rECENT POSTS

A huge thank you to our investment team at Akambo Financial Group for running a client update last night. We've had great feedback and very much appreciate your insights! Ready to invest?

With annual superannuation statements now being issued for the 2023 financial year, it's a great time for a review. Always happy to help!

Have a spouse with a low income? Did you know that you can get a tax offset of up to $540 in your own tax return if you contribute $3,000 to their super? Conditions apply - check with us!

Got a capital gain during 2023 that you want to minimise the tax on? Super is an amazing option. Just saved one client over $20,000 in tax when she happened to mention a large super contribution that she hadn't realised she could claim part of as a tax deduction!

Legislation to increase the cut off income limits for the Seniors Health Card has now been enacted. Singles now $90,000 and couples now $144,000. This is a significant increase so worth checking if you're eligible as a result. And, no assets test!

Do you have your director identification number (DIN)? It's estimated 1 million directors that should have one, don't - are you one of them? Fines are $13,000. There's only one week to go.

Kiss them goodbye ...

😘😘😘😘😘😘😘😘😘😘😘😘😘😘😘😘😘😘😘😘

Call them what you will, PAYG Payment Summaries or Group Certificates - you may not receive one from your employer in future.

...See more

ATO.GOV.AU

www.ato.gov.au

It's coming!

A big change to the way employers report their payroll obligations to the Tax Office has just become law for 'small' employers and it starts from 1 July 2019.

Instead of reporting with the lodgement of activity statements and preparing an annual summary and PAYG Summaries, details of wages, tax and super will be reported directly to the Tax Office each time payroll is processed.

...See more

ACCOUNTANTSDAILY.COM.AU

STP to cover all businesses as legislation passes

The extension of Single Touch Payroll to employers with 19 or fewer employees has finally passed both houses today, after amendments were…

Dealing with inherited property can be very complex, but there are tax-planning opportunities to be enjoyed, provided you pay heed to the Tax Office's deadlines.

TAXANDSUPERNEWSROOM.COM.AU

To self-assess or not (on the two-year CGT extension on inherited homes)

  Inheriting a home, or at least a legal interest in one, could be the largest windfall gain that many Australians ever experience – a gain which can be maximised by the CGT exemption related to main residences.

The perils of oversharing in the digital world ...

EMPLOYSURE.COM.AU

Social Media Company Policy | Company Guidelines | Employsure Blog

Social media is blurring the lines between employees’ personal thoughts and their professional responsibilities. Make sure to have a clear social media policy set up.

This affects a lot of people these days, so any move towards clarity is welcomed.

We're still some distance from making it easy to work out, however, as the tax rules and (what many would regard as) common sense rarely mix well.

ABC.NET.AU

Tax is where the home is, regardless of what it looks like

Australian expats could find it easier to argue they are non-residents for tax purposes following a new court ruling against the Australian Taxation Office.

All employers! Check out this article by David Bates @ Switzer regarding your obligations 
regarding employees who are called for Jury Duty!

SWITZER.COM.AU

http://www.switzer.com.au/the-experts/david-bates?fbclid=IwAR0MVLaPsZF_b0U6EqcZm_sKAOM0KmboHiHUfd0wQZtmtXlwShCM-B055Yc#.XG-QjG8fUcV.facebook

David Bates | Switzer

We all love being connected to the digital world, but when you step into it there are those ready to take advantage of the smallest mistake.

This is an excellent summary and a must-read.

ABC.NET.AU

One wrong click, and a criminal can access your phone. Here's what to do when it happens to you

Every day we're sent links by brands, politicians, friends and strangers. You download apps on your devices. Maybe you use QR codes. And any of these could be hiding something more sinister.

Ever wonder if your payslips meet legal requirements? Did you know that there are legal requirements?!

EMPLOYSURE.COM.AU

The Perfect Payslip | Record Keeping Requirements | Employsure

Payslips are given to an employee which outlines the amount they are paid. Learn what to include in payslips and your record-keeping obligations as a business owner.

