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

Up to 150% Tax

Deductions

Available on

Research &

Development

Expenditure—

Registrations Close

30 April 2013

Family Councils

(Part 2)

Superannuation

Guarantee Rate to

Increase From July

2013

Minimum and

Maximum

Superannuation

Pension

Withdrawals

eMarketing

Tax Deduction for

Fundraising Events

Client News

Brentnalls SA News

Issue 66 — December 2011 Issue 78 — April 2013

Up to 150% Tax Deductions Available on Research &

Development Expenditure - Registrations Close

30 April 2013

What is the Research & Development Tax

Incentive?

If you are a company with an aggregated turnover

of less than $20 million with research and

development (R & D) expenditure you could be

eligible for a 45% refundable tax offset, which is

equivalent to a 150% tax deduction.

The offset is available under the research and

development tax incentive and is run by

AusIndustry.

If your company’s turnover is more than $20 million,

the tax offset is reduced to 40% and is non-

refundable, which is equivalent to a 133% tax

deduction.

Companies must have incurred expenditure of at

least $20,000 in the financial year to claim the

offset.

What Expenses are Eligible?

Research & Development expenses

Decline in value of Research & Development

assets

Balancing adjustments for Research &

Development assets

Goods and materials expenditure incurred

during Research & Development activities to

produce marketable products

Contributions to the Cooperative Research

Centres program

What Expenses are Ineligible?

Interest

Expenses not at risk (e.g. that have a

guaranteed return under a financing

arrangement or indemnity, or could

reasonably be expected to return an

amount of consideration)

Core technology expenses

Expenses relating to the cost of a

depreciating asset

Expenses to acquire or construct a

building

Example:

A manufacturing company with an annual

turnover of $5 million has spent $100,000 on

eligible research and development expenses

during the 2012 financial year. Once the

company has been registered and the claim

included in their income tax return, the company

could potentially receive a tax refund or tax

offset of $45,000 when it lodges its 2012 tax

return under the Research & Development Tax

Incentive (noting normal entitlement would be

$30,000 non-refundable).

How Do I Claim the Tax Incentive?

If you believe your company is eligible to claim a

tax offset for the 2012 financial year, you need

to act fast and register with AusIndustry prior to

30 April 2013. The claim is made within the

company tax return, which cannot be lodged

before the registration.

If you believe you may be eligible, contact your

advisor at Brentnalls SA for assistance.

Quote:

“There is one quality

that one must

possess to win, and

that is definiteness

of purpose, the

knowledge of what

one wants and a

burning desire to

achieve it”.

Napoleon Hill

Family Councils — Part 2 In Part 2 of Family Councils, we focus on

family codes of conduct and the benefits of

structuring family meetings.

Family Code of Conduct

A family code of conduct is a written

document which sets out expectations

regarding how family members will behave

both inside and outside of the business.

Having a written code of conduct which is

agreed upon by family members helps to

guide behavior and helps in providing

feedback and holding each other accountable

for desired behaviors.

A family code of conduct might address issues

such as:

Communication

Conflict management

Decision-making

Personal development

Information sharing

Family Meetings

Family meetings are structured opportunities

for family members associated with a family

business to discuss personal hopes and

concerns regarding the business and for the

family to come to agreement on issues which

can then be communicated to the board of

directors or senior management. In a more

structured form, family meetings can become

a Family Council.

There are many benefits to having a family

business meeting. It is an opportunity to teach

ownership and responsibilities to the family

members in a more formal yet unassuming

way. If done right, family meetings can help

strengthen a business and a family. It can

create unity and can diminish problems by

facilitating more communication, which can in

turn establish the family business continuity.

Family meetings help involve the whole

family together by having an open

environment to share ideas, problems and

solutions. It can be a great way to set aside

time to re-establish how the business is going

from each family members’ perspective and

specific job in the business. This helps to keep

everyone involved and keeps the business

running smoothly. It helps provide opportunity

for family members to share any frustrations or

successes they have experienced.

One of the most important parts of the family

meeting is that it can create a sense of vision.

The family meeting is often where owners may

try to stabilise the balance between

management, ownership and family.

Some family businesses have family members

working for the business from a distant location

or only for minimal tasks. The family meeting

helps to bridge that gap in communication and

day to day operations by providing those family

members an opportunity to hear about financial

status, management challenges, changes and

strategies going on inside the business.

Learning and sharing about a business success

can also help motivate and create pride in

family members in their various roles.

Other benefits for having a family meeting

include the opportunity to share the

business’s history and values to the younger

generation. One way to bring a new

perspective into a meeting and a certain level

of professionalism is to invite respected non

family members as mentors. They can provide

advice that may prove highly beneficial to a

family business.

In our experience family councils should be

chaired by a family member who can be the

point of interaction with the business, although

in getting started and setting the framework

right an external perspective is often best, and

should be likewise available for ongoing advice

as needed.

Minimum and Maximum

Superannuation Pension

Withdrawals

For clients currently receiving a pension

from their superannuation funds, it is

important that the minimum withdrawal is

made by 30 June each year. The minimum

amount is calculated as a percentage of

the opening member balance based on the

member’s age at the beginning of the

financial year or pension start date. For

those members receiving a Transition to

Retirement Pension (between 55 and 65,

not retired) there is also a maximum

pension amount of 10% of the opening

member balance.

