June 2019
Welcome to our June issue of the MAX CAMmunicator.
There is a lot to catch up on since our last newsletter. In this edition you will find:
• welcome to our new staff members
• how to claim super contributions as tax deductions as well as checking for lost super
• hints on backing up data
• information on phishing attacks
• the substantial increase to instant asset write-off
• single touch payroll news for employers and employees
This is our last newsletter for the 2018/19 financial year. If you are looking to minimise your income tax for this financial year now is the time to consider what you need to do before 30 June 2019.
One option is to maximise tax deductions. Options include prepaying expenses, topping up super* and purchasing assets to utilise the instant asset write-off.
We have included information on some of these options in this newsletter but if you would like assistance determining your tax position and looking at opportunities for tax planning don't hesitate to give us a call.
Wishing everyone a Happy New Financial Year – if we don't see you before 30 June, we look forward to catching up with you in July.
*Discussions regarding superannuation contributions may be the provision of financial advice and may require the preparation of a Statement of Advice.
Welcome Neil and Hannah
We welcome Neil Malick to our firm. He is a Senior Accountant with over 30 years experience in the accounting and taxation industry.
With Neil in our accountancy team our senior accountants combined have over 100 years of tax and accounting experience!!
Neil is a FCPA and holds a Bachelor of Business (Accounting). He has a broad range of experience in taxation and accounting work ranging from primary production to individual income tax returns. He is experienced in most forms of accounting software clients may use.
Neil is happily married with 3 teenage children (2 boys and a girl). As a family they enjoy nothing more than going to the beach.
We also welcome Hannah Balgowan as our new administration officer attending to our reception desk. Hannah is the voice you will hear when you phone and the face you will see when you come into the office.
Hannah grew up in a small town called Marlborough and lived there for 20 years. There she met her fiancé and together they moved to Rockhampton with their two dogs, Bear and Xena and their cat, Elektra. Hannah and her partner enjoy camping and spending time with family.
Sadly though, we will be saying good-bye to our trainee accountant Daniel Kovac who has been with us for over two years. Dan is moving away from Rockhampton for family reasons and we wish both Dan and his wife Aimee all the best for the future.
Claiming personal superannuation contributions as a tax deduction
If you make personal contributions throughout the year to a complying superannuation fund or retirement savings account you may be able to claim a tax deduction for those contributions. These contributions must be post-tax contributions as you cannot claim super already claimed by your employer. Compulsory super guarantee, salary sacrifice super contributions and reportable employer super contributions shown on your annual payment summary are all examples of super already claimed by your employer.
In order to claim your post-tax contributions as a deduction you must provide a valid notice of intent to claim form to your super fund or retirement savings account provider. You can give valid notice by any of the following methods:
• Completing an ATO Notice of intent to claim form
• Using a form provided by your super fund
• Writing to your fund stating you wish to claim a tax deduction for your personal super contributions.
If you claim your personal super contributions as a deduction on your tax return those contributions will be subject to 15% tax in the super fund and you will not be eligible for the government super co-contribution on the amount that you claim.
If you aren't sure if you can claim your superannuation contributions we can help. Just give us a call.
*Discussions regarding superannuation contributions may be the provision of financial advice and may require the preparation of a Statement of Advice.
Checking for lost super
In the 2017-18 financial year Australians reduced the amount of lost and unclaimed super by $420 million but there's still $17.5 billion waiting to be found. Some of it could belong to you!
People lose track of their super when they change their name, address or job, or live overseas – things many people have done at some point in their lives.
You can keep track of your super using myGov. To find out how to manage your super including how to find lost super visit Keeping track of your super.
How often should a data file backup be performed?
The answer will depend on how much data you are willing to re-enter in the event of data loss. A few hours, a day or a week?
Performing regular backups is just as important when using cloud technology as it is for files saved on your local hard drive.
Data loss or corruption is still possible when using cloud accounting systems and users are advised to maintain their own backups or risk losing their financial records.