Are you a small business looking for help with your record keeping? Or maybe you're not sure if you are meeting all of your obligations as an employer?
Did you know the Tax office runs free (short) information sessions to help small businesses meet their obligations. They are available at several venues around Perth, so there is likely to be one close by. If you are interested check out the link below.
https://lets-talk.ato.gov.au/sbworkshopswa

Nobody likes paperwork, but its absence can add more hurt at the worst possible time ...

https://www.abc.net.au/…/mans-videotaped-will-deem…/10634994

ABC.NET.AU

'I'm too lazy, I'll just say it': Will that was recorded before man's death ruled to be valid

A man who said he wanted to give all his possessions to his girlfriend in a recorded video and then crashed his motorcycle the same day becomes the subject of a Supreme Court battle.

It's Christmas party season again and time to reward your staff for a great year. But before you do be sure to check out this quick guide from the Tax Office.

ATO.GOV.AU

Work Christmas parties and gifts

Unwrapping fringe benefits tax this festive season.

Like the appeal of paying off your purchases using facilities such as Afterpay? Whilst they certainly have their uses be aware that although Afterpay does not identify as a credit service this is how the banks see it if you're applying for a home (or any other type) loan. According to ASIC 60% of the buy now pay later facilities are used by those aged 18-34 which is prime home buying age.

Single Touch Payroll (STP) is an initiative to enable employers to report salary or wages, pay as you go (PAYG) withholding and super information directly to the ATO at the same time they pay their employees. The law will apply to all employers from 1 July 2019 (employers with more than 20 employees have be required to use STP since 1 July 2018).

ACCOUNTANTSDAILY.COM.AU

Highly anticipated STP law secures passage

Single touch payroll will now cover businesses of all sizes after legislation was passed by the Senate today.

Which bank? Not any of the major suspects, it appears. :-)

MYBUSINESS.COM.AU

Ranking lists satisfaction with Australia’s banks

A ranking of customer satisfaction with banks operating in Australia has revealed a widening gulf between the big four and the others, and identified where customers are most happy with the service they receive.

It's that time of the year when many people are considering adding a furry friend to their family. Pets are adorable but can be quite costly. From personal experience, pet insurance is a sensible investment for your pet and your peace of mind. Go to iselect.com.au to compare insurances for your new addition!

A record number of home loans are set to revert to principal and interest from interest only in 2020 according to the Reserve Bank. That's just a little over a year away. Meeting future repayments can a bit of a shock initially so check the terms of your loan, know when the change will occur and get your cashflow organised over the next 12 months so that you can cover the often much larger loan repayments.

We have already seen instances of this and you need to check carefully to detect the scam, so do take care!

MYBUSINESS.COM.AU

Urgent warning to businesses after $300k loss

The ACCC has issued an urgent warning to all businesses over a huge spike in the number of people falling victim to a targeted scam, with one business conned out of more than $300,000.

For all in business and otherwise self-employed it can be very tempting to not prioritise our future, but sometimes we need to put it first.

MYBUSINESS.COM.AU

Risky business: The trap of forgoing super

Many business owners refrain from paying themselves superannuation, suggesting the business is their retirement asset. But this simplistic view can actually be a recipe for financial ruin.

If you use a contractor to carry out work for your business you may be liable to pay superannuation (among other things) for them. The law around paying contractors can be confusing, and the consequences for getting it wrong can be costly. Please give us a call if you think you are affected.

TAXANDSUPERNEWSROOM.COM.AU

Gig economy danger: Hiring a "contractor" who is really an employee

  If your business client is looking to put on more staff, then by all means congratulate them. But they may also benefit from a follow-up warning. In these days of the “gig economy”, the engagement status

Yep!

Australian Taxation OfficeLike Page

14 November at 16:17 · 

🚨 SCAM WARNING 🚨 With tax time over, be on high alert for phone calls demanding the payment of fake tax debts. Stay vigilant and warn your friends and family so...

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If you have an elderly relative or friend in aged care be aware that the removal of the medical expense tax offset after 30/6/19 may mean they have a tax bill that they've never had before. Cash flow management is the key to dealing with this as the liability can be significant depending on their circumstances.

A new but important consideration - digital assets/social media accounts - what happens to these when you die? Facebook accounts, cryptocurrency/bitcoin, Paypal accounts etc all need to be considered in your will. Make sure yours contains instructions on how to locate and access these platforms and accounts!

