing his father’s race car, as or “irregular” basis, which is
the 2010/11 tax year. Elphinstone Stevens in August 2010 not a reward for services, and the cost of clients attending the party are not It is important that businesses maintain
well as swimming and supporting his
is less than $300 “per benefit” inclusive subject to FBT, and no tax deduction separate accounts in the general
after completing the first half of his beloved Saint Kilda football club.
However, for either claim, the asset must or GST credit can be claimed on their
Business Degree at the University Of We are delighted to welcome Gene of GST. ledger for recording the above
have also been ordered before the 31st portion of the cost.
Tasmania, Cradle Coast Campus. to the team at Elphinstone Stevens transactions to ensure that the correct
December 2009. You should ensure
Holding the Christmas party on the income tax, GST and FBT treatment is
you have appropriate documentation Gene is 20 years old and lives in and believe he will be a valuable Importantly, benefits provided to
business premises on a working day applied.
to support the order date. Burnie. Gene’s high school education employee. employees at the Christmas function
is usually the most tax effective.
Expenses such as food and drink are considered separately when
applying the $300 minor benefits
Christmas Wishes from all the staff
(including alcohol), are exempt from
FBT for employees with no dollar limit, exemption. For example, a Christmas
but no tax deduction or GST credit party is held at a restaurant costing
can be claimed. $220 per head, and at the same
time employees are provided with
Where the Christmas party is held on a Christmas hamper (considered
the business premises on a working a non- entertainment gift),
day with only employees and clients costing $85.Although the total
attending, and only finger food or a cost is more than $300, the
light meal and no alcohol is provided, provision of both benefits
then the entire cost is tax deductible. will usually be exempt from
There is no FBT and a GST credit can FBT under the minor benefits
Our Christmas break details: be claimed on the entire cost. exemption.
Burnie: Close from 1PM Dec. 23 until 8.30AM Jan. 10 2011 Christmas parties held off the business For the Christmas party
Smithton: Close from 5PM Dec. 16 until 8.30AM Jan. 13 2011 premises are exempt from FBT where expenses, the business will
the cost for the employee and their not be entitled to claim either