MJN Accounting in Adelaide, South Australia | Tax preparation service

MJN Accounting

Locality: Adelaide, South Australia

Phone: +61 8 8364 6022

Address: 156 Fullarton Road 5067 Adelaide, SA, Australia

Website: http://www.mjnaccounting.com.au

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25.01.2022 SA Government Grants #2 The SA Government has announced a second round of grants for businesses that are on the extended JobKeeper program that is, those that qualify for JobKeeper for the period October - December 2020. The grant is a little different this time as:... 1. you need to have a commercial premises (ie not operate from home see https://lnkd.in/e3yGjvn), 2. non employing businesses can now apply. The attached link has more information and if you have any questions please do not hesitate to contact us. https://lnkd.in/ee9iWXs

24.01.2022 Here's what the new JobKeeper Payment is all about and how it could help you. You can also read about it on our website here: https://www.mjnaccounting.com.au/news-art/jobkeeper-payment

23.01.2022 JobKeeper or Apprentice Subsidy Which one is right for me? Over the past few weeks I have received a lot of questions about apprentices and if you can (or should) claim the Apprentice Subsidy or the JobKeeper payment or both. The Government updated their information on 25 April to clarify:... Where the business is eligible for JobKeeper, apprentices will now be paid under the JobKeeper program and will no longer be eligible for the Apprentice Subsidy. The Apprentice Subsidy is still claimed from 1 January until the date you are eligible for JobKeeper. And no, you cant claim both! For more information, see page 12 of the Government Announcement: https://treasury.gov.au//JobKeeper_payment_frequently_aske

23.01.2022 #mondaymirth #accountanthumor

21.01.2022 COVID Electricity Bill and 80c Deduction I received our electricity bill today and thought ... what?! We just added 2Kw of solar and the bill has JUMPED UP $400! Then I realised that my wife has been working from home full time, my son is on JobKeeper and can't go to work electricity is running 24 x 7 in his room with a new TV ... so not so bad after all! ... We can claim it on our tax how does this work? My wife worked from 23 March 19 June, being 13 weeks. The total days less public holidays was 62 days (13 weeks x 5 3 days). Each day would have been an average of 8 hours being 496 hours (62 days x 8 hours) At 80 cents per hour a tax claim of $396.80 (496 hours x 80c) Remember this is only a deduction, hence it reduces her tax by her marginal rate being $397 claim x 32.5% tax rate. Therefore the tax refund would be $129.03. Whist the 80c sounds generous, by the time you factor in your personal tax rate, it isnt a large refund. The 80c is the best method for us as: 1. We didnt have to buy any new desks or equipment which means no depreciation to claim. 2. While you can claim part of internet and electricity on the 'actual cost method', when you factor in all other users in the house (3 kids and me) her share of the internet and electricity bill is small.

20.01.2022 Make sure your online ordering systems are correct! I ordered a product last night and receive the tax invoice by email. I have copied a section of the invoice, can anyone spot the error? (the total price of $98.00 is correct and what I paid)

20.01.2022 Once you turn 65 you can access your superannuation at any time even if youre still working. Plus, if you continue to work, your employer is still required to contribute to your fund. If youre unsure about your plans for retirement, then talk to us. We can help you navigate the super minefield! Read our article here: https://buff.ly/2Uis3i2

20.01.2022 I am currently assisting a client transfer a commercial property they own to their SMSF. Like many business owners this client hadnt been putting aside money into super, therefore they only had a small amount in their super fund. To facilitate the transfer we had to use the sale proceeds to boost their super. As there are a few steps in the process watch this video to see how the transaction is accomplished.

20.01.2022 This is what an accountant does with his time off ... After a long 3 months, missing having annual leave and extra long hours, I was sitting at my computer looking at the screen and thought I need a day off. Thanks to having great staff everything is under control and having some time to recharge ready for the run to 30 June is important.... I dragged this project out again and am looking forward to it been completed.

19.01.2022 As an interesting adjunct to our article 'Are your contractors actually employees?' https://www.mjnaccounting.com.au//are-your-contractors-act this article came up on SmartCompany recently. It just goes to show how things can turn a bit nasty if a contractor gets a bit disgruntled... http://bit.ly/2I08hjS

19.01.2022 If you've considered subdividing your property and selling off the vacant land, you need to watch this. Mark explains the tax implications so you're not caught unawares.

