From 1 July 2022 important super guarantee changes will apply to businesses

super growth From 1 July 2022, two important super guarantee (SG) changes will apply to business. the rate of SG is increasing from 10% to 10.5% the $450 per month eligibility threshold for when SG is paid is being removed. What this means for you These changes mean from 1 July 2022: you’ll need to make SG contributions at the new rate of 10.5% employees can be eligible for SG, regardless of how much they earn. You may have to pay SG for the first time for some or all of your employees. We’re working with digital service providers (DSPs) to make sure payroll software is updated in time. We are aware of these changes and able to assist you. What you need to do Check that your software is updated to correctly calculate your employees’ SG entitlement from 1 July 2022. If the removal of the $450 threshold means you’ll be paying SG for one or more employees for the first time, you’ll need to give them a Standard Choice Form. If your employee does not provide you with a choice of super fund, review the Stapled Super Fund information on the ATO website for guidance on what you need to […] read more

Federal Budget Special 2022

The Treasurer, Mr Josh Frydenberg, handed down the Federal Budget for 2022-23 on 29th March 2022. In an election year, the focus of Budget was inevitably on pleasing the electorate, with large amounts spent on lower and middle income earners, pensioners and welfare recipients and a 50% reduction in fuel duty all geared towards capturing the votes of “Middle Australia”. For individuals, the centrepiece was the increase in the low and middle income tax offset, which is welcome. People earning up to $126,000 will get a rebate of $420 in excess of what they would have got anyway through the existing tax offset. All you have to do to get it is lodge a tax return for 2021-22 – so funds should start to flow to taxpayers from 1 July 2022. Unfortunately, this is just a short term measure. Next year, the low and middle income tax offset disappears completely – meaning that people earning up to $126,000 will see a tax rise of up to $1,080. It’s hard to see how that will do anything to help cost of living pressures over the medium and long term. Worse, just as most Australians will experience this tax rise, the wealthiest […] read more

2021 Tax Return Questionnaire

2021 Tax Return Questionnaire Please complete this form to assist us in completing your income tax return 2021 Tax Return Questionnaire South East access services is always of exceptional quality, focusing on: Business Development & Support Management Accounting Tax Return Preparation Stress-free reporting to the Australian Taxation Office read more

2021 benefits for individuals and businesses from the Federal Budget

2021 benefits for individuals and businesses from the Federal Budget The Treasurer, Josh Frydenberg, delivered the Federal Budget for 2021 on 11 May. The following is an update of the key tax and superannuation measures. Personal Tax Low Income Offsets – LMITO retained for 2021-22: The low and middle income tax offset (LMITO) will continue to apply for the 2021-22 income year up to the maximum amount of $1,080. Consistent with current arrangements, the LMITO will be received with the notice of assessment after individuals lodge their tax returns for the 2021-22 income year. Low income tax offset: The low income tax offset (LITO) will also continue to apply for 2021-22 income year. The maximum amount of the LITO is $700. Personal Tax Rates unchanged for 2021-22; Stage 3 start from 2024-25 unchanged: In the Budget, the Government did not announce any personal tax rates changes, having already brought forward the Stage 2 tax rates to 1 July 2020 in the October 2020 Budget. The Stage 3 tax changes are expected to commence from 1 July 2024, as previously legislated. Business Tax Temporary full expensing extended by one year: The Government will extend the temporary full expensing measure until 30 June 2023. It was otherwise due to finish on 30 June 2022.  All other elements of temporary full expensing will remain unchanged. Loss carry-back extended by […] read more

Changes to JobKeeper

Hopefully you are aware of the changes to JobKeeper from the end of September but below is a summary just in case. JobKeeper Payment updates Firstly you need to check to see if you still or will now qualify for JobKeeper 2. Do you have staff? Were they working on average more than 20 hrs per week in March and/or June? Businesses should start getting ready for the JobKeeper extension which commences on 28 September 2020. If you are already receiving payments for your eligible employees with JobKeeper 1, you do not need to re-enrol, however you do need to review the hours they work. From 28 September 2020, JobKeeper Payments must be paid to each eligible employee at the new payment rates, determined by the total hours worked during either March or June. Ensure you take action by 28 September and are fully aware of the new payment amounts & conditions, such as reporting employee hours and reducing JobKeeper payments. CHANGES TO JOBKEEPER – ACTION REQUIRED NOW For employers To be eligible for the first JobKeeper payment extension period of 28 September 2020 to 3 January 2021, businesses and not-for-profits will need to demonstrate that their GST turnover had […] read more

