October already! Yep, Spring Racing Carnival is here and Christmas is soon to follow!
INCOME TAX CHECKLISTS
Do you know what we need to complete your income Tax Return?
Find below our Individual Checklist and Rental Property Checklist. Use these as guides to assist you in ascertaining what records we require to complete your return.
NEW Individual Checklist.pdf
NEW Rental Property Checklist.pdf
Have a Business? Be sure you include;
- Cash, online, EFTPOS, bank statements, credit or debit card transactions covering both the sales and other business income AND any expenses you can claim as a business deduction such as contractor expenses, operating expenses and business travel expenses
- Even if your income is below the threshold you still need to lodge a tax return!
Still unsure? Feel free to contact us for further information or clarification.
Small Business Tax Concessions
If you qualify as a small business or small business entity, did you know the ATO offer a range of Tax Concessions?
Some of these concessions including payment and reporting options and apply to sole traders, partnerships, companies or trusts.
Some of the concessions you may be able to access are listed below. Click on the links and see if any apply to you. Find something you think you might be eligible for? Call us and we will assist you to put it in to practice.
Income tax concessions
GST and excise concessions
PAYG instalment concession
To determine if you are qualify for these concessions, contact us check your eligibility (you must review your eligibility each year).
Eligibility – work out if you're a small business entity
Want to find out what's new for Small Business? click on the links below for all the latest changes;
Taxable Payment Annual Report (TPAR)
Did you know that some small businesses now need to lodge a Taxable Payment Annual Report?
If you are a business providing the following services you may need to conform;
- Building and construction services
- Cleaning Services
- Courier services
The TPAR tells the ATO about payments made to contractors for providing services.
Contractors can include subcontractors, consultants and independent contractors. They can be operating as sole traders (individuals), companies, partnerships or trusts.
The details you need to report about each contractor are generally found on the invoice you should have received from them. This includes:
- their Australian business number (ABN), where known
- their name and address
- gross amount you paid to them for the financial year (including any GST).
the ATO use this information to identify contractors who haven't met their tax obligations.
If you fit into one of these reporting categories click on the link and see if you need to lodge a TPAR;
Building and construction services
We are able to assist you lodge these forms. Please contact us for further details. These forms are due once a year. Those businesses in the Cleaning and Courier categories your first TPAR is not due until 28 August 2019
Higher Education Loan Program (HELP) Debt
Do you have a HELP debt? If the answer is yes then it is vital you tell your employer on commencement.
You must start making compulsory repayments against your study or training support loan when your repayment income exceeds the minimum repayment threshold. This is even if you are still studying or undertaking an apprenticeship.
The repayment thresholds are adjusted each year to reflect any changes in average weekly earnings.
Compulsory repayments are made through your tax return. You can also make voluntary repayments at any time to reduce your loan balance.
It is vital you let your employer know when you complete your Tax File Number Declaration on your commencement that you have a HELP debt. This way, your employer can adjust your pay as you go withholding to include an additional amount from your salary and wage income to cover your compulsory repayment. If your employer doesn't know of your HELP debt and doesn't make the necessary adjustments you may end up with a hefty tax amount to pay when you lodge your tax return. Avoid any surprises and always complete the below section of your Tax File Number Declaration.
For more information regarding HELP debts and other associated study and support loans please contact us or have a read of the information available on the ATO website.
Looking for an accounting software to make life easier. Don't forget, we can help you out. We can offer you a solution for as little as $5.50per month!
As a Professional Partner of QuickBooks, we offer QuickBooks online subscriptions for as little as $5.50 per month! Make preparing for tax time and meeting tax obligations easy.
QuickBooks online can assist you with;
- Single touch Payroll
- Secure access anytime, on any device: your data is completely secure in the cloud, allowing you to run your business from your Mac, PC, tablet or phone.
Easily track cash flow: automate bank feeds, send quotes and invoices, track sales and expenses, scan receipts and pay employees.
Reports and insights: create accounting reports and invite your accountant or bookkeeper and get real-time advice and be ready for tax time.
If this is something you want to find out more about? Please contact your account manager who can provide you with more information and help you with set up- every step of the way.
Knowing what you can claim as a work related deduction in your tax return can be a bit of a guessing game....... don't be unsure, know what you can and cant deduct. Remember these rules when claiming your work-related expenses to keep you on the straight and narrow!
1. You must have spent the money yourself and not been reimbursed.
2. The expense must be directly related to earning your income.
3. You must have a record to prove it.
From travel and tools to clothing and home office expenses, these links will help you check out the deductions you can claim;
You may be able to claim a deduction for expenses that directly relate to your work, including:
You may also be able to claim a deduction for:
For deductions specific to your industry or occupation, this link to the ATO may assist in helping you clarify what you can and cant deduct.
Deductions for specific industries and occupations.
Fuel Tax Credits
Small businesses: Have you heard the good news? The $20,000 instant asset write-off threshold has been extended to 30 June 2019!
Find out how you could benefit at www.ato.gov.au/Sbdepreciation
Out Of Interest
How is your Financial Literacy?
The HILDA Survey follows the lives of over 17,000 Australians each year, collecting information on many aspects of life, such as household and family relationships, income and employment, and health and education, which in turn can be used to inform public policy moving forward.
One of the areas of focus in the 2018 HILDA Survey was the collection of information pertaining to the financial literacy of Australians. This was undertaken via the provision of a 5-question quiz, which covered several key areas, i.e. numeracy, inflation, portfolio diversification, risk versus returns, and money illusion.
Without skipping too far ahead, less than 50% of those that completed the quiz were able to answer all five questions correctly. As such, we have included the quiz below. See how you go. The correct answers can be found at the end of this article.
Have a look at this article from MHP Private Wealth's Knowledge Centre. Interesting stuff. Put yourself to the test!
The 50/30/20 Budget Rule
There are many subtle rules and behaviours that we live our lives by. Consequently, whether you are relatively new to the concept of budgeting, or an old hand at it, you may have heard about the 50/30/20 budgeting rule*. In a nutshell, this budgeting rule can often be a useful starting point regarding budgeting and managing your money, as it provides a rough guide to how much money should be allocated towards your needs, wants and savings. For example:
- 50% allocated towards needs, such as rent or minimum home loan repayments, transportation, groceries, minimum credit card and car/personal loan repayments, general and personal insurances, private health insurance, education, utilities, phone and internet, etc.
- 30% allocated towards wants, such as daily coffee, eating out, shopping, entertainment (e.g. subscription services, such as Netflix), hobbies, holidays, etc.
- 20% allocated towards savings, such as emergency funds, savings accounts (e.g. saving for a new car or a housing deposit), additional debt repayments, as well as investments inside and/or outside of superannuation.
Do you know what percentage you are currently allocating towards your needs, wants and savings?
Read more in the article published by MHP Private Wealth's Knowledge Centre;
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 December!
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.