We are approaching the end of the 2018 tax year so, it's time to get your tax records sorted and start the new financial year on the right foot.
If any of your individual or business circumstances are changing from from1 July, be sure to let us know so we can assist you to meet all your necessary obligations and ensure you start the year organised and prepared.
Superannuation Guarantee Amnesty
Are your super payments up to date? Do you need to sort out your employee superannuation payments? The time to do it is NOW..........
The government has recently introduced a Superannuation Guarantee Amnesty that gives employers a one-off opportunity to self-correct past super guarantee (SG) non-compliance without penalty. Catch-up payments made in the 12 month period will be tax-deductible.
The Amnesty will be available retrospectively from 24 May 2018 to 23 May 2019 for previously undeclared SG shortfalls for any period from 1 July 1992 up to 31 March 2018.
To be eligible for the Amnesty and avoid harsher penalties you must:
- discloseSG shortfall amount including nominal interest to the ATO within the 12 month Amnesty period.
- not be subject to an audit of SG for the relevant periods.
To take advantage of the Amnesty with an added benefit of not paying any general interest charge (GIC), you need to:
- make full payment of the shortfall and nominal interest to their employees' super fund (or funds)
- complete and lodge the SG Amnesty Fund payment form.
Payment is essential for you to remain eligible for the Amnesty.
Employers who are not up-to-date with their SG payment obligations to their employees and who don't come forward during the Amnesty may face higher penalties in the future.
Accessing the Amnesty is a simple process. If you are able to pay the full SG shortfall amount directly to your employees' super fund or (funds), then complete a payment form and submit it to us electronically through the business portal.
We are able to assist you to complete these forms and lodge them on your behalf. If needed, we can also organise a payment plan with the ATO on your behalf however please note, you will be charged general interest from the ATO for this option.
For more information click on the link below, or call our office
Have you Been Asked to Register as a Labour Hire Provider?
Employers/businesses are often asked to OR do register as a Labour Hire Provider when it is not always necessary.
Do you know the rules? Don't always do what you are told to do until you know your rights!
The ATO defines Labour Hire as:
You operate a labour-hire firm if:
- you arrange for workers to perform work or services directly for clients
- the client pays you for this service
- you pay the worker for the performed work or services provided to the client
- the worker is not an employee of the client
- you may or may not employ the worker.
Labour-hire can be called different names, including:
- employment agent/agency
- contract management
- recruitment services
- group training organisations (where your business is referred to as the host employer).
Regardless of how the activity is described, if you supply workers to another business or individual, you must withhold from payments you make to individual workers.
Please click on the following for further information relating to aspects of Labour Hire;
Who needs a licence?
What is not a labour hire service?
When a licence is required?
How much does it cost?
Guide to applying for a licence
What to do if the information I provided in my application has changed?
Who is ineligible to apply?
Here is a link to the Act relating to Labour Hire for further specifics https://www.legislation.qld.gov.au/view/html/asmade/act-2017-033
Coal Mining Long Service Levy Decrease
A reminder that there has been a reduction in the payroll levy.
The replacement Payroll Levy regulations will become effective from 1 July 2018.
The levy rate on all eligible wages paid on or after 1 July 2018, will decrease from 2.7% to 2.0%.
It's time to start readying your business processes for the change.
This change does not impact any long service leave entitlements for employees.
More information, including FAQs, can be found here https://www.coallsl.com.au/employers/changes-to-levy-rate.
First Home Super Saver Scheme (FFSS)
Did you know the FHSS scheme allows you to save money for your first home inside your superannuation fund?
This is to help first home buyers save faster with the concessional tax treatment within super.
From 1 July 2017 you have been able to make voluntary concessional (before-tax) and non-concessional (after-tax) contributions into your super fund to save for your first home. And now from 1 July 2018 you can apply to release your voluntary contributions, along with associated earnings, to help you purchase your first home.
You can start making super contributions from any age, but you can't request a release of amounts under the First Home Super Saver (FHSS) scheme until you are 18 years old, and you:
- have never owned property in Australia – this includes an investment property, vacant land, commercial property, a lease of land in Australia, or a company title interest in land in Australia (unless the Commissioner of Taxation determines that you have suffered a financial hardship)
- have not previously requested the Commissioner to issue a FHSS release authority in relation to the scheme.
Eligibility is assessed on an individual basis. This means that couples, siblings or friends can each access their own eligible FHSS contributions to purchase the same property. If any of you have previously owned a home, it will not stop anyone else who is eligible from applying.
