BeLLCORP BLOG

Q: Are there any particular items the ATO are targeting for tax year 2019?

A: The ATO has advised they are devoting more attention to the following: – personal use proportion of expenses like phones, Internet, iPads and home office costs like electricity. – rental income from accommodation sharing and holiday rentals. The ATO are able to extract data from sites like AirBnB so be sure to include such rental income as assessable income. – interest claimed for loans on rental properties. If you redraw on an investment loan and use the redrawn funds for a personal purpose, this interest is not an allowable deduction against the rental income. – standard deductions such as $150 for clothing & laundry and 5000kms for work related travel. The ATO’s data analytics are getting stronger each year and they are developing occupation-specific benchmarks for allowable deductions. Our advice: claim what you are entitled to claim, nothing more and nothing less, and ensure you can validate all your deductions.
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Q: Should I run a year end clearance sale to run down my stock?

A: Only if you need to, or had this as part of your business plan. Beware of the EOFY hype and don’t get sucked into a particular course of action just because it’s EOFY. Do what is right for you and your business. If you have old stock that isn’t moving, perhaps you will consider having an EOFY sale. If you don’t have an issue with turnover of stock, then there’s like no need for a sale.
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The wisdom of age

Recently I lead the formalities at the CPA Australia Newcastle Certificate Ceremony. As always it was a joyous occasion welcoming new CPA graduates and acknowledging those with 30, 40 and 50 years of service. This year we brought in 3 well-respected business leaders who are CPAs – Philip Clulow, Fiona Cushing, and Sue Murray – to share some insights into their career journey. There were some brilliant words of wisdom shared and my most valuable are listed below: get yourself comfortable with being uncomfortable find a challenge and launch yourself at it back yourself; don’t be afraid to speak up as a woman have the right support systems to help you succeed find a mentor take ownership of your CPA membership As has become tradition now, I put out 50 years of service members on the spot and asked them each a question to garner some invaluable insights that only come with experience. Here are some of the gems I took away: technology has been a huge change in the way accountants function over the past 50 years, however, we should be wary of becoming highly dependent on technology. It is important to retain our traditional problem solving skills. being a CPA is a great grounding for business and life in general as a CPA there are many career options available to you and the best thing you can do is keep an open mind to new opportunities I am a proud CPA and I love being part of this community of incredible people.
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Future Focus

The traditional role of the accountant was that of a “bean counter” which typically meant accounting for what had been. Accounts for the previous financial year. A tax return for the last financial year. A BAS for the last quarter. It is widely acknowledged that the traditional role of the accountant is dead and buried. Increasing automation and advances in technology have made the completion of tax returns, annual accounts and other regulatory reporting statements much easier to complete. There is little value for the accountant to add to these tasks. The accountant of 2019 and beyond, is a business partner. They walk the journey with their client, drawing on past data to inform future decisions. The utilise systems to analyse data efficiently and then run scenario analysis to help their client understand the future risks and opportunities. In essence, they add VALUE. Despite all the talk of AI and the impending “bots” the role of the value-add accountant who is positioned as a business partner will never be replaced. Accountants who can draw on multiple data sources and in-depth knowledge of their client’s business can provide invaluable insights into how to harness opportunities, mitigate risk and drive business growth. RIP bean counter.
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