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June is a very exciting month for the Team at Walsh Accountants. We get the opportunity to work with our clients looking into their financial position and plan for the year ahead to ensure tax efficiency. 
We love being able to take advantage of strategies designed to reduce tax liability and maximise the amount of cash available to reinvest into the business.  
Whilst there are a lot of tax planning strategies business owners can take advantage of; did you also know there are a lot of strategies available to individuals not in business? If this is you, you may be interested in this paper our resident Tax Specialist Ian McGinniss has written on the subject

 

Tax Planning - High Income Individuals not in Business 
 

Ian says "the starting place is to gain an understanding into the options available, the tax value of those options, the advantages and disadvantages of each, and the applicability of each to your scenario now and in the future".  
This is not an exhaustive guide on every tax deduction or item, but a summary of the major or most common deductions and the major issues for you to consider as part of your overall tax planning.  
If you know anyone that may be interested in reading this paper – please do not hesitate to forward onto them.

 
The material and contents provided in this publication are informative in nature only.  It is not intended to be advice and you should not act specifically on the basis of this information alone.  If expert assistance is required, professional advice should be obtained. We are here to help, contact us today: 


Phone 5592 3644 | Email info@walshaccountants.com     

The detail of the Government's crackdown on cleaning and courier companies was revealed late 2017.

From 1 July 2018, the taxable payments reporting system will extend beyond the building industry to cleaning and courier businesses. This means that these businesses will need to report payments they make to contractors (individual and total for the year) to the ATO. By 'payment' the ATO means any form of consideration including non-cash benefits and constructive payments.

The building industry has had this form of "enhanced reporting" since 2012-13. The result was an additional $2.3 billion in income tax and GST liabilities collected through voluntary reporting in the first year alone.

What is a cleaning and courier service? Read more…

New Rules Coming into Play

With the introduction of various new rules following the Federal Budget, it is timely to remember that the following changes should be observed as legislation has been passed or is moving into its final stages before parliament:

Rental Properties (Final Reading of legislation)

  • No deduction for travel
  • Depreciation can no longer be claimed by a new owner on existing items that come with a purchased property.

Non-Resident CGT Withholding (Passed into Law) 

The threshold has been lowered from $2,000,000 to $750,000

If you would like to know more or require any assistance in the above areas, please contact our tax specialist Ian McGinniss on 0755 923 644

 

In September 2016, the government passed legislation introducing Single Touch Payroll. The system is due to commence on 1 July 2018 for employers who have 20 or more employees as of 1 April 2018.

For employers with less than 20 employees, Single Touch Payroll will be optional until 1 July 2019.

It should be noted that it is actual employees which are counted and not what represents a Full Time Equivalent so part-time and casual employees will represent an employee for these purposes.

Single Touch Payroll is essentially "real-time" reporting for payroll and PAYG Withholding and requires employers to report to the ATO each pay cycle rather than at the end of each quarter or month.   This information will then be used to pre-fill Business Activity Statements at the W1 and W2 labels each month/quarter.

Therefore, if employers do not have accurate or up-to-date payroll systems then now is a good time to start thinking about it as there is only 8 months to implement a new system.  In addition, it will be quite simple for any errors to be identified by the ATO once the system is up and running.

For those who use up-to-date software with a payroll module, this function will generally be incorporated into their existing software by their provider but those who are still using manual systems or older software will need to consider their options as to how to become compliant

The current legislation does not apply GST on intangible goods and services provided direct to consumers.

From 1 July 2017, any non-resident clients who make supplies of either digital products such as movies, games, e-books and music or consultancy and professional services direct to consumers then these items will be subject to GST if the supplier has turnover in excess of $75k.

The supplier is required to register for GST under "limited registration" requirements that require minimal information.  Limited registration entities will be required to lodge their GST returns on a quarterly basis and will not be entitled to claim input tax credits in respect of any costs they incur in Australia, which would likely be minimal in any case.

Backpacker tax commenced from 31 January 2017

  • Tax rate of 15% on income up to $37,000 and normal rates after this level.
  • Relevant visa categories are 417 and 462. Both are a class of working holiday visa.
  • Employers should have registered from 31 January 2017. 
  • If employers don't register then required to withhold higher level of tax and could be subject to penalties for withholding incorrect tax. 
  • Registration can be done on the ATO website.

Enterprise Tax Plan

The government has passed its Enterprise Tax Plan Bill through the Senate, which will now be voted on in the House of Representatives, which it controls. The next sitting is scheduled for 9th May.

The two main areas that will be affected will be Corporate Tax Rates and the Small Business Entity Concessions Read more…

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