The MAX CAMmunicator June 2022

JUNE 2022


Things are happening here at Maxwell & Cameron! 


We have introduced 2 new staff members to our team. Ted, joins us as a trainee accountant and is currently studying his accounting degree. Jen is our new receptionist who joins us as Courtney makes the transition from administration to also being a trainee accountant. 


As we make our way towards the end of the 2022 financial year, you may find yourself receiving more reminders from us than usual. These reminders will be to prepare you for the upcoming financial year and will share information applicable to you. 


As the 2022 financial year comes to a close, if you have not yet given us the information to complete your 2021 tax returns, you need to do so as soon as possible! 






In May this year, Maxwell and Cameron once again participated in the Australia's Biggest Morning Tea! With the support of our staff and clients, we are excited to announce we raised $308 in donations! Maxwell and Cameron have decided to increase their original donation pledge and donate a total of $500, bringing total donations raised for the Australia's Biggest Morning Tea 2022 to $808!! 


This year, Jenny took home the title of Maxcam's Greatest Baker with her Air Fryer Oreo Cheesecakes ... yummy!  Thank you to everyone who donated and we look forward to doing it all again next year to help raise vital funds for cancer research. 


FUEL TAX CREDIT RATES


Do you claim fuel tax credits on your BAS? 



From 30 March 2022 until 28 September 2022, business using fuel in heavy vehicles for travelling on public roads will not be able to claim fuel tax credits as the road user charge (RUC) exceeds the excise duty paid.


The ATO have a fuel tax credit calculator to make it easier to apply the right rates. This calculator can be found here:  www.ato.gov.au/fueltaxcreditcalculator


COVID tests and FBT


Individuals who buy or pay for a COVID-19 test for work related purposes – such as to determine if they should attend or remain at work – can claim an income tax deduction for this expense. Remember to keep a record of your purchase.


Have you been supplying COVID-19 tests to your employees for work purposes? The ATO have confirmed you can use the otherwise deductible rule to reduce fringe benefits tax payable for tests you provided from 1 July 2021.


SUPER CHANGES


The $450 eligibility threshold for super guarantee will be removed from 1 July 2022.



From that date, employers will need to pay eligible employees superannuation guarantee regardless of how much the employee is paid.

As a result, an employee under the age of 18, who works more than 30 hours in a week, will be entitled to superannuation guarantee for that week regardless of how much they are paid.

Employers are also reminded that the super guarantee rate will increase to 10.5% from 01.07.2022.

See more at www.ato.gov.au/Newsroom/smallbusiness/Employers/Changes-to-super-for-under-18s

CENTS PER KILOMETRE METHOD RATE


The ATO has announced the rate for claiming car expenses under the cents per kilometre method will raise from 72 cents per kilometre to 75 cents for kilometre from 1

July 2022.


DIRECTOR ID'S


A director identification number (director ID) system has been introduced to prevent the use of false or fraudulent director identities.


A director ID is a unique identifier you need to apply for once and will keep forever.


If you are a current director you have until 30 November 2022 to apply.

Any directors appointed after the 5 April 2022, will need to apply before they are appointed.

We have recently been in contact with a number of our existing clients regarding the need to apply for a director ID and the process to do so.

If you require any further assistance or information, please don't hesitate to contact us.

RECKON ACCOUNTS HOSTED NOTICE


Reckon have recently advised about a new process of Backup deletion. Reckon Hosted users are responsible for creating their own backup files. To ensure the Reckon system runs without hitches, the Reckon team have advised they will commence a quarterly deletion of all backup files (QBB) that are OVER 365 days old. The first deletion happened on the 28 May 2022, and will continue to happen on a quarterly basis going forward. 


If you want to keep a copy of any old backups, you will be required to download the QBB files and save them locally. Reckon have information on how to do this here. 

TAX PLANNING FOR YEAR END

With the end of the financial year nearly upon us give some thought to what you can do prior to 30 June to minimise your tax position. Some options include:

BUSINESS TIP


CLAIMING MOTOR VEHICLE EXPENSES!


The ATO has recently announced an increase in the rate used under the cents per kilometre method to claim business and work-related car expenses from 72c/km to 75c/km.

Depending on your car's fuel efficiency, you might start to find even the increased 75c per kilometre method does not equate to much compared to your increasing car costs.

Historically around 90% of motor vehicle expense claims by individuals use the cents per kilometre method and it is certainly easier for the taxpayer from an administrative perspective. But it has some downsides: you can only claim up to 5,000km of travel and this rate is only a portion of the amount you probably really spend, particularly with soaring fuel prices. When using this method, you also can't claim any further car-related deductions like registration, repairs and insurance.

It might be worth considering what your claim could be under the logbook method for the coming financial year would be.

If considering the switch to the logbook method remember you will need to keep all car receipts for the year. A valid logbook also has strict requirements including you have to record every trip, including odometer readings, for a minimum of 12 consecutive weeks.

The ATO is cracking down on work-related expense claims. If they do ask questions, you really want to be able to show them your records. We suggest taking photos of your receipts, perhaps keeping them in an album on your phone or computer, so they don't get lost or damaged through the year.

Another important tip to remember is even though driving from home to your work puts you in a position to earn your income, the ATO technically classified as "private". You can't include kilometres from home to work when determining your logbook percentage or your work-related kilometres at tax time even if you live a long way from your regular place of work or you work outside normal business hours.

Contact us if you have any questions regarding car expense claims and work-related deductions in general.


Kind Regards 


The Team

Maxwell & Cameron Pty Ltd

www.maxcamaccountants.com.au 


Did you know we offer $0 upfront Tax Returns?


That's right - absolutely no upfront cost to prepare your tax return and your refund is paid directly to your bank account. Come and see our friendly team to find out how (conditions apply). 

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