...............................

Changes To Motor

Vehicle Deductions Make Sure That

Fringe Benefits Are

Beneficial Make Your

Workplace A

Productive

Environment Scamwatch

Website—How To

Avoid Scams

Software Corner:

Xero Feature

Updates Client News

Brentnalls SA News

This month

Brentnalls SA is

supporting:

Christmas Party for

Special Children

Meet Catherine

Maguire

Considered Value Issue 101 — October 2015

In the 2015–16 Budget, the Government announced substantial changes to how tax deductions will be

calculated for the use of a motor vehicle. Currently, there are four methods for calculating these car expenses:

1. Cents per kilometre

2. Logbook

3. 12% of original value or vehicle

4. One third of actual expenses incurred

From 1 July 2015, the '12% of original value of vehicle' and 'one third of actual expenses incurred' methods

are no longer available. In addition, the previous rates for 'cents per kilometre', that were determined by

engine size, have been replaced by a flat rate of 66 cents per km, regardless of engine size.

These measures will impact a large number of individual taxpayers who currently claim a tax deduction for

motor vehicle expenses.

The changes put an increased burden on you as a taxpayer to maintain records in relation to car expenses if

you wish to maximise your entitlement as a tax deduction.

To achieve any deduction greater than $3,300 (5,000km x 66c per km), the 'logbook' method must be used.

If this is the first year you have used the 'logbook' method, you must keep records of all income related car

travel, for at least 12 continuous weeks during the income tax year.

An example of how a logbook can look is below:

Each logbook kept by you is valid for 5 years provided your use remains the same. You can complete your logbook records at any time during the year provided it is representative of your travel throughout the year. In light of these changes, anyone intending to claim a deduction for motor vehicle expenses in the 2016 financial year may wish to re-assess their chosen method. To discuss your best option, please contact your Brentnalls SA team member.

Changes To Motor Vehicle Deductions

An Independent Brentnalls Accounting Alliance Member

Date Odometer start Odometer finish Kilometres

travelled

Reason

25/08 186,555 186,602 47 From work to visit customer

26/08 186,800 186,888 88 From home to visit supplier

28/08 186,902 186,932 30 Visit accountant

Quote:

“The difference

between a

successful person

and others is not

a lack of strength,

not a lack of

knowledge, but

rather a lack of

will”.

Vince Lombardi

Make Sure That Fringe Benefits Are Beneficial

Fringe benefits are benefits that you provide to your staff that fall outside the categories of traditional wages

and salaries. Examples of common fringe benefits include cars, low interest or interest-free loans and school

fees.

Fringe benefits are taxed differently to income, and business owners should be aware of the relevant

compliance issues when negotiating salary packages.

These benefits are not subject to income tax. However, the employer may need to pay fringe benefits tax

(FBT). Typically, the employer will reduce the employee's salary by the amount equivalent to the FBT incurred.

The FBT rate is usually 47%. However, it has been temporarily raised to 49% to prevent high income earners

from circumventing the 2% budget repair levy. It will return to its normal rate on 31 March 2017.

It is advisable to seek professional guidance before entering into a new salary packaging agreement with an

employee. The reason for this is that the calculations surrounding FBT calculations are extremely complex,

and you may end up inadvertently disadvantaging them in the process, thereby defeating the purpose of

salary packaging.

You should also seek advice regarding how fringe benefits affect on-costs such as superannuation and payroll

tax as these will affect your total package costs.

Make Your Workplace A Productive Environment

When it comes to productivity, many people think about management

skills but the physical work space can be just as important. Here are our

top tips for boosting productivity:

Natural Light

Allowing a significant amount of natural light to reach your employees

may do wonders for morale and energy levels. Numerous studies have

shown that a lack of natural light can cause drowsiness and low mood.

For many small businesses, full-scale renovations that facilitate larger

amounts of natural light are out of the question. However, by simply

rearranging desks to face windows or removing thick curtains, you may

be able to give your business a significant productivity boost.

Noise Control

There are many benefits to open plan offices, and for many businesses it is simply a necessity due to space

constraints. However, open plan offices can lead to a lot of noise that can be distracting for some people.

Depending on the noise levels in your office, you might wish to introduce a 'quiet room', or purchase noise

cancelling headphones that people can wear if they are finding the noise to be a distraction.

Eliminate Clutter

Clutter obviously impedes productivity because it makes it difficult to find important documents. Furthermore,

clutter in the workplace creates an impression of disorganisation that your employees may respond to on a

subconscious level. Remember that clutter can also be digital so make sure that your hard drives and shared

folders are as organised as possible.

Plant Life

Research shows that having a couple of plants inside an office can boost employee productivity by stimulating

concentration and improving mood. This is a low cost way to improve the aesthetics and functionality of your

workplace.

An Independent Brentnalls Accounting Alliance Member

XERO FEATURE UPDATES

Xero Me

Xero have released a new

feature called ‘Xero Me’, which provides an

organisation’s payroll managers and

employees the flexibility to manage their

leave and view pay history from any mobile

device.

Benefits for Employees

When linked with Xero payroll, Xero Me lets

employees submit and view leave requests

directly from their mobile phone. They can

then see whether that leave request has

been approved or declined, and any approved

leave will feature on their payroll calendar, as

well as a summary of their current leave

balance.

Employees can also view their most recent

pay details, as well as past payslips. Payslips

can also be downloaded as a PDF file, which

will come in handy when employees need to

access copies in a hurry such as when

applying for a new loan.

Benefits for Employers

Employers can use Xero Me to view, manage

and action leave requests from their mobile

phone. Xero Me also provides employers with

a calendar so they can easily review leave

requests of their employees before deciding

whether to approve employee leave

requests.

