If your business sells nutritional supplements, analgesic products or wound care products, you should regularly check whether you need to include Goods and Services Tax (GST) in the selling price.

In particular, the ATO have advised that GST applies to the following products:

1. Nutritional supplements, including vitamins and minerals, that are supplied in capsule, caplet, or tablet form;
2. Unrestricted analgesic products sold by supermarkets and other retailers with more than one active ingredient.  Active ingredients include aspirin, paracetamol, ibuprofen and caffeine.
3. Wound care products that are widely used in the general community by people without illnesses or disabilities.  This may include items such as plasters that cover blisters, corns and calluses.

Please remember to do regular checks to ensure that you are charging GST on these products.

As the new financial year approaches, employers need to be aware of two superannuation changes that could effect them:

1. The Superannuation Guarantee (SG) rate will increase from 10.0% to 10.5% on 1 July 2022.  Employers will need to use the new SG rate to calculate a superannuation payment they make to employees on or after 1 July 2022, even if some or all of the pay period is for work done before 1 July 2022;
   
2. The $450 per month superannuation eligibility threshold has been removed from 1 July 2022, meaning that employees can be eligible for superannuation guarantee regardless of how much they earn. 

It is recommended that employers upgrade their payroll systems to ensure the new laws are being followed.

​Any questions, please dont hesitate to contact us.

A reminder that the 30 June 2021 due date for the lodgment of an SMSF annual return (SAR) has now passed, unless an extension applies.

If a SAR is more than 2 weeks overdue and no extension applies, the ATO will change the status of the SMSF on Super Fund Lookup to 'Regulation details removed'.  This status will remain until any overdue lodgments are brought up to date.  If this status remains on an SMSF, APRA funds will not be able to roll over member benefits into this fund and employers will be discouraged from making any superannuation contributions to this fund.  Trustees of an SMSF with this status may also risk failure to lodge penalties.  

Trustees with overdue SAR's are urged to lodge YE 30 June 2021 and prior ASAP.

The updated free ATO app allows sole traders and individuals to access income tax and superannuation data from your smartphone.

Once downloaded, you will need to create a login whilst some information may require you to link your myGov account.

Once setup, you are able to:

• Access 2020/2021 pre-fill information;
• Record your deductions as they are incurred;
• Track your superannuation;
• Set reminders for payment and lodgment dates;
• Maintain your personal details such as address;
• Access ABN lookup;
• Access tax withheld calculator;
• Use the business performance check tool - which allows you to compare your small business to other that are similar;

The App is free and can be downloaded from the Google Play or Apple store and is called "Australian Taxation Office".

It is a pretty good tool to have at your fingertips.

Any Sole Traders that could use a hand with their income tax - contact us.

Paul and Helder
GrowBC  

If your business is under the following categories and paid contractors for their services, you may need to lodge a Taxable payments annual report (TPAR) by 28 August 2021.

• building and construction
• cleaning
• courier, delivery or road freight
• information technology (IT)
• security, surveillance or investigation.

You should already have the records you need for your TPAR from preparing your activity statements, including details of:

• the contractor's name, address and Australian business number (ABN), if known, and
• total amounts for the income year of:     
• payments to each contractor (including GST)
• GST paid to each contractor
• tax withheld where the contractor did not quote their ABN.

 
If you would like to know more, please contact us and we will be glad to assist.

​Paul and Helder

The motor vehicle depreciation cost limit has increased to $60,733 from 1 July 2021.

If a car is purchased for more than the cost limit, the maximum amount of GST that may be claimed is 1/11th of the prescribed cost limit, that is, $5,521 for 2021/2022.

Contact us if you have any queries.
​

5 June

• Lodge tax return for all entities with a lodgment due date of 15 May 2021.
• Lodge tax returns due for individuals and trusts with a lodgment due date of 15 May 2021 provided they also pay any liability due by this date.

Note: This is not a lodgment due date but a concessional arrangement where failure to lodge on time (FTL) penalties will not apply if you lodge and pay by this date.

21 June

• Lodge and pay May 2021 monthly business activity statement.

25 June

• Lodge and pay 2021 Fringe benefits tax annual return for tax agents if lodging electronically.

30 June

• Super guarantee contributions must be paid by this date to qualify for a tax deduction in the 2020–21 financial year

Note: If you receive Child Care Subsidy and Family Tax Benefit payments from Services Australia, you and your partners must lodge your 2019–20 tax return by 30 June 2021, regardless of any deferrals in place.

If you would like income tax and accounting advice, please contact us on contact@growbc.com.au