Federal Budget 2020: What it means for you

The Federal Budget was released on Tuesday 6th October. This article has a good summary of the “Winners and Losers” of the Budget. You’ll also find a recap of the key points below. Key Points: This budget is based on economic assumptions including that there will be a COVID-19 vaccine rolled out by the end of 2021. Tax cuts for workers – more money in pockets for more Australians. JobMaker…  Read more

COVID-19 updates you should know

8th April 2020 Rental waivers and deferrals for commercial tenants Prime Minister Scott Morrison announced some new measures for landlords and tenants yesterday (Tuesday 7th April). The new mandatory code will apply to tenancies where the tenant or landlord is eligible for the JobKeeper program, which means those that are in financial distress. This code was described to include “good-faith principles” where landlords must not terminate the lease or draw…  Read more

Snippets

ATO confirms Single Touch Payroll concessions and quarterly reporting Since Single Touch Payroll reporting became mandatory, it’s been unclear exactly how much wiggle room is available for very small businesses, seasonal operators and closely held payees – until now. Single Touch Payroll (STP) represents one of the biggest changes to the way businesses reporting salary and wage payments to the ATO in recent times. First mandated for businesses with 20 or…  Read more

Snippets 13th February 2019

Single Touch Payroll Today, the Australian Federal Parliament passed legislation that requires even the smallest of employers to electronically file each pay run with the tax office using Single Touch Payroll, starting July 1. It’s a big ask for the nation’s 2.3 million small businesses, which employ 40 percent of all workers. Many of these employers still use a combination of spreadsheets, ATO paper tax tables and Post-it notes to process payroll.…  Read more

Snippets

Better access for small businesses to resolve tax disputes. The government announced that it will make tax dispute resolution between small businesses and the ATO cheaper, easier and quicker. The government is establishing a Small Business Concierge Service within the Australian Small Business and Family Enterprise Ombudsman’s office to provide support and advice about the Administrative Appeals Tribunal (AAT) process before an application is made. The Government will also create…  Read more

Snippets

ATO finalises its diverted profits tax guidance Contributed by Michael Bona, Peter Collins, Jonathan Malone, Greg Weickhardt, Chris Morris, Paul McNab, James Nickless and Angela Danieletto, PwC Australia In brief The ATO released its finalised guidance on the diverted profits tax (DPT), Practical Compliance GuidelinePCG 2018/5 and Law Companion Ruling LCR 2018/6, on 26 September 2018. The PCG was previously released as Draft PCG 2018/D2 and the LCR as Draft LCR 2017/D7. In finalising…  Read more

Snippets

GST ruling on supplies connected with Australia The ATO has issued a new GST Ruling GSTR 2018/2 which sets out the Commissioner’s views on when supplies of goods are connected with Australia under key provisions in the A New Tax System (Goods and Services Tax) Act 1999 (GST Act). The concept discussed in the ruling is important because one of the preconditions for liability for GST is that a supply must be connected with the…  Read more

Client Alert – September 2018

Super sector must address trust deficit In a speech to the Financial Services Council Summit on 26 July 2018, Australian Securities and Investments Commission (ASIC) Chair James Shipton said the superannuation sector must restore the “trust deficit” and be more mindful of the responsibilities that come with being the custodians of other people’s money. Mr Shipton said the super industry has been exploiting opportunities to make money from members, citing…  Read more

Client Alert – August 2018

Government launches new service to simplify business registrations The government has officially launched a new stand-alone Business Registration Service, providing a simpler and clearer way to register a business. The service is available at www.business.gov.au. The service can be used for things such as applying for an Australian Business Number (ABN) or goods and services tax (GST) registration. It is for people starting a new business as a sole trader,…  Read more

