Chesterton Accounting

July Newsletter

Welcome to our July monthly newsletter!

Happy Financial Year! We have been extremely busy assisting our small business clients through the pandemic and have somehow fallen upon tax time already! We hope to continue to provide assistance to your business this financial year amidst the busyness. We will commence tax appointments from mid-July and will be providing face to face appointments as usual, but will be offering phone consultations for those who would prefer not to have a face to face appointment. We have also made the decision to donate $10 from every tax return lodged between July-September to Rural Aid Australia. Our Aussie farmers have had a tough year and we would love it if you would help us give back to them for feeding our families. How can you help – you can donate directly to Rural Aid Australia, advertise your business as we are to donate a portion of your profits, share this message to others.

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Monthly tax tip:
Donations are a great tax deduction if made correctly. When you make a donation to an organization, it will be classified as either tax deductible or non-tax deductible – so how would you know the difference? Majority of tax deductible donations will come with a receipt stating this information however some do not. For a donation to be tax deductible, you should ensure the following: a receipt is kept, it is a legitimate donation and not just money spent at a fundraiser for something in exchange (e.g. a wristband for a mental health charity or a teddy bear for a cancer charity), the organization is a registered charity that is a deductible gift recipient (this information can be found on ABN Lookup by searching the name of the organization).
If you would like to schedule a consultation with us then please jump onto our website where you can see our availabilities and book a time that suits you.
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Important Dates!
14 July:

  • Make the June monthly business declaration for the JobKeeper Scheme
  • Finalise STP (single-touch payroll) for the 2020 financial year for employers with 20 or more employees

21 July:

  • Lodge and pay June 2020 monthly business/instalment activity statement

28 July:

  • Make super guarantee contributions for quarter ending 30 June 2020 to funds by this date
  • Lodge and pay quarter ending 30 June 2020 activity statement if lodging by paper
  • Pay quarter ending 30 June 2020 instalment notice. Lodge the notice only if you vary the instalment amount

31 July:

  • Lodge TFN report for closely held trusts for quarter ending 30 June 2020
  • Finalise STP (single-touch payroll) for the 2020 financial year for employers with 19 or fewer employees
Click to email us about the above

June Newsletter

Welcome to our June monthly newsletter!

There are exciting things happening for the Chesterton Accounting team this June, a baby will be joining us! Our managing senior accountant, Zoe Chesterton, will be taking some time off to enjoy her new bundle of joy. During this period, the team will still be able to continue to provide services as usual to you and your business. However, if you require more complicated business or taxation advice then Zoe will be available for phone appointments or correspondence via email.
Monthly tax tip:
Superannuation contributions to employees are a usual deduction, however they are only claimed on a cash basis. This means that the amount that will be claimed as a deduction will be the amount that your business physically paid throughout the financial year – even if your accounting is on an accruals basis. If you accrue superannuation during April to June but do not pay it until July then you will be unable to claim the deduction in your 2020 tax return. You will however be able to claim it in your 2021 tax return. So either way, you will be able to claim the deduction but you will need to decide if you will claim it this financial year or the next. We recommend having a tax planning service completed so you have an estimate of how much income tax your business will be paying, then you can decide which financial year to pay and claim the contributions in. If your business won’t be paying any income tax this financial year then it is probably the best choice to pay and claim the contributions in the next financial year. If you do decide to claim the contributions in your 2020 tax return then please ensure that the contributions are processed and paid by 30 June 2020.
If you would like to schedule a consultation with us then please jump onto our website where you can see our availabilities and book a time that suits you.
Book an Appointment

 

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Important Dates!

21 June:

  • Lodge and pay May 2020 monthly business/instalment activity statement

30 June:

  • Make super guarantee contributions for quarter ending 30 June 2020 to funds by this date to qualify for a tax deduction in the 2020 financial year

May Newsletter

Well, it’s safe to say that no business owner could have possibly predicted what 2020 had in store for them! After devastating bush fires and now the Coronavirus pandemic, the economy has certainly taken a hit. Small business owners and their workers have been greatly affected over the last few months. We encourage all of our business clients to apply for as many Government concessions, payments, reimbursements and subsidies that are available to them. The Government has made many announcements over the last few weeks so there certainly is a lot of information to wrap your head around – please contact us for a consultation (we also offer phone and video consultations) to discuss what your business is eligible for. We also ask kindly to respect our response times as we are busier than ever assisting clients in need and wrapping our own heads around the new legislation that is being passed. Most of all, we want to say that we are here for you and hope that you trust us as your advisor during this hard time – we only want to see your business flourish!

