Chesterton Accounting

February Newsletter

Welcome to our February monthly newsletter!

We hope that everyone has settled back in well after the holiday break. We have started contacting taxpayers who have not had their tax completed for the 2022 financial year. Please contact our office if requiring a list of information to gather for your tax lodgement or schedule an appointment.

We are welcoming a new team member this month. Fiona Franz will be joining us and commencing her role as an accounting assistant. Fiona has been working in the accounting industry for many years and is excited to learn more and develop her skills.

 

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Monthly tax tip:

The working from home tax deduction claim methods are changing this financial year. The shortcut method was available up to 30 June 2022 which allowed taxpayers to claim 80 cents per hour when working from home. This was introduced when taxpayers shifted to working from home during COVID-19 lockdowns and was meant to cover all home office expenses. The ATO announced the draft changes of these deductions recently which will be explained in detail below. We suggest keeping records, receipts and logbooks/diaries when working from home. This will allow you to compare your claim methods and choose the highest claim.

Fixed Rate Method:

  • 67 cents per hour can be claimed when working from home
  • This rate covers internet and mobile/home phone costs, electricity/gas, computer consumables and stationery
  • A separate claim can be made for depreciation of home office assets such as computer equipment and office furniture
  • A diary should be kept calculating the hours spent working from home
  • This method is most popular for those that work from home every now and again

Actual Cost Method:

  • All home office running costs can be claimed as per the appropriate work usage (electricity, phone/internet, computer expenses, stationery)
  • All receipts should be kept and logbooks/diaries to calculate usage
  • This method is most popular for those that work from home frequently

Method Comparison (Actual Cost):

  • $90/month internet costs – claiming 15% = $13.50/month
  • $60/month mobile phone costs – claiming 50% = $30/month
  • $150/month electricity costs – claiming 5% = $7.50/month
  • Total of $51/month tax deduction

Method Comparison (Fixed Rate):

  • 20 hours per month x $0.67 = $13.40/month tax deduction

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!

21 February:

  • Lodge and pay December 2022 monthly business/instalment activity statement*
  • Lodge and pay January 2023 monthly business/instalment activity statement

28 February:

  •  Lodge and pay SMSF annual return for new registrants for the 2022 financial year
  •  Lodge and pay quarter ending 31 December 2022 activity statement
  •  Lodge and pay quarter ending 31 December 2022 superannuation guarantee charge statement if the contributions were not paid on time*

*Lodgement concession available for business clients with up to $10 million turnover, who report GST monthly and lodge electronically
*Superannuation guarantee charge is not tax deductible

 

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January Newsletter

Welcome to our January monthly newsletter!

Happy New Year! We hope you all had a great Christmas with your families. The Chesterton Accounting team will be back next week on Monday, the 9th of January at 8.30am.

 

 

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Monthly tax tip:

Payroll after a holiday period can be painful for some employers but you will want to ensure that everything is listed correctly, and employees are paid accordingly. All part-time and full-time employees should be paid their ordinary hours for any public holiday that falls on a usual working day – even if annual leave is being taken over that period. However, if employees are working on a public holiday, then please check their relevant award to correctly pay them at public holiday rates.

If the holiday period requires more staff hours due to increase in customer sales then you could discuss the option of employees accruing “time off in lieu” instead of being paid at overtime rates. This could allow staff to take the accrued leave off in January when everything calms down and work is slow again. As the employer, you cannot force an employee to be paid under this arrangement but you can put together an agreement in writing for your employee to sign if they agree to it.

If employees are being paid a Christmas or end of year bonus then this can be claimed if it has been correctly listed in the payroll system and tax has been applied. It’s also important to note that an employer cannot just give a “cash” bonus that isn’t taxed, all bonus payments are required to be taxed and listed on employees payslips. Should you have any questions or need any assistance finalising payroll from the holiday period, then please contact our office.

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!

 9 January:

  • Chesterton Accounting office will be open again from 8.30am

21 January:

  • Lodge and pay December 2022 monthly business/instalment activity statement*

28 January:

  • Make super guarantee contributions for quarter ending 31 December 2022 to funds by this date

 

*There is a lodgement concession for small business clients with up to $10 million turnover – lodgement of December 2022 monthly activity statement will be due 21 February

 

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December Newsletter

 

Welcome to our December monthly newsletter!

The Chesterton Accounting team are taking a two week break this year and will be closing on Friday, the 23rd of December from 12pm and opening again on Monday, the 9th of January at 8.30am. We would love to thank all our loyal clients for their support this year and can’t wait to see what next year holds for our South Burnett businesses.

 

Happy Holidays GIFs | Tenor

 

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Monthly tax tip:

It’s the time of year again for gifts, bonuses and parties! But what exactly is tax deductible? Gifts to customers can be tax deductible if they are given in hopes of increasing your taxable income (e.g. to retain a client or to encourage further sales) and are non-entertainment based. Gifts to employees are also tax deductible if they are non-entertainment based and are given to retain employees. Christmas parties are generally considered non-deductible entertainment however can be claimed in the correct circumstances. If the Christmas party is held on business premises, during paid staff hours and work continues once it ends then the food purchased would be considered a staff expense (e.g. a lunch-time pizza party). If however, the party happens after work hours at an external location then it won’t be tax deductible (e.g. drinks and nibblies at the local pub at 5pm after work). Please contact our office if you would like to know if your Christmas gifts and party expenses can be tax deductible. Please see below for more examples.

