News and Resources

Taxable Payments Annual Report (TPAR)

The Taxable Payments Annual Report (TPAR) is due for lodgement by the 28th of August every year. This report is now required by businesses in the following industries: building & construction industry cleaning services courier services road freight services IT services security, investigation or surveillance services You will be required to lodge this report if you paid any subcontractors during the previous financial year. If you did NOT pay subcontractors during the previous financial year, then you will need to make a non-lodgement declaration here. Failure to lodge or make a non-lodgement declaration may results in fines and reminders from the ATO. How to lodge the TPAR: Through your MyGov or ATO Business Portal account Through your bookkeeping software such as MYOB or Xero Post a paper form to the ATO...

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PAYG Instalments Comments Off on PAYG Instalments

PAYG Instalments

Are you confused by one of these letters from the ATO???   Why did you receive it? This letter is generally triggered by the lodgement of a tax return with a tax bill of more than $1,000. This tax bill is often due to positively geared investment properties and/or business profits from sole traders, trusts, or partnerships. Unlike your salary from your employer who withholds tax from your wages, the above income does not automatically have tax withheld from it during the year. This means that you’ll pay all the tax on this extra income when you lodge your tax return. Unfortunately this can often mean that you end up with a very high tax bill. Therefore, the ATO requests that in the future you pay this tax in smaller instalments leading up to the lodgement of your next tax return.   What does it mean for you? First, the ATO will send you a letter similar to the above to notify you that you are being put into the Pay As You Go Installment (PAYGI) system. The notional tax is your estimated tax bill for the next year. It will be estimated slightly higher than the tax bill from the tax return just lodged. This figure will then...

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Proposed Superannuation Changes for the Federal Budget 2018

Changes to superannuation were announced in the Federal Budget for 2018. There are some positive changes for retirees moving forward. However, these super changes are not yet enforced but it is well worth considering how your retirement plans might be affected. The proposed changes include: Protecting your super package                                          Fee changes In a move designed to help stop fees eroding balances, the Government will: ban superannuation funds from charging exit fees on any superannuation account; and introduce a 3% annual cap on fees in superannuation accounts with balances below $6,000. Insurances The government is proposing to change taking out life insurance inside super to an opt-in basis for people: with super balances of less than $6,000 who are under 25 whose accounts which haven’t received any contributions in the last 13 months. New ATO initiative The Government also introduced a requirement to transfer inactive accounts with balances below $6,000 to the ATO. The ATO will then proactively seek to reunite these inactive accounts with an active account.  Again, there is likely to be some practical implementation issues which would need to be worked through. These measures will take effect from 1 July 2019. Pension Loans Scheme The Pension Loan Scheme is essentially a government’s version of the reverse mortgage scheme. From 1 July...

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Uniform & Laundry Deduction

CAN YOU CLAIM YOUR WORK CLOTHING AS A TAX DEDUCTION? The ATO allows you to claim the purchase and washing of work clothing if it satisfies certain criteria. To be eligible, your work clothing must meet at least one of the following criteria. Protective: your work clothing protects you from the risks inherent to your job. Steal capped boots, hard hats, high visibility clothing, aprons, & overalls are all considered protective clothing. However, a receptionist in an office could not claim steal capped boots as a tax deduction as there are no inherent risks in the job that would require steal capped boots. Occupation specific: Work clothing that is not everyday in nature and allows the public to easily identify your occupation can be claimed as a tax deduction. A chef’s checked pants, a judge’s robe and wig, and a security guard’s uniform are all examples of occupation specific clothing. A business suit is not an occupation specific uniform as it is everyday in nature and does not identify the occupation. Likewise, the black pants and white shirt of a waiter are not occupation specific clothing as they are everyday in nature and don’t identify the occupation. The swimsuit of a swimming instructor is also not deductible under these...

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Tax Ins and Outs of a Second Job Comments Off on Tax Ins and Outs of a Second Job

Tax Ins and Outs of a Second Job

As we zap into the holiday season and the New Year, thousands of Australians are feeling the pinch in their wallets. It’s an expensive time of year. Plus everyone wants 2017 to be a better year financially. Taking a second job is on the cards for many.   First, see if you are really going to end up ahead. It’s important to know the tax ins and outs of a second job so you can make an informed decision.   Having a second job can be a great way to increase your income and help out with cash flow. The thought of losing 50% of that cold hard cash to the taxman may put you off. But the government doesn’t need to take all of your dollars, they have enough of their own. Welcome to tax myth-busting, well at least the myth that you lose half of your income to tax through having a second job.   Let us show you how a second job can work …   When you start employment with an entity, in Australia you fill out a Tax File Number Declaration form. This informs the Australian Taxation Office of your employment with the entity, and the employer of how much tax to withhold.  ...

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