Client Alert – July 2018

Spotlight at Royal Commission Bank lending practices for small and medium enterprises (SMEs) were in the spotlight when the Financial Services Royal Commission (FSRC) held its third round of public hearings in late May. These hearings focused on the conduct of financial services entities providing credit to SMEs. SMEs are an important sector of the economy – over two million SMEs account for more than 65% of private sector employment.…  Read more

Client Alert November 2017

Compensation for ATO systems outages After the ATO’s unplanned systems outages, it provided lodgment deferrals, and remitted interest and penalties where the outages affected practitioners and their clients’ lodgments. The ATO has also advised that it assesses claims for compensation in two ways: compensation for legal liability (eg negligence); and compensation under the Compensation for Detriment caused by Defective Administration (CDDA) scheme, which allows the ATO to consider claims and…  Read more

Client Alert – October

Bill to increase Medicare levy The Medicare Levy Amendment (National Disability Insurance Scheme Funding) Bill 2017 has been introduced to implement the Government’s 2017–2018 Budget announcement to increase the Medicare levy by 0.5% to 2.5% from 1 July 2019 in order to help finance the National Disability Insurance Scheme (NDIS). Nine other Bills have been introduced to increase the following rates that are linked to the top personal tax rate. TIP: Think…  Read more

Client Alert August 2017

Tax cut for small business: ATO will amend returns For the 2016–2017 income year, the company tax rate for small businesses decreases to 27.5%. Companies with turnover of less than $10 million are eligible for this rate. The maximum franking credit that can be allocated to a frankable distribution has also been reduced to 27.5% for these companies. The reduced company tax rate of 27.5% will progressively apply to companies…  Read more

How to create good habits in business

If you’re like most small business owners, there are never enough hours in the day to complete every task on your list. Often you’re faced with prioritizing what you need to do right now – deal with a customer, meet a deadline, attend an event – and the things you know you should do for the ongoing growth of your business. Scheduling time to attend to these business activities on…  Read more

Client Newsletter – March 2017

Re-characterisation of income from trading businesses The ATO has released Taxpayer Alert TA 2017/1 to say it is reviewing arrangements that try to fragment integrated trading businesses to re-characterise trading income as more favourably taxed passive income. The ATO is concerned with cases where a single business is divided in a contrived way into separate businesses. The business income expected to be subject to company tax is artificially diverted into…  Read more

Superannuation Changes pass Parliament

Two superannuation bills, which include the proposed introduction of the $1.6 million transfer balance cap and changes to concessional contributions, have been passed by both houses.   The Treasury Laws Amendment (Fair and Sustainable Superannuation) Bill 2016 and the Superannuation (Excess Transfer Balance Tax) Imposition Bill 2016 has been passed by both houses, according to the Parliament of Australia website. The Treasury Laws Amendment (Fair and Sustainable Superannuation) Bill 2016 amends five acts including a $1.6…  Read more

Tax Planning & Superannuation

It’s tax planning time for our clients which presents an ideal opportunity to review Self-managed Superannuation Funds (SMSF) compliance obligations. Whilst SMSF Trustees can use professionals such as Financial Planners, investment advisers, Tax Agents and Accountants to do certain tasks on their behalf, they cannot delegate all of their responsibilities; and all Trustees of the fund are equally responsible regardless of how actively involved in the day to day running…  Read more

Grow Your Email List Through Personal Contact

When your email list is small or you’d just like to add more people and get higher open rates, it’s smart to grow your list through personal contacts. Begin with the obvious: ask friends, family and business contacts to sign up. Everyone has a pool of people who might be happy to hear about your business via email. All you have to do is remember to ask. Put a note…  Read more

5 Business Benefits Of Customer Loyalty Programs

Customer loyalty programs are surprisingly simple to implement, especially online, and can bring many benefits to your business. Beyond the simple fact of adding satisfaction for your regular customers, here are five ways your business can profit from starting a loyalty scheme. Customer retention The most obvious benefit of a customer loyalty program is that it improves retention. Customers want to accumulate points to get the rewards or exclusive benefits…  Read more

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