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:
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:
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:
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
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.
If you would like to know more, please contact us and we will be glad to assist.
Paul and Helder
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.
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.
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:
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:
If, after applying all your available unused cap amounts, you still have excess concessional contributions, you may need to pay extra tax.
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
As 30 June approaches, we would like to take this opportunity to remind trustees of annual tax issues to consider.
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.
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 email@example.com we will be more than happy to assist.
Cheers and we hope you had a great financial year!
Paul and Helder
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 firstname.lastname@example.org
Paul Griffiths is a Chartered Accountant with over 20 years assisting Australian Small Businesses with income tax, succession and tax planning matters.