Category: Dealership Operations

DEALER PROFITABILITY AT 1.5%

The Deloitte Dealer Profitability Report for November 2015 shows that the average Australian Dealer profitability, as measured by net profit as a percentage of sales (NP%S), was 1.5% in November 2015. The result was 0.2 percentage points down on the…

ATO TO BROADEN TAX TRANSPARENCY

AADA urges all Dealers to ensure their affairs are in order after the Australian Taxation Office (ATO) recently published the tax details of about 1,500 large corporate taxpayers, with plans to also report tax details in relation to 300 private…

ATO TO FOCUS ON LARGE BUSINESS

The Australian Taxation Office has put large businesses on notice that it is focusing on them this financial year to ensure they pay their fair share of tax. The ATO released a statement in December stating that it “will work…

CAPITAL GAINS TAX CHANGES TO HELP GROWTH – MINSITER

Dealers wanting to change their legal structure can now do so without attracting a Capital Gains Tax (CGT) liability. In early February the Federal Government introduced a Bill to Parliament as the final plank in its $5.5 billion ‘Growing Jobs…

FEDERAL GOVERNMENT PUSH TO END SUPERANNUATION RATE RISES

The Federal Government is preparing to dump a planned rise in compulsory superannuation that would add $20 billion a year to employers’ wage bills. Under the previous Labor Government, the super guarantee levy was scheduled to rise from 9 to…

HOW TO AVOID A POST-CHRISTMAS TAX HANGOVER

With Christmas approaching, most companies will be planning to reward their staff with a celebration and perhaps a gift to mark the end of the year. When planning such events it’s wise to consider the tax consequences associated with such…

ATO: Get onto Superstream

The ATO is reminding automotive and repair business owners who employ 19 or fewer employees (small businesses) that they need to pay their superannuation obligations via SuperStream. SuperStream is the new standard for all businesses nation-wide, which involves making super…

Who Makes The Money In A New vehicle Sale?

It will hardly be news to our readers to say that new car Dealers operate on very slim margins. What’s not fully understood by non-Dealers is who makes the most from the sale of a $20,000 new car. When a…

Protecting the goodwill of your dealership

In the previous edition of Automotive Dealer, I discussed who owns the goodwill in your dealership and concluded that there is a reasonable legal basis for the proposition that the franchisee/Dealer does. In this article, I will discuss in more…

Driving succession in your motor dealership

When we ask our motor dealership clients about their succession plan, many of them believe that succession planning is simply passing the ownership of the business onto one or more children. However, when we delve into the detail it soon…