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Keeping you up to date

Are you part of the 'sharing economy'?

The rise of web and app based businesses that facilitate bookings for rooms to rent, transportation, odd jobs etc (think Uber  or Airbnb) have brought about a new phrase – the sharing economy.

If you are providing services through an organisation like this, then you need to be aware of the tax and GST implications.  The ATO has set out some guidelines to help you. Click here for further information.

In the instance of ride-sourcing, the ATO has provided further guidance and has advised that people who make their vehicle available for public hire (eg. via sites like Uber) have until 1 August 2015 to register for an ABN and GST. Click here to find out more.

If you are unsure of whether any of this might apply to you, please contact our office.

ATO Correspondence

The ATO has recently announced that it will be taking the next step in its initiative to reduce paper correspondence.

For clients that have registered with the ATO on MyGov, notice of assessments will be uploaded to the site rather than being posted to either our office or you.

It is important that you check the refund or payment the ATO has advised matches the estimate we provided you with.  If it doesn’t, please contact our office immediately so that we can investigate.

Update on the Small Business Measures announced in the Budget

As expected, several of the Small Business Measures announced in the May Budget have passed both Houses of Parliament.

Specifically:

  • the reduction in the company tax rate for business entities with an aggregated turnover of less than $2,000,000. Click here for further information. This is waiting royal assent.
  • the immediate deduction of assets costing less than $20,000 for businesses with a turnover of less than $2,000,00.  However, we strongly recommend that you contact our office prior to making any purchases to ascertain if this will be of benefit in your personal circumstances. Click here for further information. This has received royal assent and is now law.

Any questions, please contact your accountant.

Tips for Small Business - Tip 4

We are continuing on with CPA Australia’s tips for Small Businesses – this is the fourth tip in the series of five. 

Tip 4 – Adopt appropriate risk management strategies

Uncertain times may expose your business to risks that threaten its viability. CPA Australia therefore recommends that businesses develop appropriate risk management strategies that help to reduce the following risks:

Read more ...

Own a holiday home? Expect a letter from the ATO!

The ATO is writing to owners of houses and units in popular holiday areas reminding them of what can and cannot be claimed as a tax deduction for their holiday properties.

This follows several audits where property owners were found to be claiming expenses incorrectly, resulting in substantial deductions being disallowed.

Common ‘mistakes’ were:

Read more ...

Make sure salary packaging does not cost you your super

Many of us use this time of the year to consider options to reduce tax by increasing our contributions to super or salary packaging a car or laptop.  This can be a smart option as it can reduce tax, and in the case of super contributions, boost your retirement savings.

But if you are going to salary sacrifice it is important to first check with your employer what their policy is on super guarantee.

Read more ...

Single Touch Payroll delayed

You may recall from a previous newsletter that the Government had announced the introduction of Single Touch Payroll – where business accounting software (eg. MYOB, Xero etc) would automatically send payroll information to the ATO when employees were paid. This was meant to come into effect from 1 July 2016.

The Government recently announced that it will delay the implementation of this initiative and will undertake further consultation with the business community to ensure that any concerns are allayed before going ahead.

We will continue to provide further updates as they arise.

Do you have a staff member leaving? Don't get caught out with FBT

The Fringe Benefits Tax (FBT) year ends in March each year.  At that time we send out forms to help calculate your FBT liability for the year.  But if you have a staff member who receives a fringe benefit leave part way through the year, you may need to them to complete forms before they leave.  If they don’t, you might find you have to chase them for signatures months after they have left, or where you can’t get the appropriate documentation, find you have an increased FBT liability.

Read more ...

Tips for Small Business - Tip 3

We are continuing on with CPA Australia’s tips for Small Businesses – this is the third tip in the series of five.

Tip 3 – Review your cost structures for savings

Increasing business costs was a theme in some of the markets surveyed. If a business cannot bring costs under control or pass increased costs onto customers, this reduces both cashflow and profitability and can impact the future viability of your business.

Read more ...

FBT

It’s that time of year again when businesses that provide benefits to employees need to consider the Fringe Benefits Tax (FBT) implications.

Business clients will receive an annual questionnaire next week to help you consider your situation and whether you need to take steps now to minimise any FBT payable.

Read more ...

How the 'cloud' can make your world sunny

Cloud technology has been around for a while now and we have seen some real benefits in converting. If you haven’t yet seen the light, we’ve put together a list of the top reasons why you should consider a move to the cloud….sooner rather than later!

Peace of Mind!

We often hear that people are concerned about the security in using cloud technology.  But did you know that cloud technology is safer than leaving your information on your computer?  The technology they use is constantly being updated, as is the security, so you can be assured that it is safe. 

Read more ...

Tips for Small Business - Tip 2

We are continuing on with CPA Australia’s tips for Small Businesses – this is the second tip in the series of 5.

Tip 2 – Improve your productivity

Survey results indicate that some businesses need to focus on getting more from existing assets and employees. For a business to be successful in good times and bad, it needs to ensure that their business is operating as efficiently and effectively as possible.

Read more ...

Before you run out and have a spending spree....

One of the announcements in the Federal Budget was the deductibility of assets of less than $20,000.  But please be warned that this has not been legislated as yet – so you might want to wait before getting your credit card out and going on a shopping extravaganza for your business.

If this legislation is passed it will be retrospective from 7:30pm on the 12 May 2015, so some retailers may be encouraging you to spend up big now. As with any proposed law changes it can be prudent to wait until it has actually been passed before acting on it.

Read more ...

SMSF Contraventions - the ATO's new approach

The ATO has recently confirmed they are taking a new approach in instances where a contravention report for a SMSF is lodged by an auditor. Details can be found on the Cooper Grace Ward website.

The good news is that we don’t see many contravention reports for our clients. However, if we determine that a contravention report may be issued by the auditor for your SMSF, we will be in contact with you prior to sending your work to the auditor to discuss the issue so we can determine the best way to manage it.

We also have advice that the ATO is unlikely to have the resources to contact EVERY trustee and that they may be prioritised based on the severity of the issue and in some instances may make contact by post.

As more details of their new approach become known we will keep you updated.

Tips for small business - Tip 5

We are continuing on with CPA Australia’s tips for Small Businesses – this is the last tip in the series.

Tip 5 –Review your business plan for the changed environment

If business conditions change, it is good practice to revisit your business plan and budgets and amend them to reflect current circumstances.

We therefore recommend businesses should:

Read more ...

The ATO is keeping up with technology

The ATO recently released an app to help taxpayers manage their tax on the go.  They have a range of calculators to help manage your finances, as well as the ability to add reminders for lodgement due dates to the calendar on your mobile device.

To find out more, click here

Is your business SuperStream ready?

SuperStream is a Government reform aimed at improving the efficiency of the superannuation system.  Basically, it is a means of submitting data and making contributions electronically on behalf of all of your employees in a consistent and simplified manner. 

If you employ more than 20 employees, this initiative kicked off on 1 July 2014. 

All other employers now need to comply with SuperStream from 1 July 2015.

The ATO have put together some frequently asked questions for employers.  Click here for further information.

Now would be a great time to check whether your payroll software is SuperStream compliant.  If it’s not, you may wish to look to upgrade to one that is. 

Alternatively, the ATO and many of the industry super funds are offering a superannuation clearing house facility that is SuperStream compliant.  

General Advice

The information provided by Bentleys (Sunshine Coast) Pty Ltd does not constitute financial product advice and is for general information only. It is written without taking into account any individuals personal objectives, situation or needs, and is not intended as professional advice. Any person acting upon such information without receiving specific advice, does so entirely at their own risk. Please contact your Accountant to discuss your personal situation before relying on this information.