Newsletter

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 10th of January at 8.30am.
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Monthly tax tip:

Vaccinations have been a hot topic lately and we have been answering a number of questions surrounding deductibility as there is a lot of confusion with this expense. Vaccinations are considered a private expense and therefore cannot be claimed as a tax deduction (even if it’s required by your employer/industry). Vaccination incentives are becoming popular among employers and would be treated for tax purposes as following:

Cash Payments:
If a cash payment is received for getting a vaccine then it should be treated as a bonus which should be included in the employees’ payslip with the appropriate tax withholding applied.

Non-cash Benefits:
If an employee receives a benefit for getting a vaccine (e.g. gift certificate, tickets, vouchers) then they would not need to declare that as income on their tax return however it may be treated as a reportable fringe benefit. Fringe benefits tax would not be payable as long as the benefit is offered and available to all employees.

Paid Leave:
Paid leave can be provided to employees to be able to get a vaccine and possibly also to recover from any side effects. This would be treated as usual paid leave and tax would be withheld from the payment.

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!

10 January:
  •       Chesterton Accounting office will be open again!
21 January:
  •       Lodge and pay December 2021 monthly business/instalment activity statement*
28 January:
  •       Make super guarantee contributions for quarter ending 31 December 2021 to funds by this date
*There is a lodgement concession for small business clients with up to $10 million turnover – lodgement of December 2021 monthly activity statement will be due 21 February

December Newsletter

Welcome to our December monthly newsletter!

The Chesterton Accounting team are taking a two week break this year and will be closing our doors on Thursday, the 23rd of December at 3pm and opening up again on Monday, the 10th of January at 8.30am. We would love to thank all of our loyal clients for their support this year and can’t wait to see what next year holds for our South Burnett businesses.

 

 

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Closed for holidays by Silvia Sánchez on Dribbble

 

Monthly tax tip:

It’s that time of year again to talk about the tax implications of Christmas gifts given to employees and clients/customers. If you are hoping to provide gifts to your staff this year then the best tax outcome is to give non-entertainment based gifts that cost less than $300 per employee as the full cost will be tax deductible with GST credits able to be claimed and no fringe benefits tax liability. Entertainment based gifts are generally not tax deductible and no GST credits can be claimed. Similar rules apply for gifts given to clients, contractors or suppliers. Please see examples below.

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

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 December:

  •       Lodge and pay November 2021 monthly business/instalment activity statement

23 December:

  •       Chesterton Accounting office will close for two weeks – please ensure any forms for lodgement are sent to our office before 3pm to ensure they are lodged before we close

 

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November Newsletter

Welcome to our November monthly newsletter!

The end of the calendar year is nearing and of course that means Christmas and the holidays are right around the corner! If you are an employer than now is the time to start considering staff parties, bonuses, gifts and most importantly – time off. Although an end of year bonus or physical gift might be the usual way to reward hard-working staff, many employees are considering their work life balance after the COVID-19 lockdowns. Employees are choosing flexibility and family time rather than a pay increase – so why not consider gifting staff with extra paid leave days to use at their discretion.

 

Waiting For The Holidays GIFs - Get the best GIF on GIPHY

 

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Monthly tax tip:

Staff bonuses are a lump sum payment provided to staff that are usually performance/target-based or are seasonal. All bonuses should be listed in payroll and taxed based on each employees tax obligations. If you instead provide a “cash” bonus to your staff then it cannot be claimed as a tax deduction. Another thing to consider is superannuation as certain bonus payments should accrue super such as performance based or a Christmas bonus. If the bonus relates to something that isn’t considered ordinary time earnings such as a bonus to reward the staff member for overtime provided then it wouldn’t accrue super. Please contact our office should you require assistance with payroll.

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 2021 monthly business/instalment activity statement

25 November:

  • Lodge and pay quarter ending 30 September 2021 activity statement

28 November:

  • Lodge and pay quarter ending 30 September 2021 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!

If you are an employer or intend to be then you should know about the new super choice rules which will start from 1 November 2021. Current rules allow an employee to choose whether their super is paid into their own super account or an account their employer creates for them however individuals are now holding multiple super accounts and paying extra account fees hence the new rules which should stop the creation of multiple super accounts. If you hire a new employee after the 1st of November then you need to ask them for their super account details to pay their super into, but if they do not provide them then you will need to obtain their stapled super fund details which can be found through ATO online services in “Employee Super Accounts” or you can ask us for assistance.