We are going to continue posting about this issue, as it has the potential to adversely affect anybody who leaves Australia and becomes a non-resident for income tax purposes. To totally lose the Main Residence exemption on a property you have lived in (potentially for decades) seems grossly unfair, but it is exactly what is currently being proposed!

ACCOUNTANTSDAILY.COM.AU

Treasury CGT defence panned, questions raised

Treasury’s defence of the bill proposing to deny the CGT main residence exemption for non-residents has been criticised, with opponents concerned that little to no amendments will be considered.

For all businesses and casual employees this case will have huge implications!

MYBUSINESS.COM.AU

Government heads to court over casual entitlements

The federal government has revealed it will join legal proceedings designed to clarify the situation over casual employee entitlements and the claim that 

Claiming home office expenses in your tax return? The Tax Office have come up with 3 golden rules to bear in mind:

1. You must have incurred the cost yourself and it must not have been reimbursed;
2. The expense must relate directly to earning your income;
3. You must have a record to prove the expense.

...See more

It doesn't help that there's been a recent overhaul regarding the definition of 'residency' for income tax purposes. Anyway you look at it this is (if it passes as drafted) arguably 'bad law'.

ABC.NET.AU

Expats cry out for changes to tax laws that hit the family home

Expats are scrambling to sell their family homes to avoid getting hit with big capital gains tax bills under law changes being considered by Parliament.

September tax update ...

Tax & Super Australia

Review what happened last month in the world of tax. #MakingTaxEasy

The annual awards list no business wants to appear on!

MYBUSINESS.COM.AU

Meet Australia’s ‘worst’ products in 2018

Every year, consumer group Choice recognises the products and services on sale in Australia that it deems to be the worst with the Shonky Awards. Here are this year’s “winners”.

A local case where the scammers had a win. :-(

MYBUSINESS.COM.AU

Perth business loses $65,000 to invoice scam

A Perth car dealership has suffered a $65,000 hit after being caught by an invoice payment scam, prompting a warning to all businesses

Did you know you may still need to lodge an income tax return if your income is under the tax-free threshold of $18,200? Reasons include having tax deducted from your pay (so you can get it refunded), being in receipt of reportable fringe benefits or reportable employer superannuation contributions and reporting or claiming a prior year loss to name a few!

The 'funny' thing about this issue is that it's not hard to satisfy the Tax Office rules, but the consequences of not meeting them can be severe. If you need a hand with your claim contact us.

MYBUSINESS.COM.AU

ATO clamps down on work-from-home claims

Many business leaders conduct at least some of their work from home. And it is deductions on these home-based activities over which the ATO is cracking down on – hard.

The WA Seniors Card - are you or someone you know entitled to it? If you're 62 (if born on or before 30/6/57) or older, a permanent WA resident and work less than 25 hours per week in paid employment you just may be! You could be missing out on free or discounted travel, discounts on rates, water, driver's licence, vehicle registration, even your dog and cat registration (plus lots more!). Enquire today www.seniorscard.wa.gov.au

Important update for all employers - from today all employees covered by industry and occupation based awards are entitled to 5 days of unpaid family and domestic violence leave.

If your employer started using the new single touch payroll system during the 2018 financial year you may not receive the traditional payment summary (yes, I know, lots of people STILL call them group certificates!). The new yearly pay summary will be called an income statement and is not required to be issued by employers before 14th of August each year. These will be available through your myGov account or we can access them through the Tax Agent Portal.

They say a picture is worth a thousand words - in this case it turns out it might be worth a whole lot more!

ABC.NET.AU

When a $2,000 credit card debt would take 17 years to pay off

Making the banks' minimum repayments on your credit card will cost you in the long run.

More and more people are now part of the 'gig economy', but many of our laws still treat them as employees for some purposes. Knowing the difference between a contractor and an employee can be critical!

INTHEBLACK.COM

When is a contractor not a contractor?

Mistaking an employee for a contractor can devastate any business, with fines of up to A$63,000 per breach.

