Australian Taxation Office

August Monthly Newsletter

Welcome to our August Monthly Newsletter! 

The low and middle income tax offset has now become law and will be available until 2022. The maximum offset is $1,080 and is calculated on your income level. You will receive some of this offset if your taxable income is less than $126,000.

If your taxable income:

  • does not exceed $37,000, then you will be entitled to an offset amount of $255 on any tax payable
  • exceeds $37,000 but is not more than $48,000 then you will be entitled to an offset amount of $255, plus 7.5% of the excess above $37,000 to a maximum offset of $1,080 on any tax payable
  • exceeds $48,000 but is not more than $90,000, then you will be entitled to the maximum offset amount of $1,080 on any tax payable
  • exceeds $90,000 but is not more than $126,000, then you will be entitled to an offset amount $1,080 less 3% of your taxable income above $90,000

Monthly Tax Tip:

Do you claim a portion of your mobile phone costs as a business expense? If you claim more than $50 per year then you are required to keep a four-week diary to substantiate your claim.

You could calculate this as:

Dividing the number of business calls by the total calls (e.g. 100 business calls / 400 total calls = 25%)

Dividing the time spent on business calls by the total time spent on calls (e.g. 10 business hours / 40 total hours = 25%)

Once you have calculated the percentage of business use, you can then claim that percentage of each phone bill throughout the remainder of the financial year.

Important Dates!

14 August:

  • Lodge PAYG withholding payment summary annual report

21 August:

  • Lodge and pay July 2019 monthly business/instalment activity statement

25 August:

  • Lodge and pay quarter ending 30 June 2019 activity statement if lodging electronically

28 August:

  • Lodge and pay quarter ending 30 June 2019 superannuation guarantee charge statement if contributions were not paid on time
  • Lodge taxable payments annual report*
 *You are required to lodge a TPAR if you are in the following industries and have made payments to contractors for these services: building and construction, cleaning and courier industries.

Single Touch Payroll

Are you ready for Single Touch Payroll? As of the 1st of July, every employer will be required to use some form of payroll software to report to the ATO. Xero’s Payroll Only plan is just $10 a month, allowing you to efficiently report your payroll obligations to the ATO in a matter of clicks. If you are interested in learning more or would like assistance in your account set-up then please contact our office on 07 4179 0106.

Superannuation Guarantee Amnesty

The Government has announced from the 24th of May 2018, a 1 year Superannuation Guarantee Amnesty. This is a rare opportunity for employers to pay their overdue super liabilities without paying the ATO penalty and receiving a tax deduction for the payment. If employers with outstanding payments do not comply in the 1 year period, there will be harsher penalties. Please see the below link for more information.


The Notifiable Data Breaches Scheme

The Office of the Australian Information Commissioner (OAIC) has set out new privacy laws from the 22nd of February 2018 which could impact you. The Notifiable Data Breaches Scheme is a new process that must be followed if a data breach occurs. TFN recipients are one of the entities that are covered by the Privacy Act and therefore must comply with this scheme. So if you have employees in your business then you are a TFN recipient as you would hold that personal information of your employees. If you are a complying entity (TFN recipient or other entity detailed in below link) then you must keep these records safe and secure and notify the affected individuals and the OAIC if a breach occurs. If you would like more information about this then please see the below link for businesses.

Employee Vs Contractor

The most asked questions I hear are on the differences between being an employee versus being a contractor. The below link lists the main differences from the ATO. If you are in the process of hiring or being hired and would like some assistance or more information then please contact my office. Please read below response from ATO on what to do if you’re unsure.

“What if the job you’ve been offered is described as contracting, but it looks more like being an employee?

Or, what if you have been a contractor, but the job has changed and now you think you might be an employee?

First, talk to the business to make sure you understand all the terms and conditions of your working arrangement.

If you have a written contract, it will contain your terms and conditions.

Often a business that is asking workers to wrongly apply for an ABN simply doesn’t understand the differences between contractors and employees. They might not know that they risk penalties for failing to treat their workers as employees. Some employers use this as a deliberate tactic to try and avoid their responsibilities.

You can also have a look at the information on the Fair Work Ombudsman website to help you understand more about working arrangements and how they affect you, your entitlements and responsibilities.

If you’ve signed a contract, consider whether you need to re-negotiate the terms and conditions. Getting legal advice can help you to understand what you are agreeing to and what you can or cannot change. The fact that you have a written agreement doesn’t necessarily make it legal for tax and super purposes.

A business that treats its employees as contractors gets an unfair advantage over others who are doing the right thing. You can report this to us anonymously to help stop unfair business practices.” Australian Taxation Office.—what-s-the-difference/


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