Welcome to our September Monthly Newsletter!
The ATO have sophisticated data-matching systems that can track your income and other relevant data, if you lodge your return before receiving all of your information then the ATO may just amend it and this could result in a tax bill.
2. Claiming the wrong thing
Please do not listen to tax advice from friends and colleagues – you may be claiming something you are not allowed to. Remember that to claim a deduction you must have spent the money yourself (not being reimbursed), you must have a record to prove it and it must be directly related to earning taxable income.
3. Forgetting to keep receipts
Deductions will be disallowed by the ATO if you do not have proof of purchase. An easy way to keep your records is by using the myDeductions ATO app which you can use to record expenses and take photos of receipts.
4. Claiming for something you never paid for
Just because some deductions allow a claimable set rate without having receipts, doesn’t mean that you can automatically claim it. If you want to claim items like the laundry deduction, kilometres, meals and accommodation then you can’t just use the ATO’s set rates without proving that you actually spent the money.
Monthly Tax Tip
Are you paying more than 27.5% tax on business income? It may be beneficial to switch your business to a company entity. A small business company only pays a flat rate of 27.5% tax on profits and this rate is slowly reducing to 25% by 2022. If you are currently trading your business as a sole trader, partnership or trust then your business profits will be taxed at marginalized rates and you could find yourself paying up to 45% tax! A company entity also provides some great legal benefits and asset protection. Need we say more….
If you would like to schedule a consultation with us then please jump onto our website where you can see our availabilities and book a time that suits you.
Lodge and pay August 2019 monthly business/instalment activity statement
Lodge Annual TFN withholding report if a trustee of a closely held trust has been required to withhold amounts from payments to beneficiaries
Welcome to our Monthly Newsletter!
We, the team at Chesterton Accounting would like to wish you a Happy New Financial Year! Thank-you for supporting our business.
Monthly tax tip:
Did you know that you can claim home office expenses if used for your business? You can claim a percentage of each expense as per the business use.
However, a much easier calculation is claiming the hours spent in your home when working. The hours can be claimed at a set rate of 52 cents per hour as per the ATO ruling for 2019.
- Single Touch Payroll is mandatory for all employers
- Wages that are covered by an award must be increased by 3% as per the new national minimum wage
- Issue employees with PAYG payment summaries for the year ending 30 June 2019
- Lodge and pay June 2019 monthly business/instalment activity statement
- Lodge and pay quarter ending 30 June 2019 activity statement if lodging by paper
- Pay quarter ending 30 June 2019 instalment notice. Lodge the notice only if you vary the instalment amount
- Make super guarantee contributions for quarter ending 30 June 2019 to funds by this date
- Finalise EOFY employment figures if lodging through Single Touch Payroll
As an employer, you claim superannuation payments when they are paid – not when they are accrued, even if you report on an accrual basis for tax purposes.
However, if you wish to claim a deduction for this financial year for superannuation (quarter 4), it will need to be processed in your software by the 20th of June to allow time for the payment to be received.
If you choose to pay in July by the due date then the deduction will be claimed in the next financial year.
If you would like us to process this then please contact us as soon as possible so we can arrange a time to get this processed for you.
If you have any questions then please contact our office by phone or email. 😊
Are you ready for Single Touch Payroll? As of the 1st of July, every employer will be required to use some form of payroll software to report to the ATO. Xero’s Payroll Only plan is just $10 a month, allowing you to efficiently report your payroll obligations to the ATO in a matter of clicks. If you are interested in learning more or would like assistance in your account set-up then please contact our office on 07 4179 0106.