19.01.2022 Recognise the warning signs and take back control before a customer goes broke and (potentially) takes you with them by BEING BRAVE! I frequently see subcontractors and suppliers lose 6-12 months profit by not being brave and challenging the situation. Find out what to look for and how to regain control here: https://buff.ly/2P8AUzf

18.01.2022 Bad Debts and 30 June With 30 June less than a week away its important to: 1. Review your profit and projected tax position:... 2. As part of this process, review the amounts customers owe you and the likelihood that you will receive the money. If it is unlikely that you will receive a payment you can write off the debt either in full or partially.

18.01.2022 Do I need to register for GST? The requirements to register are: 1. when your business has a GST turnover (a total of your invoices including materials) of $75,000 or more, (not for profits is $150,000) 2. when you start a new business and expect your turnover to reach the GST threshold (or more) in the first year of operation... 3. when you provide taxi or limousine travel for passengers (including ride-sourcing) regardless of your turnover 4. if you want to claim fuel tax credits for your business or enterprise. What happens if you dont and your turnover is more than $75,000? If you don't register for GST and are required to, you may have to pay GST on sales made since the date you were required to register. This could happen even if you didn't include GST in the price of those sales. For instance if your turnover was $80,000 you could expect to pay $7,273 of GST, without GST you could claim on expenses. One of my clients recently worked with someone who wasnt registered for GST. 12 months later they received a bill for the GST amount. We assume that the other party was audited and required to pay the GST, therefore tried to claim it from my client ... a massive amount of admin work!

18.01.2022 Important news for those of you thinking of applying for the JobKeeper Payment.

18.01.2022 $150,000 Asset Write Off Extended to 31 Dec 2020 The instant asset write off has been extended from 30 June 2020 to 31 Dec 2020. If you buy a qualifying asset for $150,000 or less before 31 December 2020 you can claim 100% of the amount as tax deduction in the year you purchased the item.... Personally I have mixed thoughts on this; while it is nice to be able to claim something as a tax deduction, you really need to understand the impact a large purchase will have on your taxable income and taxation rates. Always make sure when making a large purchase you understand the tax benefit that will be achieved so that you factor this into the cost. Remember: it's just a tax deduction so you will only get part of the money back. https://www.abc.net.au//government-extends-asset-/12334398

17.01.2022 WARNING! The $150,000 asset write off is only for vehicles up to $57,581 There are a lot of adds out from vehicle dealerships at the moment with pictures of expensive vehicles and comments like: Up to $150,000 Instant Tax Write Off... which could be construed as you can claim up to $150,000. Unfortunately you can't! ... Vehicles are still subject to the Depreciation Cost Limit which means that for certain vehicles (a passenger vehicle designed to carry a load less than one tonne or fewer than nine passengers*) the maximum you can claim is $57,581. Any amount above this is not deductible, this year or in the future. For more information see: https://lnkd.in/ggNNdVM *Note: The exception to this is a motor cycle or similar.

15.01.2022 The JobKeeper Payments have been passed in parliament and more concrete guidelines announced. Mark explains how to determine if your employees are eligible and what you need to do as an employer. You can read a summary of this video on our website here: http://ow.ly/NEda50zjJWW

15.01.2022 Running 100 kilometres around a 400 metre track. A couple weekends ago I completed the SA Track 100. I'm not an athlete (came 2nd to last of the finishers) ... just someone who likes a challenge and to push myself running. Big lesson from long-distance running is always to keep moving. Between 12am and 2am I wasnt in a good space, but instead of running I kept up a fast walking pace. Yes, I fell behind where I wanted to be, but not as far as I would have been if I had stoppe...d. Those 2 hours allowed me to recover and regroup and I still completed the event just 15 minutes slower than I planned. My reason for posting this is, that when things arent going to plan, just keep moving forward even if at a slower pace for a period. You'll still further ahead than if you stop.

