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Its got nothing to do with tax but these numbers do my head in…

According to a recent report…

You need to have wealth (house, car, super… Less debts) of $4,400AUD to be in the top 50% of the world’s adults by wealth. 

To get in the top 10% of the world’s adults by wealth you need to have $94,000AUD in assets. 

To be a part of the 1%, that the occupy movement wanted to get rid of, your net wealth needs to be just over $1 million AUD. 

The average Australian adult has wealth of over half a million AUD dollars. This puts them in the top 5% of adults by wealth.

I have taken my two sons to 2nd/3rd world villages and they sponsor kids in other countries like this. But they still think most kids live like they do, with the same access to opportunities and resources that they have. 

And the fact that these number just seem wrong to me probably means I am just as deluded as they are – except I don’t have the excuse of still being a child…

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Rambling weekly round up

I just got asked what happened in tax last week that a practitioner should know about. How about:

Instant asset write off for small businesses back to $1,000 from 1 January 2014. And the $5,000 immediate depreciation for cars goes from the same date as well.

– If you want to get a remission of an Administrative Penalty for something like a failure to lodge penalty, these are your best arguments:

“An entity has a genuine, yet mistaken, belief that lodgment was not required as opposed to an indifference to, or a rejection of, their obligation

An entity understood their obligation to lodge but circumstances beyond their control affected their ability to lodge

The amount of penalty imposed by law causes an unjust result

There were credits available to offset the amount of the tax-related liability payable, or

There was extraordinary cooperation during an examination.”

– If you do a lot of depreciation schedules you have a new “effective life” ruling so have a read of the new effective lives effective from 1 July 2014.

Very Small Businesses will not need to make PAYG Instalments in more situations.

– And employers and SMSF Trustees need to start planning for SuperStream.

That would be enough for this week…