June Newsletter

Welcome to our June monthly newsletter!

Labor has won the election, but what does this mean for you – the small business owner? Not much is changing directly for small business, however there will be significant increases to wages and superannuation payments. These changes will not only increase employee expenses, but we will also see price increases by suppliers. Business owners may find themselves tightening their budgets. However, with the increase in wages, business sales may too see an increase.

For individuals, the final stages of the tax cuts will continue, and no new taxes will be applied as well as the discontinuation of the low-and-middle-income tax offsets that will cease in 2023 as planned.

Monthly tax tip:

The end of the financial year is just around the corner so now is the time to complete those trust resolutions for those entities operating under a discretionary or family trust. They will need to be completed by the 30^th of June to distribute profits for the 2022 financial year.

A trust distribution allows a trust to distribute profits among its beneficiaries which can help to decrease a family’s overall tax liability. For example, a family with two adults and two children would be able to distribute $416 to each child, then the remaining profits split between the two parents to take advantage of individual tax rates and the tax-free thresholds for each adult. If a trust resolution is not prepared, then any profits made will be taxed at top tax rates which is 45% for the 2022 financial year.

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!

5 June:

• Lodge 2021 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 2022 monthly business/instalment activity statement

30 June:

• Superannuation contributions must be paid by this date to claim a tax deduction for the 2022 financial year
• 2021 tax return must be lodged by this date to continue receiving childcare subsidy and family tax benefit payments
• Trust distribution resolutions must be prepared and signed by this date to avoid paying top tax rates