15.01.2022 Question: Can I vary my March PAYG Tax Instalment? The ATO requests that businesses pay taxation on the profits they earn on a quarterly basis. These tax instalments are included on either the BAS or IAS statement issued from the ATO. The latest is for March 2020.... The way that they calculate the tax instalment is based on your last tax return lodged; in the current environment this may not reflect your actual present situation. If the business profit has decreased, then you can vary your instalment amount to help your cashflow. While I discuss this in the video, to do this for the March quarter you will need to: estimate your profit for the 2020 year, calculate taxation due on the estimated profit divide the estimated tax by 4 (into quarterly instalments) then multiply by 3 deduct the instalments paid for September and December the difference is either the amount due or, if overpaid, a refund for March If you have any questions, please dont hesitate to ask!

15.01.2022 Property, Depreciation & Sale Every year I have the same conversation with clients: "The investment property that we had, we've sold and got back what we paid for the property so we managed to pay off our loans .... so there wont be any capital gains ... will there?" Firstly ... "why didnt you call me first?" ... as sadly, the news is often not good.... In many of these cases the clients have held the property for a long time (e.g. 10 years) and have been claiming deprecation on the property during that period. This can amount to $100,000 or more. Deprecation reduces the cost value of the property for tax purposes, hence the sale (even if you sold for the same amount as you paid for it) generates a capital gain and associated tax liability. Had this client contacted me prior to selling we could have calculated this impact; in may cases the client would have either continued to hold (with low interest rates a lot of properties cost nothing to hold) or delayed the sale until retirement. You are better off claiming depreciation as this gives a tax deduction now. Due to the 50% capital gains discount, you only effectively pay back tax on 50% of the amount you claimed when you sell the property. If you've got questions about selling and investment property, talk to us first, to see if it's worthwhile.

15.01.2022 Some helpful information from the ATO! *** Rental property owners: Did you take out a loan to purchase your rental? ... You may be able to claim a deduction for interest charged on the loan, but only for the portion of interest that relates to your property. This means if you put some of the loan towards personal expenses such as a holiday you cant claim the interest on that part of the loan. Watch our video for more info and examples, and find out more at http://bit.ly/37L6yJN http://bit.ly/37L6yJN

14.01.2022 The latest info from the ATO.

13.01.2022 Can I buy a second-hand vehicle and claim the GST and/or instant asset write off? For the instant asset write off the answer is yes. It doesnt need to be a new vehicle but keep in mind that for a passenger vehicle the maximum claim is $57,581. But what about the GST?... You can only claim back the GST from someone who is registered and selling the vehicle with GST. If they are not registered for GST they can't give you a tax invoice with GST on it. Therefore if you are looking to buy the vehicle privately, the first question you should ask is Are you registered for GST and is this included in the price?. If they are not registered then there is NO GST to claim back. Make sure you take this into account when looking at vehicles and working out which is the best deal. Any questions please feel free to ask.

12.01.2022 In a sequel to our 'eligible employees' video relating to the JobKeeper Payment, Mark outlines how to determine if you're an eligible *employer*. You can read a summary of this video on our website here: http://ow.ly/TIXR50zjJZR and download a handy checklist for when you're ready to register.

11.01.2022 When I talk to victims of a client going bust they usually say one of the following statements: I saw this coming for a while (often a year or more ago), and I wish I did something about it earlier. But what *can* you do to take back control? Find out here: https://buff.ly/2P8AUzf

11.01.2022 Mark explains what the Federal Governments Small Business Coronavirus incentives mean. For a full writeup visit: https://www.mjnaccounting.com.au//covid-19-government-stim

10.01.2022 On having up-to-date information... The picture is yesterday's electricity usage for our home and shows our varying power consumption throughout the day. Last week I installed an energy usage monitor from powerpal.net that gives live, up-to-date information detailed enough so that you can see the effect of turning on and off appliances has on your consumption and ultimately bill.... In the six days that we have had it, we've been experimenting with appliance usage and settings and I have learnt a lot. We are already changing our usage of some items and will more than save the $100 it cost in the next quarter. The good thing about the monitor is, that as the seasons and therefore our appliances usage change, I can keep up-to-date with our usage and adjust accordingly well before we get the bill and it is too late. Relating this to business: having up-to-date information is critical. I meet with so many business owners who ask how is my business performing but havent updated their records for months! Looking at old information is no different than using your last quarter's electricity bill for making future decisions. The more up-to-date your information is the better the decisions you can make especially at the moment when things are changing rapidly. If you want one, the energy meters are available at www.powerpal.net

09.01.2022 What are the #tax implications of subdividing, building and moving into the new home? Mark runs through what you should know before you get the surveyors in...

