CALL US: (07) 3367 0999 | EMAIL US:

The Instant Asset Write-Off Continues To The 2024-25 Financial Year

Posted on May 28, 2024 by admin


In a move aimed at bolstering small business cash flow and reducing compliance costs, the Government has announced an extension of the $20,000 instant asset write-off for another 12 months. This extension, part of the 2024–25 Budget released on 14 May 2024, will see the measure continue until 30 June 2025. This initiative allows small businesses with an aggregated turnover of less than $10 million to immediately deduct the full cost of eligible assets costing less than $20,000. To qualify, these assets must be first used or installed and ready for use between 1 July 2023 and 30 June 2025. Eligibility Eligibility to use instant asset write-off on an asset depends on: your aggregated turnover (the total ordinary income of your business and that of any associated businesses) the date you purchased the asset when it was first used or installed ready for use the cost of the asset being less than the threshold. You are not eligible to use the instant asset write-off on an asset if your aggregated turnover is $500 million or more. If temporary full expensing applies to the asset, you do not apply the instant asset write-off. How Does It Work? The $20,000 threshold applies […]


Keep Reading...


Trust Tax Return Compliance: A Guide

Posted on May 6, 2024 by admin


Managing a trust comes with its share of responsibilities, especially regarding tax compliance. To assist trustees and administrators, the ATO has provided a checklist that can be used to streamline the tax process. This is a crucial tool for ensuring that the trust’s affairs are managed efficiently and effectively in accordance with tax regulations. Let’s delve deeper into what the Resolutions Checklist entails: Distribution Resolutions: One of the primary tasks is to determine how income will be distributed among beneficiaries for the financial year. This resolution must be documented and finalised before 30 June to optimise tax outcomes for the trust and its beneficiaries. Trustees must consider each beneficiary’s tax position and financial circumstances when making distribution decisions. Trustee Resolutions: Trustee decisions throughout the year, such as acquisitions or disposals of trust assets, loan agreements, or changes to the trust deed, need to be documented and ratified through resolutions. These resolutions serve as formal acknowledgments of the decisions made by the trustees and provide a clear record of the trust’s activities. Trust Income Allocation: Trust income comprises various components, including assessable income, exempt income, and deductions. Trustees must accurately determine and record each component to ensure compliance with tax laws. […]


Keep Reading...


No More Shortcuts: The Methods You Can Use To Claim WFH Expenses

Posted on March 25, 2024 by admin


Ensure you’re up to date on how to claim your working-from-home expenses! As the business landscape shifts back and forth between office, hybrid and home-based work opportunities, it’s important to remember what methods are available to you when it comes to claiming. If part of your role allows you to work from home, you may be able to claim certain expenses on your tax return this year using one of the following methods. The Revised Fixed Rate Method: Under the revised fixed rate method, individuals can claim 67 cents per hour worked from home during the relevant income year. This rate includes additional running expenses, such as home and mobile internet or data, phone usage, and electricity and gas for heating, cooling, and lighting. Importantly, using this method, you cannot claim separate deductions for these expenses. To use this method, taxpayers must maintain records of the total number of hours worked from home and the expenses incurred while working at home. Additionally, they must keep records of expenses not covered by the fixed rate per work hour, demonstrating the work-related portion of those expenses. What Records Do You Need? Previously, taxpayers required a dedicated workspace at home. From 1st March […]


Keep Reading...


Fringe Benefits Tax Considerations For Australian Businesses

Posted on March 4, 2024 by admin


For businesses operating in Australia, navigating the intricacies of the Fringe Benefits Tax (FBT) is essential to ensure compliance with tax regulations and minimise financial liabilities. FBT is a tax paid on certain employee benefits in addition to their salary or wages. From understanding what constitutes a fringe benefit to managing FBT reporting requirements, here are the important considerations for Australian businesses. What Constitutes a Fringe Benefit? Businesses must understand what qualifies as a fringe benefit under Australian tax law. Fringe benefits can include perks such as company cars, health insurance, housing allowances, entertainment expenses, and more. Even seemingly minor benefits provided to employees may be subject to FBT, so it’s essential to review all employee benefits carefully to determine their tax implications. Types of Fringe Benefits Fringe benefits can be categorised into various types, each subject to specific tax treatment. Common types of fringe benefits include: Car fringe benefits: These are provided when employers make cars available for private use by employees. Expense payment fringe benefits: Reimbursements of expenses employees incur, such as entertainment or travel expenses. Residual fringe benefits: Any benefits that don’t fall into the other categories, such as providing property or services. Exemptions and Concessions While […]


Keep Reading...


