Chesterton Accounting

September Monthly Newsletter

Welcome to our September monthly newsletter!

The JobKeeper payment scheme has had some changes once again due to the increase in COVID-19 cases in Victoria. Fortunately for us, they apply to all states. The Government has made changes to the current scheme that runs until the end of September so if your business is currently receiving these payments then this will apply to you. Previously, only employees who were employed prior to 1 March 2020 were eligible for the scheme. Under the new changes, employees who were employed prior to 1 July 2020 are now eligible. Businesses are required to offer the scheme to all employees who are eligible so if you have hired a new employee between 1 March and 1 July 2020 then you will be required to offer them the scheme payments. If you require assistance in assessing eligibility or applying for the payments then please contact our office.

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Monthly tax tip:
Husband and wife partnerships can be quite the tax saving entity for some family businesses. The typical scenario is the husband acts as a sole trader paying all tax on the income earned, however the wife plays a vital role in the business as well but doesn’t receive a tax distribution. As individuals pay marginalised rates, the husband would be in the higher tax margin. If the business was instead to act as a partnership then the taxable income would be split which would lower their overall family tax by placing both partners in the lower tax margin. Please ensure that you consult your tax agent to set up this type of entity to avoid illegal income splitting situations.
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.

 

Important Dates!
14 September:

  • Make the August monthly business declaration for the JobKeeper Scheme

21 September:

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

August monthly newsletter!

Welcome to our August monthly newsletter!

The Government has just recently announced a six month extension to the JobKeeper payment scheme. The modified scheme will apply until March 2021 and will include different payments. The first three months of the modified scheme will include payments of $1,200 per fortnight for employees who work for 20 hours or more per week and $750 per fortnight for all other employees. The final three months will include payments of $1,000 per fortnight for employees who work for 20 hours or more per week and $650 per fortnight for all other employees. Businesses will be required to reassess their eligibility, meeting the decline in turnover test in each quarter to claim the subsidies. This is great news for businesses that are still struggling and quite heavily affected by the result of COVID-19.
Monthly tax tip:
Travel expenses are an ATO audit target this year as many taxpayers are incorrectly claiming them. Travel from home to work is generally not tax deductible unless transporting bulky tools and equipment when there is no secure area to store them at your workplace. Other travel situations e.g. travel to another city for a work conference or training can generally be claimed. They can be claimed if they were not reimbursed by an employer, even if a travel allowance was received. There are two ways that a taxpayer can claim travel expenses. The first is simply keeping receipts for meals, accommodation, fare fees, etc and claiming what was actually spent. The other way is by claiming the reasonable amount set out by the ATO each year but you must have received an allowance by your employer. This method is more attractive as you do not need to keep receipts but you do need to show some evidence that you did spend the allowance received for work related travel e.g. a diary. If you are unsure how to keep appropriate records or if you can claim travel expenses then please contact our office for a consultation.
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 August:

  • Make the July monthly business declaration for the JobKeeper Scheme

21 August:

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

25 August:

  • Lodge and pay quarter ending 30 June 2020 activity statement if lodging electronically

28 August:

  • Lodge taxable payments annual report (TPAR) for the year ending 30 June 2020*
  • Lodge and pay quarter ending 30 June 2020 superannuation guarantee charge statement if contributions were not paid on time*

*TPAR is required if you paid contractors in the following industries: building/construction, cleaning, courier, road freight, information technology and security
*Superannuation guarantee charge is not tax deductible

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.

Head on over to our Website
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

 

Click to email us about the above
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/

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