2017 tax return lodgement reminder

Yes it is that time of year already! If you haven’t yet brought in your 2017 tax return information for us to prepare your returns – it would be a good idea to start sending documents through.  For most taxpayers, their general 2017 tax return due date will be mid-May 2018 although some tax returns may have an earlier lodgement due date.

 

If you are not sure what documents to send us – we are only an email away!

 

Do you have any family members or friends that are in need of a helping hand with their tax matters, or they simply don’t know where to start? Feel free to send them our way! We are always up for a challenge!

in News / Personal Tax Returns  by Emily Yip

Single Touch Payroll – what you need to do

From 1 July 2018, if you have 20 or more employees, you’ll need to use Single Touch Payroll-enabled software to report your tax and super information to us.

This means that you need to do a headcount of the number of employees on 1 April 2018, if it is 20 or more employees then you are required to use Single Touch Payroll from 1 July 2018.

More information can be found on our article published earlier .

If you require assistance please get in touch with us!

in Bookkeeping and Payroll / News / Running A Business / Tax Advice and Planning / Xero Cloud Accounting  by Emily Yip

First Home Super Saver Scheme

Help to buy your first home

The First Home Super Saver Scheme (FHSS) was introduced to reduce the pressure on affordable housing.  Access to this scheme applies from 1 July 2018.

From 1 July 2017 concessional and non-concessional contributions you make to your super fund can be applied to be released to help you purchase your first home.  Release requests can only be made after 1 July 2018.

Concessional/before tax contributions include salary sacrifice amounts, contributions by your employer and any other contribution you have claimed a tax deduction for.  Non concessional/after tax contributions are contributions you voluntarily make from your after tax dollars.

To be eligible:

  • applicants must be over 18 years of age
  • you must not have owned any property in Australia previously
  • you must not have used the FHSS already
  • intend to live in the property you wish to purchase as soon as practical after purchase
  • intend to live in the property for at least 6 months in the first year of owning the property

And no, don’t think about using the release funds to purchase a house boat, a motor home, vacant land or any other type of premises not capable of being occupied as a residence.

How much can you release from your super?

Eligible individuals can apply to release 100% of non concessional contributions and up to 85% of concessional contributions but are limited to a maximum of up to $15,000 in one financial year.  The maximum that can be released is $30,000 in total across more than one financial year.

Will there be tax?

Of course there will be tax!  The ATO will work out the tax to withhold from your released funds at your estimated marginal tax rate less a 30% tax offset or at 17% tax.

And yes, the released funds are also included in your taxable income in the year you request the release.  But the amount won’t affect any family tax benefit calculations for that same year.

If your request to release the funds is granted, there is a 12 month time limit to sign a purchase or construction contract.  Although it is possible to request an extension, if not granted, you can be requested to recontribute the release amount back to your super fund or pay further tax on the release amounts.

Please note the above is factual information only.  If you would like advice concerning the FHSS and your personal situation please contact us.  One of our authorised representatives would love to help you out.

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in News / Self Managed Super Funds  by Melissa de Largie

HELP and TSL Debts and Overseas Travel

Do you have a HELP or TSL Debt? Plan to travel to or reside in another country?

The ATO has introduced changes relating to Higher Education Loan Program (HELP) and Trade Support Loan (TSL) obligations which commenced 1 July 2017.

If you are living or travelling overseas for more than 183 days in a 12 month period, you will be required to make repayments towards your HELP and TSL debts.  Repayments will be based on your worldwide income for the 2017 financial year. You will be required to submit an overseas travel notification if you meet certain criteria as well.

In the past your debt repayments were based on your Australian income.  However now if you live and work overseas and earn worldwide income that exceeds the minimum HELP and TSL repayment thresholds, you will be required to make repayments against your loan.

These changes apply to all new and existing HELP and TSL debts.

The ATO are looking into those individuals with debts that have been overseas for more than 183 days in a 12 month period and issuing Overseas Travel Notification Letters.

More information can be found on the ATO website at HELP and TSL Overseas Obligations

What you need to do:

If you have a debt and spend 6 months or more overseas then you are required to lodge an Overseas Travel Notification or a non lodgement advice with the ATO.

You can lodge the form yourself through your My Gov account before 31 October following the end of a financial year.  Alternatively you can give us a call to help you lodge this form.  As a registered tax agent we will also receive a lodgement extension to help you avoid those late lodgement penalties from the ATO.

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in News / Personal Tax Returns / Tax Advice and Planning  by Melissa de Largie

$20,000 Instant Asset Write Off Extension

Just a reminder…

The small business asset write off threshold of $20,000 will continue until the 30th of June 2018. This applies to small businesses with a turnover threshold of less than $10 million in the 2017 financial year.

To refresh your memory, the small business instant asset write off applies to small businesses that purchase assets costing less than $20,000.

Under this concession, business owners can deduct 100% of the asset in the financial year they are purchased, rather than having to depreciate the asset over its useful life which could be 10 years for example. .

Eligibility

The asset is to ready to use in the financial year you make your claim. This means the asset needs to be fully installed.

You must be a small business with a turnover under $10 million

Things will change 1 July 2018…..

On the 1st of July 2018 the ATO will be reducing the threshold from $20,000 to $1,000, so now is the time to consider whether you can take advantage of this opportunity.

If you are considering purchasing business assets, give us a call first.  We can help make sure you are getting the best deductions for your business.

 

Contact Us

in News / Running A Business / Starting a New Business / Tax Advice and Planning  by Melissa de Largie