September Newsletter
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August Newsletter
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July Newsletter
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June Newsletter
Welcome to our June monthly newsletter!
It is now June which means the financial year has almost ended! If you would like to book in early for your annual tax then please contact our office for an appointment. We are also more than happy to correspond electronically should you be unable to come into our office. We will be offering our discounted rates at tax time again so make sure you book in before October to save on your accounting fees.
Monthly tax tip:
The Federal Budget revealed a change in the way self-education expenses can be claimed. Previously, the first $250 of the expense was non-deductible, e.g. $1000 paid on course fees would result in a $750 tax deduction. This has now been scrapped, making all self-education expenses tax deductible. But of course we all know that tax law is not black and white and there are still hoops to jump through to make a legitimate claim. The study that you are undertaking must relate to your current employment to the extent that a nurse cannot claim self-education expenses to become a doctor – it really has to relate to only the current taxable income that you have made in the year of claiming.
The expenses that can be claimed include course and tuition fees, internet and computer costs, stationery and office expenses, textbooks and resources, student union fees and travel costs if travel is required for classes, exams, etc. You would also need to be able to show that the study that is being undertaken maintains or improves the specific skills or knowledge you require in your current employment activities or that it results in or is likely to result in, an increase in your income from your current employment activities.
If you are an employer and choose to pay for your employees to undertake study then that can be claimed as a business expense, however fringe benefits tax would apply if the employee wouldn’t usually be able to claim the costs as a deduction if they were to pay for it themselves. If you are unsure about this and what can be provided for your employees or what can be claimed as self-education expenses then please contact our office.
Important Dates!
5 June:
- Lodge 2020 tax return by this date to avoid failure to lodge on time penalties when lodgement due date is 15 May
21 June:
- Lodge and pay May 2021 monthly business/instalment activity statement
30 June:
- Superannuation contributions must be paid by this date to claim a tax deduction for the 2021 financial year
- 2020 tax return must be lodged by this date to continue receiving child care subsidy and family tax benefit payments
May Newsletter
Welcome to our May monthly newsletter!
“A person doesn’t know how much he has to be thankful for until he has to pay taxes on it” – Ann Landers
We are now nearing the end of the financial year with tax time approaching. Now is the time to make an assessment of your profits and apply any tax saving strategies that you can! We are now taking tax planning appointments and are happy to provide anything from a simple chat about your potential taxes to a full tax planning service which includes a detailed estimate of taxable income, income tax payable and a tax savings report which explains which strategies can be applied to reduce income tax this year and potentially in future years. If you are unsure if this service would be beneficial or would like to know more then please contact our office for more information.
Monthly tax tip:
The pandemic has certainly taken a financial toll on all of us with bills and debts being postponed or potentially written off for some. Small business owners may find their debtors quickly piling up faster than they are being paid. We often find that this is an area of a business that is ignored with very few small businesses following up with unpaid accounts let alone knowing how much is owed to them. Unpaid invoices can become what is considered “bad debts” and not many will claim this as a tax deduction. A debt is considered “bad” and can be claimed if the following conditions are met:
- The debt was included as taxable income in a current or previous income year (e.g. a business using the accruals method of accounting for income tax purposes)
- The debt must be considered non-recoverable (this means that it is extremely likely that it will not be paid not just currently but also at any time in the future)
We suggest reviewing your debtor accounts at the end of each financial year and discussing this with your accountant prior to tax return lodgement to ensure that you are not paying taxes on income that you will not be receiving.
Important Dates!
15 May:
- Lodge 2020 income tax return for all entities
- Pay 2020 income tax for companies and superannuation funds
21 May:
- Lodge and pay April 2021 monthly business/instalment activity statement
26 May:
- Lodge and pay quarter ending 31 March 2021 business/instalment activity statement
28 May:
- Lodge and pay quarter ending 31 March 2021 superannuation guarantee charge statement if contributions were not paid on time*
*Super guarantee charge is not deductible.
April Newsletter
Welcome to our April monthly newsletter!
The federal government will be continuing the country’s stimulus package by boosting the travel and tourism industries with a new support package of $1.2 billion. This package will allow travelers a 50% subsidy for domestic flights to select destinations throughout Australia. The destinations included in this package are the Gold Coast, Cairns, Whitsundays, Alice Springs, Broome, Kangaroo Island and Merimbula. This subsidy will be commencing on 1st of April 2021 so plan your holiday now!
Monthly tax tip:
Since we are on the topic of travel and holidays, why not also breakdown how you can make a holiday tax deductible. Business travel involves being away from home for at least one night for business purposes. Reasons for business trips include visiting customers or suppliers, meetings at other company locations, professional development, attending seminars, and networking, etc. Business travel days include days spent travelling, weekend days which are between two business days and days where more than 50% of the day was business activities. A travel diary will be required to keep data of the business activities and correctly apportion the expenses. The expenses that can be claimed whilst travelling are meals, accommodation, air and taxi fares and motor vehicles expenses. Please contact us if you would to maximise your tax deductions during your next trip.
Important Dates!
14 April:
- Make the March monthly business declaration for the JobKeeper Scheme
21 April:
- Lodge and pay March 2021 monthly business/instalment activity statement
28 April:
- Lodge and pay quarter ending 31 March 2021 activity statement if lodging by paper
- Make super guarantee contributions for quarter ending 31 March 2021 to funds by this date
- Pay quarter ending 31 March 2021 instalment notice. Lodge the notice only if you vary the instalment amount