News & Views
1 JULY 2017 CHANGES
1 JULY CHANGES Happy New Financial Year! The following tax changes commence 1 July 2017 and may impact you or your clients: Income Tax Deficit Levy to be abolished – thus resulting in a 2% tax cut for individuals with taxable income in excess of $180 000. Minimum Wage On 6 June 2017, the Fair Work Commission handed down its annual wage review. The decision varied the following: • Minimum wage rates in Modern Awards – increased by 3.3% from first full pay period commencing on or after 1 July 2017 (rounded to the nearest 10 cents) • National minimum wage – increased by 3.3% to $694.90 per week, or $18.29 per hour • Wages for juniors, apprentices – most rates are expressed as a percentage of nominated adult rate so they receive a proportionate increase to the adult rate • Wages for trainees and piece workers – most trainees are covered by the National Training Wage system that is included as a schedule in most awards. National Training Wages will also be increased by 3.3% from the first pay period on or after 1 July 2017. Piece rates will increase in accordance with the relevant provisions in the modern award, pay scale or transitional award. • Supported wage system – employees with a disability: these employees are paid a percentage of the relevant adult wage, based on their assessed capacity. The 3.3% increase will also flow through to these...
read moreYOUR FINANCE SOLUTIONS FOR 2017
With the start of the new year most businesses will be looking at making their business bigger, better, and more profitable. Are you wanting new equipment? refurbished machines? better technology? or do you simply want to bring your employees better, safer, more modern equipment? Benson Leasing offers you funding for new or used equipment and vehicles. We are leaders in commercial equipment finance and leasing, and have Funding Companies ready to offer you new year deals today. Chattel Mortgage – Operating Lease – Purchase – Rental Novated Lease – Finance Lease – Commercial Hire – Motor Vehicles – Trucks & lifters – Computer Equipment – Coin Operated Machines – Point of Sale – Refrigeration – Concrete Pumps – Butchery Equipment – Bakery Equipment – Printing Equipment – Air Conditioning – Almost Anything Call us today on 1300 795 058 to discuss the best financing option for your business, and your individual needs; and make the most of 2017 by getting your business off to a solid...
read moreFringe benefits tax
What’s a fringe benefit? Any items you provide to your employees that are not part of their normal salary are considered fringe benefits. This includes things like: allowing an employee to use a work car for private purposes paying for employee’s private health insurance providing entertainment through food, drink or recreation, or giving employees cheap loans More comprehensive examples for fringe benefits can be found on theATO website. The FBT year runs from 1 April to 31 March. Fringe benefits tax rates The FBT rate changes for the year ending 31 March 2015 onwards. FBT Year: Ending Mar 2014 (and prior years) Rate: 46.5% FBT Year: Ending 31 Mar 2015 FBT Rate: 47% FBT Year: Ending 31 Mar 2016 & 31 Mar 2017 FBT Rate: 49% FBT Year: Ending 31 Mar 2018 onwards FBT Rate: 47% A full list of the FBT rates and thresholds can be found on the ATO website, including details on: Car fringe benefits statutory formula rates Deemed Depreciation Rates – Cars...
read more$50,000 approval with no Financials
There is no reason why your business should be going without new updated equipment. Whether it is time to update your equipment, or buy additional equipment to cater for more staff, we have the financing solutions for you. Can this be true? Yes, if you’ve been in business for 2 years and are asset backed (i.e Home owner or land owner) and have a good credit rating, Benson Leasing can now offer finance for up to $50,000 worth of equipment without tax returns or financials. Think of the endless uses for injection of up to $50,000 into your business! Did you know that we finance shade structures for restaurants, café’s, pubs and clubs. Recently Benson Leasing have helped secure finance for the Bangor Tavern and Three Fish Restaurant, Cronulla who have both erected Malibu Shades in their outdoor eating areas; and all with simple “no-financials” finance. Customer Spotlight Bistro 32, Caringbah Bistro32 is the latest venture for Chris & Maryanne Carroll bringing them back full circle to French style cuisine of their multi award winning restaurant “Christies” at Kogarah Bay. The classic Parisian style features warm burnt orange tones and soft lighting typical of the bistros of Paris. The Menu features French classics as twice baked cheese souffle, beef ribeye with bearnaise & frits, shellfish ragout and creme brulee. They are fully licenced with a wine list featuring French and Australian wines. Head chef Tod Laurence is well known from his time at “Le Trois Freres” at...
read moreWhat is a Bitcoin?
