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GST and health products

15/6/2022

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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.
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Superannuation changes from 1 July 2022

13/6/2022

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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.
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SMSF lodgment due date has passed

10/6/2022

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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.


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ATO APP for Sole Traders and Individuals updated

16/9/2021

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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  
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Reminder - Taxable Payments due 28th August

10/8/2021

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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

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Reminder - Indexation of Superannuation Caps

9/8/2021

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From 1 July 2021 Superannuation caps have been indexed.

The concessional cap has been increased from $25,000 to $27,500 for 2021/2022.

​Whilst the non-concessional cap has increased to $110,000 for 2021/2022.
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MV Depreciation Limit 1 July 2021 - Reminder

8/7/2021

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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.

​
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Year-end to do list - Superannuation

14/6/2021

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Personal contributions


If you are looking at making personal superannuation contributions for 30 June 2021, there are a few reminders to be conscious of, including the following:
  • For those aged 67–74 wanting to make a personal deductible contribution in 2020–21, you are still required to meet the work test. The work test requires you to be gainfully employed for at least 40 hours during any consecutive 30-day period of the financial year.
  • Your concessional contributions cap in order to maximise your contributions for the year is $25,000.
  • Don’t forget to provide a section 290-170 notice to your superannuation fund advising of your intention of claim a personal tax deduction for the contribution. A failure to provide this notice, or receive an acknowledgement of receipt of this notice from the trustee of the fund, will result in no deduction being available.

Carry forward unused concessional contributions

From 2019–20, carry-forward rules allow you to make extra concessional contributions – above the general concessional contributions cap – without having to pay extra tax.
The carry-forward arrangements involve accessing unused concessional cap amounts from previous years. An unused cap amount occurs when the concessional contributions you made in a financial year were less than your general concessional contributions cap.

To use your unused cap amounts you need to meet two conditions:
  • Your total super balance at the end of 30 June of the previous financial year is less than $500,000.
  • You made concessional contributions in the financial year that exceeded your general concessional contributions cap.
The amount of unused cap amounts you will be able to carry-forward will depend on the amount you have contributed in previous years, starting from 2018–19. You can use caps from up to five previous financial years and will expire after this. For example, a 2018–19 unused cap amount which is not used by the end of 2023–24 will expire.

If, after applying all your available unused cap amounts, you still have excess concessional contributions, you may need to pay extra tax.


Employer contributions

A reminder for employers that superannuation contributions are deductible only once ‘paid’. While the June 2021 quarter superannuation guarantee contribution is not technically due until 28 July, many employers look to pay their June quarter superannuation contributions before 30 June to secure a tax deduction this year. Remember, merely accruing your superannuation contributions in your financial accounts is not enough to secure a deduction. The ATO has ruled that the contribution must be received by the fund to have been ‘paid’, so make sure that sufficient time has been allowed for the contributions to get to the fund.

If you have any queries, please contact us.

Paul and Helder

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Year-end to do list - Trustees

8/6/2021

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As 30 June approaches, we would like to take this opportunity to remind trustees of annual tax issues to consider.


Trustee Resolutions

It is vital that a Trustee of a trust, particularly a discretionary trust make a valid trust resolution to distribute income before 30 June each year.

Each trust will have different requirements and resolutions to be made prior to or by 30 June.


Every Trust Deed is different.  Valid trust distribution minutes must provide clear methodology of the determination of each beneficiary’s entitlement. Therefore, it is important that the minutes are prepared accurately and with reference to your trust.  It cannot be stressed enough, read your deed.

Distributable income of a trust should be calculated prior to 30 June, and signed trust minutes of the trustee’s resolution are required.  Errors can be costly and result in the default beneficiary being taxed or the Trustee taxed at the highest marginal rate (45% + medicare levy).

Particularly where capital gains and franked dividends are involved we strongly recommend the preparation of interim financial statements in order to assist the Trustee/s in drafting the desired resolution.


TFN Reporting

Trustees of closely held trusts are required to withhold tax from distributions made to beneficiaries who have not provided their TFN to the trustee before a distribution is made.  Reporting obligations also arise.

Trusts created during 2020/2021 or trusts with new beneficiaries (such as a new spouse, child who turned 18 or newly created corporate beneficiary) should report this information in a TFN Report to the ATO by 31 July.   If a beneficiary does not provide their TFN before a distribution occurs, the Trustee must withhold at the highest marginal tax rate and pay the withheld amount to the ATO whilst lodging an annual report with the details of all withheld amounts. 

If you have any queries, please do not hesitate to contact us on contact@growbc.com.au we will be more than happy to assist. 

Cheers and we hope you had a great financial year!

Paul and Helder

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Key lodgement and payment dates for businesses in June

4/6/2021

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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

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    Author

    Paul Griffiths is a Chartered Accountant with over 20 years assisting Australian Small Businesses with income tax, succession and tax planning matters. 

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