If you would like more information on backing up files, please contact us and we will be happy to help.
Chamber of Commerce and Industry Queensland article on phishing attacks
Phishing refers to the fraudulent practice of sending emails or text messages purporting to be from a reputable company in order to obtain personal information such as passwords, credit card numbers or banking details from an individual.
The Chamber of Commerce & Industry Queensland has released a detailed article by SureBridge IT on phishing with detailed examples of phishing attacks and advice on how to protect yourself against these scams.
Follow this link to read What is Phishing? Protecting your business online.
Instant asset write-off increases to $30,000
From 2 April 2019, the amount eligible businesses can immediately write off under the Small Business Depreciation rules has increased to $30 000. This concession has been extended until 30 June 2020.
Eligible businesses can now claim a deduction of up to $30 000 for the business portion of each asset purchased, either new or second hand.
What does this mean for the 2019 financial year?
1. $20 000 threshold for assets acquired and installed ready for use before 29 January 2019. Available for businesses with an aggregated turnover less than $10 million.
2. $25 000 threshold for assets first used or installed between 29 January 2019 and 2 April 2019. Available for businesses with an aggregated turnover less than $10 million.
3. $30 000 threshold for assets first used and installed between 2 April 2019 and 1 July 2020. Available for businesses with a turnover of less than $50 million.
Keep in mind, in order to obtain a tax deduction in the current 2019 financial year the asset is required to be installed ready for use on or before 30 June 2019.
Single Touch Payroll for employers
Single Touch Payroll (STP) will become compulsory for most businesses from 1 July 2019. STP sends wages, tax and super information from your payroll or accounting software to the ATO as part of your payroll process.
When you start reporting you will run your payroll, pay your employees as normal and give them a payslip. Then you will use your STP-enabled payroll software to send the ATO a report which includes your payroll information such as salaries and wages, Pay As You Go Withholding and super information.
Super liability information provided through STP will be reported to the ATO for the first time. Super funds will also be reporting to the ATO. They will let the ATO know when you make the payment to your employees' chosen or default fund.
This is an important step toward making sure employees are paid their correct entitlements. Please be mindful of the need to pay employee superannuation on time as the ATO data matching abilities will be able to identify late payment of contribution more readily.
You will no longer have to give your employees a payment summary for the information you've reported and finalised through STP. Once you finalise your data by 31 July your employees or their registered agent will be able to lodge their income tax return using the STP information available in ATO online.
Employers should check if your current payroll software is STP compliant. Most current cloud based software providers are STP compliant. The majority of desktop accounting and payroll software programs also have STP add-ons at little to no cost.
For employers currently without accounting programs or with a payroll program that isn't STP compliant the Australian Taxation Office has compiled a list of No-cost and Low-cost Single Touch Payroll solutions (less than $10 per month).
We recommend the following STP programs:
• Reckon Single Touch Payroll mobile app. Free for 1-4 employees
• Reckon One Payroll cloud-based website app. $5 per month for unlimited employees.
For additional information give us a call or go to the ATO's STP for Small Employers Factsheet.
Single Touch Payroll for employees
The way employers report tax and super information is changing. This reporting change is called Single Touch Payroll (STP) and it applies to employers who have 20 or more employees from 1 July 2018 and smaller employers (those with 19 or fewer) from 1 July 2019.
If your employer reports through STP they will send the ATO your tax and super information each time they pay you. Each time your employer pays you, your year-to-date tax and super information will be updated in myGov.
Your employer will no longer issue you a payment summary at the end of the financial year but instead an income statement will be made available in myGov with a notification sent to your myGov Inbox indicating your income statement is 'tax-ready'.
We can also access this information when we prepare your income tax return.+
For additional information go to the ATO's The way you get your payment summary is changing article.
Kind Regards
The Team
Maxwell & Cameron Pty Ltd
*Discussions regarding superannuation contributions may be the provision of financial advice and may require the preparation of a Statement of Advice.
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