Past extracts for viewing:

Anti-Money Laundering and Counter-Terrorism Financing Laws

From 1 July, Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) regime, regulated by the Australian Transaction Reports and Analysis Centre (AUSTRAC), was expanded to cover higher-risk services provided by certain industries, including the accounting sector.

The AML/CTF regime establishes a regulatory framework for combatting money laundering, terrorism financing and other serious financial crimes. It applies to all designated services provided by the registered tax practitioners, including certain professional services.

For more information, click on the link to visit the official AUSTRAC website to view their full statement and see if you belong in those other certain professional services.

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It’s Time to Finalise your Single Touch Payroll (STP) Data

For employers, now is the time to check your STP data and finalise it by 14 July to avoid follow-up reminders and help your employees get tax ready.

Requirements & Deadline:

• Employers must finalise their Single Touch Payroll (STP) data via their payroll software to confirm all reported yearly information is correct.
• The declaration is due by 14 July (later for closely held payees.)

Before submitting, verify that:

• All year-to-date amounts and the ABN are correct.
• All employees are included, including casuals and former staff.
• The data is for the current 2025-26 financial year.
• Reportable fringe benefits (from 1 April 2025 – 31 March 2026) are included if applicable.

Once you finalise your STP data:

• Advise staff to access their income statements via myGov, but to wait until the status is marked “Tax ready” before lodging their tax returns.
• Any discovered mistakes must be amended promptly and affected employees should be notified as they may need to amend their lodged tax returns.

For more information, click on the link to visit the official ATO website regarding It’s time to finalise your Single Touch Payroll (STP) data.

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Budget 2026-27

The Budget 2026–27 has been released and the Budget papers can be accessed at budget.gov.au.

Further new legislation information relating to businesses, individuals, not-for-profits, superannuation, international tax and other topics are also available on the ATO website.

Please remember the announcements are not yet law and you should contact our office to discuss how the possible changes could affect you.

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FBT Compliance Guide: 2026 Deadlines and Steps

As the 2026 Fringe Benefit Tax (FBT) year ends, employers must assess any non-salary perks provided to staff such as private use of company cars or social functions to ensure they meet Australia taxation requirements. If you are FBT registered but your FBT liability is nil, you are still required to lodge via ‘Fringe benefits tax – notice of non-lodgement’.

Proper preparation involves identifying taxable benefits, calculating their value, and maintaining detailed records to support your lodgements and avoid penalties.

Key Deadlines

• FBT Year Period: 1 April 2025 to 31 March 2026.
• Standard Lodgements & Payments: 21 May 2026.
• Tax Agent Lodgements: 25 June 2026.
• Employee Reporting: Benefits must be reported to employees by 14 July 2026.

4 Key Steps

• Identify: Pinpoint all “perks” provided, such weekend use of work vehicles or paid personal expenses.
• Calculate: Determine the taxable value of these benefits using approved calculation methods.
• Document: Keep thorough records of your calculations and any exemptions you claim.
• Finalise: Lodge your return and pay the liability by the relevant May or June deadline.

Further information on the FBT types, FBT calculator, and general guidance is available at It’s FBT tax time – be ready to meet your obligations.

Beware of business email compromise scams

Business email compromise scams are a sophisticated form of phishing where criminals impersonate trusted businesses or staff to steal money or sensitive information. They may hack email accounts or mimic legitimate messages to send fake invoices or request payments.

Key risks and warning signs:

• Unexpected changes to payment or bank details
• Urgent or unusual payment requests
• Emails that look legitimate but contain subtle differences
• Requests for confidential business information

How to protect your business:

• Verify payment details directly with suppliers using trusted contact methods
• Use strong passwords and multi-factor authentication
• Train staff to recognise suspicious emails
• Confirm unusual requests before taking action

If you’re targeted it is important to act quickly by contacting your bank, reporting the incident, and alerting staff and clients to prevent further loss.

These scams are highly convincing and can cause major financial loss, so staying alert and verifying requests is essential. More information on such cyber security issues can be found on the Australian Cyber Security Centre and ScamWatch websites or sign up for Small Business Development Corporation e-news to keep updated.

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Key Apprenticeship Program

The Key Apprenticeship Program (KAP) is an Australian Government initiative that provides financial incentives to support apprentices and employers in priority industries such as housing construction and clean energy.

Under this program, eligible apprentices may receive up to $10,000 in financial support throughout the duration of their apprenticeship. Employers who hire apprentices in eligible occupations may also receive up to $5,000 in incentive payments to assist with training and workforce development.

The program is designed to address skills shortages in critical industries, encourage more people to start apprenticeships, and support businesses in developing a skilled workforce for the future.

Eligibility requirements and payment structures are determined by the Australian Government and may change.

To get started, search for an Apprentice Connect Australia Provider. These providers are the first point of contact if you want to become an apprentice or hire an apprentice. They connect apprentices and trainees with employers and provide guidance and support throughout the apprenticeship.

If you are already an apprentice and are unsure who your Apprentice Connect Australia Provider is, you can call the Skilling Australia Information Line on 1800 020 108 for assistance.

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Payday Super

As part of the Treasury Laws Amendment (Payday Superannuation) Bill 2025 and the Superannuation Guarantee Charge Amendment Bill 2025, from 1st July 2026, superannuation guarantee payments must be paid to employees at the same time as their salary and wages.

You can read more on the steps to prepare for payday super to ensure employers are ready on 1st July 2026 on the ATO website or contact our office.

**

Business Names Register: ASIC Connect enhancements

Expected early October, ASIC will be introducing improvements to ASIC Connect.

Some key updates you can expect include:

• ‘Cease an Organisation Representative’ now submitted online through the ‘Change
  representative details’ transaction,
  • New error message to indicate a transfer number is incorrect or expired, and
  • New table at ‘Link to your business details’ page to explain different Authorised lodger role
  types.

The enhancements aim to improve user experience overall, with further improvements to the log in process and error messaging coming soon.

These updates reflect our commitment to delivering a better user experience and supporting Australians in managing their business obligations more effectively.

You can read more about what ASIC are doing to simplify regulation and ease regulatory burden on the ASIC website.

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Are your ABN details up to date

You have a responsibility to keep your ABN details up to date. You can update your details online or by contacting the ABR. If your business structure changes you may need to cancel your ABN.

Update your ABN within 28 days of any changes to stay eligible for grants, ensure emergency services can reach you, and maintain trust with customers. Stay informed, stay eligible, stay secure.

If your business structure changes you may need to cancel your ABN and apply for a new one.

For further information view the ABR website

**

Right to disconnect laws

Employees of non-small business employers have the right to refuse to monitor, read or respond to contact (or attempted contact) outside their working hours, unless doing so is unreasonable. This includes contact (or attempted contact) from an employer or a third party.

When working out whether an employee’s refusal is unreasonable, the following factors must be considered:

• the reason for the contact
• how the contact is made and how disruptive it is to the employee
• how much the employee is compensated or paid extra for:
  • being available to perform work during the period they’re contacted, or
  • working additional hours outside their ordinary hours of work
• the employee’s role in the business and level of responsibility
• the employee’s personal circumstances, including family or caring responsibilities.

For further information visit the Fairwork website

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Taxable Payments Annual Report:

It is that time again when some businesses need to report information to us about the payments they make to contractors (including subcontractors, consultants and independent contractors) for providing services. The businesses needing to report to us include those providing:

• building and construction services
• cleaning services
• courier services
• road freight services
• information technology (IT) services
• security, investigation or surveillance services.

Federal, state, territory and local government entities need to report the total payments they make to an entity, wholly or partly, for providing services.

Additionally, federal, state and territory government entities need to report the total grants paid to people or organisations that have an ABN. Local government entities don’t need to report grants.

The information is reported to us on the Taxable payments annual report

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Preparing for a new financial year

As we prepare to close the books on the 2024-25 financial year, it’s a good opportunity to get your records in order. There are a number of employee records that you must keep for 7 years and they must include certain information.

Some records may be updated as part of your day-to-day business operations, like time and wages. Others need to be proactively reviewed for updates. Here’s a quick reminder list:

• Written agreements relating to an employee’s hours of work, such as where you’ve agreed to time off instead of overtime pay or averaging of hours
• Any Individual Flexibility Arrangements.
• Annualised wage arrangements where applicable under the relevant award.
• Termination records for past employees, such as how their employment ended.

For further information, see the fair work record-keeping fact sheet

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Changes to deductibility of ATO interest

The Treasury Laws Amendment (Tax Incentives and Integrity) Act 2025 is now law. This measure means taxpayers can no longer deduct general interest charges (GIC) and shortfall interest charges (SIC) incurred on or after 1 July 2025.

This change applies to GIC and SIC incurred from 1 July 2025, in respect of outstanding or late payments of tax for income years both before and after 1 July 2025. Any GIC and SIC already incurred prior to 1 July 2025 remains deductible for the 2024–25 and earlier income years.

More information on Part IVA  can be found via a recent the ATO website

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FBT 2025 Compliance

As an employer you should consider if a fringe benefit is being provided to an employee.  Fringe benefits tax (FBT) is a tax paid by the employer on certain benefits you provide to employees (or the employees’ associates) and is based on the taxable value of the various fringe benefits provided.

As the FBT year runs from 1 April to 31 March you should consider whether or not you have any FBT obligations as an employer. The ATO provide some great information including a list of FBT exempt vehicles and a Fringe Benefits Tax – guide for employers that can be viewed online. We have also made available the CPA FBT Checklist for viewing.

Employers should also consider lodging Nil FBT returns (even when they don’t believe a Fringe Benefit has been provided) to limit the ATO audit timeframe.

The ATO are focusing on this area and please remember, ultimately the employer is responsible for any FBT payable.

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Key Highlights of the 2025/26 Australian Budget

Key Highlights

1. Cost of Living:

• Energy Bill Relief: Extended to the end of 2025, providing additional rebates for households and small businesses.
• Healthcare: A record $7.9 billion investment in bulk billing for free GP visits.
• PBS Medicines: Maximum cost reduced from $31.60 to $25 per script from January 2026.

2. Tax Cuts:

• Personal Tax Cuts: Marginal tax rate for incomes between $18,201 and $45,000 reduced from 16% to 15% from July 2026, and further to 14% from July 2027.
• Medicare Levy: Increased low-income thresholds for singles, families, and seniors from July 2024.

3. Small Business:

• No extension to the immediate asset write-off deeming all assets over $1k to depreciated (down from the $20k threshold).

4. Housing:

• Help to Buy Program: Expanded to assist more Australians in purchasing homes, with increased income and property price caps.
• Homelessness Services: Doubling of funding and strengthening renters’ rights.

5. Education:

• Free TAFE: Permanent funding for free TAFE courses.
• Student Debt: Reduction of student loan debts by 20% from July 2025.

6. Infrastructure:

• Investment: $17.1 billion over 10 years for road and rail projects in cities, regions, and communities.

7. Disaster Recovery:

• Support: Continued support for communities affected by natural disasters.

8. First Nations Communities:

• Investment: $1.3 billion over six years to support stronger outcomes for First Nations Australians.

This budget appeared aimed at addressing the immediate cost-of-living pressures while being fairly limited in other areas. For more information and the full budget please visit the Treasury website

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Casual employment changes

Changes to the rules for casual employees wanting to become permanent started on 26 February 2025. Eligible casuals can notify their employer in writing of their intention to change to permanent employment. An employer can only refuse the notice for certain reasons. This is referred to as the ‘employee choice pathway’.

A casual can provide written notice to their employer to change to permanent (full-time or part-time) employment under the employee choice pathway if they:

• have been employed for at least 6 months (12 months if employed by a small business)
• believe they no longer meet the requirements of the casual employee definition.

More information on these casual employment changes can be found via the Fairwork website

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Changes to state employment laws commence today

Many of the changes to state employment laws introduced by the Industrial Relations Legislation Amendment Act 2024 have commenced.

Employers and employees in the WA state industrial relations system should ensure they understand the changes.

Key changes include:

• A new prohibition on sexual harassment in connection with work, consistent with the national Fair Work Act2009 provisions.
• An increase to the statutory minimum casual loading in the Minimum Conditions of Employment Act 1993 from 20 to 25 per cent.
• Amendments to the public holiday minimum condition.
• A new enforceable minimum condition enabling employees to request flexible working arrangements in certain circumstances.

Wageline has published new versions of WA award summaries that reflect these changes.

The casual rates in some award summaries have been updated to reflect the increase in casual loading on the State Minimum Wage to 25%. Any award casual rates below the new minimum of $30.22 per hour have been adjusted in the summaries as this is the new legal minimum pay rate for adult casual employees. Pay rates for junior casual employees have also been adjusted where needed to match the relevant junior minimum wage.

More information can be found via the WA award summaries

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Festive season public holiday dates and entitlements

The festive season is fast approaching and now is the time for employers to get prepared by checking the pay rates state system employees must be paid if working on public holidays and other public holiday employment obligations.

This season’s public holidays are:

• Christmas Day – Wednesday 25 December 2024
• Boxing Day – Thursday 26 December 2024
• New Year’s Day – Wednesday 1 January 2025

More information on public holidays can be found here

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Criminals use financial assistance scams to target Australians in hardship

The National Anti-Scam Centre is warning that criminals are posing as providers of No Interest Loan Schemes, emergency relief, rental assistance programs, and charities like Good Shepherd, the Salvation Army, and Wesley Mission.

Report suspected scams to social media platforms and Scamwatch. If you’ve shared personal information, contact IDCARE at 1800 595 160. If you disclosed myGov or Centrelink details, call Services Australia’s Scams and Identity Theft Helpdesk at 1800 941 126 for support.

More information can be found via Services Australia

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Pay your annual review fees in advance and save

Companies and schemes can choose to pay their annual review fees 10 years in advance at a discounted rate.

Paying these fees in advance protects a company or scheme from future fee increases. However, no refunds are available if circumstances change.

Although you are not required to pay your annual review fee each year, you must review your annual statement and notify us of any changes within 28 days.

To learn more, visit the ASIC website

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Paid family and domestic violence leave entitlement to commence next month

Next month, a new entitlement to 10 days’ paid family and domestic violence leave (FDV leave) will commence for all employees in the state industrial relations system.

This entitlement to paid FDV leave comes from the National Employment Standards in the federal Fair Work Act 2009, and will commence for state system employees on 9 September 2024.

The paid FDV leave entitlement is in addition to the five days’ unpaid family and domestic violence leave available to all employees in the state system under the Minimum Conditions of Employment Act 1993.

Find out more here

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Changes for businesses from 1 July 2024

From 1 July 2024 there will be changes that you should be aware of, including changes to the National Minimum Wage, casual employment and business name and company registration fees.

From 1 July 2024:

• The National Minimum Wage will increase by 3.75%. This means the new National Minimum Wage will be $24.10 per hour, or $915.90 per week.
• The superannuation guarantee rate will increase from 11% to 11.5%.
• The Australian Securities and Investment Commission will increase company fees and business name fees
• There are multiple changes to casual employment laws

For more information on changes for businesses, visit the Business.gov website

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Changes for businesses from 1 July 2024

From 1 July 2024 there will be changes that you should be aware of, including changes to the National Minimum Wage, casual employment and business name and company registration fees.

From 1 July 2024:

• The National Minimum Wage will increase by 3.75%. This means the new National Minimum Wage will be $24.10 per hour, or $915.90 per week.
• The superannuation guarantee rate will increase from 11% to 11.5%.
• The Australian Securities and Investment Commission will increase company fees and business name fees
• There are multiple changes to casual employment laws

For more information on changes for businesses, visit the Business.gov website

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Employment records aren’t just paperwork but a legal requirement

Individual employers in the state industrial relations system can face penalties of up to $13,000 for not keeping employment records.

All state system employers are legally required to keep employment records. There are also requirements for employers to provide pay slips.

In 2023, a Fremantle business owner was penalised more than $6,000 for failing to keep a daily record of employees’ start and finish times and failing to produce employment records to an industrial inspector.

Employers are also required to retain employment records for not less than 7 years after employment ends for annual leave and long service leave records and for not less than 7 years after it is made for other employment records.

For more information on employment record obligations visit the DEMIRS website

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Parental leave entitlements for new parents

Eligible full time, part time and casual employees are entitled to unpaid parental leave for the birth or adoption of a child.

This entitlement comes from the National Employment Standards (NES) and applies to all employees in Australia, including employees in the WA state industrial relations system.

Employees under in the state system have additional entitlements under state employment laws to request:

• a return to work after parental leave on a modified basis; and
• a reversion to pre-parental leave working arrangements.

If you are unsure whether you are in the state system head to www.demirs.wa.gove.au/which-ir-system.

For more information on parental leave, visit the DEMIRS website

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EV home charging rates: cents per km

Practical Compliance Guideline PCG 2024/2, sets out a cents-per-kilometre methodology for calculating electricity costs where an electric vehicle (“EV”) is charged at an employee’s or individual’s home. The choice is per vehicle and applies for the whole income or FBT year.

The “EV home charging rate” for the FBT or income year starting on or after 1 April 2022 is 4.2 cents per km.

Taxpayers relying on PCG 2024/2 must keep relevant records. If odometer records have not been maintained as at the start of the 2023 or 2024 year (FBT or income), the ATO allows a reasonable estimate to be used based on service records, logbooks or other available info.

For more information, visit the ATO website.

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How ASBFEO assists small businesses to solve problems

ASBFEO responds to requests from small businesses that are in dispute with other businesses or Australian Government agencies. ASBFEO can provide small businesses with:

• information about dispute resolution options
• access to mediation
• alternative dispute resolution processes under the Franchising, Horticulture, Dairy and Oil Codes of Conduct
• assistance with disputes with the Australian Taxation Office.

ASBFEO resources and tools to support and assist small businesses:

• General resources can be found through ASBFEO’s Resources tools centre, including some best practice guides to help small businesses minimise the risk of potential issues arising.
• New guidance on Getting most out your digital marketing service provider.

For information on the the ASBFEO and dispute assistance, visit their website

New rules for fixed term contracts

New rules apply to the use of fixed term contracts made on or after 6 December 2023.

The new rules include a requirement for employers to give any employee they’re engaging on a new fixed term contract a Fixed Term Contract Information Statement (FTCIS).

The rules also include limitations on how fixed term contracts can be used. There are some exceptions to who these rules apply to.

For more information, refer to Fair Work Ombudsman’s fixed term contract employees page.

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Claiming tax deductions on client gifts

Giving gifts to clients at the end of the year is always popular and may help you retain high value clients and generate more income for your business.

Under Australian Tax Office (ATO) rules, gifts given to a current or former client may be deductible at tax time if they are offered with the intention of generating future assessable income.

However, it is important to seek advice from your accountant or qualified tax professional before deciding to purchase client gifts this festive season as not all gifts are tax deductible.

Visit the tax deductions and concessions page for more information on eligible tax deductions and concessions for small business owners or read the ATO’s tax determination on client gifts

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Be cyber wise – don’t compromise

October is also Cyber Security Awareness Month, a time for you to improve your cyber security knowledge and take action to protect your information and devices.

This year’s theme is ‘be cyber wise – don’t compromise’ encouraging you to take 4 simple steps to be cyber wise:

1. Update your devices regularly.
2. Turn on multi-factor authentication.
3. Backup your important files.
4. Use passphrases and password managers.

Most cybercriminals exploit knowledge gaps to compromise your online security so these small steps can help us all stay more secure online.

Visit the ASD to learn more about their cyber security.

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Changes that may affect your business

Since 1 July 2023 there have been changes that your business should be aware of. These include:

• the national minimum wage – link
• super guarantee rate – link
• business name and company registration fees – link
• award minimum wage increase – link
• Energy Bill Relief Fund for small businesses – link
• changes to workplace laws – link

Learn more from the Australian Government Business website.

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Paid family and domestic violence leave for small business

Employees of small business employers (employers with fewer than 15 employees) can now access 10 days of paid family and domestic violence leave in a 12-month period.

Employees of all other employers could access this leave from 1 February 2023.

What you need to know about the leave:

• 10 days of paid family and domestic violence leave is now available to employees of small business employers.
• Full-time, part-time and casual employees can take 10 days of paid family and domestic violence leave in a 12-month period (it isn’t pro-rated for part-time or casual employees).
• All 10 days are available upfront – an employee doesn’t accrue it.
• It’s a separate paid leave entitlement, like paid annual leave or paid sick and carer’s leave.
• Employers must not include certain information on an employee’s pay slip about taking paid family and domestic violence leave.

For more information visit Fair Work Ombudsman at Paid family and domestic violence leave for small business.

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Small Business Energy Incentive: 20% Bonus Deduction

The Treasurer has announced that the Small Business Energy Incentive will provide businesses with annual turnover of less than $50 million an additional 20% deduction spending “that supports electrification and more efficient use of energy”.

 

It is stated to help small businesses make investments like electrifying their heating and cooling systems, upgrading to more efficient kitchen appliances, and installing batteries and heat pumps.

 

Between 1 July 2023 and 30 June 2024 eligible assets or upgrades will need to be first used or installed ready for use. Up to $100,000 of total expenditure will be eligible for the incentive, with the maximum bonus tax deduction being $20,000 per business.

 

The measure will form part of the 2023-2024 Federal Budget and for more information visit the ATO website.

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FBT 2023 compliance

As an employer you should consider if a fringe benefit is being provided to an employee.  Fringe benefits tax (FBT) is a tax paid by the employer on certain benefits you provide to employees (or the employees’ associates) and is based on the taxable value of the various fringe benefits provided.

 

As the FBT year runs from 1 April to 31 March you should consider whether or not you have any FBT obligations as an employer. The ATO have provided a list of FBT exempt vehicles, FBT webinars and a FBT 2023 tax guide that can be viewed online. We have also made available the 2023 CPA FBT Checklist for viewing.

 

Remember, ultimately the employer is responsible for any FBT payable.

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Steps to take when you have been scammed

Scammers are always looking for new ways to trick people into getting their personal details or paying out money.

 

Below are the following links that can assist individuals or businesses who have been scammed providing assistance on what action to take and who to contact for information:

 

Money Smart – Steps on what to do if you have been scammed, how to report scams and how to get support.

 

ID Care – Helps individuals affected by identity theft and cybercrime.

 

ACCC’s Scamwatch – Information for consumers and small business about how to recognise, avoid and report scams.

 

Small business scams – Find out more about the common scams targeting small business and how to protect yourself.

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Don’t caught out this festive season

It has been another big year and with the Christmas holidays in sight the team at Patane Accounting would like to take this opportunity to wish you a safe and Merry Christmas, and best wishes for the New Year ahead!

 

Unfortunately even at Christmas time you still need to be aware of the different rules and how they can apply. From an income tax perspective the ATO have a published a great webpage on Fringe benefits tax and Christmas parties. Similarly, even at Christmas time everyone should also be aware of work health and safety regulations and a 7 point guide can be found at How to have a safe and happy work party.

 

Wishing you all a very safe and Merry Christmas and with best wishes for the New Year ahead!

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It is time to apply for Director ID

It is a requirement for all directors to apply for a Director ID. All existing directors appointed prior to 31^st October 2021, must apply for their ID by 30^th November 2022.

 

The Director Identification Number (Director ID) is a unique 15-digit identifier given to a director (or someone who intends to become a director) who has verified their identity with the Australian Taxation Office (ATO). It was introduced to increase transparency and combat fraud and illegal phoenix activity.

 

It is free to apply for a Director ID – ABRS have provided a step-by-step process which you can follow here.

 

Please note that applications cannot be lodged through an agent, although we can assist you through the process if you require assistance by contacting our office on 9721 1055. You can apply now through the ABRS website.

 

For those who have registered for a Director ID, please also contact our office by email or phone us on to let us know so we may update our records accordingly.

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Increase in WA Award pay rates and state minimum wages

The state minimum wage and all pay rates in WA  Awards has increased by the Western Australian Industrial Relations Commission and will be effective from the first pay period on or after July 1^st, 2022. This is only applicable to employers and employees in the State Industrial Relations System.

 

State minimum wage for employees over 21 years has increased by $40.90 per week to $819.90 per week.

 

State award rates also increased by $40.90 per week for award rates below $887.40 and by 4.65% for award rates above $887.40.

 

There will also be an proportionate increase in junior and apprentice rates.

 

More information on pay rate increases is available on the Fair Work Ombudsman website.

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ASIC Warns as Scammers Offer Fake Green Bonds

Green bonds are bonds used to finance new and existing projects offering climate change and environmental benefits. These are not directly available to general public or retail investors and can be purchased by insurance companies, fund managers, superannuation funds and other wholesale entities.

 

There have been existing fake green bonds which ASIC are aware of. However, with the rise in scams, ASIC is alerting all investors to be conscious as scammers try to represent themselves as well-known financial service firms.

 

What to look out for

• Fake investment materials and disclose documents
• People claiming to be from well-known companies offering green bonds
• Companies or people inviting to invest in fictitious environmentally sustainable green bonds via platforms such as social media and websites
• Offers of green bonds available to purchase as bonds are not directly available to public or retail investors. More information on how to invest in a managed investment schemes can be found on Moneysmart

 

Think you have been scammed?

1. Do not send any more money
2. Report it to your financial institution
3. Be wary of follow-up scams promising to help get your money back
4. Report to your local police
5. Report to ASIC (please note that ASIC cannot help you retrieve your money)

 

Before investing, it is advised to share details including disclosure documents with your bank as they can assist you to check the legitimacy of the offer before transferring any funds.

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Easter Sunday – WA’s New Public Holiday

Easter Sunday has been introduced as a public holiday by the Industrial Relations Legislation Amendment Act 2021. The holiday provisions commenced on February 12, 2022. The number of public holidays in Western Australia has increased to 11, which puts the state in line with the rest of the country. This public holiday is to be observed on Easter Sunday itself, rather than on an alternative day.

 

Hence, the Western Australian 2022 public holidays for the Easter period are:

• Good Friday – 15^th April 2022 (Friday)
• Easter Sunday – 17^th April 2022 (Sunday)
• Easter Monday – 18^th April 2022 (Monday)

 

Employers and employees in the state industrial relations system will recognise Easter Sunday as a public holiday, ensuring full time and part time employees who are not required to work on Easter Sunday because it is a public holiday are entitled to their usual pay. Whereas employees who are required to work on the public holiday is entitled to receive any applicable public holiday penalty rate, rather than a normal Sunday pay rate.

 

WA award summaries has been updated on the DMIRS website to include Easter Sunday.

 

More information on Easter Sunday is available through DMIRS. If you require any further assistance, you may contact Wageline on 1300 655 266 or our office.

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Federal Budget – 2022

On Tuesday, 29 March 2022, Treasurer Josh Frydenberg handed down the 2022-23 Federal Budget.

It was announced that a strong economic recovery is well underway – economic growth forecasts have been revised upwards, and the unemployment rate has also fallen 4 per cent and is expected to fall further by the September 2022 quarter.

Measures have been introduced to assist individuals with the increase in cost of living due to recent events that have come alongside the ongoing pandemic, such as the floods and the Russian invasion of Ukraine. There is also a focus on assisting small to medium businesses with the introduction of boosts and incentives aimed at maintaining employment and increasing cashflow. More measures have also been introduced to improve on reporting integrity and compliance.

It is important to note that the announcements are still only proposals at this stage in time and are yet to be legislated. Changes can be made prior to these becoming law.

 

FOR INDIVIDUALS

Low and Middle Income Tax Offset Increased

In an attempt to ease the current cost of living pressures due to international uncertainties, a one-off $420 tax offset will be added to the existing Low and Middle Income Tax Offset (LMITO), increasing the original amount to $1,500 from $1,080.

Other than those who do not require the full offset to reduce their tax liability to zero (as LMITO is a non-refundable tax offset), all LMITO recipients will benefit from the full $420 increase.

It should be noted that the Government has not announced any plans to extend the LMITO beyond the legislated end date of the 2022 income year.

 

Taxable Income	LMITO	Plus Offset
$0 – $37,000	Up to $255	$420
$37,001 – $48,000	$255 plus 7.5 cents per $1 exceeding $37,000, capped at $1,080	$420
$48,001 – $90,000	$1,080	$420
$90,001 – $126,000	$1,080 minus 3 cents per $1 exceeding $90,000	$420
$126,001+	Nil	Nil

The Low Income Tax Offset will remain unchanged.

 

$250 Cost of Living Payment

As another measure to combat the rising cost of living, a one-off payment of $250 will be made in April 2022 to eligible pensioners, welfare recipients, veterans, and concession card holders.

The payments are exempt from tax and will not count as income support for the purposes of any income support payment. The payment will only be available to Australian residents, and a person can only receive one economic support payment, even if they are eligible under two or more categories above.

 

Tax Deductibility of COVID-19 Test Expenses

The Government has confirmed that the costs of taking a COVID-19 test to attend a place of work are tax deductible for individuals from 1 July 2021. In making these costs tax deductible, the Government will ensure that Fringe Benefits Tax will not be incurred by the businesses when COVID-19 tests are provided to employees for this purpose.

 

Increasing the Medicare Levy Low-Income Thresholds

The Medicare Levy low-income thresholds have been adjusted for inflation and so has been increased from 1 July 2021 as follows:

 

	2020-2021	2021-2022
For Taxpayers not entitled to Seniors and Pensioners Tax Offset
Single	$23,226	$23,365
Couple/sole parent (family income)	$39,167	$39,402
For Taxpayers entitled to Seniors and Pensioners Tax Offset
Single	$36,705	$36,925
Married or sole parent	$51,094	$51,401
For each dependent child or student, add:	$3,597	$3,619

Note that the legislation required to amend the thresholds is yet to be passed, but it is expected that the Bill will be introduced shortly.

 

Other Measures

• Temporary Reduction in Fuel Excise – The excise and the excise-equivalent customs duty rate which applies to petrol and diesel and all other fuel and petroleum-based products (except aviation fuels) will be halved for six months, starting 30 March 2022.
• First Home Guarantee Scheme Expanded – The number of guarantees to be delivered will be increased to 50,000 per year to assist home buyers who have a lower deposit.
• Paid Parental Leave Schemes Consolidated – There are currently plans to combine the existing schemes (ie., the 18-week ‘Paid Parental Leave’ for the main carers and the 2-week ‘Dad and Partner Pay’ for their partners) into up to 20 weeks of paid leave to be used in ways to suit specific circumstances. Single parents will also be able to get the same amount of time.

