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
Instant asset write-off scheme extended for six months
In March, to help small to medium sized businesses during the pandemic, the Federal Government increased the instant asset write-off threshold to $150,000 from $30,000 and opened the scheme up to businesses with turnovers up to $500 million. This scheme was set to end on 30 June 2020 however, it was announced yesterday that it has been extended until 31 December 2020. It is hoped this will continue to encourage businesses to spend on equipment and other investments, as they can claim a tax break for what they spend. The scheme can be applied to multiple assets worth up to $150,000. This means that large purchases such as trucks and tractors are eligible. As reported in the Guardian yesterday, the government estimates that as many as 3.5m businesses have an annual turnover of less than $500m and are therefore eligible to benefit from the extension of the instant asset write-off. As WA opens back up for business, we are working closely with our business clients to ensure you are aware of all stimulus packages available to help you get back on track. If you [...]
I need to get my finances together, but where do I start?
The coronavirus pandemic has completely changed our daily lives, and only now, are we steadily beginning to experience a new normal. For many people, we have seen a big shift in behaviour to be more frugal as they have been forced to review their finances, make cutbacks and seriously think about creating a financial safety net in the future. Coronavirus also closed all the places you normally spend money, such as shops, cafes, gyms and activities, so for those that may have had out-of-control shopping habits, they are now much more aware of how much they were spending. Our financial planning expert, Andrew Dalton at MI Wealth, has put together his top 10 tips to help you get your finances in check. Spend less than what you earn As a key rule of finance, you should not be spending everything that you earn. Plan for your long-term retirement goals and try to save at least 10% to 25% of your monthly salary to invest in that pursuit Pay your debts first You should begin paying down the outstanding balances with the highest interest rates [...]
Covid-19 Q&A (7) I was expecting $1500 a fortnight JobKeeper payment, but I’m being taxed on it, is this right?
If your employer has signed up to the JobKeeper scheme, you should have started receiving payments now. The payments were released to employers on 6 May 2020. While the JobKeeper subsidy to employers is $1500 per fortnight, this is before tax is withheld. There has been some confusion regarding the taxed amount as some employees are only receiving the JobKeeper payment, while others are continuing to earn their normal salary (JobKeeper + top up). The ATO state that the payment you receive from your employer is generally treated the same as salary or wages for tax purposes, so your employer must withhold income tax and any other amounts that are ordinarily withheld from your wage or salary. Examples of amounts withheld from salary are HECS-HELP repayments and salary sacrifice arrangements. Where an employee is paid more than $1,500 per fortnight, the employer’s superannuation obligations will not change. Where an employee is having their wages topped up to $1,500 per fortnight by the JobKeeper payment, it will be up to the employer if they want to pay superannuation on any additional wages paid by the [...]
COVID-19 Q&A (6) How do I calculate working at home deductions during lockdown?
I’ve been working at home for around 6 weeks now due to Covid-19 and incurring extra running costs. How do I calculate these deductions? The ATO has introduced a temporary simplified method which allows you to claim 80 cents for each hour you are working at home and this covers all deductible running expenses which are: Heating Cooling Lighting Cleaning Decline of value of furniture used for business Phone Internet costs This is an increase from 52 cents per hour. The new rate is back dated to 1 March 2020 and is in place until 30 June 2020 when it will be reviewed. For example, if the business you work for closed from the 16th March 2020 and asked all employees to work from home, you can claim from this date. You just need to record all your hours worked since that date in a timesheet as evidence of your claim. For houses where there are multiple people working there, they can all individually claim the increased 80 cents per hour rate. You can also claim expenses for any new equipment such as a laptop, [...]
Beware: Covid-19 scammers are targeting business emails
Scammers are taking advantage of the Covid-19 pandemic to target people and businesses in Australia. We have had a number of concerns voiced by our business clients that since the Jobseeker and Cash Flow Boost subsidy packages have been announced by the Government, they have been receiving unsolicited emails about ‘Covid-19 payments’. Scammers are hoping that during this stressful time, you let your guard down and click on a suspicious link or share private information. Clicking on a link or opening an attachment may install a virus, spyware of ransomware on your phone, tablet or computer. It could also click through to a website, that may look like an official site, but isn’t and then ask you to input your personal information. Here are some examples that we know about: The subject is ‘COVID-19 payment collection adjustment’ and it looks as if it has come from your own HR or finance department. It then says: Please see report for this week’s payment collection updates and then a link to a ‘Shared Docs, granted access’ folder. It also includes your company website in the sign off. [...]
Covid-19 Q&A (5) Will I have to pay tax on the Cash Flow Boost Payment?
No. The cash flow boosts of between $20,000 and $100,000 are tax free and automatically calculated through your activity statements. If, however, you use the cash flow boost to pay a dividend to shareholders or make a trust distribution, the ATO state that there ‘may’ be tax consequences for the recipient. The cash flow boost is also not subject to GST as you are not making or agreeing to make a supply for the payment. For more detailed information with example circumstances click here. What you must be aware of is the ATO will investigate your business if they believe your company has restructured, increased wages or entered into a scheme to become eligible for the cash flow boost payment, or to increase the payments. This will involve penalties and you will be required to pay back the amount in full. To help you understand the cash flow boost payments and your eligibility, please email your enquiry through to Chloe: admin@taxproaustralia.com.au and one of our Taxpro accountants will be in touch. If you are already a client, please give your Taxpro accountant a call [...]
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