09.01.2022 The best way to deal with the sting of a customer going broke and its impact on your cashflow is to avoid it altogether. This doesnt mean not going after big business ... rather, there are steps you can take and processes you can put into place to minimise the risks. Find out what they are here: https://buff.ly/2P8AUzf

09.01.2022 Superannuation Contributions Don't Leave to Last Minute! If you are planning on contributing to your superannuation fund before 30 June 2020 do it NOW. There is only few days until year end, and you need to allow time for the money to leave your bank account, be received by the super fund and then be processed prior to 30 June.... Remember it's the busiest time of the year for super funds and the last thing you want is either: - a delay in processing - needing to get more information (e.g. how to contribute) - funds being returned due to incorrect details supplied I have seen plenty of examples in the past when people though that they contributed in time only to find out the fund received it after 30 June. Do it now!

08.01.2022 Mark's wife made him buy this t-shirt ...

08.01.2022 A common question I am asked is can I buy a car for the business and claim it as deduction? (Here I am not referring to trade cars such as utes and vans) Simply owning a car in a business or having your business name on it isnt enough to claim it as a deduction. Rather, you need to demonstrate that the vehicle is used for business and this is done by preparing a logbook. This can either be done in a paper book or via an app. ... The logbook will then be used to work out the percentage of the ownership and running costs that can be claimed as a deduction for sole traders and partnerships. It is also used by companies to reduce the value of any Fringe Benefits Provided. What happens if you dont have a logbook? Then you cant claim a deduction based on the costs of the car and are limited to only claiming up to 5,000km and a maximum claim of $3,400. This might be a lot less that if you used a logbook! Does the ATO check? Yes! I had 2 clients reviewed last year ... both had logbooks.

08.01.2022 Important information for those of you utilising the JobKeeper payments from the ATO

07.01.2022 Does your bank account affect your productivity? Unfortunately, many businesses manage their work based on what is in their bank account. When the bank account is low they get active, when it is full they get comfortable.... When they are active and out there pursuing work this leads to income but, often, they take on low quality or low profit margins just to get money in the door. All too frequently they end up working long hours with clients that frustrate them and they wear themselves out. When the bank account is growing they then relax and slow down as they need to recover from the busy period they have just been through and stop chasing work. Low and behold, the bank account diminishes and the cycle starts again. Rather than repeating the cycle over and over, work out *who* you want to work, for at the margins you want to achieve, and target these clients. Do this on a consistent basis by setting aside a time each week for lead follow-up, making calls and other activities that drive income. By being consistent, your cashflow will also be consistent and you can chase the work that you want, not just the work that pays the bills!

06.01.2022 Wondering what the second stimulus package has to offer? Mark explains what the PAYG refund means and what changes to superannuation access and drawdowns will be available. For a full writeup visit https://www.mjnaccounting.com.au//the-federal-government-s.

06.01.2022 With the end of the financial year only a few weeks away, now is the perfect time to review your situation and projected tax commitments to make sure that you take advantage of any planning opportunities and that your financial situation is maximised. http://ow.ly/MoKM50zNctP

06.01.2022 It's business 'as usual' for us at MJN, albeit from home! If you need to get in contact with us during the lockdown which comes into force at midnight tonight, please send me an email or phone the office and leave a voicemail. We will be monitoring both avenues and are ready to help with your accounting and finance enquiries when needed. See you on the other side of the six-day lockdown. ... #stayhomeSA

