LATEST NEWS

Pessimists Update Dark Economic Clouds

[14 January 2010]
Following our 8 January report (below) we've collected some more articles that outline the pessimists' views about 2010.

The New York Times reports that one of the largest hedge funds on Wall Street is betting on a China collapse.
From Business Spectator: Australia is in a housing price bubble.
The Financial Times says China is also in a housing and stock market bubble.
The Daily Telegraph reports that the US labour market contracted by 661,000 in December.
The Financial Times says there'll be a backlash to the massive Wall Street banker bonuses about to be paid.

The darkest clouds of 2010: A pessimist's perspective!

[8 January 2010]
Most financial commentary currently seems to be referring to 2010 as the year of global economic recovery. The upbeat commentators are issuing soothing words that the worst of the 2008-09 downturn is behind us. In Australia, there's even talk of capacity restraints as growth surges forward. It appears too good to be true!

For the purposes of balance we paint here a darker picture by summarising several quality articles we've sourced. Several of these have been sent to us by ICA members. Like anyone, we can't foresee the economic future and hope it's rosy rather than dark, but realism is only achieved by considering divergent possibilities.

The articles are from:
The Atlantic
Wall Street Journal
London Telegraph
Reuters
Pivot Capital

According to these dark pessimists, the recovery 'good news' is too good to be true ...... (for the rest of this summary article, click here.) Ken Phillips' associated Business Spectator article is available here.

New tax forms
[4 January 2010]

We have previously advised that the tax office will undertake a major computer shut down and upgrade during January. This will affect the processing of all personal tax returns. One consequence of the upgrade will be new-look forms issued to taxpayers from February.

Have a look at two of these forms:
Taxpayer Statement of Account
Notice of Assessment

They seem to be clearer than the old ones. An ATO explanation of the new forms is here.

Government gets it wrong on small business tax review

[21 December 2009]
It's hard to believe that the Rudd Government would open up a deliberate attack against small business. Yet this is what the Assistant Treasurer, Senator Nick Sherry, has done in launching the Board of Taxation's report into the Personal Services Income tax rules. The report is a throwback to the bad days of the 1990s when the taxation system was used to serve the industrial relations agendas of labour and the unions.

Instead of recommending how to improve the current small business tax laws, the report calls for their total rewrite. This will undo the progress made over the last decade and create large-scale tax confusion for self-employed people.

ICA's preliminary analysis is here. The recommendations raise enormously complex and strange ideas about business. For the Report itself, click here. For Senator Sherry's '1990s throwback' press release, click here. For Ken Phillips' Business Spectator article on the matter, click here.

First successful sham contract prosecution
[21 December 2009]

The Fair Work Ombudsman has just achieved the first ever prosecution against an employer who conducted a sham contract. The employer was fined $30,000. This is the way to stop sham contracts. See here for details.


Illegal workers/Phoenix companies [17 December 2009]

Some ICA members have contacted us with stories of illegal workers and phoenix companies. See two of the stories here. There are some pretty upset people being affected by this. You can report such activity to the ATO. See here.


Super Reports
[18 December 2009]

Earlier this week (see below) we reported again about the attacks upon self managed super funds. The government's primary review into superannuation has released its first (preliminary) report. This first report gives a guide to the review panel's thinking on all superannuation. Fortunately, the panel sees self managed super as an integral part of the superannuation offering mix. In fact, the panel offers a common sense vision of how super should proceed into the future. The Report is not that long, is readable and not technical.

For an overview, go here. For the 24-page report, go here.

Trouble paying tax?
[14 December 2009]

The ATO continues to advise that businesses with an annual turnover of less than $2 million and struggling to meet tax payment obligations may be eligible for a deferral of the payment-due date of their next activity statement. Activity statements still have to be lodged on time, but no general interest charge (GIC) applies for the period of the deferral. Phone 13 11 42 between 8.00 am and 6.00 pm, Monday to Friday, or visit the website.

Tax admin
[3 December 2009]

The ATO has brought together some key tax and management information for small businesses. It's a good, short list covering practical issues such as invoice and record keeping, engaging staff and so on. You can find it here.

 All articles and news supplied by Independent Contractors of Australia