Newsletter

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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September Newsletter

 

Welcome to our September monthly newsletter!

The ATO have recently released data showing that over 180,000 tax returns that were lodged early in July have had to be amended. This has been due largely to taxpayers ignoring advice to wait for all tax information to be received before reporting to the ATO. This has resulted in income received from banks and investment funds, Government allowances and capital gains made from selling a taxable asset not being reported and assessed for tax. If you believe that your tax return was lodged with missing information then please contact our office to assist with an amendment.

 

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Monthly tax tip:

The ATO are certainly coming down harder this financial year on audits and one area that is in the spotlight is motor vehicle expenses. A taxpayer can claim one of two methods available for each car used to produce taxable income. The cents per kilometre method is quite popular as there isn’t much record-keeping involved. This method allows kilometres driven (for taxable purposes) to be claimed under a set rate up to a maximum of 5000kms. However, the most common error that we find taxpayers making with this method is claiming the maximum of 5000kms without records or proof that they did actually drive that distance for work purposes. Another common error with this method is that it is only available for cars. A motorcycle or vehicle that is designed to carry either one tonne or more, or nine passengers or more is considered an other vehicle and can only claim the logbook method. The logbook method allows a taxpayer to claim a portion of all vehicle costs (e.g. fuel, insurance, registration, etc). A logbook must be kept for twelve weeks which records all trips made by the taxpayer. These records can then be used to correctly calculate the portion used for taxable purposes. The calculation can be used for three years unless the taxpayers situation changes. Motor vehicle expenses can add up to a great deduction so it’s important that calculations are made correctly. Please contact our office if you would like to discuss your motor vehicle deductions and the options available to you.

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 September:

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

30 September:

  • Lodge annual TFN withholding report for 2022 financial year if a closely held trust has been required to withhold amounts from payments to beneficiaries

 

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August Newsletter

 

Welcome to our August monthly newsletter!

The Fair Work Commission has increased the national minimum wage by 5.2% and wages under modern awards by 4.6% for this financial year. It’s extremely important to review all employees pay rates at the start of each financial year and to make sure all employees are receiving at least the minimum benefits. Even employees who are being paid over the minimum rates should still be reviewed as their current rate may not cover the minimum payment anymore.

It’s also important to ensure these increases are included in your budget and included in any price increase calculations to ensure your business can cover the rising cost of wages. Please note that there are certain awards that won’t receive an increase until October of this year as those industries were greatly affected by COVID-19 including tourism, airline and hospitality awards. We can assist your business in payroll management if required so please contact our office if you are unsure on employee payments.

 

 

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Monthly tax tip:

There are many deductions relating to managing tax affairs that are often forgotten about. Most taxpayers are aware of the tax deduction relating to lodging their tax return along with any other bills paid to their tax agent for advice, etc. There are quite a few other expenses relating to the management of tax affairs that may be tax deductible. Software used to keep records or prepare a tax return can be deductible such as accounting/bookkeeping software, invoicing software, logbook recordkeeping software or Microsoft subscriptions. Other record keeping costs could include printing and stationery as well as other office expenses. Travel costs are also deductible including any car expenses for driving to a tax agent as well as meals and other costs associated with travelling a longer distance or staying overnight for meetings. Certain interest charged by the ATO can also be tax deductible however should be verified by your tax agent. Valuation fees relating to deductible gifts and properties may also be tax deductible. As always, evidence should be kept when claiming these deductions including any receipts or logbooks.

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 August:

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

25 August:

  •       Lodge and pay quarter ending 30 June 2022 business/instalment activity statement

28 August:

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

 

*Superannuation guarantee charge is not tax deductible

 

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July Newsletter

 

Welcome to our July monthly newsletter!

Happy new financial year! We cannot wait to complete your tax returns. We do however recommend waiting until the 15th of July to have your tax return completed if you are an individual taxpayer. This ensures the ATO have all the information required and reduces the likelihood of an amendment in the case of missed information. We recommend waiting until September if you are in business to ensure all activity statements for the year have been lodged and payroll has been finalised. Please contact us if you are unsure of what information you will need to complete your tax return.

 

 

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Monthly tax tip:

If you are an employer then you should know that there have been some recent changes to the superannuation guarantee for employees. The old rate of 10% has now been increased to 10.5% and will increase each year for the next 3 years. This added expense for employers could mean a slower rate of payment for this super liability if it has not been included in the budget for your business. It is important to note that superannuation paid late will result in NO tax deduction! It will also require an SGC statement to be lodged and penalties/charges would be payable. Superannuation should be paid for all adult employees at the minimum rate, 28 days after the end of the quarter. You could also start paying super monthly to spread out the liability throughout the year and to assist your cash-flow.

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:

  • STP finalisation is due in payroll software on this date

21 July:

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

28 July:

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

 

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