45 day rule – what does it mean to you?

When you purchase shares in the share market, the companies that you have shares in may declare a dividend. In most cases, the dividend amount comes with a franking credit, which is a rebate that shareholders get for the tax paid by the company. The amount of franking credit that you can claim is shown on the dividend statements that are issued to you.

You will then declare the amounts shown on the dividend statements on your tax return, where the franking credits will be taken into account when calculating your income tax liability.

But do you know that there are instances you may not be eligible to claim all the franking credits you have received?

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Setting up 2 step authentication on your new phone

There comes a time when you need to upgrade your current phone to a new one.

When upgrading phones, our focus is mainly on ensuring your precious photos are kept (or backed up elsewhere) and working out how to keep the contact details so you don’t have to add them back manually in your new phone.

For Xero users, there is one more thing to do before you ditch the old phone: disabling the Authenticator app properly for it to be set up on your new phone.

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Shared economy – things you need to know

If you have a spare room, or some spare time, your friends may have suggested you to grab some cash by hosting your room on Airbnb or becoming an Uber driver.

You thought the idea of being able to generate extra cash without being tied up in an office 9-5, or having some flexibility on deciding when to work sounds cool, and (after a few drinks) your friends suggested that you do not need to report that as income, for whatever reasons.

Sounds too good to be true? Well, it sure is.

The ATO are focusing their attention on the “sharing economy” – the popular ones are Airbnb, Stayz, Uber and Taxify. Below are a few things to consider before starting your shared economy business.

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Updates from Office of State Revenue & ATO – January 2019

A few important updates from Office of State Revenue affecting businesses that is registered for payroll tax, or those who pays motor vehicle allowance to employees.

December 2018 Payroll tax lodgement due date extended

For businesses that are registered for payroll tax, the due date for lodgement and payment of your December 2018 payroll tax return has been extended to midnight 14 January 2019. You may still receive reminders to lodge by 7 January 2019 – feel free to ignore them.

New cents per km rate for work-related car expenses

The ATO has increased the cents per km rate from 66 cents/km to 68 cents/km from 1 July 2018. This change applies to eligible individuals who claims work-related car expenses under the cents per km method.

Using the new rate, eligible individuals can claim a maximum of $3,400 as tax deduction against their income.

Note the work-related car expenses deduction is still subject to the following:

  • You may be asked to show how you worked out your business km
  • There is no separate claim for depreciation expenses on the car
  • This amount includes all your vehicle running expenses.

Reasonable rate for motor vehicle allowance for Payroll tax purposes

Although the ATO has increased the reasonable rate for work-related car expenses claim to 68 cents per km from 1 July 2018, for payroll tax purposes, you are only entitled to claim 66 cents in your payroll tax returns for the 2018-2019 financial year. The 68 cents per km claim comes into effect on 1 July 2019 (2019-2020 financial year).

The motor vehicle allowance for payroll tax purposes refers to an allowance paid to an employee who uses their own car for business-related travel is exempt from payroll tax up to a reasonable amount (currently 66 cents per km for 2018-19 financial year). To claim this exemption, business km travelled must be recorded.

Do you know Aston Accountants can help you with your payroll tax matters?

We can help you in the following ways:

  • Answer your burning question: Do I have to register for payroll tax?
  • Register for payroll tax
  • Preparation and lodgement of payroll tax
  • Annual reconciliation of payroll tax
  • Liaise with Office of State Revenue in relation to your payroll tax matters

Have a specific payroll tax question? Contact us for help!

How to party smart this Christmas (and avoid being stung by FBT afterwards)

With Christmas fast approaching, a lot of business owners are starting to think (or already thinking!) about how they are going to celebrate Christmas with their employees and clients.

While it is a festive season where you normally spend a little more in treating your employees, their families and clients with good food, wine and some activities, enjoying the time and having some fun, business owners may unknowingly provide Fringe Benefits where it may end up costing you more.

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