Bitcoin noun: bitcoin; plural noun: bitcoins; a type of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank. “bitcoin has become a hot commodity among speculators” a unit of bitcoin. “bitcoins can be used for online transactions between individuals” – Oxford Dictionary reference Bitcoin is a form of digital currency, created and held electronically. No one controls it. Bitcoins aren’t printed, like dollars or euros – they’re produced by lots of people running computers all around the world, using software that solves mathematical problems. But bitcoin isn’t based on gold; it’s based on mathematics. It’s the first example of a growing category of money known as “cryptocurrency”. Bitcoins can be used to buy things electronically. In that sense, it’s like conventional dollars, euros, or yen, which are also traded digitally. BUT, bitcoin’s most important characteristic, and the thing that makes it different to conventional money, is that it is decentralized. No single institution controls the bitcoin network. This puts some people at ease, because it means that a large bank can’t control their money. Can I Use Bitcoin to secure finance? Essentially NO! There are many rules and the legality of your bitcoin activities will depend on who you are, where you live, and they are popular in many circles and have even incorporated an EFTPOS card, but Finance Companies in Australia will only deal with cold hard cash! The ATO do not have an answer on how to tax them. And you will probably not be able to borrow funds to buy Bitcoins, but of course his is only a ageneral rule, and we recommend you talk to your Financial Adviser if you are interested in this at all. The information out there is very plentiful, and if you are interested in learning about the Pro’s and Con’s, here are some useful links for you to read for your interest: http://www.dailyreckoning.com.au/bitcoin-the-whole-story/2014/02/15/ http://www.smh.com.au/business/banking-and-finance/australians-turn-to-bitcoins-to-boost-retirement-savings-20140805-100hcx.html http://www.coindesk.com/information/is-bitcoin-legal/...
read moreZero Percent Interest Finance on Motor Vehicles
Have you ever heard the saying, If it sounds too good to be true, then it probably is. What’s the catch? When a motor vehicle manufacturer offers a great interest rate it usually comes at a price. And that price is their terms-not yours. Often that means the deal isn’t so good for you after all. Let me explain. Suppose you see a great 1.9% percent interest rate on the car of your dreams. Should you rush in and buy? Mmm, Maybe or Maybe Not, but there should be a few questions you should ask first before you sign on the dotted line. Q1- Is the offer on the exact car I want? You may find the dealer has a special offer only on a special spec car that they want to move quickly. Maybe it’s a manual transmission (but you want the auto- or vice versa). Maybe it’s a run out model that could cost you thousands in depreciation when the new model is announced a short time later. Is it the right model, is it the correct colour ? Q2- Do I get a discount? More than likely the answer is ‘NO’. The interest rate is usually only available if you pay the full manufacturer’s recommended price. “That’s no discount not even free window tinting”. So you have to weigh the interest rate saving against the discount you don’t get. Q3- Can I change the terms of the deal? These ‘specials’ usually have restrictive and narrow terms. For example. The Deal may be limited to a 3 year term with no deposit allowed. So, If you want a four year term with a 10% deposit, then – “NO DEAL” Just remember nothing is for free and someone has to pay and it’s usually you ! Be careful, do the figures, then check again to see if it’s still worthwhile. Usually if you can negotiate a discount for as little as $2,000 to $3,000 your payments can be a lot cheaper. If “Zero % interest rates’ are confusing there’s a simple solution… CONTACT US for further information *Benson Leasing advise that the example provided above is an example only and may not apply to your specific business purchase and we recommend you consult your tax agent for advise on your individual circumstance. Please call us on 1300 795 058 or go to our website www.bensonleasing.com.au for all your car financing...
read moreThere is more than meets the eye when it comes to finance
The thinking that ‘Finance is designed for businesses who can’t afford to purchase equipment outright’ is very far from the truth! It is for smart business operators who what to maximizing their cashflow and reduce company tax. Let’s take a look how a recent customer used the ‘Rental Finance’ facility to ‘SAVE MONEY’ on buying new Refrigeration Units Equipment Finance Amount: $37,500 inc 60 x $758.09 Monthly Finance Instalments $45,485.40 Less gst (off-sets gst paid on your BAS) Less 30% Tax rebate (off-sets Company Tax payable) $16,540.19 NETT COST OF RENTAL $28,945.21 Or NETT COST OF RENTAL + OWNERSHIP $31,945.21 SAVING $5,054.79 * How is this possible? The utilisation of a Rental Agreement facility is very tax effective for business as the business doesn’t effectively own the goods till purchase at terms end. Therefore each instalment is viewed and simply accounted for as a expense item (just like your phone bill) which attracts up to 100% a tax deduction on each payment made in the term of the loan. A tax deduction through depreciating if purchased outright takes many more years to claim back. Other Business Building Benefits The Balance Sheet isn’t effected with the liability of a large loan as the business doesn’t ‘owe’ the money used to buy the equipment. A business retains Capital thus having the money working for them, not being lost acquiring equipment. This can be used on stock, Marketing, Investing… Benson Leasing has Finance available for amounts as little as $2,000.00. For a limited time Benson Leasing are offering Existing Customers Finance Pre-Approval up to $55,000.00 * Benson Leasing advise that the example provided above is an example only and may not apply to your specific business purchase and we recommend you consult your tax agent for advise on your individual circumstance. Please call us on 1300 795 058 or go to our website www.bensonleasing.com.au for all your car financing...
read moreWhat are the benefits of leasing over buying or a loan ?
