Media Releases

Our New National Alliance

Mon, 01 Jun 2009 13:02:00 +1000

We're proud to announce our new national alliance.

Lawler Partners and Draper Dillon are proud to announce a national alliance of like minded independent chartered accounting firms focused on superior quality client service. Through this shared vision and depth of resources, we can offer greater benefits to our clients and greater opportunities for our people.

Federal Budget 2009

Wed, 13 May 2009 13:34:00 +1000

The Treasurer handed down his second budget on 12th May 2009 "Nation Building for the Recovery". A budget focussed on "investing in infrastructure, supporting jobs and productivity and positioning for the recovery".

Although no significant tax changes were announced, there are a number of taxation and superannuation changes which may impact many of our clients.

Superannuation Concessions

Reduction in Concessional Contributions Cap

There was much speculation prior to the budget that the Government would initiate the first roll back of the Simpler Superannuation regime. The Government announced the concessional contributions cap will be reduced from $50,000 to $25,000 effective 1st July 2009. For those aged 50 years or over, the transitional contributions cap will be reduced from $100,000 to $50,000. The transitional contributions cap will continue to apply for the 2009/10, 2010/11 and 2011/12 years after which it will reduce to $25,000.

There is no proposed change to the non-concessional contributions cap i.e. $150,000 per year or $450,000 under the "bring forward" provisions.

Superannuation Co Contribution Decreased

The Government currently contributes $1.50 (150%) for every $1.00 invested into superannuation as an “after tax” contribution for taxpayers earning less than $30,342 per year, with eligibility shading out for incomes between $30,342 to $60,342. The maximum which could be received as a co contribution is $1,500.

The Government announced the co-contribution would be reduced to 100% of eligible contributions for the 2009/10, 2010/11 and 2011/12 income years with a maximum contribution of $1,000. The rate will increase to 125% of contributions for 2012/13 and 2013/14 income years after which it will increase to 150%. Shading out provisions will apply.

Business Taxation

Small Business and General Business Tax Break

Changes which will expand the tax break available to small business were announced in the Federal Budget.

Small businesses with a turnover of less than $2 million can claim an additional 50% tax deduction for eligible assets costing $1,000 or more, acquired between 13th December 2008 and 31st December 2009 which are installed and ready for use by 31st December 2010.

The previously announced General Business Tax Break remains unchanged. Other businesses can claim an additional 30% tax deduction for eligible assets costing $10,000 or more acquired between 13th December 2008 and 30th June 2009, which are installed and ready for use by 30th June 2010. This tax break is reduced to 10% for assets acquired between 1st July and 31st December 2009 which are installed and ready for use by 31st December 2010.

Other Business Taxation Measures

The existing Research & Development Taxation Concession will be replaced with a simplified R&D Tax Credit system effective 1st July 2010. The Division 7A rules will be tightened effective 1st July 2009. The new rules will limit the scope for private companies to allow shareholders or their associates to use assets owned by the company for free or at less than an arms length value. This will include assets such as real estate and cars.

Personal Taxation

Tax Rates

The reductions in personal income tax rates as announced in the previous budget remain unchanged. The income tax rates for resident individuals for the financial year 2009/10 are:

Taxable Income	Rate
$0 - $6000	nil
$6,001 - $35,000	15¢ for each $1 over $6,000
$35,001 - $80,000	$4,350 plus 30¢ for each $1 over $35,000
$80,001 - $180,000	$17,850 plus 38¢ for each $1 over $80,000
$180,001 and above	$55,850 plus 45¢ for each $1 over $180,000

Private Health Insurance Rebate and Medicare Levy Surcharge

The Government announced reforms to the current 30% rebate for Private Health Insurance. Effective 1st July 2010, the 30% rebate will be means tested for singles earning $75,000 or more and families earning $150,000 or more. The rebate will be reduced to nil for singles earning $120,000 or more and families earning $240,000 or more.

The Medicare levy surcharge, currently an additional 1% for those exceeding the thresholds without private health insurance will also increase effective 1st July 2010. This will directly impact singles earning $90,000 or more and families earning $180,000 or more without Private Health Insurance.

Non Commercial Losses

The proposed changes to the non commercial loss rules will directly impact high wealth individuals. The current rules allow individuals to offset losses from non commercial business activities against other income provided one of the four non commercial loss rule tests is satisfied. Under the proposed changes individuals with an adjusted taxable income of $250,000 or more will no longer be able to apply these losses against other income. The rules remain unchanged for individuals with an adjusted taxable income of $250,000 or less. This measure is intended to apply from the 2009/10 income year.

There were additional reforms announced in the federal budget which fall outside the scope of this article. If you wish to discuss how these measures may impact you or your business please contact your Lawler Draper Dillon Consultant. The proposed changes still need to be passed by Parliament.

Adding to Our Audit Focus

Sun, 01 Mar 2009 13:02:00 +1100

We welcome Steven Bradby to Lawler Draper Dillon. He has joined the firm as an Audit Partner, enabling us to give broader focus to the delivery of Audit and Assurance services.

Steven has built his experience from over 25 years in the Assurance and Advisory Business Services Division of Ernst & Young, where as an Executive Director he provided assurance services and business advice to a range of small proprietary through larger publicly listed and multinational clients, and government business entities. Those clients operated across various industry and service sectors.

In his role as client service executive Steven is responsible for the coordinated delivery of assurance and related services, for ownership of the audit strategy, and execution of the plan in accordance with our methodology.

Steven’s expertise adds to our audit and assurance service offering. We enable clients of varying legal structure, type, focus, and size to meet a range of requirements, whether in accordance with legislation or to independently respond to stakeholder needs. We maintain our clients’ awareness of changing reporting frameworks and compliance requirements, acting not merely as auditors, but also as advisors. Our services extend to the provision of assurance on specific scope assignments such as due diligence, reviews of financial information, and internal control or process efficiency reviews.

Further insight into our audit and assurance services may be obtained by contacting Steven on 03 9679 2270, or by email: mailto:sbradby@lawlerdraperdillon.com.au.

Appointment Of General Manager

Sun, 30 Nov 2008 13:02:00 +1100

Jacqueline Tan was appointed as Lawler Draper Dillon's General Manager in November 2008 and comes to us with over 16 years of experience in accounting practices.

Jacqueline began her career at Wise Lord & Ferguson in Hobart, a Business Services graduate working on a range of clients with compliance requirements. During this time she was also involved with developing special valuation assignments for new business projects in conjunction with the Tasmanian Development Authority.

Moving to Melbourne to pursue a different client experience in 1996, Jacqueline joined PKF's Business Services Division. In addition to compliance clients, Jacqueline developed training and reporting programs unique to the division's requirements.

In late 2000 Jacqueline was appointed as Admin. & Finance Manager at PKF, supporting the General Manager and the Partners of the practice with finance reporting, statutory requirements and development of responsive information catering to the unique needs of each division.

Over the following eight years her experiences included optimised utilisation of the practice management system, development of a more streamlined finance reporting system, more productive interaction between the Admin team and the rest of the practice, development of environmental and human resource policies including flexible working practices and culminated in a successful office move in 2007.

At Lawler Draper Dillon, Jacqueline will be responsible for the overall operations of the business enabling the partners and professional staff to concentrate on servicing and growing the client base.

Jacqueline is an avid Hawthorn supporter, enjoys a good glass of wine from time to time, and is looking forward to an exciting new work experience with Lawler Draper Dillon.