Reminders will be sent to affected

Brentnalls SA self managed

superannuation fund clients during April

and May 2013. If you have any questions

about your pension, please contact our

office.

eMarketing

What is eMarketing?

Very simply put, eMarketing or

electronic marketing refers to the

application of marketing principles and

techniques via electronic media and more

specifically the Internet. The terms

EMarketing, Internet marketing and online

marketing, are often interchanged, and

can be considered synonymous.

eMarketing is the process of marketing a

brand using the Internet. It includes both

direct response marketing and indirect

marketing elements and uses a range of

technologies to help connect businesses

to their customers. Examples are

newsletters via email, advertising online,

social media and search engine

optimisation.

By such a definition, eMarketing

encompasses all the activities a

business conducts via the worldwide web

with the aim of attracting new business,

retaining current business and developing

its brand identity.

Why is eMarketing important?

When implemented correctly, the

return on investment (ROI) from

eMarketing can far exceed that of

traditional marketing strategies.

Whether you’re a “bricks and mortar”

business or operating purely online, the

Internet is a force that cannot be ignored.

It can be a means to reach millions of

people ever year. Using eMarketing will

mean your business is at the forefront of

interacting with your

customers.

Considered Value Issue 78 – April 2013

This month Brentnalls SA

is supporting Rotary Clubs

of Adelaide West - Hat Day

Tax Deduction for

Fundraising Events

Individuals are able to claim a tax deduction

for contributions to fundraising events in

some circumstances if the contribution is

made to a deductible gift recipient (DGR).

You can check whether an organisation is a

DGR by visiting the Australian Business

Register at www.abn.business.gov.au

The contribution can be either a purchase of

a ticket to attend an event or a successful

bid at a charity auction. Typical events

include fetes, balls, gala shows, dinners and

performances.

To be tax deductible, the contribution must

be over $150 and the benefit received must

be no more than the lesser of 20% of the

value of the contribution or $150. If the

event is a fundraising auction, only

contributions of money are eligible for a

deduction. In some cases, a contribution of

property or shares may also be deductible

but specific rules apply to these

contributions.

For example if you paid $800 for a ticket to

a fundraising dinner (value $140) and a

successful bid at the auction of $550 for a

football guernsey (value $100) you would

be entitled to a tax deduction of $1,110.

This is made up of the cost of the ticket and

the amount paid for the guernsey less the

market value of each.

To claim the deduction please ensure that

you retain a copy of the receipt issued by

the DGR showing the amount paid and the

market value of the benefit received.

Superannuation

Guarantee Rate to

Increase From July 2013

As promised in the 2011 Federal Budget,

the superannuation guarantee rate will

increase on 1 July 2013 to 9.25%. All

employers must increase their

employees’ superannuation accordingly.

Further increases are due each year until

the rate reaches 12% as per the table

below.

Year Rate (%)

2013-14 9.25

2014-15 9.5

2015-16 10

2016-17 10.5

2017-18 11

2018-19 11.5

2019-20 12

BreConsidered Value Issue 78– April 2013

Brentnalls SA Chartered Accountants

and Advisors

Partners

John Crouch Craig Farrow

Rick Albertini Karen Nyberg

Matthew Holden

Associates

Sharon Lloyd Shali Manolev

Renee Feltrin Aimee Campbell

Gavin Mitchell Sally Storey

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.

Client News

Our congratulations go out to the

following clients on their outstanding

achievements:

Redgum Vet & Pet Boarding have

recently won the Best Medium-Sized

Business 2012 in the Business Port

Augusta Business Awards. Roger and

Louise Absalom achieved this

recognition after one year of full-time

business which is really amazing.

Ardrossan Foodland recently won the

Foodland Service Department of the

Year (for the second year running) and

the Foodland General Merchandise

Department of the Year at the 2013

Retailer of the Year Awards.

Congratulations to the Sandercock

family and their team.

Happy Birthday John

Crouch

Recently we helped one of our

founding partners, John Crouch,

celebrate his 60th birthday.

John qualified as a Chartered

Accountant in 1980 and co-founded

Brentnalls SA in 2000.

John is a Fellow of the Institute of

Chartered Accountants Australia, and is

an affiliate of FINSIA.

Brentnalls SA News

Congratulations to Stefan Sapio and Lilia

Zhou who recently passed their latest CA

modules.

We recently welcomed back Shannon

Sims (formerly Tyrrell) who has returned

from her year-long honeymoon in

England.

We further welcome back Jessie Guan

from maternity leave. We also

congratulate Jessie and Man H Tsun on

their recent wedding.

Brentnalls SA Team Building Session is

on again this year on Friday 12th April.

The session will be run by Katrina Webb

and Wayne Enright and will be held at

ETSA Park from midday onwards. Please

be aware we will be out of the office for

the duration of the afternoon to

participate.

Meet Anthony Staltari

Hello my name is Anthony.

I started at Brentnalls SA in September

2011 as a graduate. I’m currently

working in the accounting and advisory

team.

I graduated from university in 2009

working for one of the big 4 banks.

During 2010 I was lucky enough to

travel to Europe for 6 months before I

joined the team at Brentnalls SA. I’m

currently studying the CA program which

I hope to complete in 2014.

I enjoy travelling, photography and

sports. My favourite sports include AFL,

volleyball and snowboarding. I also do

volunteer work for Colonel Light Gardens

Football Club, USC Lions Volleyball Club

and Disable Surf South Australia.