This would be ideal for employers who are

rarely at their desk or in front of their

computer, and can allow employers and

employees to collaborate to manage and plan

their leave requests.

Billable Expenses

Often, business will incur costs that are on-

charged to their clients as a cost of delivering

a good or service. Examples of this can

include travel, freight or government charges.

Xero now gives you the ability to assign

items which you are billed for to a customer

as a billable expense. When you next invoice

your customer, you can choose to add them

to the invoice.

The Billable Expenses feature can be used for

multiple currencies if you subscribe to the

Xero Premier Edition with multi-currency

feature enabled. You can then on-charge

these billable expenses in Australian dollars,

or your preferred billing currency.

If you would like more information on these

new Xero features, please contact your

Brentnalls SA manager.

Scamwatch Website—How

To Avoid Scams The Australian Competition and Consumer

Commission (ACCC) launched a new website in July

2015, called Scamwatch, which is aimed to help

Australian’s identify trending scams and how to

avoid them.

So far this year 56,342 reports have been made

resulting in $54 million being lost to scams. The

people being targeted are of all backgrounds,

ages and income levels across Australia.

Below is a summary of the delivery method in which the scams were delivered:

There is a video on their website (https://www.scamwatch.gov.au/) to help small business

operators and their staff to learn more about the risks that have the potential to impose

significant financial, legal and reputation costs on small business and their customers.

Despite the range of scams there are four simple rules to avoid them: 1. Never respond to unexpected mail, text messages, alerts or emails.

2. Don’t give any personal information out on a call you haven’t made yourself.

If in doubt, ask them to send the information in writing. Then call back to the

company on their publicly listed number not that on the letter or email. 4. Nothing comes for free. If it sounds too good to be true, it’s a scam!

Considered Value Issue 101 – October 2015

The common types of scams

Unexpected money Unexpected winnings Fake charities Dating & romance

Buying or selling Jobs & investments Attempts to gain

your personal

information

Threats & extortion

Client News

Congratulations to Geoff & Daniel Schell

and their Ray White Clare Valley &

Ardrossan team who won numerous awards

at the Ray White SA & NT annual awards

including the top overall office SA/NT for

settled commissions.

Congratulations to Stephen Ahrens,

General Manager of Lyndoch Motors, who

has been named SA chapter president of the

Entrepreneurs' Organization.

Brentnalls SA News We wish to welcome Emily Hunt to the

Brentnalls SA team.

Congratulations to Nadine Hill for winning

the Brentnalls SA Footy Tips for 2015.

Congratulations to Bradley Truscott for

winning Best & Fairest for the B Grade at the

Waikerie Magpies Football Club.

Congratulations to Sally Storey on her

appointment to the Board of Spence Club

Inc, a unique networking group for young

South Australian women raising the profile

of women leaders and raising funds for

charities through their events.

Congratulations to Brad & Emma Barnes on

the birth of daughter Evie Mae this month.

Congratulations to Caitlin Norsworthy &

her fiancé Michael on their engagement.

This month Brentnalls SA is

supporting:

This month we are proud to be donating

toward Christmas Party for Special

Children, a charity giving children with

special needs the opportunity to gather and

share the magic of the Festive Season with

a group larger than their immediate circle of

family and carers.

http://www.christmasparty.com.au/

Meet Catherine Maguire

Hi, my name is Catherine Maguire. I joined the Brentnalls SA team 12 months

ago and I am now an Associate heading up

the Superannuation & Wealth Division.

With over 13 years experience, I have a

passion in helping clients maximise their

after-tax returns through their Self Managed

Super Funds. After completing my Chartered Accountant

diploma I took off to the UK where I

broadened my skill set working as a tax

accountant for AON and a statutory

accountant for Innocent Drinks.

Whilst abroad I also took the opportunity to

explore UK, Ireland, Europe & South Africa.

When I’m not at work, you can find me on the

roller derby track skating under my alias

‘Kit Cat Krunch’ with the Adelaide Roller

Derby League. I was fortunate enough to be

selected into the Team Australia Squad for

the 2014 World Cup held in Texas last

December.

I find being on 8

wheels is a great

way to de-stress

and keep fit.

Brentnalls SA Chartered Accountants

and Advisors

Partners

John Crouch Craig Farrow

Rick Albertini Karen Nyberg

Matthew Holden

Associates

Sharon Lloyd Shali Manolev

Aimee Campbell Gavin Mitchell

Sally Storey Nadine Hill

Bradley Barnes Christina Gulliver

Catherine Maguire

Brentnalls SA Advisors Pty Ltd

Australian Financial Services Licence Number 264083

Directors

John Crouch Craig Farrow

Rick Albertini Karen Nyberg

Matthew Holden

255 Port Road

PO Box 174

HINDMARSH SA 5007

Tel: 08 8241 8444

Fax: 08 8241 8488

Email: admin@brentnalls-sa.com.au

We welcome the opportunity to assist you

and discuss any matters in our newsletter

Should you wish to receive our Newsletter

electronically, please E-mail us with

‘Newsletter’ in the Subject line.

Disclaimer

The information provided in this newsletter

does not constitute advice. The information is

of a general nature only and does not take into

account your individual objectives, financial

situation or needs. It should not be used, relied

upon, or treated as a substitute for specific

professional advice. We recommend that you

contact Brentnalls SA before making any

decision to discuss your particular requirements

or circumstances. Brentnalls is not a partnership

or a joint venture. Instead, the business of

Brentnalls SA is independently owned and

operated and it is an independent member of

the Brentnalls Affiliation of Accounting Firms.

Individual member firms do not accept

responsibility or liability for the actions or

inactions of any other individual member firm.

Considered Value Issue 101 – October 2015

Congratulations

to Drew Kluska

and the whole

The Tailor team

on their recent

success at the

Luxperience

awards.