The Tax Office has released its guide as to the five most common errors made in individual income tax returns. Given they are planning on contacting 1 million taxpayers for the 2018 tax run it's probably wise to take note.

https://www.ato.gov.au/…/ATO-guide-to-the-5-most-common-T…/…

ATO.GOV.AU

ATO guide to the 5 most common Tax Time mistakes

As tax time 2018 kicks off this weekend the Australian Taxation Office (ATO) has profiled the five most common mistakes and the…

Dealing with property and tax can be very complicated - there's Capital Gains Tax, income tax, GST and transfer duty. It really pays to check before you enter any transaction, as the dollars involved are large - and the tax can be too!

ACCOUNTANTSDAILY.COM.AU

Surprise taxes catching out property owners with big sales

Accountants and advisers have been urged to take a cautious approach in dealing with property collective sales, with clients potentially their losing capital gains tax exemption and being liable for GST in some cases.

It's worth reading through to the end of this article where it notes that registering a business name does not provide you with legal protection regarding its use by others - our registration of the business name, The Bottom Line, is an excellent example!

ABC.NET.AU

Mexican stand-off over phrase 'Taco Tuesday' ignites debate over trademark rules

What words and phrases are businesses allowed to trademark to sell their goods and services?

If you earn less than $51,813 for the 2018 financial year (and meet the relevant work tests) you may be able to take advantage of the Government superannuation co-contribution (where they actually make a contribution for you!) Need more information? Email us now!

Superannuation update # (oh, there's too many, I'm going to stop counting!). Do you pay a pension from your self managed superannuation fund? Make sure you pay the minimum payment by close of business 29th June 2018 or you'll lose the fund tax exemption!

Superannuation update #10 - word has it that if Labor have their way not only will they be removing the refund of excess dividend imputation credits but that they may reduce the non concessional contributions cap to $75,000 per annum. So, if you have been thinking about making a non concessional contribution into super, now may be the time to act on it! If you were looking at taking full advantage of the caps, a $100,000 contribution late June 2018 and a $300,000 contribution early July 2018 is currently possible.

This is an excellent summary of what is one of the most common issues faced when preparing income tax returns - and it's an issue the Tax Office has said will be subject to much scrutiny this coming tax year, so it's worth a read.

TAXANDSUPERNEWSROOM.COM.AU

Home to work travel claims? Generally not, but sometimes…

  As a general rule, travel from your home to your workplace is not allowed as a deduction because it constitutes a “private expense”. There are however specific situations where this rule does not apply, and there

Superannuation update #9 - we've talked about concessional contributions into super (paid by your employer or those you pay yourself and claim as a tax deduction). The other type of super contribution is non-concessional (comes from after tax money held outside of super that you wish to contribute to your fund). The new cap for the 2018 year is $100,000 (or up to $300,000 using the cap for this year, 2019 and 2020 all at once). For the first time, this year your total super balance helps determine whether you can contribute any non concessional contributions at all. Check your eligibility with us prior to making any contributions - but do it before 30 June 2018!

Superannuation update #9 - we've talked about concessional contributions into super (paid by your employer or those you pay yourself and claim as a tax deduction). The other type of super contribution is non-concessional (comes from after tax money held outside of super that you wish to contribute to your fund). The new cap for the 2018 year is $100,000 (or up to $300,000 using the cap for this year, 2019 and 2020 all at once). For the first time, this year your total super balance helps determine whether you can contribute any non concessional contributions at all. Check your eligibility with us prior to making any contributions - but do it before 30 June 2018!

So interesting are the superannuation updates, even the kitten is reading them! Stay tuned for another one a little later this week.

Superannuation update #8 - the concessional contributions cap is $25,000 for this current (and future) financial years. This includes all employer superannuation contributions and any deductible superannuation contributions you make yourself. Remember - the money must be received by the super fund by close of business 29th of June to be deductible and (if claiming deductions yourself) the paperwork completion is vital to the deduction!

Well, it's been an unusual week here at Simmonds Le-Fevre - we have taken in a mummy cat and her kitten to help out Perth Rescue Angels! Um, that's my desk ...

For those looking to combine a spot of shopping with their end-of-year tax planning ...

MYBUSINESS.COM.AU

Busting confusion around the $20K write-off

With the $20,000 asset write-off extended for another year, SMEs are asking how they can take advantage of this tax break, but many are confused about whether taxes and add-ons form part of the deductible threshold.

