Business Activity Statements

Economic Response to the Coronavirus

 

The Federal Parliament voted last night in acceptance of the $84 billion economic stimulus package. The bills have been passed in both the House of Representatives and the Senate.

Below is the list of key tax measures and payments that are included in the package.

Business:

  • The instant asset write-off threshold is set to be 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 employ 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

Individuals:

  • Coronavirus supplement being paid by Centrelink at a rate of $550 per fortnight for eligible individuals
  • Tax-free payments of $1500 to social security, veteran and other income support recipients and eligible concession card holders
  • Temporary early release of superannuation of up to $10,000 during the 2020 financial year and a further $10,000 in the 2021 financial year – these payments will be tax-free and will not affect Centrelink payments
  • Government assistance to regions and communities that have been severely affected by the outbreak

Timing of Assistance:

  • Immediately, with deductions to be included in 2019-20 tax returns – Increased instant asset write off, accelerated depreciation
  • As soon as practicable – Support for Coronavirus-affected regions and communities
  • From 31 March 2020 – First round of $750 payments to support households
  • Applications from early-April – Assistance for existing apprentices and trainees
  • Applications from mid-April 2020 – Temporary early release of superannuation
  • From 27 April 2020 – Income support and a Coronavirus supplement
  • From 28 April 2020 – First phase of Boosting Cash Flow for Employers (tax-free PAYG credits)
  • From 13 July 2020 – Second round of $750 payments to support households
  • From 21 July 2020 – Second phase of Boosting Cash Flow for Employers (tax-free PAYG credits)

For more details, please visit the treasury website at https://treasury.gov.au/coronavirus

March Monthly Newsletter!

Chesterton Accounting is growing again and we are currently looking for an experienced accountant to join our small team in preparation for tax time. The accounting position will commence in April and we are very excited to introduce our next team member to all of our clients. Stay tuned by following our Facebook page to see who our new accountant will be next month.

Monthly tax tip:
Investment properties, including residential and commercial can be a great tax deduction. Any investment losses, including that from an investment property can actually be used to offset taxable income, which will reduce the tax liability. Investment property deductions can include council rates, landlord insurance, garden maintenance, general repairs, advertising, depreciation of fixtures and fittings as well the interest and fees paid on the property loan. These deductions will offset the rental income received and may result in a loss. This loss can then be claimed against other income received including wage, business and other investment income. Majority of investment properties are negatively geared, meaning that they are a long-term investment and you shouldn’t expect to really make some earnings until you sell the property. So, this investment can be a great choice for someone who has a high taxable income and can afford to invest some of their personal capital whilst reaping the tax benefits. We do recommend discussing your options surrounding investments with your financial advisor. However, if you would like to know more about claiming rental property deductions and losses then please contact us.
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!

21 March:

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

31 March:

  • Lodge and pay tax returns for companies and self-managed superannuation funds with income of more than $2 million
  • Lodge and pay tax returns for individuals and trusts whose latest return resulted in a tax liability of $20,000 or more
Click to email us about the above

October Monthly Newsletter

Welcome to our October Monthly Newsletter! 

Single Touch Payroll registration became mandatory on 1 July 2019, however if you were considered a “small employer” which is defined as having less than 20 employees, you had a concession date of 30 September 2019 to start reporting. If you missed these deadlines then you can apply for a deferral with the ATO but must have good reason, e.g. transitioning to appropriate software, no access to internet, etc. From our experience, the STP process is super easy and takes only a matter of minutes to become connected (if you are already using appropriate software). Lodging STP pay events are also an extremely simple process so do not be alarmed if you haven’t jumped on the band wagon yet – it’s easier than you might think! If you are unsure where to even start with this process then we suggest contacting your software provider. If you are not using appropriate software or would prefer that we manage your payroll then please contact us to discuss your options.
Monthly tax tip:
Is your business registered for GST? It may not be required to just yet (you must register once you reach $75,000 in gross revenue) but registering for this can have some great benefits! GST is a consumer tax and shouldn’t actually be paid by business’ however you will be paying for it if you are not registered for GST. When you register, you can claim the GST that was paid on expenses relating to your business. Many business owners will actually avoid registering for GST because they are worried that they will have this new tax to pay – this is a common mistake. When you are registered, you actually collect GST from your customers so it is added to your sale price – not taken from it. For example, if you are going to invoice a customer for $100 you would then add the 10% of GST which is $10, making the total $110. You would then keep the $100 that you earned and pay the $10 to the ATO. So you don’t actually have to pay any new taxes and you are refunded directly for GST that you paid on business expenses! If you are interested in this and would like more information or assistance in registration then please contact us.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 2019 monthly business/instalment activity statement
  • Pay annual PAYG instalment notice. Lodge the notice only if you vary the instalment amount

28 October:

  • Make super guarantee contributions for quarter ending 30 September 2019 to funds by this date
  • Lodge and pay quarter ending 30 September 2019 activity statement if lodging by paper
  • Pay quarter ending 30 September 2019 instalment notice. Lodge the notice only if you vary the instalment amount
  • Lodge and pay annual activity statement for TFN withholding for closely held trusts

31 October:

  • Lodge and pay 2019 income tax return if not lodging through a tax agent
  • Lodge PAYG withholding annual report for no ABN withholding
  • Lodge TFN report for closely held trusts for quarter ending 30 September 2019

Simpler BAS

If you are a small business and you have Business Activity Statements lodged, then from 1 July 2017 your BAS forms will automatically transfer to Simpler BAS forms. The only items that will need to be reported include: Total Sales, GST on Sales and GST on purchases. Please see below for more information from the ATO.

https://www.ato.gov.au/Business/Business-activity-statements-(BAS)/Goods-and-services-tax-(GST)/Simpler-BAS/ 

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