06.01.2022 Efficiency according to our kids This is a common sight in our fridge. As the near empty milk carton doesn’t have enough milk for a glass-full, rather than finishing it and opening a new one, the kids just open a new one. It's much easier to take one carton out of the fridge rather than dealing with two! Luckily for our kids they have overworked and underpaid servants ... I mean parents ... to tackle these cleanup issues. ... I meet so many business owners that don’t have efficient processes in place ... know it ... complain about it ... wish it was fixed but don’t have time to do it. The reality is, when you break it down, most fixes are small in comparison to the time and frustration that will be saved once implemented. I have actually met people who spend more time complaining about an issue that it would take to resolve it! One of the things I like doing with clients is to work out what is frustrating them, what needs to be done and then helping them to be accountable to implementing change. Find someone you trust; it doesn't have to be your accountant, just someone that you can't use too many excuses with! If you are frustrated with your business, take a step back and ask what is required for change and who is going to hold you accountable. Remember that small changes now add up to massive changes over time.

04.01.2022 $150,000 Asset Write Off Extended ... well, sort of! Over the past few months I have had lots of questions from people who are looking to order plant and equipment for example a business solar system but while it might be delivered before 31 December 2020, it may not be installed and ready for use by the deadline. In the federal budget the government have announced an 'extension' to the asset write-off deadline. Eligible businesses that 'acquire' (still waiting on fine pr...int on what this means) eligible new or second-hand assets under the $150,000 instant asset write-off threshold by 31 December 2020 will have an extra six months, until 30 June 2021 to have installed and ready for use. The good news is that removes the potential risk of delays in having it installed and ready for use, that are outside of your control (e.g. customs, connections etc); you now have another 6 months. The photo in the picture is from one of my clients Ben Platten from Rubix Solar.

04.01.2022 Do I have to pay rent on my business premises right now? Doesn't the government say that we can't be kicked out for 6 months? My recommendation is to contact your landlord now and see what you can negotiate; be prepared, know your numbers, what your cashflow will be for the next 3 months and if you will be viable. Some landlords think that, as a business, you are probably already getting assistance, (for example the PAYG refund), so be aware of how much you will receive and h...ow this will be used. For example, 'as sales are down the PAYG refund will be used to keep employees on'. If they allow the 6 month hold on rent, discuss what will happen at the end of 6 months. If you owe rent, will they then shut you down? Each landlord is in a different financial position, some owe money to banks and may be able to defer repayments on the loan which increases their loan. Others dont owe money (i.e. may be retired) and need the money for their living costs. Remember, if you act in a constructive, thought-out and planned manner with your landlord you are (hopefully) more likely to get a positive response.

04.01.2022 Back into trail running events again Let me say I am glad I live in SA were we have managed to avoid the worst and have some freedoms back, albeit tightly controlled. The first major trail run since Covid for me, 51km from Monarto to Murray Bridge ended up being a tough run... 1. Training during Covid for me had been poor, a lot of this was in my head as when an event was cancelled my motivation and training dropped. Also regular training runs with friends were dropped. Hence fitness wasnt there. 2. I injured by back on the Easter weekend and whilst recovered at the 40km mark was starting to get sore and needed me to take it easy. 3. I'm carrying a few extra kilos (when stressed like the past 5 months I eat junk) Despite these things I managed to complete the event and it felt great to be out again. Credit to the organisers of the event, there is a great bunch of people in Murray Bridge at Murry Multisports Inc that put it on. Even with the Covid restrictions they were able to hold the event as it was limited to a small group with lots of different start times for distancing and, at aid stations, everything was in biodegradable bags (I felt like a kid again getting lolly bags!).

03.01.2022 Capital Gains Tax When is it triggered? Capital Gains Tax is triggered on the date that you sign a contract, not the date of settlement. For example, if you sign to SELL a property say 25 June 2020 and settle in the next financial year on 25 July 2020 the sale date is 25 June 2020. Therefore the capital gain will need to be included in this, the 30 June 2020 year not 2021 year.... Similarly, if you sign to PURCHASE a property say 25 June and settle 25 July the purchase date is 23 June. This is important for calculating if you have owned the property for 12 months or more. Any questions please don't hesitate to ask!

02.01.2022 A major customer has gone broke and you are left with a large amount of money owed to you that you are not able to collect. The resulting cashflow issues that this can create are significant or, even worse, could force you out of business as well. Its the stuff of nightmares. Find out how to take back control or avoid the situation completely: