News/Blog
Stay up to date with all our latest news, guidance and regulatory information here. We like to focus on the practical implications of changes to tax, insurance and financial planning legislation as well as offering insights on topical issues relevant to our clients.
LATEST ARTICLES
Don’t be caught out by the Medicare Levy Surcharge
We have had individuals and families contact us for tax advice regarding the Medicare Levy Surcharge (MLS) because, through different circumstances, they have had the MLS imposed. This has resulted in them paying up to 1.5% more tax. If you earn over $90,000 a year as an individual, or a combined $180,000 a year as a couple or family and don’t have a suitable level of private hospital cover, you may be liable for the MLS. This is an additional 1-1.5% of your annual income to the government. This is on top of the normal 2% Medicare Levy most Australian taxpayers have to pay. It is designed to encourage individuals to take our private patient hospital cover and to use the private hospital system to take the pressure off the public Medicare system. The only way to avoid the MLS is to take out private health cover by a registered Australian health fund for hospital treatment provided in an Australian hospital or day hospital. This must be an appropriate level of hospital cover. Also, if you earn above the thresholds in place for MLS and [...]
Important information – Mortgage and Finance update
We would like to notify you that Reece Sacino has left his role at Taxpro Australia effective from 30 June 2020. As a valued member of the Taxpro Mortgage and Finance team, we would like to take this opportunity to wish him good luck for the future. Andrew Dalton We are delighted to announce that Andrew Dalton has taken over his position. Andrew already works with Taxpro clients on their financial planning needs, making him best placed to extend his expertise of the finance industry to our mortgage and finance clients! We are confident he will continue to provide you with the outstanding service you have come to expect. If you have any questions relating to your mortgage and finance, please do not hesitate to call Andrew on 08 9240 7629 or send us an email to: admin@taxproaustralia.com.au to book a phone consultation. Contact us
Get on top of your bookkeeping
It’s a new financial year, and many businesses are adapting to a new way of working. Covid-19 has impacted businesses, from large corporations to sole traders, in many ways. However, one key issue we have supported clients with over this time, has been cash flow management. Many businesses were not set up to handle a sudden stop in trading, and therefore the Government stimulus packages and business loans have been a lifeline. Now, we are able to resume, it’s time to review your bookkeeping. Take a deep breath, get organised and get back to building a successful business. We offer bookkeeping packages for any size business which are professional, accurate and reliable. This keeps your tax bills down and cash flow moving. Have a clear understanding of how your business is performing Review, monitor and reconcile your earnings and expenses Check stock and levels Identify and eliminate unnecessary spending Make sure your tax payments are up to date Forecast and plan for the future Manage your receipts better We have experienced bookkeepers that cover all bases, whether you are a small business or large [...]
Do yourself a favour this new financial year
Today is 30 June 2020, and the end of the financial year. A year that nobody could have predicted. While you gather your financial information to submit your 19/20 tax return, it’s a good opportunity to reflect on what you could do better this year. One thing Covid-19 has taught us is you never can tell what’s around the corner, so control what you can and plan for the future. Here are our tips for 20/21: Set up a budget (and stick to it) You will be able to see exactly where your spending in specific categories can be reduced, and it can be as simple as making slight lifestyle changes. To help, there are some great apps you can download to do this, so you have your new ‘budget’ with you all day. Pay off all your smaller debts first Credit cards and short-term loans are very useful, and sometimes necessary. If you are savvy with your spending you can even make a credit card work for you, however if they are not managed properly, they also come with the highest penalties. Don’t [...]
Early Super withdrawals under investigation
In April, the Federal Government introduced a temporary early access to superannuation scheme to help people who had lost their jobs and faced financial hardship due to Covid-19. The scheme allows Australian and New Zealand citizens and permanent residents to release up to $20,000 from their super, tax free. The first $10,000 became available from mid-April and runs till 1 July 2020, and the second withdrawal of $10,000 can be made after 1 July until 24 September 2020. To date, as reported in The Business Insider this week, more than $15 billion has been withdrawn from super accounts! The ATO has suspected there is an issue with the scheme – with money being released when it shouldn’t have through false applications. The ATO will now begin investigations into people who have withdrawn up to $10,000 of their superannuation despite being ineligible for the scheme. Those caught will have the withdrawal amount added to their taxable income and could face penalties up to $12,000. Applications are made directly to the ATO through your MyGov account and in some cases have been approved within 24 hours. [...]
Is your income statement ‘tax ready’?
Before you can lodge your 2019-20 tax return, your employer must have marked your information as ‘tax ready’. Income statements are now categorised into tax ready, not tax ready and year-to-date. The reason for this is the Single Touch Payroll (STP) reporting system, which employers had to comply with last year, means that your payroll data and super information is automatically sent to the ATO with each pay run, therefore making the issuing of annual payment summaries redundant. You will be able to see this in real-time by checking your myGov account. Employers with 20 or more employees will have until 14 July 2020 to make a finalisation declaration, while employers with 19 or fewer employees will have until 31 July 2020. The ATO will send a message to your myGov Inbox when your income statement has been finalised. If you lodge your tax return before your income statement is tax ready, you may need to lodge an amendment. In some cases, additional tax and interest may be payable. Waiting a few more weeks, until those records are finalised can save time and the worry of [...]
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