This scheme is suitable for first home buyers if:
- you either live or intend to live in the premises you are buying as soon as practicable
- you intend to live in the property for at least six months of the first 12 months you own it, after it is practical to move in.
You can apply to have a maximum of $15,000 of your voluntary contributions from any one financial year included in your eligible contributions to be released under the FHSS scheme, up to a total of $30,000 contributions across all years. You will also receive an amount of earnings that relate to those contributions.
For more information follow this link https://www.ato.gov.au/Individuals/Super/Super-housing-measures/First-Home-Super-Saver-Scheme/
End of Financial Year for Business
Its time to get ready for the end of financial year. Some important things and dates to remember:
- Employee Payment Summaries are due by 14 July 2018. Payers must issue PAYG withholding payment summaries to payees (that is, employees and other workers).
- Superannuation Due by 28 July. Due date for payment of super guarantee contributions for 1 April – 30 June in the previous financial year – contributions to be made to the fund by this date.
- Payment Summary Statements and Payment Summaries to be sent to the ATO by 14 August 2018.
- use this to summarise all payments to your employees and other payees and the amounts withheld from salary and wages and other payments
- these amounts should have been reported at labels W1 and W2 on previous financial year activity statements.
Do you have a trading name? Please read below for important updates relating to the use of trading names, effective from November 2018.
Australian Securities and Investments Commission (ASIC) announced that from November 2018, all trading names, including the trading name listed against ABN's, will be removed from the ABN lookup. However, registered trading names will continue to be listed against ABN's on the ABN lookup.
If you want to continue trading under your trading name and it is not registered, you will need to register it as a business name with ASIC. You will not need to register a business name if you trade under your own name ie John Smith but you will need to have a business name if you trade under any other derivative of your name ie John Plumbing.
Unfortunately you cannot register a business name if that name is identical to one already registered. Use the check name availability search to see if the name you want is available.
We are in the process of contacting clients who fall into this category, outlining what you need to do and what happens after your name is registered. A grace period has been put in place to allow affected businesses to transition over to the new process
Please contact us should you have any concerns relating to this. We are able to assist in the transition.
In the meantime, here are some useful links that you may wish to look at;
Working from home?
You may be able to claim a percentage of your home office expenses on your tax return!
This could include deductions for:
- Office equipment
- Work related phone calls
- Internet access charges
- Heating and Cooling
- Lighting your home office
- Repairs to furniture and fittings
Keen to find out more? Head to ato.gov.au/homeoffice or give us a call.
Are you eligible for the HECS-HELP benefit?
If you studied maths, science, education or nursing at uni, you may be eligible for the HECS-HELP benefit.
The 2015–16 and 2016–17 income years are the last years for which you can claim the benefit. Check if you're eligible and find out more at ato.gov.au/BonusesBenefitsDiscounts
Withdrawing your super before retirement may be illegal and cost you in taxes, penalties and charges.
Don't risk your super – check with us first. Find out more at ato.gov.au/illegalearlyrelease
Couple's Finances: Being in Tune with One Another
Apparently a third of Australians find dealing with money stressful. One of MHP Private Wealth's suggestions for dealing with financial stress is to talk to your partner!! Conflicts and stresses can arise between couples when there is a difference in their beliefs on money and/or their money personalities.
MHP Private Wealth discuss ways to help you recognise and address the differences that may occur in both of these areas through the fostering of communication, mutual understanding and teamwork.
Take a look at the article published by MHP Private Wealth to find out more https://mhpwealth.financialknowledgecentre.com.au/kcarticles.php?id=1756
What Reality are you Creating for Yourself?
Beliefs on money are protective or liberating ideas, thoughts, or opinions that you hold about money.
In this TED Talk, an inspirational individual, Isaac Lidsky, challenges us to let go of excuses, assumptions and fears, and accept the awesome responsibility of being the creators of our own reality.
Please contact us for any clarification on any tax matters or issues pertaining to your individual circumstances.
Be sure to check out the links below and keep up to date with the due dates for your tax obligations.
We'll be back in July with a quick newsletter to assist you get tax time ready!
McDonnell Hume Partners
You can keep up to date with important accounting and business dates and deadlines. More...
The Tax Facts section where you can learn more about tax requirements within New Zealand. More...
Try out our new online calculators. More...
You can also organise an appointment with one of our staff via our special online appointment form. This is particularly useful if you struggle to find the time during normal business hours to phone. Simply click here to book an appointment.