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
Streamlining small business accounting
As a business owner, keeping track of your accounts can be very time consuming if you do it manually. Preparing invoices, compiling records and expenses, and gathering information for BAS and GST lodgements, all takes precious time from your day, when you could be working on your business. At Taxpro, we use MYOB - QuickBooks which is an easy online small business accounting software and we advise clients about it. It creates your invoices for you, helps you manage your expenses and importantly report Single Touch Payroll to meet the ATO requirements. As well as speed, it can also improve accuracy, and optimising this process greatly reduces your hours spent on accounting tasks. It is especially useful if you have to produce a report, whether it is for finance, or the ATO, having everything in one place gives you instant access to your financial information. We also advise our clients to use the Receipt Bank app, an online system that automatically converts your receipts into data, making it super easy for you to send your expenses information straight to us. You just have to [...]
Businesses can fully write off new assets
Decrease your businesses taxable income and buy the equipment your business needs If your business turns over up to $5 billion (which is 99 per cent of all businesses in Australia) then you can immediately deduct the full cost of eligible depreciable assets of any value that were acquired from 4.30pm (AWST) 6 October 2020 and will be first used or installed by 30 June 2022. The cost of improvements to existing eligible depreciable assets made during this period can also be fully deducted. This is a temporary tax incentive as part of the Federal Budget and in its response to Covid-19 The scheme allows you to fully write off new assets by claiming a tax deduction for the full value of a purchase (and remember this is any value, there are no limits) rather than claim its depreciation amount of several years. This will reduce the amount of tax you pay as the full tax deduction is claimed in that year. The Government has coined the phrase ‘temporary full expensing’. What’s the difference between the instant asset write off and this new scheme? [...]
Federal budget 2020 business incentives summary
The Federal Budget announced a number of business incentives with the view that it will make it easier for businesses to invest, create jobs, and quickly respond to challenges and opportunities. Business incentives Immediate expensing The Government is providing a temporary tax incentive for over 99 per cent of businesses, to support new investment and increase business cash flow. From 6 October 2020 until 30 June 2022, businesses with a turnover up to $5 billion will be able to deduct the full cost of eligible depreciable assets of any value in the year they are installed. The cost of improvements to existing eligible depreciable assets made during this period can also be fully deducted. Loss carry-back (temporary) Companies with turnover up to $5 billion can now offset losses against previous profits on which tax has been paid, to generate a cash refund. Loss carry-back will be available to around 1 million companies. Losses incurred up to 2021‑22 can be carried back against profits made in or after 2018‑19. Eligible companies may elect to receive a tax refund when they lodge their 2020‑21 and 2021‑22 tax returns. Extending instant asset write off [...]
Federal Budget 2020 Taxpayer summary
Federal Budget Taxpayer overview Overall in terms of lower taxes, it’s good news. In this Federal Budget , the Government is delivering an additional $17.8 billion in personal income tax relief to support the economic recovery, including an additional $12.5 billion over the next 12 months. It builds on the $8.1 billion in tax relief that will be delivered for the 2020‑21 income year under the already legislated Personal Income Tax Plan. It was announced that working individuals will get a tax cut and it will also be backdated to 1 July 2020. There is also a one-off additional benefit for the low and middle-income tax offset in 2020-21. For middle income earners, this means: The 19 per cent tax rate threshold increases from $37,000 to $45,000 The 32.5 per cent tax rate threshold increases from $90,000 to $120,000 How much income tax will you save? If your yearly taxable income totals: $50,000 a year, you will get a tax reduction of $1080 $90,000 a year, you will get a tax reduction of $1215 $120,000 a year, you will get a tax reduction of $2565 [...]
Federal Budget 2020: How could it impact your taxes?
The Federal Budget 2020-21 will be announced tomorrow (Tuesday 6 October 2020) at 7.30pm (AEDT) / 4.30pm (AWST). It was postponed in May because of the pandemic. What do we know? It is anticipated that the Federal Budget 2020 will announce personal income tax cuts following Finance Minister’s Matias Cormann’s interview with Sunrise that working Australian’s will receive ‘more money in their pockets’ by Christmas thanks to income tax cuts. The cuts were originally due in 2022 as part of the three- stages of income tax cuts announced in the last federal election. It is likely that this will be brought forward. For middle income earners, this would mean: The 19 per cent tax rate threshold increases from $41,000 to $45,000 The 32.5% per cent tax rate threshold increases from $90,000 to $120,000 It is also likely that the Treasurer, Josh Frydenberg, will fast track the tax cuts so workers don’t have to wait until July 2021 or 2022 for tax relief, following an interview with news.com.au on Friday 2nd October. We will keep you up to date with a review of all the [...]
New JobKeeper extension updates published
With just one week to go before the JobKeeper extension takes effect, are you aware of the JobKeeper extension updates, what you can claim and how? Last Thursday (16 September 2020), the ATO published new information and updates to existing content on the JobKeeper Payment extension. The new information published relates to: Payment rates 80-hour threshold for employees Decline in turnover tests Actual decline in turnover tests A further 20 updates to content based on the JobKeeper Payment extension law being passed have also been published. For full details click here A quick summary From 28 September 2020, there are two payment rates: For the period 28 September 2020 – 3 January 2021, your eligibility to claim a tier 1 rate ($1,200 per fortnight) and a tier 2 rate ($750 per fortnight) depends on if the eligible employee(s) or eligible business practitioner meets an 80-hour threshold. The second JobKeeper extension period starts from 4 January 2021 – 28 March 2021. At this point, both tier rates are reduced concurrently to $1000 per fortnight (Tier 1) and $650 per fortnight (Tier 2). You will need to nominate the rate you are [...]
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