• SUNCORP - Bad debts up, profit down, CEO resigned, other banks circling to buy, heavily discounted capital raising at $4.50 (last trade before trading halt $7.13)….all this equals buy Suncorp when share price gets smashed next week when they resume trading…they will rebuild or even get taken over and share price will increase.
• Woodside - Need to plug a $5billion shortfall for CAPEX. A capital raising is on the cards so it would be an opportunity to sell and buy back cheaper.

• Data released by the ABS showed Housing Finance for owner occupant housing increased by a seasonally adjusted amount of 7.1% during the month of December 2008.
• Data released by the ABS showed the Unemployment rate for January 2009 at 4.8%.  This was an increase of 0.3% over the last month.
• In November business bankruptcies grew substantially on previous years.  Adminstrations jumped 75%, liquidations 50% and personal bankruptcies 5%.
• Truck sales slumped 20% in the month of January.
• BHP Billiton has reported a 57% decrease in first half profit to December 2008 to US$2.617 billion.
• Qantas first half profit fell 66% to $210 million.  Revenue grew by 2% during this period but was offset by a 10.9% increase in expenditure.

• Pensioners that receive pensions that are not included in assets tests with centrelink (assets test exemption - ATE) can commute these to selected retail pension funds where their current fund fails the acturarial requirements due to the  current economic crisis.
•  Visit http://www.ato.gov.au/content/downloads/bus20724nat3014122008.pdf for details regarding small business GST application and rules.
•  The ATO has announced that small businesses (<$2 million turnover) can obtain a 30% increase in depreciation deductions on all plant and equipment  (>$1,000) acquired before 30 June 2009 and 10% increase for plant equipment acquired between 1 July 2009 and 31 December 2009.  All other  business can obtain same deduction by acquiring plant and equipment worth more than $10,000.
• A $950 bonus will be paid to taxpayers with income less than $80,000 reducing to $300 for taxpayers with income less than $100,000 - the payment is assessed based on taxpayers 2008 tax return - so if you have not lodged your return this may affect your payment.

According to the Commissioner Michael D’ Ascenzo, the administrative approach this time will be similar to the approach it used for the large number of donations made after the 2004 Boxing day Tsunami. 

The Tax Office has also suggested people to donate to organizations or charities that have been endorsed, so the donors can claim tax deductions.

The key points are listed below:

• People who give to ‘bucket donations’ can claim a tax deduction equal to their contribution up to $10 in their 2008- 09 tax return without the need to keep a receipt;
• People use the web or phone to make a donation over $10, can use their web receipt or credit card statement to substantiate their donation.

The email asks taxpayers to click on a link which directs them to a bogus website that looks similar to the Tax Office website and asks for credit card and personal details. The two email scams are similar in nature and use the Tax Office logo and words ‘Get Refunds On Your Visa or Master Card’ in the subject line.

The emails ask people to click on a link which redirects them to a bogus website that looks similar to the Tax Office’s website and asks for credit card and personal details.

According to the Tax Commissioner Michael D’Ascenzo, the Tax Office will never send such emails asking for taxpayers’ credit card and personal details. Mr D’Ascenzo advises that anyone who receives the email should delete it immediately.

http://www.taxpayer.com.au/media/news/20090213-enews11111.html

AIST chief executive Fiona Reynolds said super-fund holders should merge their accounts so they could pay just one set of fees.
AIST chief executive Fiona Reynolds said super-fund holders should merge their accounts so they could pay just one set of fees.
Last week, Superannuation Minister Nick Sherry asked superannuation funds to lower their management fees from an average 1.25 per cent to under 1 per cent.

read Full Sotry:

http://www.news.com.au/business/money/story/0,25479,25020499-5013954,00.html?from=public_rss

• Westfield Group – if the outlook for retail wasn’t bad enough Westfield announced a $2.9b rights issue yesterday at $10.50 (13% discount to market price)…this means shares will be hammered today but makes them a buy for the longer term.
• Incitec Pivot – profit warning yesterday made way for 30% share price drop…Incitec have lost 83% of their value in the last 6 months so it might be safe to say they have bottomed out.
• Most major banks remain a good buy given dividend yield and ongoing news of increased profits.

• The ATO has announced that small businesses (<$2 million turnover) can obtain a 30% increase in depreciation deductions on all plant and equipment  (>$1,000) acquired before 30 June 2009 and 10% increase for plant equipment acquired between 1 July 2009 and 31 December 2009.  All other  business can obtain same deduction by acquiring plant and equipment worth more than $10,000.
•  ATO has warned against claiming deductions for advance fees and costs claimed regarding rehabilitating mine sites.
•  Super penions paid to members after turning 60 are tax free and should not be incuded in tax returns.
•  A $950 bonus will be paid to taxpayers with income less than $80,000 reducing to $300 for taxpayers with income less than $100,000 - the payment is assessed based on taxpayers 2008 tax return - so if you have not lodged your return this may affect your payment.
• To help small businesses weather the global financial crisis, the Government recently announced a 20% reduction to the quarterly pay as you go (PAYG) instalment due for the December 2008 quarter.

• In November business bankruptcies grew substantially on previous years.  Adminstrations jumped 75%, liquidations 50% and personal bankruptcies 5%.
•  Truck sales slumped 20% in the month of January.
   BHP Billiton has reported a 57% decrease in first half profit to December 2008 to US$2.617 billion.
•  Qantas first half profit fell 66% to $210 million.  Revenue grew by 2% during this period but was offset by a 10.9% increase in expenditure.
•  The Big Four banks CBA, WBC, NAB, and ANZ will all pass on the 1% decrease in interest rates to consumers  indicated by the Reserve bank yesterday.

Australian Businesses need to consider today the impact and implications of the global melt down on their business.  The most significant issue for businesses today will be cashflow.  Any business that has a small number of large debtors (ie customers that owe them money) must ensure they collect these funds from them regularly – that is preferably fortnightly.  Just because a business is large does not mean it can not go broke – this has been proven by the number of large corporations that have recently been put in liquidation or administration and once this happens the likely hood of recovery of funds is low.

Look for the warning signs – any slow payments should be followed up directly and discussions held with the debtor to determine their ability to pay.  If there is any indication that the customer is in financial difficulty, get your debt secured, look for personal guarantees form directors and owners, ensure they have assets (many businesses execute asset protection methods that can hide assets), consult your accountant for advice on direction to take – even go as far as recommending the debtor seek professional help to rectify their problem – but most of all stop working for them – if they can not pay you now,there is a very high chance they can not pay you later – you are better off without the customer than doing work for someone who will not be able to pay you. 

Do not incur large capital investment on customer work without a secure commitment from them that they will and can pay – always ensure there are regular payment schemes in place to cover all costs within short time frames – no later than monthly – and cease work if they do not pay.

If you think you may have some cashflow fluctuations and/or problems – go to your bank today and arrange facilities while things look good – approaching the bank when things are bad is a waste of time and will not help you.