Non-entertainment-based gifts – hampers, wine, gift vouchers, flowers, jewellery, etc.
Claim tax deduction/GST credits? Yes, for both employees and clients
Fringe benefits tax liability? Only if spending more than $300 per employee

Entertainment-based gifts – movie tickets, tickets to sporting event, travel costs for a holiday/vacation
Claim tax deduction/GST credits? Clients – no. Employees – no tax deduction unless FBT applies (FBT applies once the gift is over $300 per employee)
Fringe benefits tax liability? Only if spending more than $300 per employee

Staff Christmas lunch – light refreshments provided to all staff during work hours in the office
Claim tax deduction/GST credits? Yes
Fringe benefits tax liability? No

Christmas party – food and alcohol provided to staff/clients after work hours
Claim tax deduction/GST credits? Clients – no. Employees – no tax deduction unless FBT applies (FBT applies once the gift is over $300 per employee)
Fringe benefits tax liability? Only if spending more than $300 per employee

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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When Is Your Birthday? | Engoo

 

 

Important Dates!

21 December:

  •       Lodge and pay November 2022 monthly business/instalment activity statement

23 December:

  •      Chesterton Accounting office will be closed from 12pm for the holiday period

 

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Final Countdown For Your Director ID

The final countdown is on to apply for your Director ID by the 30 November 2022.
Directors of a company, registered Australian body, registered foreign company or Aboriginal and Torres Strait Islander corporation are required to apply for a Director Identification Number (Director ID) by the 30 November 2022. Failure to obtain a director ID may result in a hefty fine.
Directors need to apply for their director ID themselves, no one can do this on their behalf and it’s free to apply! To apply for your director ID, please visit the below link:
It is a requirement by law that all directors verify their identity with the Australian Business Registry Services before receiving a director ID.
It is important as it will help to:
• Prevent the use of false or fraudulent director identities
• Easier for external administrators & regulators to trace directors relationships with companies over time
• Identify & eliminate director involvement in unlawful activities
For more information, please see the below link.

November Newsletter!

 

Welcome to our November monthly newsletter!

The wet season has started and major floods have already affected parts of Victoria, Tasmania, Queensland and NSW. The ATO have support options available for flood-affected taxpayers. Tax would certainly be the last thing to focus on if you have been affected, so please reach out to ensure lodgement and payment deadlines can be postponed.

 

 

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Monthly tax tip:

If your business holds trading stock then the closing value at the end of the year must be recorded as an asset which does reduce the amount than can be claimed as a tax deduction. E.g. a new business buys $10,000 worth of stock throughout the year and holds a value of $2000 on the 30th of June which means the business will claim a total of $8,000 in stock deductions for that financial year. Trading stock can be valued at cost, replacement or selling price. The cost price valuation usually provides the highest tax deduction, so it is the most popular valuing method. However, for some, the other methods can be the best calculation for their situation. Trading stock deductions should also be reduced by private use. Some business owners may use their own stock for private use e.g. a café owner eating café food items each day whilst working or a cattle farmer that kills a beast for their own personal meat. The stock deductions should be reduced by the cost price of these items used personally. The ATO have provided set rates for hospitality business owners who use their own food for private use, to reduce paperwork (listed below). Please ensure you contact us about your stock deductions if you are unsure what is unable to be claimed at tax time.

Type of business Amount (excluding gst) for adult/child over 16 years Amount (excluding gst) for child 4 to 16 years old
Bakery $1,360 $680
Butcher $990 $495
Restaurant/café (licensed) $4,830 $1,950
Restaurant/café (unlicensed) $3,900 $1,950
Caterer $4,120 $2,060
Delicatessen $3,900 $1,950
Fruiterer/greengrocer $1,010 $505
Takeaway food shop $4,030 $2,015
Mixed business (includes milk bar, general store and convenience store) $4,870 $2,435

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!

21 November:

  •       Lodge and pay October 2022 monthly business/instalment activity statement

25 November:

  • Lodge and pay quarter ending 30 September 2022 activity statement

28 November:

  • Lodge and pay quarter ending 30 September 2022 superannuation guarantee charge statement if the contributions were not paid on time*

 

*Superannuation guarantee charge is not tax deductible

 

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October Newsletter

 

Welcome to our October monthly newsletter!

Just like that, the first quarter of the year is over. It’s now a great time for small business entities to have their tax completed. Small business entities usually are not the recipients of tax refunds, which can make some put off lodging. However, we can assist and discuss options with you to pay any tax debts that suit your cash-flow needs. Please contact our office should you require a list of information/documents to give us to complete your tax.

 

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Monthly tax tip:

The skills and technology boost was announced in the federal budget earlier this year but is definitely not a tax incentive to forget about. The boost allows small business entities to claim an extra 20% tax deduction on skills and training expenditure for employees and technology expenditure. E.g. a business pays $1,000 for an employee to complete a course for skills used in their job so they are able to claim a total tax deduction of $1,200 under this incentive.

This incentive became active from 29 March 2022 (budget release date), however cannot be claimed until the 2023 tax return is prepared. This means that business owners (with the help of their accountants) will need to keep track of these expenses to ensure that they are not forgotten about. As usual, there are many rules, exclusions and caps that will be applied to these incentives so please contact our office before getting too excited about it so we can let you know exactly how this will affect your tax claims.

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!

 

21 October:

  •       Lodge and pay September 2022 monthly business/instalment activity statement

28 October:

  • Lodge and pay quarter ending 30 September 2022 activity statement if lodging by paper
  • Make super guarantee contributions for quarter ending 30 September 2022 to funds by this date
  • Pay quarter ending 30 September 2022 instalment notice. Lodge the notice only if you vary the instalment amount

31 October:

  • Final date to sign up with a tax agent to receive the lodgement concession for the 2022 tax return
  • Lodge 2022 tax return if lodging without a tax agent by this date

 

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