Explaining The New Reporting Regime For The Sharing Economy

Posted on February 12, 2024 by admin


The Sharing Economy Reporting Regime (SERR) represents a significant development in Australia’s tax landscape, requiring certain businesses operating in the sharing economy to report specific transactions to the Australian Taxation Office (ATO). Commencing from 1 July 2023 for selected industries and expanding further from 1 July 2024, SERR aims to enhance tax compliance, increase transparency, and gather valuable insights into sharing economy activities. Let’s dive into the key aspects of SERR and outline what small businesses need to know to ensure compliance. Scope and Purpose of SERR: SERR applies to transactions facilitated through Electronic Distribution Platforms (EDPs), encompassing activities such as ride-sourcing, short-term accommodation, and the hiring of assets or services. The regime aims to collect information on transactions connected with Australia to enhance tax integrity, identify non-compliant participants, and inform compliance strategies. What Is An Electronic Distribution Platform  (EDPs) Under SERR, an EDP refers to a service that enables sellers to offer supplies to buyers through electronic communication channels. This encompasses various online platforms such as websites, internet portals, applications, and marketplaces. EDPs play a crucial role in facilitating transactions within the sharing economy and are central to the reporting requirements under SERR. Reporting Obligations for EDP Operators EDP […]


Keep Reading...


Understanding Non-Assessable Non-Exempt (NANE) Income Through Disaster Grants

Posted on January 22, 2024 by admin


The recent spate of extreme weather events during the summer in various parts of Australia has presented unprecedented challenges for small businesses. As a result, the pressing concerns they face may not necessarily revolve around their tax obligations. However, amidst these trying times, business owners must be aware of the tax implications associated with the grants they may have received for support. This may include knowing whether their grants are deemed assessable or non-assessable income and the implications of either for their tax returns. Non-Assessable Or Assessable Income? In the wake of challenging times, many businesses have been fortunate enough to receive grants aimed at helping them navigate through financial difficulties. As businesses gear up to file their tax returns, a fundamental question arises – is the received grant considered assessable or non-assessable income? In general, grants are treated as assessable income, adding to the taxable revenue of the business. However, a subset of business support grants is formally declared as non-assessable, non-exempt (NANE) income. This distinction is crucial as it determines whether the grant needs to be included in the tax return or can be excluded under specific eligibility criteria. Understanding Non-Assessable Non-Exempt (NANE) Income Non-assessable non-exempt income refers […]


Keep Reading...


Unlocking the Secrets of Deductions: A Holiday Home Owners’ Essential Checklist

Posted on December 4, 2023 by admin


It’s essential for property owners to understand the intricacies of deductions associated with their cherished holiday retreats. However, as the holiday season approaches, they may find that their holiday retreats become a valuable source of income. To ensure you make the most of your potential deductions, it’s crucial to navigate the rules surrounding holiday home expenses and be aware of potential pitfalls. What Do You Need To Know? The primary rule is simple: you can only claim deductions for holiday home expenses if they are incurred with the aim of generating rental income. This means that any personal use of the property must be carefully considered to avoid discrepancies in deductions. One key consideration is whether the holiday home is used or reserved by you during peak periods when it could reasonably be rented out. Deductions should be adjusted accordingly during these periods to reflect the reduced potential for rental income. Likewise, if there are unreasonable conditions placed that hinder the likelihood of their property being rented, deductions should be reevaluated. This might include restrictive terms in advertising or setting rents significantly above market values. To help determine the validity of your claimed deductions, here are a few essential questions […]


Keep Reading...


Claiming Motor Vehicle Expenses On Your Tax Return

Posted on November 13, 2023 by admin


As a business owner, one of the perks is the ability to claim tax deductions for expenses related to motor vehicles used in your business operations. This includes cars and certain other vehicles that play a role in running your business smoothly. The good news is that claiming motor vehicle expenses can help reduce your tax liability. Let’s explore how you can maximise this opportunity, particularly if you’re a sole trader or part of a partnership. The Logbook Method: A Simple Way to Claim Tax Deductions Sole traders and those operating in partnerships can claim tax deductions for vehicles used in their businesses using the logbook method. It’s a relatively straightforward approach, but it does require diligent record-keeping of your vehicle-related expenses. The expenses you can claim when using your vehicle for business purposes typically include: Fuel and oil Repairs and servicing Interest on a motor vehicle loan Lease payments Insurance cover premiums Registration Depreciation (decline in value) Calculating Your Claim with the Logbook Method To make the most of the logbook method and ensure you’re accurately recording your expenses, consider enlisting the help of a registered tax agent. To work out the amount you can claim using this method, […]


Keep Reading...


Claiming The Small Business Technology Investment Boost

Posted on October 23, 2023 by admin


Could your small business claim a 20% bonus deduction on technology expenditure that supports their digital operations or the digitisation of their operations? The small business technology investment boost is a broad measure intended to cover a wide range of business expenses and assets; however, questions may arise when you go to claim. Can I Claim The Boost?  To access the small business technology investment boost, your business needs to meet the standard aggregated annual turnover rules (with an increased $50 million threshold). The expenditure must: already be deductible for your business under taxation law be incurred between 7:30 pm AEDT 29 March 2022 and 30 June 2023. If the expenditure is on a depreciating asset, the asset must be first used or installed ready for use for a taxable purpose by 30 June 2023. What Can I Claim With The Boost?  A good indicator of eligibility is to consider if the small business would have incurred the expense if they didn’t operate digitally. That is if they hadn’t sought to adopt digital technologies in the running of their business. Using this rule of thumb, the costs below are eligible: advice about digitising a business leasing digital equipment repairs and […]


Keep Reading...