Monthly tax tip:
The ATO has announced a new and easier method for claiming home office expenses due to the increase of people working from home due to the COVID-19 lockdown. Workers will now be able to claim hours worked in their home at a rate of 80 cents per hour. This method will cover all home office expenses from 1st of March 2020. If a person worked from home prior to this date then the usual method of claiming home office expenses would be used. However, you can still choose to use the pre-existing method after March if you prefer to do so or it will result in a higher claim. Examples of the two different methods are listed below:

Pre-existing method

Hours spent working at home (this covers electricity and home office furniture) = 456 hours x 52 cents per hour = $237.12
Home internet – 60% for work purposes = $162
Mobile phone – 40% for work purposes = $84
Depreciation of laptop – 70% for work purposes = $116
Total claim = $599.12

New method

Hours spent working at home (this covers all home office expenses) = 456 hours x 80 cents per hour = $364.80
As seen in the above calculations, in this instance the pre-existing method will result in a higher claim. We recommend that if you are working from home then you keep records of all hours spent in your home office as well as receipts for home office expenses. This will allow you to then compare which method will be best to claim at tax time.

If you would like to schedule a consultation with us then please jump onto our website where you can see our availabilities and book a time that suits you.
Book an Appointment

Important Dates!

15 May:

  • Lodge and pay tax returns for the year ending 30 June 2019 for all entities that did not have an earlier lodgement date

21 May:

  • Lodge and pay April 2020 monthly business/instalment activity statement

26 May:

  • Lodge and pay quarter ending 31 March 2020 activity statement if lodging electronically

28 May:

  • Lodge and pay quarter ending 31 March 2020 superannuation guarantee charge statement if contributions were not paid on time*

*Superannuation guarantee charge is not tax deductible

Click to email us about the above

JobKeeper Payments – Enrolling & Applying

The ATO have released more information relating to the recent JobKeeper payments as part of the Government stimulus package.

 

Please follow the below steps to ensure that your business can receive these payments for eligible employees:

  1. Register your interest at https://www.ato.gov.au/Job-keeper-payment/
  2. Check that your business and your employees are eligible through https://www.ato.gov.au/General/JobKeeper-Payment/Employers/Eligible-employers/ and https://www.ato.gov.au/General/JobKeeper-Payment/Employers/Your-eligible-employees/
  3. Ensure that you pay the minimum of $1,500 per fortnight (before tax) to eligible employees from 30th of March – if you already pay them this amount or more then you just need to continue as usual. If you pay any employees less than the minimum amount then you will need to ensure that you include the difference in their payroll and pay them the net amount. Note that the difference is not subject to superannuation so you do not have to accrue extra super for employees. Also note that you are still eligible if the minimum amounts are paid late but you will need to ensure that they are paid by the end of April – these payments are unfortunately just a reimbursement so you will only get paid after you make the minimum payments to employees first.
  4. Notify your employees if you are intending to claim the payment for them
  5. Complete the JobKeeper employee nomination notice with your employees by the end of April through https://www.ato.gov.au/Forms/JobKeeper-payment—employee-nomination-notice/
  6. Enrol with the ATO for the payments either through your business portal or your tax agent from 20th of April – please email us at admin@chestertonaccounting.com if you require us to enrol your business
  7. Apply to claim the first monthly payment with the ATO either through your business portal or your tax agent from 4th of May (ensure that you have paid the minimum payments to your employees first)
  8. Reconfirm each month with the ATO your payroll details and any changes that have occurred to continue receiving monthly payments

 

Below is an ATO link which provides more detailed information regarding the above steps.

 

https://www.ato.gov.au/General/JobKeeper-Payment/Employers/Enrol-and-apply-for-the-JobKeeper-payment/

Working From Home Deductions

The ATO has announced a new easier method for claiming home office expenses due to the increase of people working from home due to the COVID-19 lockdown.

