LMC Financial Group

17/07/2024

PERSONAL SERVICES INCOME
While most people may think that it only applies to builders or tradies, it may also apply to any instance where individuals work and earn income using their personal effort or skills.

PSI generally only applies to individuals who receive more than 50% of their ordinary or statutory income from a contract as a reward for their personal effort or skills. An example that most people would be familiar with is a sole trader tradesperson using their skills to earn income, either directly or through an interposed entity (a PSE). However, PSI can apply to any industry, trade or profession where individuals use their personal effort or skills. This includes so-called “white collar” professionals in IT, finance and medicine, in addition to the construction industry and related trades.

If you earn PSI during the income year, the deductions that can be claimed will be limited to the deductions that you could have claimed if you were an employee (rather than someone earning PSI) and the income earned was salary and wages. This means that, for example, you would be unable to deduct rent, mortgage, interest, rates or land tax in relation to a residence or part of a residence that you use to gain or produce your PSI. This rule applies to all PSI, regardless of whether it is earned as a sole trader or through a company, partnership or trust. To avoid that outcome, individuals/personal services entities (PSEs) can generally self-assess whether they conduct a personal services business (PSB) against four tests. If any one of the four tests is met during an income year, the PSI rules will not apply to limit the deductions available to the individual or PSE.

LMC Financial Group can help you through the maze of personal services income.

30/04/2024

The 2024 financial year is drawing to a close and 2025 tax planing has begun at LMC Financial Group. Whether you are running a business or a salary and wages employee, read below for the main changes you need to know !

The new financial year is fast approaching and so are a number of changes to superannuation contribution amounts and the individual tax rates. These changes are outlined below, as is some information on how you may be able to work with these changes when managing your tax affairs during 2024-25.

23/04/2024

The ATO has developed quite a number of benchmarks to help small businesses develop an idea of their performance compared to similar businesses in the same industry.

05/12/2023

16/11/2023

After years at the coast, LMC Financial Group relocated to Cooroy and part of this fresh start in our centrally based hinterland location has been to unveil our new branding and website.

If you haven't visited us already, we invite you to familiarize yourself with the improved features at www.noosaaccounting.com.au LMC Financial Group.

ABOUT US
It's always nice to put a face to an email name. Under the about us tab you'll find our team and a short brief of our roles.

NEWS
The "News" tab has cutting edge articles on topics that most concern small business and individual taxpayers today. Updated regularly, feel free to check in now and again for up-to-date accounting news.

CLIENT RESOURCES
Under "Client Resources" you'll find "Calculators" and planners; there's a "Tax Diary" with critical dates to keep you on target and the "Useful Links" tab which is the fastest way for you to find the best sites covering information you might need on topics like accounting software, trustworthy news sites, banks, finance, and tax resources. In addition, you can sit back with a cuppa and watch the "Accounting Videos" as a quick way of staying informed.

COMING SOON
As we go along there will be more client interaction available on the site via the Secure File Transfer tab, so get exploring now and become comfortable with your new shared space with us.

15/09/2023

With the ATO shifting its focus on taxpayers with outstanding tax lodgments and debts, find out how to avoid being penalised at the increased penalty rates in 2023–24.

With the ATO shifting its focus on taxpayers with outstanding tax lodgments and debts, find out how to avoid being penalised at the increased penalty rates in 2023–24.

14/09/2023

If you’re interested in improving your business performance, talk to us about comparing your business to the ATO Small business benchmarks. Benchmarks can help focus attention on areas that could be improved like the ratio of labour cost to turnover.

If you’re interested in improving your business performance, talk to us about comparing your business to the ATO Small business benchmarks. Benchmarks can help focus attention on areas that could be improved like the ratio of labour cost to turnover.