Superannuation update #7 - from 1 July 2018 you can use up to $30,000 of your superannuation monies to help your purchase your first home. How cool is that?? As always lots of rules but potentially a great way to start the home ownership journey!

Sick of paying excess contributions tax (you know, that annoying extra tax if your super contributions exceed the $25,000 cap) - well, the budget has a solution for you from 1 July 2018. Get in touch for more details.

And this - more focused on super and retirement

SuperGuide.com.au

 · 

2018 Federal Budget summary: Superannuation and retirement measures

2018 Federal Budget summary: Superannuation and retirement measures

On 8 May 2018, Treasurer Scott Morrison released his third federal budget. His budget speech was titled ‘A plan for a stronger economy.’ He says:…

SUPERGUIDE.COM.AU

Sums it up ...

Tax & Super Australia

 · 

Easy-to-read summary of last night's Budget announcement - https://mailchi.mp/taxandsuperaustralia.…/weeklyenews-244165

Superannuation update #5 - from 1 July 2018 (the 2019 financial year and going forward) catch up superannuation contributions will be allowed. This concession will be particularly helpful for those of us who took some time out of the workforce raising the next generation. Catch up contributions will allow you to ultilise unused concessional caps (up to $25,000 pa). Your total super balance must be below $500,000.

Claiming car expenses in your 2018 income tax return? Read on ...

Tax & Super Australia

 · 

The ATO is particularly concerned about taxpayers either making mistakes or deliberately lodging false claims in relation to work-related car expenses over tax time 2018.

Car expenses claims to get the blowtorch treatment

Assistant Commissioner Kath Anderson has announced that the ATO is particularly concerned about taxpayers either making mistakes or…

TAXANDSUPERNEWSROOM.COM.AU

Superannuation update #4 - the government has proposed an increase in the number of members a self-managed superannuation fund can have - from 4 to 6. Adds a whole world of possibilities for inter-generational wealth creation and estate planning!

We'd add our voice to this discussion - the current debate regarding the corporate tax rate does nothing to address the underlying problems with our confused (and confusing) tax system.

Meaningful tax reform in high demand, says mid-tier

Comprehensive tax reform continues to dominate wish lists for the upcoming federal budget’s, with more than nine in 10 participants in support, according to a new survey.

ACCOUNTANTSDAILY.COM.AU

Superannuation update #3 - new rules are expected regarding the calculation of total superannuation balance (TSB) for superannuation funds that have a limited recourse borrowing used to purchase a property. Anyone considering this type of arrangement is urged to seek advice as soon as possible regarding the all important settlement date and the impact of the property settling before or after 30 June 2018.

Superannuation update # 2 - the Tax Office will allow downsizer contributions to super (for property sales after 1 July 2018 only). Potentially a great opportunity to get money into the concessionally taxed superannuation environment when all other opportunities to do so may have gone. These contributions are in addition to existing contribution caps and allow up to $300,000 per person to be contributed into super from the sale of the family home. No work test, no upper age limit and is allowed even if you have more than $1.6m in super. Lots of conditions of course but a new opportunity that may be of interest.

Here’s a little snippet from our investment team. Want to know more (and why wouldn’t you?!), get in touch with us today!

Akambo Private Wealth - Information Night

Akambo Private Wealth - Information Night

YOUTUBE.COM

As we approach the end of this and the beginning of the next financial year I wanted to share some changes in the dynamic superannuation environment with you (I know, I'm excited too!!). I will post these weekly until we have them covered.

From 1 July 2017 you can claim a tax deduction for contributions made to a complying superannuation fund even if you are an employee (you could never do this before!). These are called concessional contributions. The maximum amount per annum is $25,000 which includes any employer contributions (under SGC and salary sacrifice agreements). Conditions apply though - check with us before making any contributions.

If you missed last night's broadcast of the Four Corners investigation it's worth chasing on iView so you can decide for yourself.

Mark

ATO denies alleged unethical cash grabs

The ATO denies reports of a toxic workplace culture where staff are pressured to meet revenue-raising targets and aggressively pursue small businesses.

ABC.NET.AU

Lovely way to spend Easter - a little wine tasting at the beautiful Stormflower Vineyard