Accountants & advisors
Code of Conduct
Thorburn Partners is a progressive accounting firm based in South Melbourne. Our focus is on servicing small to medium size enterprises, large companies, trusts, professionals and high net worth individuals and self managed superannuation funds.
Thorburn Partners represent timely and practical taxation and commercial advice, proactive action anticipating issues and achieving goals.
Our services include advising business, professionals and superannuation funds on all financial reporting and taxation matters, corporate secretarial duties and directorships.
Contact our office for consultation on the current developments listed below or related matters:
- Extending access to the GST instalment system: In the 2011-12 Budget the Australian Government announced its intention to extend the current GST instalment system to allow access for small businesses that are in a net refund position.
The current legislation does not allow a business that is in a net refund position to pay GST by instalments. A business is in a net refund position when it is entitled to receive more input tax credits on its purchases than it is required to pay GST on its sales.
This measure will allow small businesses in a net refund position to choose to access the GST instalments system, with an instalment amount each quarter of zero. Any refunds or liability due to the taxpayer will be reconciled in their annual GST return.
The measure will come into effect following royal assent of the legislation.
- ASIC focus on 30 June 2011 Reports: The Australian Securities and Investments Commission (ASIC) has released suggested focus areas for entities preparing their 30 June 2011 financial reports. According to ASIC, the main areas which entities should consider include Going Concern, Asset Impairment and Fair Value.Entities should continue to focus on reduced liquidity and ability to refinance debt, and on compliance with lending covenants. Where the ability of a listed entity to continue as a going concern is subject to refinancing, the entity must keep the market informed about the status of finance negotiations; Entities should be mindful of disclosures in relation to impairment of assets that may assist users of half-year financial reports. Financial assets at fair value should be valued by reference to quoted prices in active markets, including most ASX-listed securities. In those instances where there is an inactive market, fair values should be determined with the maximum use of market inputs and key assumptions should be disclosed. For consultation in regards to annual reporting or other related matters, please contact our office.
- Discretionary trusts and beneficiary deductions targeted – Beneficiaries of discretionary trusts who have claimed deductions against income received from discretionary trust distributions are being sent please explain letters by the ATO. The entitlement to a distribution of income from a discretionary trust is merely a right to be considered by the trustees of the trust as an income beneficiary and the Commissioner is relying on case principals to deny deductions of expenses claimed against this mere expectancy of income.
Case QT 85/1311 and Taxation Ruling IT 2385 reiterates the Commissioner’s view that the deductions will not be allowed if the beneficiary cannot show a sufficient nexus between the expenditure incurred and the receipt of income. The beneficiary must establish that they were presently entitled prior to incurring the expenditure. For consultation in regards to discretionary trusts or other related matters, please contact our office.
Contact us now
Contact Arthur Perdios (managing partner) or Tony Thorburn (board director and advisory) for all your enquiries.