 

FOR BUSINESSES

Training and Digital Adoption Incentives

Skills and Training Boost

The Government will introduce a skills and training boost to support small and medium-sized businesses with aggregated annual turnover of less than $50 million to train and upskill their employees. These businesses will be able to deduct an additional 20% of expenditure incurred on external training courses provided to their employees in Australia or online and delivered by entities registered in Australia.

The boost will apply to eligible expenditure incurred from 7:30pm (AEDT) on 29 March 2022 (Budget Night) until 30 June 2024. For eligible expenditure incurred by 30 June 2022, the boost will be claimed in the following financial year’s tax return – for eligible expenditure incurred between 1 July 2022 and 30 June 2024, the boost will be claimed in the income year in which the expense is incurred.

 

Technology Investment Boost

The Government will introduce a technology investment boost to support digital adoption by small and medium-sized businesses with aggregated annual turnover of less than $50 million. These businesses will be able to deduct an additional 20% of expenditure incurred on business expenses and depreciating assets that support their digital adoption (such as portable payment devices, cyber security systems, or subscriptions to cloud-based services).

An annual cap will apply in each qualifying income year so that expenditure up to $100,000 will be eligible for the boost. This equates to a maximum additional deduction of $20,000 per eligible year.

The boost will apply to eligible expenditure incurred from 7:30pm (AEDT) on 29 March 2022 (Budget Night) until 30 June 2023. For eligible expenditure incurred by 30 June 2022, the boost will be claimed in the following financial year’s tax return – for eligible expenditure incurred between 1 July 2022 and 30 June 2023, the boost will be claimed in the income year in which the expense is incurred.

 

Apprentice Wage Subsidy Extended

It has been confirmed that the Boosting Apprenticeship Commencement (BAC) and Completing Apprenticeship Commencements (CAC) wage subsidies will be extended by 3 months to 30 June 2022 as earlier announced by the Government.

The Budget also includes funding over five years to introduce a new Australian Apprenticeships Incentive System from 1 July 2022 as further support to employers and apprentices in ‘priority occupations’.

 

Reporting Integrity Measures

Modernising the Pay As You Go Instalment System

The Budget papers confirm the earlier announcement that companies will be allowed to choose to have their Pay As You Go (PAYG) instalments calculated based on current financial performance, extracted from business accounting software with some tax adjustments. This will support business cash flow by ensuring instalments reflect current performance.

Subject to advice from software providers about their capacity to deliver, it is anticipated that systems will be in place by 31 December 2023, with the measure to commence on 1 January 2024, for application to periods starting on or after that date.

 

Reporting Taxable Payments Reporting System Data

The Government will provide businesses with the option to report Taxable Payment Reporting System data via accounting software on the same lodgement cycle as their activity statements.

The Government will consult with affected stakeholders, tax practitioners, and digital service providers to finalise the policy scope, design, and specifications of the measure, and as above, subject to advice from software providers about their capacity to deliver, it is anticipated that systems will be in place by 31 December 2023, with the measure to commence on 1 January 2024, for application to periods starting on or after that date.

 

Sharing of Single Touch Payroll Data

The Government has committed to the development of IT infrastructure required to allow the ATO to share Single Touch Payroll (STP) data with State and Territory Revenue Offices on an ongoing basis.

Funding for this measure has already been provided and will be deployed following consideration of which States and Territories are able and willing to make investments in their own systems and administrative processes to pre-fill payroll tax returns with STP data.

 

Digitalising Trust Income Reporting

The Budget papers confirm the Government’s intention to digitalise trust and beneficiary income reporting and processing, acknowledging that trust income reporting has not been automated to the same extent as individual and company tax returns. They will allow all trust tax return filers the option to lodge income tax returns electronically.

It is expected that this measure will reduce the compliance burden, reduce processing times, and enhance ATO processes. It will commence from 1 July 2024, subject to advice from software providers about their capacity to deliver.

 

Other Measures

• Varying the GDP uplift factor for tax instalments – The Government has decided to set the GDP uplift factor for PAYG and GST instalments at 2% for the 2023 financial year. This uplift factor is lower than the 10% that would have applied under the statutory formula, and aims to provide cashflow support to small and medium enterprises eligible to use the relevant instalment methods.
• Instant Asset Write-Off Extended – This has now been extended by one year, now ending 30 June 2023.
• Expanding Access to Employee Share Schemes – Following the previous year’s budget, more steps are being taken to reduce red tape to enable employees of all levels to share in the business growth they help to generate. The investment thresholds for unlisted companies will be changed in relation to employee share schemes, though no date of effect has been specified in the Budget papers.
• Some COVID-19 Business Grants Designated as Non-Assessable Non-Exempt Income – Certain State and Territory COVID-19 business support programs will be made non-assessable non-exempt (NANE) for income tax purposes until 30 June 2022. So far only some NSW state grants and VIC state grants are listed as being NANE, though the ATO notes that they will update their list as they receive more information.
• Concessional tax treatment of Carbon Credit and Biodiversity Certificate Income – The proceeds from the sale of Australian Carbon Credit Units (ACCUs) and biodiversity certificates generated from on-farm activities will be allowed to be treated as primary production income for the purposes of the Farm Management Deposits (FMD) scheme and the tax averaging provisions from 1 July 2022. Presently they are treated as non-primary production income and so are ineligible for concessional tax treatment under the FMD scheme or income tax averaging.

 

SUPERANNUATION

Reduction in Superannuation Pension Drawdowns Extended

The temporary 50% reduction in minimum annual payment amounts for superannuation pensions and annuities will be extended by another year, now ending 30 June 2023. Given the ongoing volatility, the extension will allow retirees to avoid selling assets in order to satisfy the minimum drawdown requirements.

 

Age of Beneficiary (in years)	Standard Minimum Percentage Factor (%)	Reduced Minimum Percentage Factor (%)
Under 65	4	2
65 to 74	5	2.5
75 to 79	6	3
80 to 84	7	3.5
85 to 89	9	4.5
90 to 94	11	5.5
95 and above	14	7

No maximum annual payments apply, except for transition to retirement pensions which have a maximum annual payment limit of 10 per cent of the account balance at the start of the financial year.

**

FBT 2022 Compliance

As an employer you should consider if a fringe benefit is being provided to an employee. Fringe Benefits Tax (FBT) is a tax paid by the employer on certain benefits you provide to employees (or the employees’ associates) and is based on the taxable value of the various fringe benefits provided.

 

As the FBT year runs from 1 April to 31 March you should consider whether or not you have any FBT obligations as an employer. The ATO have provided a list of FBT exempt vehicles, FBT webinars and a FBT 2022 tax guide that can be viewed online. We have also made available the 2022 CPA FBT Checklist for viewing.

 

Remember, ultimately the employer is responsible for any FBT payable. If your business provides any benefits and you require further information please contact our office.

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A New Public Holiday Addition – Easter Sunday

Easter Sunday has been introduced formally as a public holiday by the Industrial Relations Legislation Amendment Act 2021. However, the Chamber of Commerce and Industry WA (CCIWA) believes it will affect all employers, employees, and consumers.

 

The number of public holidays in Western Australia has increased to 11, which puts the state in line with the rest of the country.

 

CCIWA is resistant of the change and see those businesses operating on a seven-day basis will be significantly affected.

 

CCIWA’s Principal Workplace Relations Advocate, Paul Moss said that businesses in the retail, tourism, and hospitality sector will be the first to feel the impact due to the COVID-19 lockdowns and restrictions.

 

Next would be organisations in the aged care, health, and community sectors, as they have been forced to deliver essential services to the community due to COVID-19.

 

Also, increasing public holidays will affect general delivery services causing these industries to adjust labour requirements by offsetting increasing operating costs associated on a holiday.

 

Through Fair Work Commission’s research, approximately 70 to 85% of businesses in retail and hospitality respond to increasing wage cost by reducing staffs and the length of working hours.

 

The Decision Regulatory Impact Statement (DRIS) estimate the cost of Easter Sunday to be $29 million of which the cost to the public sector is 2.6 million. These costs do not include worker’s compensation, payroll tax and super. Based on this estimation, employers are looking at an increase cost of 15%. Also, for employees with fewer working hours must also recognise the lost of income they may face.

 

For further information on Easter Sunday, please contact the Employee Relations Advice Centre at CCIWA on (08) 9365 7660 or email advice@cciwa.com.

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Single Touch Payroll Phase 2

The Government has expanded Single Touch Payroll to include additional information to be reported.  Under STP Phase 2, more granular data will be collected from employers and shared across government agencies for mutual clients.  This will minimise the burden for employers reporting to multiple government agencies, streamline compliance and delivery of Services Australia payments, and reduce further reporting processes such as TFN declarations and employment separation certificates.

 

The mandatory start date for STP Phase 2 reporting is 1^st January 2022.  However if employers can start reporting the expanded data by 1^st March 2022, they will be considered to have started on time.  Digital Service Providers (DSP) still updating their solutions can apply for a deferral for their customers and please note MYOB, Xero, and Reckon have all secured deferrals until the 31^st December 2022.

 

It is recommended to check with your DSP regarding their Phase 2 implementation and deferral date.  No penalties will be applied for honest mistakes made during the first year of Phase 2 reporting.

 

There are no changes to STP reporting methods or due dates, including end-of-year finalisation events.  Tax and superannuation obligations and types of payments required remains the same.  Most of the additional information for Phase 2 reporting should already be captured in your current payroll software.

 

The real key changes with STP Phase 2 are:

 

• Disaggregation of Gross

Gross remuneration will now be declared under its separate components instead of a total amount.  This is because each government agency assesses income differently, the disaggregation of gross income amounts will provide them with more accurate and relevant employment income information.

• Payment categories include:
  • Gross (ordinary time earnings and income not in other payment categories)
  • Allowances (itemised separately)
  • Bonuses and Commissions
  • Director’s Fees
  • Lump Sum W (return to work payment)
  • Overtime
  • Paid Leave
  • Salary Sacrifice (pre-sacrificed amount)

 

• Employment and taxation conditions

Phase 2 will incorporate employee tax information via STP reporting, including information typically reported in TFN declarations or separation certificates.  This includes employee commencement date, employment basis (full-time, part-time, casual, labour hire, voluntary etc), and termination reasoning

 

• Income types
  • Each amount paid to an employee will now be assigned to an income type, to better identify and determine tax treatment. Assignable income types include:
    • SAW (salary and wages)
    • CHP (closely held payees)
    • WHM (working holiday makers)
    • FEI (foreign employment income)
    • VOL (voluntary agreement)
    • LAB (labour hire)

 

• Country codes

Inclusion of a country code will be required for employees who report to tax jurisdictions outside of Australia (etc working holiday makers)

 

• Child-support garnishees and child support deductions

Optional inclusion in the STP report to reduce the need to give separate remittance advices to the Child Support Registrar

 

• Reporting previous Business Management Software IDs and Payroll IDs

Optional inclusion in the STP report, to help minimise duplicate income statements

 

More information on STP Phase 2 reporting, benefits, and changes, is available on the ATO website, including their Employer Guide. Should you have any questions or require assistance in transitioning to STP Phase 2 reporting, please contact our office on 9721 1055.

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Director ID Requirement

As part of the Modernising Business Registers (MBR) program, the director identification number requirement is currently available on the Australian Business Registry Services (ABRS) website.

 

A director ID is a lifetime, 15-digit unique identifier given to directors or directors to be. All current directors are required to obtain an ID. By law, identity verification is compulsory before an ID is issued. The purpose of verifying identities and the director ID requirement is to:

• prevent the use of false or fraudulent director identities
• ease tracing processes for external administrators and regulators to determine the directors’ relationship with companies over time
• identify and eliminate director involvement in unlawful activities like illegal phoenix activity

 

When to apply

If the appointment of a director is between 1^st November 2021 and 4^th April 2022 – an application for the director ID must within 28 days from appointment.

 

If the appointment of a director was before 1^st November 2021 – an application is required before 30^th November 2022.

 

Tax or ASIC registered agents must advise their client to apply for a director ID if they are or plan to become a director. Agents are not allowed to apply on behalf of their clients due to identity verification.

 

More information on the application for director ID is available on the ABRS website.

 

What agents can do

Tax or ASIC registered agents can assist clients through guidance as some may require assistance in understanding the requirement or documents needed to verify their identification.

 

Examples of the documents that can be used for identity verification include:

• Bank account details
• ATO Notice of Assessment
• Super account details
• Dividend statement
• Centrelink payment summary

 

The director ID application is free. It is easier and quicker to apply online through myGovID. Further information on how to apply online is through this link. With the proper documents on hand for verification, the online application can take less than 5 minutes and your client are able to receive their ID immediately.

 

Otherwise, there are other options available if your clients are unable to obtain a myGovID. Clients can apply by:

• Phone application – contact the ABRS on 13 62 50

Or

• Paper application

 

More information on the types of application process and the documents required for verification is available through this link. Otherwise, if you require any further assistance on the new requirements, please contact our office.

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JobMaker Hiring Credits

The third claim period for the JobMaker Hiring Credit is currently open and closes at the end of October. During this period, eligible employers should register, if requiring Government assistance with the cost of hiring more employees.

The fourth claim period opens on 1^st November 2021.

To submit your claim, you will need to:

• Register through the ATO online services, the Business Portal, or your registered tax agent
• Nominate eligible employees through Single Touch Payroll
• Provide your employee headcount and payroll for the JobMaker Period

 

More information on eligibility, registration and key dates are available on the ATO website. If you require any further assistance, please contact our office to book an appointment.

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Tax Withholding for Employees

Withholding the correct amount is very important as it assists your employees to meet their end of year tax liabilities.

The ATO provides the following to determine how much to withhold for each of your employees:

• Tax tables
• Tax withheld calculators

The online tax tables and calculators are regularly updated. Employers with payroll software can check with their providers for updates on tax tables.

Another recent change effective from July 1^st is the increase on minimum income threshold for study loan repayments. Employees with student loans will need to make compulsory repayments when they are earning more than $47,013 annually. Employers should ensure that the study and training support loans tax table is used to reflect the change.

It is important for employees to complete a new Tax File Number Declaration or Withholding Declaration form if they are new to or re-studying.

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Economic Stimulus Measures

Measures like loss carry back, temporary full expensing and backing business investment are designed to stimulate business investment and help business recover from the economic effects of COVID-19. The integrity of these measures is essential to the ATO’s compliance approach. Illegal behaviours and scheme development that aims to exploit these measures will not be tolerated. Penalties for fraud can include prosecution, financial penalties, and imprisonment.

 

What attracts the ATO’s attention

 Loss carry back

Behaviours that attracts the ATO’s attention include:

• Deliberately inflating deductions or omitting income to generate losses
• Entering contrived schemes to obtain a benefit of the loss carry back tax offset (i.e. Shifting or creating losses through non-arm’s length dealings and shifting franking credit to a corporate entity, either directly or indirectly

 

Temporary full expensing

Behaviours that attracts the ATO’s attention include:

• Entering contrived schemes to obtain a benefit of a temporary full expensing deduction including schemes involving:
  • Manipulation of aggregated turnover (i.e. entities omitting income to satisfy the $5 billion eligibility threshold or $50 million threshold to access temporary full expensing claims for second hand assets)
  • Non-commercial transactions involving the transfers of an asset between related entities
  • Artificially inflating the cost of assets through non-arm’s length dealings

• Claiming temporary full expensing deductions for assets acquired solely for a non-business purpose or failing to take into account any portion of non-business use
• Deliberately misclassifying or reclassifying excluded assets (i.e. reclassifying capital works and buildings as eligible assets under temporary full expensing
• Failing to take into account the car limit when calculating the deduction
• Lacking evidence to substantiate the claim such as invoices, contracts, supplier agreements or independent valuations

 

Backing business investment – accelerated depreciation

Behaviours that attracts the ATO’s attention include:

• Entering contrived schemes to obtain a benefit of a backing business investment – accelerated depreciation deduction including schemes involving:
  • Manipulation of aggregated turnover (i.e. entities omitting income to satisfy the $500 million backing business investment threshold
  • Inappropriate asset valuations especially when the asset has been purchased on a non-arm’s length basis
• Deliberately misclassifying or reclassifying Division 43 capital works and buildings as eligible assets under backing business investment – accelerated depreciation
• Claiming backing business investment – accelerated depreciation deductions for assets acquired solely for a non-business purpose or failing to take into account any portion of non-business use
• Deliberately inflating the amount of the backing business investment – accelerated depreciation deduction by applying the incorrect adjustable value or effective life
• Failing to take into account the car limit when calculating the deduction
• Lacking evidence to substantiate the cost of assets such as invoices, contracts, supplier agreements or independent valuations

 

What the ATO are doing

As part of the ATO’s compliance activities, they will be reviewing claims on these measures. Taxpayers that enters into the types of arrangement identified will be subject to increased scrutiny. Registered Tax agents advising inappropriate claims will be considered for a breach of the Tax Agent Services Act 2009.

 

What you should do

Before making a claim on any of these measures it is important to check the eligibility criteria and if eligible it is essential to keep adequate records to support your claim. If you have entered an arrangement that raises tax concerns, it is encouraged to contact the ATO. If you concerned that someone is doing the wrong thing, you can tip-off to the ATO.

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ATO’s new payment features allowing easier tax and super payment

There are new payment features in Online services for businesses that makes tax and super payment easier. The features include:

• Add and manage up to three credit or debit cards in your account profile
• Set up a payment plan with automatic direct debits from a card
• Make one off payments using a card

Once a payment plan is set up in Online services for business, the system will recommend a plan. The plan provides two options – an upfront amount and instalment amounts. From there you can choose the recommended plan or tailor to what suits you better. This is only applicable for businesses with less than $100,000 payable on their account with the ATO. Also, when setting up, you can opt-in to receive reminders for your payment plan instalments through email or text message.

If you are struggling with keeping up with the payment or have issues with setting up the payment plan online it is important to immediately contact the ATO for assistance on 13 11 42.

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Fringe Benefits Tax and COVID-19

As on the 31st of March, the Fringe Benefits Tax (FBT) year has ended, and the lodgement period is currently open until 25th of June for employers using tax practitioners who lodge FBT returns via the practitioner lodgement service.

 

FBT is applicable for employers who provide benefits addition to the employees’ salary and wages. However, with the occurrence of COVID-19 additional benefits may have been provided that are not usually provided. For example, covering the expenses of working from home. Exemptions and concessions are available to assist at reducing FBT payable.

 

Not-for-profit salary packaging

An employer may have provided a meal entertainment salary package to take advantage of the exempt or rebate cap. It is important to consider the type of meal and how the meal is provided to determine if the benefit given qualifies as a meal entertainment salary package. The ATO will not be strict on examining the expenses spent under these arrangements:

• Where the meal provided by the supplier was authorised as a meal entertainment provider as of March 1, 2020 for the 2021 FBT year
• When restaurants and public venues were closed for the 2020 FBT year

 

Working from home

Additional work from home supplies may have been provided to employees due to COVID-19. Items that are primary used for work are usually exempted from FBT. Such items include laptops, portable printers, and other electronic devices. Minor benefit exemption or deductible applies for expenses under $300. This exemption is applicable for items that are generally used in the workplace and where office supplies and connection expenses are paid on the employee’s behalf.

 

Closure of work car park

The benefit of work parking is considered as not provided where there has been a closure of work car park due to COVID-19. Hence, the period during which the parking is closed will not be included in the calculation of car space taxable value under the statutory method.

 

Closure of nearby commercial parking stations

The benefit of work parking is considered as not provided where there has been a closure of all commercial parking stations that is within 1km radius of the business premises. It will be regarded that an employer has not provided a car parking benefit if from April 1^st, 2020 the fees charged across all commercial parking stations within the 1km radius for one day parking is less than $9.15.

 

Car returned to employer’s business premises

The benefit of providing a car is considered not provided where a car is not applied for the employee’s private use. During the COVID restriction period, the car provided is taken to not be available for the employee’s private use if:

• The car is returned to the business premises
• The employee has no access to the car
• The employee has ceased their entitlement to use the car for private purposes

Factors that determine the car is not taken to be available for the employee’s private use include:

• Requesting the car to be returned to the business premises
• The employee has no access to the car
• A policy is enforced where the employee has no access to the car
• The employee has waived the car benefit

 

Garaging work cars at your employees’ home

There may be no FBT liability where work cars are garaged at your employees’ home. This depends on:

• The type of vehicle
• How often the car is driven
• The calculation method used for car benefits

 

Logbooks

Existing logbooks can still be used to make a reasonable estimation on business travel.

 

Accommodation, food, and transport

Employers are not required to pay FBT on benefits that are regarded as emergency assistance to provide immediate relief and where employees are at risk of COVID-19. Examples of benefits provided to affected employees include:

• Expenses incurred relocating an employee, including flights expenses
• Expenses incurred for food and temporary accommodation where an employee is unable to travel due to restrictions
• Benefits provided that allows an employee to self-isolate or quarantine
• Transporting or paying transport expenses for an employee, including car hire

 

Temporary accommodation and meals for fly-in fly-out and drive-in and drive-out employees

Employers are not required to pay FBT on benefits that are considered as emergency assistance. This includes the expenses provided to cover temporary accommodation and meals for FIFO and drive-in and drive-out workers who are unable to return home due to COVID-19 and its travel restrictions.

 

Items that help protect employees from COVID-19

Certain items given to employees at work as a means of protecting them from COVID-19 are not FBT exempted. These include masks, gloves, sanitisers, and anti-bacterial spray. However these benefits are exempted if given to employees who:

• Have physical contact or are in close proximity to customers or clients while carrying out work related tasks

OR

• Are involved in cleaning premises

The type of work that are generally applicable for exemption include:

• Medical
• Cleaning
• Airline
• Hairdressing and beautician
• Retail, café, and restaurant

Minor benefits exemption may apply for minor benefits under $300 to employees work line not mentioned above.

 

Emergency healthcare

FBT exemption is limited for benefits provided relating to emergency health care. Exemption only applies where healthcare treatment is provided:

• By an employee within your company
• On the company’s premises
• At or adjacent to an employee’s worksite

FBT applies on on-going support on medical and hospital expenses. Otherwise, the cost of transporting employees from the workplace to seek medical help is FBT exempted.

 

Flu vaccinations for employees working from home

FBT is exempted on flu vaccinations if it is available to all employees. This is exempted as it is regarded as work-related preventative healthcare.

 

COVID-19 testing

FBT is exempted on COVID-19 tests if:

• Testing is carried out by a legally qualified medical practitioner or nurse

AND

• Testing is available to all employees

This is exempted because it is regarded as work-related medical screening.

 

Cancelled events

Any cancelled events expenses paid on non-refundable costs are FBT exempted. This is exempted because events were arranged by employers and no fringe benefit has been provided as employees are unable to attend the event. However, FBT is not exempted where employers reimburse employees for the events paid out of their own pockets.

 

Ultimately, the employer is responsible for any FBT payable. More information regarding FBT in the context of COVID-19 is available on the ATO website. If you require any further information on FBT please contact our office.

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STP Software Expansion

To assist the ATO reduce information duplication provided to the Government, more information will be required when reporting payroll information through Single Touch Payroll (STP). The additional range of information provided will also be shared across other government agencies. Therefore, it is recommended to report through STP as soon as possible to reduce your reporting burdens.

From January 1, 2022, your software provider will automatically update your STP-enabled program. The ATO will provide further information regarding the expansion on reporting requirements and a detailed guide through these changes later this year.

More information on STP is available on the ATO website. If you require any further assistance regarding reporting your STP, please contact our office.

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Wage subsidy for Apprentices and Trainees

The JobTrainer package for a 50% wage subsidy for apprentices or trainees employed is still available for eligible employers. The government will be providing support for businesses to retain their apprentices and trainees until March 31, 2021.

Eligibility for small businesses:

• Have less than 20 employees
• Classified as a small business with less than 20 employees using a Group Training Organisation
• Have hired apprentices or trainees, undertaking an Australian Apprenticeship in July 2020. Eligibility for claims prior to July will be based on the March 2020 eligibility date.

More information on the JobTrainer Skills Package can be found using resources available on our website, the DESE website or the JobTrainer website.

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JobTrainer Skills Package

A $2 billion JobTrainer skills package has been announced to reform the Vocational Education and Training sector by securing apprentices and trainees jobs. The JobTrainer fund aims at providing free or reduced fee courses to assist school leavers and job seekers gain the skills needed to secure a job.

Employers may be eligible for a 50% wage subsidy for apprentices or trainees employed. Both small and medium businesses will now be eligible for the subsidy wages paid from July 2020 until March 2021.

 

Eligibility

Small business eligibility:

• Have less than 20 employees

OR

• Classified as a small business with less than 20 employees using a Group Training Organisation

AND

• Have hired apprentices or trainees, undertaking an Australian Apprenticeship in July 2020. Eligibility for claims prior to July will be based on the March 2020 eligibility date.

 

Medium sized business eligibility:

• Have less than 199 employees

OR

• Classified as a medium sized business with less than 199 employees, using a Group Training Organisation

AND

• Have hired apprentices or trainees, undertaking an Australian Apprenticeship in July 2020

 

Timing

Claims are currently open for small and medium sized businesses. Final claims for payment must be lodged by 30^th June 2021.

More information on your eligibility and how to apply is available through an Australian Apprenticeship Support Network (AASN) provider.

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Government support on employers, apprentices, and trainees

Employers can be eligible for a 50 percent wage subsidy if new apprentices or trainees are employed after 5^th October. A maximum of $7,000 per quarter subsidy is offered until 30^th September 2020.

If an apprentice or trainee was employed prior 5^th October, eligible employers can also be eligible for the subsidy from January 2020 to March 2021.

Here is a glimpse of the news available to assist employers in understanding their eligibility on employing apprentices & trainees:

How to hire an apprentice or trainee

Discover more on how to hire an apprentice or trainee, understanding your obligations as an employer and where you can find support.

Boosting Apprenticeship Commencements

A $1.2 billion apprenticeship wage subsidy is invested by the Government to encourage and support employers to employ up to 100,000 new apprentices or trainees.

Business owners can now be updated with relevant news related to them by subscribing to business.gov.au newsletters. In doing this, you will be connected to the latest information, grants, registrations, and support to assist your business succeed in Australia.

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Federal Budget 2020

On 6 October 2020 at 7:30pm (AEDT) the Federal Budget was handed down by the Treasurer, Mr Josh Frydenberg.  Over the course of the pandemic and in attempt to reduce the economic effects, the Government introduced measures like the JobKeeper scheme, the cashflow boosts and increased the JobSeeker payments.

Further to this, this year’s budget focuses on economic recovery with some of the bigger reforms including the introduction of a new JobMaker Hiring Credit scheme, adjustments to personal income tax rates and offsets and adjustments to the immediate write-off thresholds.

 

Please see below for some of the proposed changes relating to:

Individuals:

Personal Income Tax Rates

The proposed changes to individual income tax rates that were originally slated to apply from 1 July 2022 have been pulled forward and now apply from 1 July 2020 (ie., from the 2021 income year).

Rate	Current (2019 to 2022)	Proposed (2021 to 2024)
0%	0 – $18,200	0 – $18,200
19%	$18,201 – $37,000	$18,201 – $45,000
32.50%	$37,001 – $90,000	$45,001 – $120,000
37%	$90,001 – $180,000	$120,001 – $180,000
45%	$180,001+	$180,001+

 

 

The Low Income Tax Offset (LITO) and the Low and Middle Income Tax Offset (LMITO)

As with the personal tax rates, the changes to the Low Income Tax Offset (LITO) that were previously proposed to apply from 1 July 2022 have also been pulled forward to now apply from 1 July 2020 (ie., from the 2021 income year). The changes are as follows:

• The maximum LITO will be increased from $445 to $700.
• The increased LITO will be reduced at a rate of 5 cents per dollar for taxable incomes between $37,500 and $45,000
• The LITO will be reduced at a rate of 1.5 cents per dollar for taxable incomes between $45,000 and $66,667

Current LITO (2021 to 2022)		Proposed LITO (2021 to 2022)
$0 to $37,000	Up to $445	$0 to $37,500	Up to $700
$37,001 to $66,666	$445 – 1.5% of excess over $37,000	$37,501 to $45,000	$700 – 5% of excess over $37,500
$66,667+	Nil	$45,001 to $66,666	$325 – 1.5% of excess over $45,000
		$66,667+	Nil

 

The Government has also announced that the Low and Middle Income Tax Offset (LMITO) will continue to apply for the 2021 income year, though no changes have been made to the offset amount or the applicable thresholds. The LMITO will continue to apply as follows:

Taxable Income	LMITO
$0 – $36,999	$255
$37,000 to $48,000	$255 + 7.5 cents per $1, capped at $1,080
$48,000 to $90,000	$1,080
$90,000 to $126,000	$1,080 – 3 cents per $1
$126,001+	Nil

 

 

CGT Exemption for Granny Flat Arrangements

Subject to the passing of legislation, a targeted capital gains exemption will apply for granny flat arrangements (where formal written agreements are in place) from 1 July 2021. This exemption will only apply to arrangements that are entered into because of family relationships or other personal ties and will not be applicable to commercial rental arrangements.

These will involve older Australians or people with disabilities transferring their home or the proceeds from the sale of their home (and/or other assets) to their adult children or other trusted persons in return for the promise of ongoing housing and care.

Capital gains tax will not apply to the creation, variation, or termination of formal written granny flat arrangements providing accommodation for older Australians are people with disabilities.

 

Businesses:

Uncapped Immediate Write-Off for Depreciable Assets

Businesses with an aggregated annual turnover of less than $5 billion will be able to claim an immediate deduction for the full cost of an eligible depreciable asset, in the year the asset is first used or is installed ready for use, where the following requirements are satisfied:

• The asset was first acquired from 7:30pm AEDT on 6 October 2020 (ie., Budget Night)
• The asset was first used or installed ready for use by 30 June 2022
• The asset is a new depreciable asset or is the cost of an improvement to an existing eligible asset
  • Small and medium sized businesses with an aggregated annual turnover of less than $50 million can fully deduct the cost of second-hand assets purchased and installed during the eligible period
  • Businesses with an aggregated annual turnover between $50 million and $500 million can still deduct the cost of eligible second-hand assets costing less than $150,000 that are purchased from 2 April 2019 and first used or installed ready to use between 12 March 2020 and 30 June 2021 (previously extended from 31 December 2020)

Small businesses with an aggregated annual turnover of less than $10 million can deduct the balance of their simplified depreciation pool at the end of the income year while full expensing applies (ie., up to 30 June 2022). The provisions that prevent small businesses from re-entering the simplified depreciation regime for five years if they opt-out will continue to be suspended.

 

JobMaker Hiring Credit

The JobMaker Hiring Credit was introduced as an incentive for businesses to take on additional young job seekers.

From 7 October 2020 to 6 October 2021, eligible employers will be able to claim $200 a week for each additional eligible employee they hired aged 16 to 29 years old and $100 a week for each additional eligible employee aged 30 to 35 years old.

The JobMaker Hiring Credit will be available from the date of employment for up to 12 months and is capped at $10,400 for each additional new position created. The credit will be claimed quarterly in arrears by the employer from the ATO from 1 February 2021, and the employer will need to report quarterly that they meet the eligibility criteria. The total credit claimed by an employer cannot exceed the amount of the increase in payroll for the reporting period in question.

 

Apprenticeship Wage Subsidy Expanded

The apprenticeship wage program announced in the July 2020 Economic and Fiscal Update will be expanded to allow businesses of any size to claim the subsidy.

Eligible businesses that employ apprentices or trainees will be eligible to receive up to a 50% wage subsidy, up to $7,000 per quarter, capped 100,000 places. This new measure will run from 5 October 2020 to 30 September 2021.

 

Companies:

Temporary Loss Carry-Back for Eligible Companies

Currently, companies are required to carry losses forward to offset taxable profits in future years, but the Government has announced that they will introduce measures that will allow eligible companies with a turnover of less than $5 billion to carry back losses from the 2020, 2021, or 2022 income years to offset previously tax profits made in or after than 2019 income year.

This will allow companies to generate a refundable tax offset in the year in which the loss is made. The tax refund is limited by requiring that the amount carried back is not more than the earlier taxed profits and that the carry back does not generate a franking account deficit.

Eligible companies may elect to receive the tax refund when they lodge their 2021 and 2022 income tax returns. Note that companies that do not elect to carry back losses under this measure can still carry losses forward as normal.

 

Changes to Fringe Benefits Tax (FBT):

FBT Exemption for Retraining and Reskilling Employees

Employer-provided training and reskilling for redundant, or soon to be redundant, employees will be exempt from fringe benefits tax, even in cases where the benefits may not be related to their current employment.

This measure is designed to encourage employers to assist redundant workers to transition to new employment opportunities within or outside an employer’s business without triggering an FBT liability. Currently, FBT is payable if an employer provides training that does not have a sufficient connection to their current employment.

Once enacted, the exemption will apply from 2 October 2020.

Retraining provided through a salary sacrificing packaging arrangement or commonwealth supported places at universities will not be eligible for the exemption. However, changes to tax deduction rules for self-education expenses unrelated to current employment will also be up for consideration by the government in consultations.

 

FBT Record Keeping Compliance Burden Reduced

The Government will provide the ATO with the power to determine adequate alternative records to allow employers to rely on existing corporate records, rather than employee declarations or other prescribed records, to finalise their FBT returns. This measure will take effect from the start of the first FBT year (ie., on 1 April) after the date of Royal Assent of the relevant legislation.

 

Superannuation Reforms:

The Government will provide $159.6 million over four years from the 2021 financial year to implement reforms to improve outcomes for superannuation fund members.

From 1 July 2021, the proposed reforms will make the system better for members in four ways:

• Your superannuation follows you – An existing superannuation account will be ‘stapled’ to a member to avoid the creation of a new account when that person changes employment. Employers will be able to obtain information about the employee’s existing superannuation fund from the ATO if an employee does not nominate an account at the time they start a new job.
• Empowering members – A new, interactive, online YourSuper comparison tool will help members decide on the best superannuation product to meet their needs.
• Holding funds to account for underperformance – MySuper products will be subject to an annual performance test. Funds that underperform will need to inform their members, and if they fail two consecutive underperformance tests, they will not be permitted to receive new members unless their performance improves. By 1 July 2022, annual performance tests will be extended to other superannuation products.
• Increased accountability and transparency – The Government will strengthen obligations on superannuation trustees to ensure their actions are consistent with members’ retirement savings being maximised, acting in the best financial interests of the members.

 

Further Covid-19 Response Packages:

Further Economic Support Payments

Two separate $250 economic support payments will be provided to eligible recipients – the first payment will be made from November 2020 and the second from early 2021.

Payments will be made to eligible recipients of the following benefits and health care card holders:

• Age Pension
• Disability Support Pension
• Carer Payment
• Family Tax Benefit, including Double Orphan Pension (not in receipt of a primary income support payment)
• Carer Allowance (not in receipt of a primary income support payment)
• Pensioner Concession Card holders (not in receipt of a primary income support payment)
• Commonwealth Seniors Health Card holders
• Eligible Veterans’ Affairs payment recipients and concession card holders

These payments will be exempt from tax and will not count as income support for the purposes of any income support payment.

Finally, please note that the above announcements are yet to be legislated and there may be changes prior to the above being put to law.

The full budget papers can be found on the Budget website including supporting figures and more information on the above points and other Budget measures. If you have any further questions or would like to arrangement an appointment to discuss your affairs please contact our office.

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Temporary state system COVID-19 JobKeeper provisions

The temporary state system JobKeeper provisions were due to end on September 28, 2020 but has been extended to March 28, 2021. The provision is applicable for employers who have qualified for the JobKeeper scheme, with their eligible employees. This allows employers to temporarily give enabling directions to their employees regarding their working days and times.

The agreement regarding the requests for an employee to change days and times of work is subject to:

• Was the agreement made when the employer is qualified for the JobKeeper scheme
• The employee’s working environment is safe with high regards on the nature and spread of COVID-19 and within the scope of the employer’s business operations
• The agreement does not influence reducing the employee’s work hours
• The agreement is in writing
• The employer becomes entitled to more than one JobKeeper payments for the employee

Where there are queries or disputes, the employer and employee must attempt to come into a reasonable agreement. However, if the matter is unresolved within 24 hours, they may apply for conciliation or arbitration to the Western Australian Industrial Relations Commission. If within 48 hours the matter is still unresolved and not referred to the Western Australian Industrial Relations Commission, the employee can:

• Lodge Form 1 – request for mediation under the Employment Dispute Resolution Act 2008 (WA). The employer must consent to the mediation.
• Lodge Form 1.1, 1.2 and 1.3 to make an application for enforcement of the General Order to the Industrial Magistrates Court
• Notify the Registrar of the Western Australian Industrial Relations and ask to refer the notification to the Commission.

For more information regarding all the employer obligations required by the General Order is available on the WA Industrial Relations Commission website and information on the Commonwealth JobKeeper scheme on the ATO website.

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SG Amnesty Registration Reminder

Application for Superannuation Guarantee (SG) Amnesty ends on 7 September 2020 by 11:59PM. Eligibility will be advised within 14 days of application, with a payment reference number (PRN) for you to make amnesty payments. Any amnesty payments made before the 7 September are tax deductable.

PRN is assessable from:

• Super guarantee charge related statement
• Request through the Business Portal
• Contacting the ATO on 1800 815 886, weekdays between 8:00AM to 6:00PM

SG Amnesty must be paid in full to be qualified for the benefits. Applications procedures and form for SG Amnesty is available on the ATO website. If you require any further assistance with your SG Amnesty application, you can contact the ATO or our office.

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End of Financial Year and the STP Reporting Processes

Single Touch Payroll finalisation declaration dateline for the 2019-20 financial year is on the 14^th of July for employers with more than 20 employees and 31^st of July with those less than 19 employees. As we welcome the 2020 tax season, the ATO advise to finalise STP reporting as soon as possible to ensure employees’ income statement is ‘tax ready’ and able to file their returns.

Employers will no longer required to provide payment summaries and employees must be informed of such changes as well as the alternative ways of accessing their payment summaries, which is through myGov or their tax professional. It is also important to encourage your employees to check their personal details at work and on the ATO to prevent any delays on their tax lodgement.

If you require any assistance with finalising your STP, please do not hesitate to contact our office. Otherwise, ‘how to report STP’ procedure is available on the ATO Website.

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Single Touch Payroll Due 14^th July

The time has come for the 2020 FY tax season and we are sure that your employees are looking forward to file their tax return.

Employers with more than 20 employees are to finalise their STP reports by 14^th July 2020 and those with less than 19 employees by 31^st July 2020.

It is only after your employees’ information has been finalised and reported through STP then employer will be exempted from:

• Providing employees’ their payment summary and;
• Lodging payment summary annual report to the ATO

Employers are to advise their employees the EOFY information, now known as Income Statement will be available for access through their registered tax agent or myGov. The ATO’s STP Factsheet is useful to help your employees to understand these changes. Please note that a penalty may incur for reports submitted after the due dates. Hence, it is important to apply for an extension if needed. Any amendments on finalised Income Statement should be made as soon as possible through STP-enabled payroll solution.

More information is available on the ATO website. Otherwise, if you require any further assistance, please do not hesitate to call our office.

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FBT 2020 compliance

As an employer you should consider if a fringe benefit is being provided to an employee.  Fringe benefits tax (FBT) is a tax paid by the employer on certain benefits you provide to employees (or the employees’ associates) and is based on the taxable value of the various fringe benefits provided.

As the FBT year runs from 1 April to 31 March you should consider whether or not you have any FBT obligations as an employer.  The ATO have provided a list of FBT exempt vehicles, FBT webinars that can be viewed online and an ‘FBT Issues on our radar’ guide.  We have also made available the 2020 CPA FBT Checklist for viewing.

Remember, ultimately the employer is responsible for any FBT payable. If your business provides any benefits and you require further information please contact our office.

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An Update to the Government’s Response to the Coronavirus Outbreak

The Australian Government has recently announced a second set of economic responses and as of the 23rd of March 2020 both packages are now in effect and include:

Income Support for Individuals

• Over the next six months, starting from the 27th of April 2020, the Government is temporarily establishing a new, time-limited, Coronavirus supplement of $550 per fortnight to be paid to existing and new recipients of eligible income support payments such as the Jobseeker Payment (previously known as Newstart), Youth Allowance Jobseeker, Parenting Payment (Partnered and Single), Farm Household Allowance, and Special Benefit.
• They are also expanding access and eligibility to certain income support payments to provide for individuals who have been financially impacted by the Coronavirus and meet certain requirements. Such individuals could include permanent employees who have been stood down or have lost their employment; sole traders, the self-employed, casual, or contract workers whose income have been reduced; and those who are caring for someone who is affected by Coronavirus.
• Asset testing for the Jobseeker Payment, the Youth Allowance Jobseeker, and the Parenting Payment (Partnered and Single) will be waived for the period of the Coronavirus supplement. Income testing will still apply. A 3-month waiving of the Ordinary Waiting period has also been put into effect and is set to continue while the temporary arrangements are in place.

Income Support for Households

• The Government will be providing two separate $750 tax-free payments to social security, veteran, and other income support recipients and eligible concession card holders.
  • The first $750 payment will be available to individuals receiving an eligible Government payment or who are holders of an eligible concession card at any time from the 12th of March to the 13th of April 2020 (inclusive).
  • The second $750 payment will be available on the 10th of July 2020 and will not be made to those eligible for the $550 per fortnight Coronavirus supplement.
• Note that these payments will not be counted as income for the purposes of Social Security, the Farm Household Allowance, and Veteran payments.
• Note that an individual can only receive one $750 payment in each round, even if they qualify in multiple ways.

Boosting Cash Flow for Businesses

• Small and medium sized businesses that employ people may be eligible to receive a total payment of up to $100,000 (with a minimum total payment of $20,000) based on their PAYG withholding obligations. These payments will broadly be calculated and paid by the ATO as an automatic credit to the employer, and will be made in two stages:
  • Stage 1 – Commencing from the lodgement of activity statements from the 28th of April 2020, eligible employers that withhold PAYG tax on their employees’ salary and wages will receive a tax-free payment equal to 100% of the amount withheld, up to a maximum of $50,000. Eligible employers that pay salary and wages will receive a minimum tax-free payment of $10,000 even if they are not required to withhold PAYG tax. Quarterly lodgers will be eligible to receive the payment for the quarters ending March and June 2020. Monthly lodgers will be eligible to receive the payment for March, April, May, and June 2020 lodgements, with the payment for the March 2020 activity statement payment to be calculated as being three times the actual amount withheld.
  • Stage 2 – For employers that continue to be active, an additional tax-free payment will be made in respect of the June to October 2020 period. Quarterly lodgers will receive the additional payment for the quarters ending June 2020 and September 2020, with each payment being equal to 50% of their total Stage 1 payment, up to a maximum of $50,000. Monthly lodgers will be eligible to receive the additional payment for June, July, August, and September 2020 activity statement lodgements, with each additional payment being equal to a quarter of their Stage 1 payment, also up to a maximum of $50,000.

Wages Subsidies for Apprentices and Trainees

• Employers with less than 20 full-time employees who retain an apprentice or a trainee who was in training with the employer as at the 1st of March 2020 may be eligible to Government funded wages subsidies equal to 50% of the apprentice’s or trainee’s wage paid during the nine months from the 1st of January 2020 to the 30th of September 2020, coming to a maximum of $21,000 per eligible apprentice or trainee. Employers can register for the subsidy from early April 2020, and final claims for the payment must be lodged by the 31st of December 2020.

Increasing the Instant Asset Write-Off

• The Government is increasing the instant asset write-off threshold to $150,000 (from $30,000) for businesses with an aggregate turnover of less than $500 million until the 30th of June 2020. The threshold will apply to the GST-exclusive (if the business is registered for GST and is entitled to receive input tax credits) cost of both new and second-hand assets first used or installed ready for use in the period beginning on the 12th of March 2020. Please note that the measure applies differently to Small Business Entities and Medium Business Entities.

Accelerating Depreciation Deductions for New Assets

• A new time-limited 15-month investment incentive will be introduced to accelerate certain depreciation deductions for businesses with an aggregate turnover below $500 million, available until the 30th of June 2021. Outside of SBEs depreciating assets under general small business pool rules, eligible entities can deduct 50% of the cost of the eligible depreciating asset and the amount of the usual depreciation deduction that would otherwise apply as calculated on the remaining cost of the asset. The new measure can only be applied to eligible depreciating assets in the year in which they are first used or are installed ready for use for a taxable purpose.
• For SBEs that use the general small business pool, for assets that do not qualify for the instant asset write-off, an amount equal to 57.5% of the business-use portion of the cost of the eligible depreciating asset may be deducted in the year that the asset is allocated to the pool. This is as opposed to the normal 15% that is deducted on the first year and asset is allocated to the pool.

Early Access to Superannuation Benefits

• The Government is allowing individuals affected by the Coronavirus to access up to $10,000 of their superannuation before the 1st of July 2020, and a further $10,000 from the 1st of July 2020 through the new compassionate ground of release. Eligible individuals who wish to access their entitlements under the new ground will be able to apply directly to the ATO from mid-April 2020. They will not need to pay tax on the amounts released, and their withdrawals will not affect Centrelink or Veterans’ Affairs payments.

Temporary Reduction of Superannuation Minimum Drawdown Rates

• The Government is temporarily reducing minimum drawdown requirements for account-based pensions and similar products by 50% for the 2020 and 2021 income years. This measure is designed to benefit retirees with account-based pensions and similar products be reducing the need to sell investment assets to fund the usual minimum drawdown requirements.

Reduction to Social Security Deeming Rates

• From the 1st of May 2020, the Government will be reducing both the upper and lower social security deeming rates by a further 0.25 percentage points, bringing the overall reduction to 0.75 percentage points. The upper deeming rate will be reduced to 2.25% from 3% and the lower deeming rate will be reduced to 0.25% from 1%.

Please contact our office or visit the Australian treasury or Government services website for more information.

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The Government’s Coronavirus Economic Stimulus Package

On the 12th of March 2020, the government released a proposed response to the economic implications of the Coronavirus outbreak in the form of a $17.6 billion economic stimulus package aiming to maintain confidence, support investment, and keep people employed. The proposed measures are as follows:

Business Investment Support:

• From Thursday, the 12th March 2020, the instant asset write-off threshold has been increased from $30,000 (for businesses with an aggregated turnover of less than $50 million) to $150,000 (for businesses with an aggregated turnover of less than $500 million) until 30th June 2020.
• A 15-month investment incentive, through to 30th June 2021, will be introduced to accelerate depreciation deductions to support business investment and economic growth in the short term. Businesses with a turnover of less than $500 million will be able to deduct 50% of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset’s cost.  This is proposed to apply to new depreciating assets first used, or installed ready for use, by 30th June 2021.

Cash Flow Assistance:

• Tax-free payments of up to $25,000 (with a minimum of $2,000) will be provided for eligible small and medium businesses that employ staff, based on their PAYG withholding obligations.
• Wage subsidies will be provided to support the retention of apprentices and trainees – employers with less than 20 full-time employees may be entitled to apply for Government funded wages subsidies amounting to 50% of an apprentice’s or employee’s wage for up to 9 months from the 1st of January 2020 to the 30th of September 2020, with the maximum subsidy for each apprentice/trainee amounting to $21,000. Where an employer is not able to retain an apprentice, the subsidy will be available to a new employer that employs that apprentice.

Payments to Households to support growth:

• The Government will also provide a one-off tax-free payment (per eligible recipient) of $750 to social security, veteran and other income support recipients and eligible concession card holders. It is estimated that half of those that will benefit are pensioners. If a person qualifies for the payment in multiple ways, they will still only receive one payment. The payment will not count as income for Social Security, Farm Household Allowance, and Veteran payments.

Assistance for heavily affected regions:

• The Government has committed to set aside $1 billion to support regions and communities that have been disproportionally affected by the economic impacts of the outbreak, including those who rely heavily on industries such as tourism, education, and agriculture. They are also providing additional assistance to businesses that may need to find alternative export markets or supply chains.

The Government are planning on introducing the package of Bills for urgent consideration and implementation in the final sitting week in March 2020. Following the passage of the Bills through Parliament, the Government will then make and provide any supporting documents.  It is important to note that the measures are not yet law and the information available is still very limited and for additional information please visit The Treasury website.

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Rights of a Working Holiday Maker  

Working holiday makers are temporary visitors with valid working holiday or work and holiday visas. When hiring a holiday maker, employers should consider:

• Tax Rates – Registered vs Unregistered Employers:

There’s a difference between which tax rates employers must apply as a registered and unregistered employer. Registered employers must apply for the working holiday maker tax, which starts at 15% for every dollar earned up to $37,000. Whereas, foreign tax rates applies to unregistered employers, which starts at 32.5% tax for every dollar earned up to $90,000.

• Proper Remuneration & Leave Entitlements:

Business owners should consider overseas worker with approved working visas the same as Australian workers, in terms of salary and wages as well as leave entitlements. Based on the state employment laws, it is important for employers to provide the correct pay rates and leave entitlements such as sick and annual leave.

• Superannuation:

If paid a gross income of $450 or more per month as well as considering that the working holiday maker is 18 years and older and performing work within Australia, they will be eligible for superannuation.

Recently, a South West business owner was filed with an underpayment complaint, which resulted in a penalty of $1,500 and interest on wages underpaid. Employers are warned, especially in regional areas to review their employment obligations for local and on visa workers. Currently, State Industrial Inspectors are active in undertaking compliance audits.

If you or know anyone who is deliberately underpaid of wages and entitlements, please follow the link to report wage theft.

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New gift card laws for businesses

When parents open bank accounts on behalf of their children, they may not clearly understand the legal requirements around who is required to declare the interest income. As a result, interest income may unexpectedly appear on their pre-fill.

If your business sells gift cards or vouchers you’ll need to comply with new laws which came into effect from 1 November 2019.

The key changes of the new gift card laws are:

• a mandatory minimum three year expiry period from the date the card is sold to a customer
• gift cards must clearly show the expiry date
• most post purchase fees can no longer be charged, including activation fees, account keeping fees and balance enquiry fees

The new laws apply to all gift cards and vouchers sold from 1 November 2019 onwards. Any gift card sold before 1 November 2019 date will continue to carry the same expiry period and fees as applicable at the time of purchase.

For more information on the exclusions and the penalties please follow the link or contact our office on 97211 055 to arrange a meeting.

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Quoting TFNs on children’s bank accounts

When parents open bank accounts on behalf of their children, they may not clearly understand the legal requirements around who is required to declare the interest income. As a result, interest income may unexpectedly appear on their pre-fill.

Tax agents can assist by ascertaining who provides the money and decides how it is spent, and advise their client accordingly. Depending on the answers, the parent’s tax file number (TFN) may or may not be required to be reported to the bank.

If the parent’s TFN is incorrectly recorded against the bank account, the client needs to contact the bank to either have their TFN removed, apply for a TFN for the child to report to the bank, or if a formal trust has been set up quote the trust TFN.

More information (including examples) can be found on the ATO website.

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Taxable payments reporting has been expanded

If you run a business in the building and construction industry, cleaning services, courier services, road freight, information technology and security, investigation or surveillance services you are now required to report the taxable payments made to contractors during the year.

You will need to report if all of the following apply:

• You are in one of the businesses listed above
• make payments to contractors for one of the above services
• have an Australian business number (ABN).

Using the information from the invoices you receive from your contractors, you then need to report the following information:

• their Australian business number (ABN)
• their name
• their address
• the gross amount you paid them for the financial year (this is the total amount paid including GST)
• the total GST included in the gross amount you paid.

The Taxable payments annual report is due by the 28^th of August each year and you can lodge your Taxable payments annual report online or by paper. You can obtain taxable payments annual report forms from our office or the ATO.

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FBT 2019 compliance

As an employer you should consider if a fringe benefit is being provided to an employee. Fringe benefits tax (FBT) is a tax paid by the employer on certain benefits you provide to employees (or the employees’ associates) and is based on the taxable value of the various fringe benefits provided.

As the FBT year runs from 1 April to 31 March you should consider whether or not you have any FBT obligations as an employer. The ATO have provided FBT webinars that can viewed online and an ‘FBT Issues on our radar’ guide. We have also made available the 2019 CPA FBT Checklist for viewing.

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Work Christmas parties and gifts

Unfortunately, even when planning your Christmas party or providing gifts there are some income tax and fringe benefits tax things you should consider to avoid unfavourable tax consequences arising.

Generally, you won’t have to pay FBT if you host the Christmas party on your business premises or keep the cost of the party to below $300 per person.

To get the best tax result this Christmas time you should consider:

• the benefits of hosting the party at your business premises
• the value of any gifts you choose to give to staff
• whether to invite clients and other associates
• the cost of catering per person.

More information can be found on the ATO webpage.

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Australians are missing out on tax refunds

The ATO believe hundreds of thousands of Australians may be missing out on a tax refund this tax time.

It is important that taxpayers are aware of the lodgement requirements and entitlements as the ATO will not issue tax refunds unless you have lodged a return. Some people just don’t realise this or have been putting off lodging a return or are under the belief that they are not required to lodge a return.

It is important to keep your lodgement status up to date and for more information you can view the ATO website.

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FBT 2018 compliance

As an employer you should consider if a fringe benefit is being provided to an employee. Fringe benefits tax (FBT) is a tax paid by the employer on certain benefits you provide to employees (or the employees’ associates) and is based on the taxable value of the various fringe benefits provided.

As the FBT year runs from 1 April to 31 March you should consider whether or not you have any FBT obligations as an employer.  The ATO have provided an ‘FBT Tips and what attracts our attention’ webinar that can viewed online.  The 2018 CPA FBT Checklist is also available on our website for viewing.

Remember, ultimately the employer is responsible for any FBT payable.

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Small Business Superannuation Clearing House

The Small Business Superannuation Clearing House (SBSCH) has joined the Business Portal and is now ready to accept employer superannuation contributions.

To use the SBSCH you can now log in through the Business Portal. You will need to check the permissions settings in Access Manager and remember it can only be used if you have fewer than 19 employees and an annual aggregated turnover of less than $10 million.

The benefits of the SBSCH include:

• making all your super contributions in one transaction with the SBSCH securely distributing super contributions to your employees’ nominated super funds
• ensuring your SG obligations are met as soon as your payment and instructions are accepted by the SBSCH (provided the fund does not reject them)
• ability to nominate a regular contribution amount for an employee
• ability to access your transaction history whenever you need it

You can find out more information on the SBSCH.

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Fringe benefits tax and Christmas parties

Unfortunately even when planning your Christmas party, it’s also important to consider any tax requirements.

As there is no separate fringe benefits tax (FBT) category for Christmas parties, generally you won’t have to pay FBT if you host the Christmas party on your business premises, or keep the cost of the party to below $300 per person.

Some Christmas parties can attract FBT, so it’s important you consider:

• the benefits of hosting the party at your business premises
• the value of any gifts you choose to give to staff
• whether to invite clients and other associates
• the cost of catering per person.

Finally, it is important that while your staff may be ‘off the clock’, you’ll probably still be responsible for their health and safety.

Here are some suggestions to help your workplace celebrate safely:

• Send a friendly email to staff before the party reminding them that while the party is a time to relax, it’s still a work function. The email should also outline the rules, and remind staff to be careful if they choose to drink alcohol.
• If you’re serving alcohol at the party, make sure it’s served responsibly and that there ’s enough food and non-alcoholic drinks available.
• Help your staff get home safely after the event. You could organise a bus, pre-order some taxis, or arrange some designated drivers.

The ATO have a great webpage on Fringe benefits tax and Christmas parties .

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Taxable payments reporting – building and construction industry

If you run a business in the building and construction industry that pays contractors for building and construction services, you need to report the total payments you make to each contractor for building and construction services each year.

In summary, you need to report if all of the following apply – you:

• are a business that is in the building and construction industry
• make payments to contractors for building and construction services
• have an Australian business number (ABN).

Using the information from the invoices you receive from your contractors, you then need to report the following information:

• their Australian business number (ABN)
• their name
• their address
• the gross amount you paid them for the financial year (this is the total amount paid including GST)
• the total GST included in the gross amount you paid.

You need to report the total payments you make to each contractor for building and construction services that are performed on, or in relation to, any part of a building, structure, works, surface or sub-surface. Note you do not need to report payments where the:

• payments is for materials only
• any invoices that you have received but have not paid as at 30 June each year
• payments which must be reported in a Pay as you go (PAYG) withholding payment summary annual report, such as payments to employees
• payments for private and domestic projects – for example, payments you make for building or renovating your own home.

The Taxable payments annual report is due by 28 August each year and you can lodge your Taxable payments annual report online or on paper. You can obtain taxable payments annual report forms from our office or the ATO.

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Budget highlights and tax changes

There have been lots of Budget and Tax Time changes again this year. Please see below for some of the more common measures that may affect your taxation affairs in the 2017 financial year and beyond:

Income Tax:

• Increase in the Medicare levy of 0.50% to 2.5% and the removal of the 2% Temporary Budget Repair Levy removed from the 01/07/17
• Decrease in the HELP loan repayments threshold to $42k (down from $55k)
• Limiting the plant and equipment depreciation deductions for residential properties to outlays actually incurred
• Removal of the travel tax deduction claimed by landlords when they go to inspect, maintain or collect rent on their investment property
• The current 18% tax offset of up to $540 will be available for any individual, whether married or de facto, contributing to a recipient spouse whose income is up to $40,000

Business:

• Increase in the Small Business Turnover to $10m and a reduction in the company tax rate to 27.5%
• Extension in the instant tax deduction for small business equipment under $20k
• Commitment to reduce the company tax rate for all firms to 25%
• Increase in the small business income tax offset from 5% to 8% (limited to $1k)
• Simpler BAS reporting for eligible small businesses
• Working holiday makers on a 417 or 462 visa are taxed at 15% (remembering the employer must be registered to employ working holiday makers)
• Farm Management Deposits have increased from $400k to $800k
• Introducing the cleaning and couriers industries into the Taxable Payments Reporting system
• Introduction of the ‘1 Touch’ payroll for large business
• Extra money for the ATO to work against the black economy

Superannuation:

• The reduction in the concessional contribution cap to $25k and the ability for employees to make contributions
• After tax Non-Concessional Contribution (NCC) limits will reduce from $180k pa to $100k pa
• Pensions will now have a $1.6m limit for concessional tax treatment
• Transition to Retirement (TTR) income streams will be taxed the same as super at up to 15%
• First home buyers will be able to make voluntary contributions of up to $15k per year and $30k in total to subsequently withdraw to make a deposit on their first home
• A person aged 65 or over can contribute up to $300k from the proceeds of the sale of their home as a non-concessional contribution

Other:

• Purchasers of new residential premises and land in new subdivisions will be required to withhold and pay GST on the sale directly to the ATO by the date of settlement
• Purchasers of certain Australian property assets from foreign resident vendors withhold and pay 10% of the purchase price to the ATO by the date of settlement in the form of CGT withholding (now proposed to increase to 12.5% and to apply to a broader range of properties)
• Levy on the five biggest banks (CBA, NAB, WBC, ANZ and MCQ) to raise $6.2 billion over the next four years

This is general information in nature however if you wish to find out how these changes may impact you please contact our office on 97211 05 to arrange an appointment.

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Award rates to rise and penalties to fall

The Fair Work Commission has handed down its annual wage review decision which will increase the modern award rates of pay by 3.3% from 1 July 2017. This increases the national minimum wage by $22.20 from $672.20 to $694.90 per week.

Also, the Fair Work Commission has announced the phasing in period for changes to Sunday and public holidays penalty rates for businesses covered by the retail and hospitality industry awards.

You can view the award rates rise and phase in of penalty rates on the Fair Work Commission website and if you require further information please contact our office on 97211 055 for more information.

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ATO’s FBT compliance focus for 2017

ATO Assistant Commissioner Catherine Willis recently outlined several matters that should be kept in mind when preparing 2017 FBT returns.

The Assistant Commissioner said that the ATO’s compliance focus would include:

• car benefits
• correct calculation and reporting of living-away-from-home allowance (LAFHA)
• incorrect claiming of FBT exemption or FBT rebate
• employee reward programs
• housing benefits
• benefits provided to directors of private companies.

You can view the 2017 FBT Compliance Update from the ATO or if your business provides any benefits and you require further information please contact our office on 97211 055 for more information.

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Domain names scam targeting businesses

The ACCC is warning you that certain domain name registration companies are mailing out invoice-type letters to trick you into paying for a new domain name registration.   Big and small businesses are targeted. Typically, businesses are offered a ‘.com’ version of their ‘.com.au’ domain name. These letters are not renewal notices!

For further information as to how these scams work and how you can protect your business see this SCAMwatch Alert.    The ACCC has received a number of reports from small businesses in relation to approaches from Domain Name Corp Pty Ltd. If you receive correspondence from Domain Name Corp Pty Ltd, you should read it very carefully and consider the matters identified in the SCAMwatch Alert.

If your business receives a domain name registration letter that appears to be a scam, you can report it via the SCAMwatch website.

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ATO and Christmas time

The ATO loves Christmas time too! Unfortunately this is an area that can be forgotten in the lead up to Christmas and over the holiday period and the ATO can penalise the taxpayer for the incorrect calculation of income tax, goods and services tax and fringe benefits tax.

This is just a quick reminder that Christmas parties and gifts can be provided for however they need to be done (and accounted for) in a certain way so you can enjoy the festivities without creating any undue tax consequences.

For more information you can view the link.

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Tax Cuts – PAYG Withholding changed

The ATO has reminded employers that the PAYG withholding rate has changed for taxpayers as of the 1st of October for those earning above $80 000.

The new tax tables are available now and the ATO wants to remind taxpayers that there are no adjustments to be made and they will refund any over-payment of tax when they lodged their 2017 income tax return.

For more information you can view the ATO website.

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Using a registered tax agent

The ATO has reminded taxpayers that only registered tax agents can prepare your income tax return for a fee.

Using a registered tax agent offers many professional benefits, including:

• having to meet and maintain the required standards or qualifications and experience
• complying with the Code of Professional Conduct

Another timely benefits includes being able to lodge your income tax return after the 31^st of October providing you meet the criteria.

For more information you can view the ATO website .

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Beware business scams impersonating the ACCC

The ACCC is warning businesses to watch out for scam emails that claim to be from the ACCC but in fact contain links that can infect your computer with malware.

In the past week, several businesses have reported receiving bogus requests from scammers claiming to be the ACCC. The emails asks businesses to respond to a complaint that has been made about them, or seek payment for an infringement notice for breach of copyright.

Legitimate emails from government agencies will always have an email address that ends in .gov.au.

If you are uncertain about the legitimacy of an email you have received you can call the ACCC’s Scamwatch call centre on 1300 795 995.

If you do receive an email of this kind there are a few things you can do to protect yourself:

• Do not click on any suspicious links in emails and check the sender’s address very carefully. If you think it is a scam, delete the email
• Ensure your business has up-to-date virus protection and firewall software installed
• Regularly back-up your computer’s data on a separate hard drive. If your computer is infected by malware or ransomware you can restore the factory settings and easily re-install all of your software and data
• Do not respond to contact details provided in unsolicited emails. Independently verify contact details from the phone book or search online for official details
• Keep your staff informed about security threats and provide them guidance on how to deal with scam emails

For more information go to the ACCC’s Scamwatch website.

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Pay Rates to increase

The WA Industrial Relations Commission today increased the state minimum wage and award wages by $13 per week, effective from the first pay period on or after 1 July 2016.

The state minimum wage for adult award-free employees will increase by $13 per week and the new adult minimum wage will be $692.90 per week. Adult pay rates under state awards will also increase by $13 per week, while junior rates and apprentices and trainee pay rates will increase proportionately.

Wageline will update the minimum rates for award-free employees and the pay rates in Wageline’s WA Award Summaries on the Department of Commerce website by 1 July 2016.

Note you can subscribe to the Wageline Newsletter and you will be notified when the new pay rates are available on our website.

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2016 Budget Highlights

Some key announcements from this year’s budget include:

• Increase in the 32.5% personal income tax threshold from $80k to $87k
• $20k immediate tax write off on eligible plant and equipment to be extended for small business
• Tax discount on income tax for non-incorporated businesses to be increased from 5% to 8% from the 1^st of July 2016 (still capped at $1,000 per year)
• Decrease in the small business company tax rate from 28.5% to 27.5% from the 1^st of July 2017, with plans to reduce this to 25% over the next 10 years for all companies (including an increase in the turnover limit for businesses from $2 million to $10 million to be able to access small business concessions)

A big area of change was to superannuation:

• Allowing individuals to claim an income tax deduction for personal superannuation contributions made (up to the age of 75) commencing the 1^st of July 2017 (including removal of the ‘work test’ for people aged 65-74 in relation to superannuation contributions)
• Lowering of the concessional superannuation contributions cap to $25k (previous $30k or $35k, depending on your age)
• Introduction of a Low Income Superannuation Tax Offset (LISTO) for people earning less than $37k. An offset is paid to your superannuation account up to a cap of $500, commencing the 1^st of July 2017
• Increasing the access to the low income spouse superannuation tax offset by raising the income threshold for the low income spouse to $37k (previously $10,800)
• Lowering the Division 293 threshold from $300k to $250k
• Change to the excess non-concessional superannuation contributions cap to a life time limit of $500k (back dated to the 1^st of July 2007)

Other points of interest:

• Introduction of a new ‘Prepare, Trial, Hire (PaTH)’ initiative to help young job seekers by giving incentives to businesses to take on interns
• Simplification of PAYG Instalment calculations and the reporting of Business Activity Statements
• Changes to the GST so that overseas suppliers that have an Australian turnover of $75k will be required to register for, collect and remit GST on low value goods supplied to consumers in Australia from the 1^st of July 2017
• Establishment of a new Tax Avoidance Taskforce enabling the ATO to enhance compliance activities targeting multinationals, large public and private groups and high wealth individuals.

More detailed information can be found at http://www.budget.gov.au/.

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Simpler ways to calculate Fuel Tax Credits

The ATO have simplified the way fuel tax credits are claimed if you claim less than $10 000 in tax credits each year.

More information can be found on the Fuel Tax Credits showing how you can:

• Use one rate in a BAS period
• Work out litres of fuel used based on the cost of the fuel purchased

The ATO website shows you the steps involved to calculate the fuel tax credits and the relevant documents required to support your claim. They also include a list of heavy vehicles which when used off public roads no longer need to be apportioned when calculating the fuel tax credits claim.

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Fringe Benefits Tax Changes

The Fringe Benefits Tax year runs from 1 April to 31 March and any items you provide to your employees that are not part of their normal salary are considered fringe benefits. This includes things like allowing an employee to use a work car for private purposes, paying for employee’s private health insurance, providing entertainment through food, drink or recreation, or giving employees cheap loans.

The following changes apply to all employees:

• All salary packaged meal and other entertainment benefits are reportable and should be included on the payment summary where the reporting exclusion threshold is exceeded.
• The 50-50 split method and 12-week register method cannot be used by the employer for valuing salary packaged meal and other entertainment benefits which may affect how much an employee can salary package.

For employees who work for a not-for-profit employer:

• A separate single grossed-up cap of $5000 will apply for salary packaged meal and other entertainment benefits for employees of not-for-profit organisations able to access a general FBT exemption or rebate ($31,177 or $17,667 exemption; or $31,177 rebate).
• The amount of those benefits exceeding the separate grossed-up cap of $5000 are included in calculating whether the value of all benefits an employee receives exceeds the general FBT exemption or rebate cap.

Types of Fringe Benefits can be found on the ATO website or view our website for a checklist, comprehensive rates and FBT exempt vehicles.

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Electronic Service Address

Under the new SuperStream standards your SMSF needs an electronic service address.

You can get an electronic service address from an SMSF messaging provider and please note an e-mail address is not an active electronic service address. Under SuperStream, contribution data is transmitted in a specific format and using an SMSF messaging provider is the most practical way to meet the SuperStream requirements.

It is important that you have an electronic service address otherwise your super contributions may not reach your SMSF and might be redirected to your employer’s default fund – note more information can be found on the Electronic Service Address website.

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What’s new for small business?

Small businesses have access to a range of tax concessions. This page summarises concessions announced in the 2015 budget including instant asset write-offs, capital gains tax restructure roll-overs, income tax discounts and fringe benefits tax concessions.

More information on the concessions can be found on the ATO website.

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Affected by recent natural disaster?

If you’ve been impacted by the recent bushfires in Waroona and Yarloop, you don’t need to worry about your tax affairs right away.

We understand you may need time to deal with more immediate concerns and we can help you sort out your tax affairs later, including giving you more time to lodge or pay. Where records have been damaged we may also be able to help construct your tax records.

More information can be found on the Dealing with disasters or you contact our office on 97211 055.

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Having a party or giving gifts this festive season?

It is a great time of the year and just remember you need to consider the Income Tax Deductibility and Fringe Benefits Tax application this festive season to avoid any nasty surprises as the ATO have been known to audit this area.

Consideration needs to be given to the cost, where and when it is held and who is invited to the party.  Similarly when it comes to gifts, the cost, type of gift and the recipient all make a difference to the end tax result.

More information can be found at Implications for taxpaying body.

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The ATO is texting your clients about SuperStream

Starting in October, the ATO will be texting many of your clients regarding SuperStream. If you haven’t already, you may wish to pre-warn those clients so they’re not taken aback by a random tax office text!

See which industries the ATO is targeting.

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Wageline Watch

From the commencement of the first pay period on or after 1 July 2015 the Western Australian rates of pay will increase. This increase is proportional for apprentices and junior employees. There has also been an increase to location allowances throughout Western Australia.

1. Award rates of pay are going up by 2.1%.
2. Non-award rates (ie those not covered by an award) will increase by $14.00 per week to $679.90 per week.

These increases only apply to employees of businesses that are sole traders or partnerships covered by State awards or the Western Australian minimum wage. For pay rates for businesses that are a PTY LTD please contact the Fair Work Infoline on 131 394.

Click to download the new pay rates.

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Export Development Market Grants

EMDG encourages small and medium sized Australian businesses to develop export markets by reimbursing up to 50 per cent of eligible export promotion expenses above A$5,000 in a financial year (or over two financial years for first year applicants), provided total eligible expenses incurred amount to at least A$15,000. Eligible businesses can receive a maximum of eight taxable grants of up to $150,000 each.   In 2013-14, 292 ICT exporters received $16.5 million in EMDG grants for the 2012-13 grant year. These companies generated around $289.6 million in exports.

To qualify for an EMDG grant, you must:

 – be an eligible business genuinely carrying on business in Australia, with annual income of not more than $50 million

 – be seeking to export an eligible product (goods, services, intellectual property or know-how)

 – have incurred expenses on an eligible promotional activity (overseas marketing visits, overseas representation, marketing consultants, participation in trade fairs, communications, free samples, promotional literature and advertising, visits to Australia by overseas buyers and registration and insurance of intellectual property).

For more information you can view the Austrade website http://www.austrade.gov.au or get more details from the fact sheet http://www.austrade.gov.au/Export/Export-Grants/What-is-EMDG/Export-Market-Development-Grants-EMDG or contact our office on 97211 055.

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2015 Budget Highlights

Some key announcements from this year’s budget include:

• Medicare levy low-income threshold will be increased
• Pensioners will see changes in the pension income and assets test
• The majority of fly-in fly-out workers will lose the zone tax offset from the 1^st of July 2015
• Methods of calculating work related travel expense will be simplified reducing the cents per kilometre claim to a flat $0.66 from the 1^st of July 2015
• From the 1^st of July 2015 shares and options issued under an employee share scheme will be taxed when the taxpayer realises a financial gain
• Government and employer paid parental leave will no longer accessible simultaneously
• Reduced caps on Fringe Benefits Tax exemptions available to not-for-profit and health care workers
• Terminally ill patients will be able to have access to their superannuation for a period of up to 2 years

Some wins for small business include;

• 5% tax discount on income tax up to $1 000 saving per year for non-incorporated businesses
• Reduced company tax rate from $0.30 to $0.285
• Immediate tax deduction on eligible assets costing less than $20 000 each
• From the 1^st of July 2016 primary producers will be able to speed up the claims on certain capital expenditure including fencing and water facilities
• Immediate write-off of setup costs
• Expanded FBT exemption for work related portable devices
• Expanded CGT relief when changing legal structures

Finally, just some other points of interest:

• Government will provide employer assistance for young and older workers
• Family Tax Benefit Part A large family supplement will cease 1^st of July 2016
• Changes to childcare subsidy starting the 1^st of July 2017
• Children will have to fully meet immunisation requirements to access certain government payments
• Changes to tax residency rules for temporary working holiday makers
• Australians with HELP debts whom are living/working overseas will have to register with the ATO
• Finally multinationals will be held more accountable within our tax system including GST on digital products and services

For more information you can view the treasury website or contact us directly on 97211 055.

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Fringe Benefits Tax and you 

The Fringe Benefits Tax year runs from 1 April to 31 March, which means that it’s time to start thinking about your fringe benefits reporting.

What’s a fringe benefit?

Any items you provide to your employees that are not part of their normal salary are considered fringe benefits. This includes things like:

• allowing an employee to use a work car for private purposes
• paying for employee’s private health insurance
• providing entertainment through food, drink or recreation, or
• giving employees cheap loans

More comprehensive examples for fringe benefits can be found on the ATO website or visit our webpage for a checklist and comprehensive rates.

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Unlawful Child Employment 
A Jurien Bay Supermarket has been fined $2,250 for unlawfully employing an 11 year old girl during August 2014.

It is illegal for businesses in the retail industry to employ children aged less than 13 years. Retail industry employers may employ children aged between 13 and 15 years, but must not allow them to work before 6am or later than 10pm. The employer also must obtain written permission from the child’s parent or guardian to employ them.

Different restrictions apply to other industries, and generally it is unlawful to employ a child aged less than 15 years. The prosecution is a timely reminder to all employers to ensure they are aware of their obligations under these laws, particularly in the major school holiday period of the year.

Employers which are unsure of their obligations regarding employing children should contact Wageline on 1300 655 266 (or visit their website – When Children Can Work).

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Wage Increase

From the 1st of July 2014 the Western Australian minimum wage has increased by $20.00 to $665.90 per week for full time adult employees.  All State award minimum rates will also be increased by $20 per week for full time adult employees.

Note this increase is for sole traders and partnerships covered by the Sate awards or the Western Australian minimum wages.  For pay rates for business that are not sole traders or partnerships contact the Fair Work Info line on 131 394 or visit http://www.fairwork.gov.au

For more information or to learn more about Labour Relations you can view the treasury website http://www.commerce.wa.gov.au/LabourRelations/

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2014 Budget Highlights

Some key announcements from this year’s budget include:

• Three year temporary levy of 2% will be imposed on individuals’ taxable income in excess of $180 000 pa from the 1 July 2014 until 30 June 2017 known as the Temporary Budget Repair Levy
• Planned reduction in the company tax rate by 1.5% from the 1^st of July 2015
• Various reforms to the Family Tax Benefit (FBT) Part A and B payments will be introduced including reducing the FTB part B primary earner income limit to $100 000 pa and changing certain eligibility requirements and a new $750 allowance will be introduced for single parents on the maximum FTB part A rate, but will no longer receive FTB part B payments due to eligibility changes
• The Medicare levy low-income threshold for families will be increased from the 2013/14 income year
• Medicare levy surcharge and private health insurance offset thresholds to be frozen
• Changes to the Medicare system relating to patient contributions, indexation of fees and thresholds and Medicare safety net arrangements
• The dependent spouse tax offset (DSTO) and mature age worker tax offset (MATO) will be abolished for all taxpayers from the 1^st of July 2014
• The income threshold at which students commence repayment of their Higher Education Loan Programme (HELP) debts will be reduced with effect from 1 July 2016. Also HELP debts will be indexed at a rate equivalent to the yield on 10-year government bonds (up to a 6% maximum) instead of CPI
• Various reforms will be introduced to the pension system including increasing the qualifying age for the Age Pension to 70 by the 1 July 2035
• The eligibility age for the Newstart Allowance and Sickness Allowance will increase from 22 to 24 years of age from the 1^st of January 2015
• Rates of the refundable and non-refundable offsets for the R & D Tax Incentive will be reduced by 1.5 percentage points

Finally, just some other points of interest:

• Individuals will be given the option of withdrawing superannuation contributions in excess of the non-concessional contributions cap made from 1 July 2013 and any associated earnings, with these earnings to be taxed at the individual’s marginal tax rate
• The schedule for increasing the superannuation guarantee rate to 12% will be changed
• Paid Parental Leave scheme to start on the 1^st of July 2015 with 6 months paid leave
• Fuel excise indexation reintroduced
• From the 1^st of July 2014 taxpayers will receive a tax receipt showing how and where their tax dollars were used

For more information you can view the treasury website http://www.budget.gov.au

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Compulsory employer contributions rate change

If you’re eligible for compulsory super guarantee contributions, your employer must pay the superannuation into a complying super fund provided you meet the eligibility.  The superannuation is calculated on your ordinary times earnings up to the maximum contribution base.  Note the superannuation guarantee rate has increased to 9.25% and the rate will be gradually increasing to 12% by the 1^st of July 2019.

For more information on the eligibility, the superannuation rate, providing your tax file number to the superannuation fund and choosing a fund please follow the link

http://www.ato.gov.au/Individuals/Super/Compulsory-employer-contributions/

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2013 Tax Tips

10 tax tips you should consider before the 30^th of June:

1. Strategically time all income receipts including ordinary earnings and capital gains receipts (including capital losses) to get the best tax result
2. Take advantage of the new depreciation rules for business which allows assets costing up to $6 500 to be written off in full, and the benefit of claiming the first $5 000 deduction on eligible motor vehicles
3. Tax plan with some good Superannuation strategies like  Salary Sacrificing into superannuation, making deductible superannuation contributions, taking advantage of co-contributions and claiming superannuation contributions on behalf of your spouse
4. Review current business and investment structures, as well as existing loans to maximise tax deductibility and to utilise the lower income earner’s tax rates
5. Consider prepaying tax deductible expenses like interest on investment loans, work related expenses and bring forward your deductions – timing is important!
6. Maintain good records, ensuring have all receipts and a valid log book for motor vehicle claims and remember self education expenses will be capped at $2 000 starting the 1^st of July
7. Request a Quantity surveyor’s report for the investment property to maximise any income tax deductions available and undertake necessary repairs early
8. Remember the net medical tax offset (20% offset for net medical expenses over $2 060) is to be abolished however if you make a claim in 2013 you will be considered to be eligible in 2014
9. Beware of tax schemes especially that offer you promises of great tax deductions, high guaranteed returns – if they are too good to be true they often are!
10. Take time out to review your financial affairs and make time to discuss and plan your financial future

These are just some quick tax tips and general in nature and may or may not be of benefit to you.  Contact Patane Accounting today on 97211 055 to arrange a meeting to discuss your individual tax circumstances and to look at other ways of minimising your income tax payable before the 30^th of June.

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2013 Budget Highlights

Some key announcements from this year’s budget include:

• Increase in the Medicare levy from the 1^st of July 2014 from 1.5% to 2% to fund Disability Care Australia
• Self education expenses will be capped to $2 000 at the 1^st of July 2014 (including expenses under a salary sacrifice arrangement)
• Reforms to the excess contributions tax will see excess contributions be taxed at the individual’s marginal tax rate and will allow those contributions to be withdrawn from the superannuation fund (restrictions apply) commencing the 1^st of July 2013
• Superannuation contribution cap will be lifted to $35 000 for those aged 60 and over and will remain at $25 000 for everyone else from the 1^st of July 2013
• Tax exemption for earnings on superannuation assets supporting income streams will be capped at the first $100 000 per individual with the remaining earnings being taxed at 15% starting the 1^st of July 2014
• From the 31^st of December 2015 the ATO will collect superannuation balances if the account is under $2 500 for what is considered to be an inactive account and the member is uncontactable
• The net medical tax offset (20% offset for net medical expenses over $2 060) is to be abolished however if you are claiming in 2013 you will be considered to be eligible in 2014
• Starting the 1^st of January 2014 the Family Tax Benefit Part A will only be paid until the end of the calendar year when the child completes school once turning 16 years of age and from the 1^st of March 2014 the baby bonus will be replaced by the Family Tax Benefit Part A (if eligible)

Finally, just some other points of interest:

• Income tax cuts for individuals from the 1^st of July 2015 to be deferred
• Standard $1 000 work deduction, 50% discount on interest earnings and reduced company tax rates abandoned
• Additional 15% tax will be payable on superannuation contributions for taxpayers earning more than $300k
• ATO has received additional funding and will be again targeting taxpayers and in particularly trusts
• Increase to family tax benefits payments scrapped

For more information you can view the treasury website http://www.budget.gov.au

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Superannuation changes from the 1 July 2013

Employers across Australia will have new superannuation obligations under a range of reforms. From 1 July 2013, they will need to:

• increase the minimum rate for super guarantee payments on behalf of employees from 9% to 9.25%
• start making super guarantee payments for employees aged 70 years or older, as the existing upper age limit will be removed.

For more information please follow the links:

• Employee:http://www.ato.gov.au/businesses/content.aspx?menuid=0&doc=/content/00320488.htm&page=2&H2

• Employer: http://www.ato.gov.au/businesses/content.aspx?menuid=0&doc=/content/00320488.htm&page=10&H10

Please note the ATO will be sending information out to employers in April.

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What’s new in 2012

Another year brings more tax changes and below is a few of the changes that may affect you;

•  Education Tax Refund (ETR)

In the 2012 Budget the Government announced that the Education Tax Refund would be replaced by a new payment called the Schoolkids Bonus, to be paid by the Department of Human Services.

As part of the transition to the new Schoolkids Bonus, the Education Tax Refund for 2011-12 will be paid in full to all eligible families as a one-off payment from 20 June 2012. This means you will no longer need to claim the Education Tax Refund in your tax return during tax time.

Note if you do not receive the one-off payment in June, contact the Department of Human Services to find out if you are entitled to receive it and for more information visit department of human services and search for Schoolkids Bonus.

• Dependent Spouse Tax Offset

There have been changes to the eligibility criteria for claiming the dependent spouse tax offset and if your spouse was born on or after 1 July 1971, you can no longer claim a dependent spouse offset. However, taxpayers who maintain an invalid or permanently disabled spouse, support a carer or who are eligible for the zone, overseas forces or the overseas civilian tax offsets are exempt from the new age limit and will still be able to claim the value of the dependent spouse tax offset via an expanded invalid spouse, zone, overseas forces or overseas civilian offset.

• Flood levy

The Government introduced a flood levy for the 2011-12 year only, to assist flood affected communities to rebuild essential infrastructure. The flood levy applies if your taxable income is greater than $50,000 and you do not fit into one of the exemption categories. If you are liable to pay the flood levy, we will work out the amount of levy and show it on your notice of assessment.

For more information please follow the link http://www.ato.gov.au/corporate/content.aspx?doc=/content/00325291.htm&pc=001/001/017&mnu=43478&mfp=&st=&cy=1

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A few things you should consider before the 30^th of June

As we come to a close of another financial year make sure you have done everything you can to maximise your income tax deductions and minimise the amount of tax payable.

With the recent changes in the budget three things you should be considering include:

• Taking advantage of the lower income tax rates in the new financial year.

Follow the link below for more information and the new income tax rates:

http://www.ato.gov.au/individuals/content.aspx?doc=/content/00309813.htm

• Possibly prepaying your private health insurance to ensure your 30% private health rebate.

Follow the link below for more information and the new means tests:

http://www.ato.gov.au/content/00285805.htm

• Maximising superannuation contributions this financial year and before the concessional contribution amount is lowered.

Follow the link below for more information:

http://www.ato.gov.au/content/00313951.htm

For more information on the above or to tax plan before the 30^th of June contact Patane Accounting today.

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ASIC Business Names Service

The ASIC initiative is very welcome and should help simplify the registration process and remove the need for multiple business name registrations.

For new registrations you will be able to register quickly and online at the ASIC website for a nominal fee (existing businesses will be sent a renewal notice) and you will have the ability to check the availability of the name and you can make changes online.

For answers to frequently asked questions on the new ASIC business names service please contact Patane Accounting today or follow the link below for more information.

http://www.asic.gov.au/asic/asic.nsf/byheadline/Frequently+asked+questions+on+the+new+ASIC+business+names+service?openDocument

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Small Business Grant Scheme

The grant provides a subsidy of up to $1 500 (ex GST) to help eligible small business to cover the cost of a professional service provider (accountant, financial planner, legal practitioner or management consultant), to identify areas of the business that can be improved, and to develop strategies that will increase the resilience of the business and its capacity to withstand the impact of future dry seasons.

Please note you will have to complete a needs assessment over the telephone through the Small Business Centre (131 249) that is expected to take approximately 30 minutes and the application must be approved in order to take advantage of the grant.

To find out if you are eligible (note primary producers are excluded), who can provide the professional service and if you are in the selected areas please contact Patane Accounting today or follow the link below for more information.

http://www.smallbusiness.wa.gov.au/2011-small-business-grant-scheme/

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Training Vouchers

Training vouchers can be used for business training to improve your skills and knowledge and can be used in areas such as:

• Workplace management
• Financial planning and management
• Applied safety and risk management
• Debt collection
• E-business
• Strategic business planning
• Marketing and advertising
• Business development
• Exporting

The voucher can also be used for business coaching and mentoring programs, we also assist a lot of our clients in record keeping, bookkeeping and the setup and ongoing assistance to get the most out of your MYOB to improve your business.

For more information please contact Patane Accounting today or follow the link below to the Small Business Centre for more information.

http://www.sbcbw.asn.au/Training%20Vouchers

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31^st of October Deadline

Please note the 31^st of October deadline for lodging tax returns isn’t applicable to our client’s whom have a good lodgement history.  Generally speaking, for our client’s that have a good lodgement history your income tax return may not be due until June next year!

For more information please follow the link below or call us to discuss your personal circumstances and for an accurate due date for lodgement of your income tax return.

http://www.ato.gov.au/individuals/content.aspx?doc=/content/00257420.htm&page=15

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Reforms to car fringe benefit rules

You may have heard recently in the media that legislation has been enacted changing the statutory formula method for calculating the value of a car fringe benefit.

Under these changes the progressive statutory rates have been replaced with a single rate of 20% which applies regardless of the distance travelled. The new arrangements, which are to be phased in over four years, apply to all car fringe benefits after 7.30pm AEST on 10 May 2011, except where there is a pre-existing commitment in place to provide a car.

If you require more information please let us know or refer to Reforms to car fringe benefit rules link below.

http://www.ato.gov.au/taxprofessionals/content.aspx?doc=/content/00279822.htm

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New withholding tax tables and the flood levy

Unfortunately after the devastating floods the Government has imposed a new temporary flood and cyclone recovery levy which will be applicable to the 2011-2012 financial year and will affect taxpayers earning over $50 000.

The ATO have issued new withholding tax tables and more information can be found on the link below:

http://www.ato.gov.au/individuals/content.aspx?doc=/content/00276059.htm

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One week after budget night…

There weren’t a lot of surprises with this year’s budget and we have briefly listed some of the changes that may impact our clients in regards to taxation, business and superannuation:

Taxation:

• Eligibility for a 50 per cent discount on the first $1,000 of interest earned per annum
• Taxpayers with a dependent spouse aged under 40 years will no longer be eligible for the dependent spouse tax offset
• The amount of the low income tax offset (LITO) refunded through reduced PAYG tax withholding is to be increased from 50% to 70%
• The removal of the ability of children under 18 years to access the low income tax offset

Business:

• Small businesses will be provided with an instant tax write-off of the first $5,000 of any motor vehicle purchased from 2012–13
• Employers will be required to show on pay slips the actual amount of superannuation paid into accounts and must notify employees quarterly if regular payments cease.  Also note the superannuation guarantee will increase in increments of 0.25% in the first two years, and 0.5% thereafter up to 12%
• The company tax rate will be cut to 29 per cent from the 2013/14 financial year. It will then be cut further to 28 per cent from the 2014/15 financial year, with small businesses being eligible for the 28 per cent company tax rate from the 2012/13 financial year
• The FBT statutory valuation method for cars will be replaced with a single statutory rate of 20 per cent, regardless of the number of kilometres travelled. The changes will apply to new vehicle contracts entered into after 7:30 pm on Tuesday 10 May, and will be phased in over four years

Superannuation:

• Individuals on adjusted taxable income of up to $37,000 will have a 15% matching rate applied to concessional contributions made up to a maximum annual amount of $500
• Government will provide eligible individuals who breach the concessional contributions cap by up to $10,000 with a one-off option to request that these excess contributions be refunded to them
• A permanent increase in the concessional contribution cap for those 50 and over and that the transitional measure (that was due to expire on 30 June 2012) afforded to contributors aged 50 years of age and over should remain permanently for those with account balances of less than $500,000

Most of these changes will apply from the 1^st of July (unless otherwise stated) and for more information please contact us or for a budget overview please visit

http://www.budget.gov.au/2011-12/content/overview/html/overview_key_initiatives.htm

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Are you providing a fringe benefit?

Below is a quick checklist to help you work out if you are providing a fringe benefit to your employees.  If you answer yes to any of the following questions, you may have a FBT liability.

       Do your employees take cars home and garage them overnight, even if only for security reasons?

       Do your employees use cars or other vehicles the business owns for private use?

       Do you have a salary package arrangement with any of your employees?

       Have you paid or reimbursed any employees’ expenses?

       Do you provide entertainment, such as food, drink or recreation to your employees?

       Do you provide any employees with a house or unit of accommodation?

       Do you provide loans at reduced interest rates to any employees or have released them of a debt owed to the business?

       For more information please follow the link below or contact us today to make an appointment to discuss how Fringe Benefits Tax can affect your business.

http://ato.gov.au/businesses/pathway.asp?pc=001/003/019

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The Government announced on 27 January 2011, that it will introduce a flood levy for the 2011-12 income year to assist affected communities recover from the recent floods and rebuild essential infrastructure. The levy forms part of a package of measures designed to assist affected communities.

The flood levy will apply to all taxpayers that have a taxable income of more than $50,000 in the 2011-12 income year. Taxpayers who have a taxable income of less than $50,000, or are in receipt of an Australian Government Disaster Recovery Payment for a flood event that occurred during the 2010-11 income year will be exempt from paying the flood levy.

More information about the flood levy, including the Prime Minister’s media release, question and answers, a fact sheet, and a calculator to assist affected taxpayers to obtain an indicative estimate of their levy contribution, is available at http://www.treasury.gov.au/floodrebuild/content/default.asp