There are both advantages and disadvantages associated with the different financing methods, so to help you decide what is best for YOU I have summarised the basic differences between leases and loans if considering a new vehicle. 1. Leases A lease is a long term agreement to finance the use of a vehicle for a fixed period of time. At the end of the term you will not own the vehicle. Generally, there are 2 main types of leases: 1- A financial lease – a residual value for a vehicle is set upfront to reflect the vehicle’s value at the end of the agreement. At the end of the term you have no option or right to purchase the vehicle, however Benson Leasing can help negotiate an offer for the set residual value. Under a financial lease you will be responsible for maintaining the vehicle. 2- A novated lease – A business may lease a motor vehicle on behalf of an employee, with the responsibility for the lease lying with the employee. Some employers allow their employees to salary package to a novated lease, with payments will be made from your pre-tax income, and thus reducing your taxable income. Please note that Vehicles salary packaged through a novated lease attract Fringe Benefit Tax (FBT). Then, there are 3 main types of novated leases: Novated finance lease: where just the vehicle is leased Fully maintained novated lease: where the vehicle and its running costs are included in the lease Fully maintained novated operating lease: the vehicle and its running costs are included in the lease and the residual value risk is assumed by the lessor. Advantages of Leasing: Preserve your cashflow. You are able to acquire a new car without making the initial cash outlay. Compared to a loan arrangement to purchase the same car, a lease usually requires no down payment. Lower payments. As you are paying for a portion of the cars full value leasing payments are usually lower than loan repayments. Reduce tax. When using a salary packaged novated lease the payments are made using your pre tax income reducing your taxable income which in turn reduces the tax you pay. Increase flexibility. A lease allows you to update the motor vehicle you are leasing every few years. Maintenance. Depending on the type of the lease the maintenance and running costs of the car are included in the lease. Disadvantages of Leasing: Lack of ownership. With a lease you do not actually own the asset, this will prevent you from making any modifications to the vehicle throughout the duration of the lease. At the end of the lease you will have to return the vehicle to the lessor or be required to pay the residual still owing. Fringe Benefit Tax. The amount of FBT you’ll get charged for your car will depend on the distance travelled each year and its based value (the purchase price excluding the cost of stamp duty, registration and CPT insurance). Residual value. This value is set by lessor when the lease is established. If at the end of the lease the car is worth less than the predetermined value you will still have to pay the agreed residual value. You will have to pay GST on the residual value if you decide...
read moreIs there really a benefit to buying Equipment before 30th June?
The benefits to buying into the sales hype of “End-of-Financial Year” Sales depends on a number of factors, and your individual financial needs. If you are seeking a tax benefit from your Purchases, the factors on which it depends may include the following: 1. Is the item considered to be a capital asset such as a car or machinery? If so, then there is probably very little tax benefit in buying it before the end of the financial Year as opposed to afterwards. Dependant on the recent changes to the Taxation Laws, you generally can’t claim a tax deduction for the full cost of a car or plant and machinery. 2. Are you classed as a “small business” entity? A “small business” taxpayer is one with turnover of less than $2 million and special rules apply regarding taxation, which can be more favourable. This threshold applies to all businesses you own, so if you have more than one then you will need to add their turnover together. 3. Are you getting a “real” discount by buying it before June 30? If it will be cheaper for you to buy the item before June 30 rather than after it, then it is a real saving. If you have received advice about tax benefits in making a capital Purchase for your Business, make sure you have considered the likely cash flow impact down the track. And remember – use long-term funds to acquire long-term assets, not working capital. Benson Leasing can help you work out an easy-payment schedule to suit your individual needs, considering your circumstances, the equipment you wish to purchase, and we can obtain the very best rate for you. TESTIMONIAL Hi Jody A quick note to say “Thank You” for your efficiency in the process of finance application for Russell & Lorraine. It was fast and efficient. It helps when we have a buyer who is willing to cooperate as did Lorraine. Thank you once again, Kind regards Venus Hot Rock Dining International Pty Ltd Please note that the above information is of a general nature, and is not given as specific Taxation Advice. We recommend independent Taxation Advise pertaining your individual needs is sought before making any financial or investment decisions. Benson Leasing and its Representatives do not accept any liability for any errors or omissions of information supplied in this...
read moreNot all finance companies are alike
Not all finance companies like financing all equipment or like all types of customers for that matter. Benson Leasing is your one stop finance shop, unlike approaching the one finance company or the one bank, where if you are decline for credit you’re finished, Benson Leasing has many different finance companies we can approach on your behalf. If you’re a new in business we can help, if you’re a non-home owner we can help or if you have a few payment defaults on your credit rating we can help there also. Benson Leasing have real people assessing your application and we have many premium lenders for the more establish client or entry level funders for new businesses. We can tailor a finance product that suits your actual business needs, and your own personal situation, whether you need to buy equipment or you sell equipment Benson Leasing has flexible finance solutions. Benson Leasing can help you avoid technology obsolescence, maximise your tax effectiveness, smooth out your budgets and can help with cash-flow friendly payments. Further Reading Here are a few interesting articles and comments we have been reading this month, which you may be interested in: From the Sydney Morning Herald: How have the hire purchase rules for vehicles changed? Read more Have your say – The Australian Government is reviewing the Personal Property Securities Act 2009 (PPS Act) and would like to hear from...
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