COVID-19 and Bushfire Support for businesses and individuals

These are very interesting times we live in, to say the least. The Federal and State Governments are trying hard to do what they can to uphold the economy and to enable small business to be able to restart operations as soon as possible after the Coronavirus has run its course. In an attempt to assist our business clients to be up to date with all opportunities for funding, we have prepared a summary of the situation as it stands today. With new announcements every other day, this may change at any time but as of today this is the funding available. Coronavirus Support 1 If you have employed people during the last quarter & paid PAYG on their behalf you are immediately entitled to the Coronavirus stimulus funding. Attached is an information sheet “COVID-19 Australian Government Economic Response” giving a run down of the way it works. You do not need to apply. It is built into the lodgement of your BAS. This is a minimum payment of $10,000 and a maximum of $50,000 for PAYG withheld for those who were active at 12 March 2020. The payment will be credited to the BAS and if any credit is […] read more

Single Touch Payroll is coming for small businesses

Single Touch Payroll is coming for small businesses If you have any employees, (including yourself), or You are self-employed as a PAYG earner, Then you need to be ready for the changes from 1 July 2019.   Big changes are coming to the way your small business reports its employee tax and super obligations to the ATO. The easiest option is using payroll or accounting software which offers Single Touch Payroll (STP). The software means Employers send their employees’ tax and super information to the ATO each time they run their payroll and pay their employees. The new system was launched last year for employers with 20 or more employees, but following legislation passed on 12 February 2019, it has now been agreed that STP will apply to all smaller employers (those with less than 20 employees) from 1 July 2019. No matter how few staff you employ (even one or two), the STP rules will still impact you, even if you don’t currently use a payroll software package. To help small employers, the ATO is preparing a number of measures to ease the burden for small employers still preparing payrolls manually, including asking software developers to build low-cost STP […] read more

Instant tax write-off for small business assets extended

Instant tax write-off for small business assets extended The Prime Minister has announced that, from 29 January 2019, the instant asset write-off scheme will be extended so that it is available to small businesses until 30 June 2020. It is proposed that the threshold for the assets purchased under the scheme be increased from $20,000 to $25,000. The scheme allows small businesses to claim a tax deduction for the purchase of a new or second-hand asset costing less than $25,000, instead of depreciating the cost over several years. There is no limit on how many assets may be claimed. It is important to note that this change must be passed by parliament. The government intends to introduce a Bill when parliament resumes on 12 February 2019. If you would like more information about the instant write off.   Please call our office to discuss how this can assist your business. read more

Scammers changing tactic

Scammers changing tactic The ATO has warned taxpayers to be alert for scammers impersonating the ATO, as they are changing tactics. “We are seeing the emergence of a new tactic, where scammers are using an ATO number to send fraudulent SMS messages to taxpayers asking them to click on a link and hand over their personal details in order to obtain a refund,” ATO Assistant Commissioner Karen Foat said. The ATO said that there are some tell-tale signs that a contact is a scam, including: • they send you an email or SMS asking you to click on a link to provide login, personal or financial information, to download a file or open an attachment • they use aggressive or rude behaviour, or threaten you with arrest, jail or deportation • they request payment of a debt via iTunes, Google Play or pre-paid Visa cards, cryptocurrency or direct credit to a personal bank account • they request a fee in order to release a refund owed to you. The ATO released data on scams in December 2018. Some of its findings include: • more than 25,000 phone scam reports were recorded by the ATO in December • more than 1500 […] read more

2020 Federal Budget benefits for individuals and businesses

The Australian Budget 2020 was released on 6 October 2020. There are big tax cuts for individuals and a number of significant boosts for businesses, all designed to increase spending and boost jobs. With an economy ravaged by the effects of COVID-19, the big spending Federal Budget is designed to get the Australian economy moving. Individuals from 1 July 2020: The top threshold of the 19% personal income tax bracket will be increased from $37,000 to $45,000. The top threshold of the 32.5% personal income tax bracket will be increased from $90,000 to $120,000. The ATO will implement the cut immediately by updating their PAYG withholding schedules so employers can deduct the new, lower amounts of tax that apply to income. In addition, the Low and Middle Income Tax Offset (LMITO) will be retained for the 2020-21 income year. This was originally intended to be removed when the changes to tax thresholds were introduced but with the early introduction of the new tax thresholds, the government has decided to retain the offset for this year, meaning that taxpayers will benefit both from the change in thresholds and the LMITO. For Business: there are two significant tax breaks included in the Budget. […] read more