Providing Affordable Housing? You Could Be Eligible For A CGT Discount

Posted on October 6, 2023 by admin


An additional 10% capital gains tax (CGT) discount may be available when you sell an Australian residential rental property that you used to provide affordable housing. This will increase the potential maximum capital gains discount percentage on your sale from 50% to 60%. What Is Affordable Housing? For the affordable housing CGT discount purposes, affordable housing is any dwelling (house, unit or apartment) where the following conditions are satisfied: The dwelling is both a taxable Australian real property (TARP) and residential premises that you rent out or genuinely make available for rent. Caravans, mobile homes and houseboats are not residential premises. The dwelling is not a commercial residential premises. Management of the tenancy or its occupancy is done exclusively by a registered community housing provider (CHP). Each entity that holds an ownership interest in the dwelling has a certificate from the provider showing that the dwelling was used to provide affordable housing. No entity that has an ownership interest in the dwelling is in receipt of an incentive from the National Rental Affordability Scheme (NRAS) for the NRAS year. If a managed investment trust (MIT) has an ownership interest in the dwelling, the tenant does not have an interest in […]


Keep Reading...


Business
advice

taxation
planning

compliance
services

News

Understanding The Superannuation Clearing House

June 4, 2024

As the End of the Financial Year (EOFY) approaches, employers and self-employed individuals must ensure their superannuation contributions are processed efficiently and on time.

Utilising a superannuation clearing house can streamline this process, ensuring compliance and maximising the benefits of super contributions.

Here’s a comprehensive guide on why and how to get your super into a superannuation clearing house before 30 June 2024.

Understanding Superannuation Clearing Houses

A superannuation clearing house is a service that allows employers to make super contributions to multiple super funds in one transaction. This service is particularly beneficial for businesses managing contributions for multiple employees with different super funds. The clearinghouse distributes the contributions to the respective super funds on behalf of the employer, simplifying the administration process.

Benefits of Using a Superannuation Clearing House

  1. Efficiency: Streamlines the process of making super contributions by consolidating multiple payments into a single transaction.
  2. Compliance: Ensures contributions are made on time and in accordance with the Superannuation Guarantee (SG) obligations.
  3. Record-Keeping: Provides a single source of records for all superannuation transactions, making tracking and reporting contributions easier.
  4. Error Reduction: Automating the distribution process minimizes the risk of errors in payments and contributions.

The Importance of Meeting the 30 June Deadline

  1. Tax Benefits: To claim a tax deduction for super contributions in the 2023-2024 financial year, contributions must be received by the super fund by 30 June 2024.
  2. Avoiding Penalties: Late contributions may attract penalties from the Australian Taxation Office (ATO) for non-compliance with SG obligations.
  3. Employee Satisfaction: Ensures employees’ superannuation accounts are credited in a timely manner, demonstrating responsible employer practices.

Steps to Use a Superannuation Clearing House

  1. Choose a Clearing House: Select a superannuation clearing house that meets your business needs. Options include:
    • Small Business Superannuation Clearing House (SBSCH): A free service provided by the ATO for small businesses with 19 or fewer employees or an annual turnover of $10 million or less.
    • Commercial Clearing Houses: Various financial institutions and super funds offer clearing house services with different features and costs.
  2. Register and Set Up an Account: Sign up for the chosen clearing house service and set up your account. This typically involves providing business details, employee information, and super fund details.
  3. Prepare Contribution Data: Compile all necessary information for super contributions, including employee details, super fund details, and the amounts to be contributed.
  4. Make the Payment: Use the clearing house platform to make a single payment for all contributions. The clearing house will distribute the funds to the respective super funds.
  5. Confirm and Track Contributions: Ensure contributions are processed and distributed before 30 June 2024. Most clearing houses provide tracking and confirmation features to monitor the status of your payments.

Tips for Timely Super Contributions

  1. Plan Ahead: Begin the contribution process well in advance of the EOFY deadline to account for any potential delays in processing.
  2. Regular Contributions: Make regular super contributions throughout the year to avoid a last-minute rush and ensure consistent compliance.
  3. Review Payroll Systems: Ensure your payroll system is integrated with your clearing house service for seamless contributions.
  4. Communicate with Employees: Inform employees about the super contribution process and deadlines to manage expectations.

Utilising a superannuation clearing house before 30 June 2024 is a smart move for businesses and self-employed individuals looking to streamline super contributions, ensure compliance, and maximise tax benefits.

By planning ahead, choosing the right clearing house, and following the necessary steps, you can meet your EOFY obligations efficiently and effectively. Embrace the convenience of a superannuation clearing house to simplify your super contribution process and focus on growing your business with peace of mind.