Workers will now be able to claim hours worked in their home at a rate of 80 cents per hour. This method will cover all home office expenses from 1st of March 2020.

If a person worked from home prior to this date then the usual method of claiming home office expenses would be used. However, you can still choose to use the pre-existing method after March if you prefer to do so or it will result in a higher claim.

 

Examples of the two different methods are listed below:

Pre-existing method

Hours spent working at home (this covers electricity and home office furniture) = 456 hours x 52 cents per hour = $237.12

Home internet – 60% for work purposes = $162

Mobile phone – 40% for work purposes = $84

Depreciation of laptop – 70% for work purposes = $116

Total claim = $599.12

 

New method

Hours spent working at home (this covers all home office expenses) = 456 hours x 80 cents per hour = $364.80

 

As seen in the above calculations, in this instance the pre-existing method will result in a higher claim.

We recommend that if you are working from home then you keep records of all hours spent in your home office as well as receipts for home office expenses. This will allow you to then compare which method will be best to claim at tax time.

https://www.ato.gov.au/Media-centre/Media-releases/New-working-from-home-shortcut/

April Monthly Newsletter!

Welcome to our April monthly newsletter!

We are delighted to announce that a new employee has joined our team! The role of Junior Accountant will be filled by Stacey Rees. Stacey is a local mum who lives in Kingaroy with her husband and children. She is currently studying a Bachelor of Business (Accounting) and aims to complete her degree later on this year. Please make sure that you welcome her if you see her around our office.
Please note that we are trading under our usual business hours and are currently still open to the public. We do kindly ask that during this time, face to face appointments are kept to a minimum. We encourage you to correspond with us via email and telephone but still offer face to face appointments if necessary. If you have a consultation booked with us then please wash your hands prior to coming in, ensuring you come in with only the necessary persons for the consultation and contacting us prior to reschedule if you are experiencing any sickness. This is in respect to our staff and other clients.
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Monthly tax tip:
The Government has announced an increase in tax benefits in response to the Coronavirus outbreak. Below is the list of key tax measures and payments available to small businesses that have been included in the $83.6 billion economic stimulus package.
• The instant asset write-off threshold has been increased from $30,000 (for businesses with a turnover of less than $50 million) to $150,000 (for businesses with a turnover of less than $500 million) from 12th of March to 30th of June 2020

• Immediate 50% deduction of the cost of an eligible asset with the balance to be depreciated under current depreciation rules for assets purchased from 12th March 2020 to 30th June 2021

• Tax-free payments from $20,000 to $100,000 for eligible small and medium businesses that employ staff based on their PAYG withholding obligations – this will be applied as a credit of 100% of the PAYG withheld when lodging an activity statement from March to June 2020 with the ATO

• Relief from the ATO for some tax obligations for persons affected by the Coronavirus outbreak – deferral of certain lodgements and payments

• Temporary relief for directors from any personal liability for trading whilst insolvent

• Wage subsidies to support employers who pay apprentices and trainees – employers who employee less than 20 full-time employees may be entitled to apply for a wage subsidy that will cover 50% of an apprentices or trainees wages for up to nine months from 1st January to 30 September 2020 with a maximum subsidy of $21,000 for each employee

If any of the above points apply to you or your business then please ensure that you apply for them to receive your full entitlement. Please note that some of the benefits are automatic and do not require an application but you do need to ensure that you are eligible. We will be available to answer any questions on the new stimulus package benefits and assist your business to gain these entitlements if required.
If you would like to schedule a consultation with us then please jump onto our website where you can see our availabilities and book a time that suits you.
Book an Appointment

 

Important Dates!
21 April:

  • Lodge and pay March 2020 monthly business/instalment activity statement

28 April:

  • Make super guarantee contributions for quarter ending 31 March 2020 to funds by this date
  • Lodge and pay quarter ending 31 March 2020 activity statement if lodging by paper
  • Pay quarter ending 31 March 2020 instalment notice. Lodge the notice only if you vary the instalment amount

30 April:

  • Lodge TFN report for closely held trusts for quarter ending 31 March 2020

 

Click to email us about the above
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