 

 

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Monthly tax tip:

Staff expenses and amenities are often a point of confusion for business owners when it comes to deductibility – so let’s look at what can actually be claimed and what is often accidentally claimed. Amenities for staff can include toiletries and hygiene expenses, water, food and drinks. These expenses are deductible but only to the extent that staff are using these items to continue their work activity. For example, toilet paper, handwash, tea, coffee and biscuits used by employees in an office throughout a working day are all deductible for the employer. Light refreshments can also be deductible if staff are eating them to continue work, e.g. snacks provided to staff for morning tea or sandwiches purchased in the evening for staff that are working overtime hours and continuing work after the meal has been eaten. If the food and drink is consumed outside of work hours when staff are no longer being paid then it is generally non-deductible and viewed as entertainment, e.g. drinks at the pub after work. This can be a very confusing area when working out the deductibility of expenses for staff and not only income tax needs to be considered but so too does fringe benefits tax and GST.

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 2021 monthly business/instalment activity statement
  •       Pay annual PAYG instalment notice

28 October:

  • Lodge and pay quarter ending 30 September 2021 activity statement if lodging by paper
  • Make super guarantee contributions for quarter ending 30 September 2021 to funds by this date
  • Pay quarter ending 30 September 2021 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 where a trustee withheld amounts from payments to beneficiaries during 2021 financial year

31 October:

  • Final date to sign up with a tax agent to receive the lodgement concession for the 2021 tax return
  • Lodge 2021 tax return if lodging without a tax agent by this date
  • Lodge PAYG withholding annual report no ABN withholding

 

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August Newsletter

Welcome to our August monthly newsletter!

We would love to welcome Shalee to our team! Shalee is our new administration assistant and will be the first point of contact in our office so please make sure you introduce yourself next time you’re around.
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Monthly tax tip:
The Medicare levy surcharge (MLS) is payable if an individual has a taxable income of $90,000 or a family taxable income of $180,000 and does not have private patient hospital cover. The Medicare levy surcharge starts at 1% of taxable income and increases to 1.5%, where an individual’s taxable income is $140,000 or for families $280,000. So to avoid paying this surcharge, an individual or family can instead pay for private health insurance with private patient hospital cover. This means a single person with a $100,000 taxable income and no private hospital cover which would typically be hit with a $1,000 Medicare levy surcharge can avoid it by spending $500 to take out a basic private patient hospital cover policy. A taxpayer can save a bit of money by just paying for the basic hospital cover and they get something out of it, unlike paying for the surcharge – it’s a win-win!

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 2021 monthly business/instalment activity statement

25 August:

  • Lodge and pay quarter ending 30 June 2021 activity statement

28 August:

  • Lodge and pay quarter ending 30 June 2021 superannuation guarantee charge statement if contributions were not paid on time*
  • Lodge taxable payments annual report (TPAR)*

*Super guarantee charge is not deductible.
*TPAR will need to be lodged for the following industries: building and construction, cleaning, courier services, security and IT services.

July Newsletter

Welcome to our July monthly newsletter!

Happy New Financial Year! We are ready for another crazy tax season so please contact our office to schedule in for a tax consultation. We do however recommend waiting until the 15th of July to have your tax return prepared as this allows time for the ATO (and yourself) to have the information required and to reduce the need for an amendment should any information be missed. Please contact us if you are unsure what information is required to complete your tax return.
Monthly tax tip:

A property owner has many deductions at their finger tips but one deduction that many owners don’t consider is depreciation. When a new asset is purchased for a rental or commercial property then it would usually need to be depreciated over a number of years, but what about the existing assets and buildings on the property? Existing assets can too be depreciated and claimed as a tax deduction, maximizing tax savings! However, the value of the existing assets and the depreciation rules that can be applied are often unclear. We suggest contacting a quantity surveyor to value the existing assets, including any buildings and provide a depreciation schedule to allow for higher tax deductions against your property. Please contact our office for more information if you are interested in this service.

Important Dates!

7 July:

  • The ATO will start processing tax returns for the 2021 financial year

14 July:

  • STP finalization is due in payroll software on this date

16 July:

  • The ATO will start paying refunds for tax returns lodged for the 2021 financial year

21 July:

  • Lodge and pay June 2021 monthly business/instalment activity statement

28 July:

  • Lodge and pay quarter ending 30 June 2021 activity statement if lodging by paper
  • Make super guarantee contributions for quarter ending 30 June 2021 to funds by this date
  • Pay quarter ending 30 June 2021 instalment notice. Lodge the notice only if you vary the instalment amount
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