1. By Ben Youn Copyright 2014 Quantum Business House WELCOME to QUANTUM BUSINESS HOUSE

2.  2 hours for each session  10 minutes tea time  Bathroom & Kitchen  Today’s Speaker  Please network each other  Future Plan - Business Forum - Networking Events - Business Mentoring Copyright 2014 Quantum Business House

3. 1. Setting up business structure (June 04) 2. Buying a business (June 11) 3. Business Planning (June 18) 4. Marketing (June 25) 5. Raising Finance (July 02) 6. Financial Management (July 09) 7. Tax system and compliance issues (July 16) 8. Risk management (July 23) 9. Financial Health Check (July 30) 10. Business Evaluation (August 06) Copyright 2014 Quantum Business House

5.  Sole Trader  Partnership  Trust  Company Copyright 2014 Quantum Business House

6.  Company tax payable = Taxable income × 30 per cent of tax rate  Taxable income = Assessable income – Allowable deductions Copyright 2014 Quantum Business House

7.  Any fee income on any services you provided to your clients  Sales of stock  Dividends received from your shares  Rent received on any premises you rent out to other people  Interest you receive from financial institutions  Royalties received for licensing intellectual property or brands, or from franchisees  The gain you make when you dispose of any equipment Copyright 2014 Quantum Business House

8.  Not be a personal in nature or capital expenses, and  Should be spent in order to earn income or have a close relationship with the earning of income (Nexus Test)  Sometimes an expense will be both personal and work related. In this case, you should estimate the proportion of use for work purposes and only claim that portion as a deduction. Copyright 2014 Quantum Business House

9.  Business related expenses including,  Motor vehicle expenses  Bank charges  Business equipment  Home office expenses  Interest and borrowing expenses  Legal expenses Copyright 2014 Quantum Business House

10.  Accounting expenses  Membership and subscriptions  Business insurance  Salaries and wages  Internet  Work related travel expenses  Superannuation contributions for employees  Depreciation on plant and equipments  Black hole expenses (e.g. business setup but limited 1/5 each year) Copyright 2014 Quantum Business House

11.  Cost of Goods Sold: (Opening Stock + Purchases) – Closing Stock  Sales of trading stock give rise to assessable income  Purchases of trading stock are deductible. Note however, that a deduction is not available for the purchase of trading stock until the year in which the trading stock first becomes on hand or is sold to another  Where closing stock on hand is greater than opening stock, the difference is assessable income. Copyright 2014 Quantum Business House

12.  Where opening stock is greater than closing stock on hand, the difference is a deduction.  The value of opening stock must be equal the value of last year’s closing stock.  Closing stock on hand can be valued using cost price, market selling price or replacement cost. You can vary the valuation method year by year. Copyright 2014 Quantum Business House

13.  Business Loss (Operation Loss) and Capital Loss  Business Loss to be carried forward  Capital loss to be offset against future capital gains.  Continuous Ownership Test (more than 50% of shares must be owned by same persons)  Same Business Test Copyright 2014 Quantum Business House

14.  Fixed Assets to be depreciated  Preliminary Expenditure to be amortised  Capital Allowance & Useful life  Low value pool Copyright 2014 Quantum Business House

15.  GST Free  Input Taxed  Taxable Supply  Input Tax Credit  Registration Requirements  Accounting for GST (Cash vs. Accrual) Copyright 2014 Quantum Business House

16.  Rollover Relief  An asset is transferred by an individual to a wholly owned company; or  A company is interposed into an existing business structure; or  Certain assets are replaced with similar assets. Copyright 2014 Quantum Business House

17.  Exemptions and Concessions  Your main residential home  Certain compensation or damages for any wrong or injuries suffered by the taxpayer  Winnings from betting, a lottery or other form of gambling, or a game with prizes.  Cars, motorcycles and similar vehicles  Collectables acquired for under $500  Personal use assets acquired for under $10,000  Assets used to produce exempt income  Inheritance, when received, by beneficiaries of a deceased estate. Copyright 2014 Quantum Business House

18.  Risk management  Financial Health Check  Business Evaluation Copyright 2014 Quantum Business House