SME Business Accountants in Belrose, New South Wales | Tax preparation service

SME Business Accountants

Locality: Belrose, New South Wales

Phone: +61 2 9411 2644

Address: 5/14 Narabang Way 2085 Belrose, NSW, Australia

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

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25.01.2022 TOP TAX TRAPS CONT. 4. My boss wants me to wear black, so Im claiming my work clothes. The ATO wont fall for that, Ms Anderson said. Unless you wear a distinct uniform, or occupation specific clothing, this claim wont pass the test.... 5. I can claim travel expenses for this holiday because I also worked. "One taxpayer recently took his family on a skiing holiday and claimed it was deductible because he attended a conference for a few days while he was there. He wasnt very happy when $23,000 of his $25,000 claim was disallowed. 6. I need to stay up-to-date for work, so Im claiming Netflix. According to the assistant commissioner, the growing number of taxpayers claiming their Netflix or Foxtel subscription due to work-from-home situations is a concern. The ATO said taxpayers need to apportion and identify the specific portion of expense that relates to work in order to receive the deduction. 7. Im claiming my weekly travel expenses because I need to get to work to earn a living. For most of us, home to work travel is private since your boss doesnt pay you until you get to work. There are limited circumstances where someone who has to transport bulky equipment can make a claim, the ATO said.

24.01.2022 After months of back and forth, the Senate has now passed legislation that extends the life of a $20,000 tax win for small business. Businesses with a turnover of less than $10 million can write-off the business portion of assets they bought and installed, for less than $20,000 each, in their next tax return. While this is welcome news for small business, the law only provides for an extension to 30 June 2019.

24.01.2022 CORONAVIRUS SMS SCAM WARNING While the public grapples with health concerns around coronavirus, Scamwatch has raised the alarm about a new text scam doing the rounds that isnt doing anything to help. The Australian Competition and Consumer Commissions Scamwatch has published a tweet warning Australians not to click on links in suspicious texts that claim to be from the Australian government.... The screenshot accompanying the warning shows a text message, reportedly from GOV that says: Youve received a new message regarding the COVID-19 safetyline symptoms and when to get tested in your geographical area and is accompanied by a link. According to Scamwatch, the scam text tries to trick you into installing software that will steal your banking credentials. If you do receive this text message, dont click on the link. Instead, report the SMS to the ACCC and Scamwatch team here.

24.01.2022 A CRACKDOWN ON POPULAR TAX DEDUCTIONS IS COMING STANDARD DEDUCTIONS A pervasive myth about eligible tax deductions is that everyone is entitled to claim a "standard deduction" of $150 for laundry, 5,000 kilometres for cars or $300 for work-related expenses.... These deductions are available and can be legitimate, but they must arise from expenses incurred directly from a work-related activity. While you dont need receipts for claims under $300 for work related expenses, $150 for laundry and 5,000 kilometres, you still must have spent the money, it must be related to earning your income, and you must be able to explain how you calculated your claim.

22.01.2022 SUPERANNUATION GUARANTEE AMNESTY WAIT AND SEE On 24 May 2018, the government announced the start of a Superannuation Guarantee Amnesty. The amnesty will be... available retrospectively from 24 May 2018 to 23 May 2019, subject to legislation passing. This amnesty will allow non-complying employers to self-correct any unpaid superannuation guarantee amounts without penalty. During this amnesty, penalties will not apply, and these catch-up payments will be tax deductible. Interest will still have to be paid on the late payments. It is paramount to note that this amnesty is not yet law it is currently sitting before the House of Representatives. SMEs opinion: This is a massive concession. We hope it finds its way through Parliament. We think there is a 50/50 chance, although Labor are against the amnesty.

22.01.2022 GST, Low-value Imports and Website Blocking! Goods imported into Australia - often by consumers using the internet - which cost less than $1,000 are currently GST-free. On May 3 2016, as part of its package of Budget Night announcements, the Federal government proposed that, as of 1 July 2017, this low-value threshold (LVT) of $1,000 will be abolished.... The removal of the LVT will see many day-to-day purchases made by individuals (and businesses) over the internet from an overseas vendor being subject to GST (whereas, as stated above, they are currently exempt). It is proposed that, as of 1 July 2017, overseas businesses with an Australian turnover of greater than $75,000 will be required to register for GST and collect GST on sales made to Australian customers. Australian consumer advocacy group CHOICE has recently issued a press release where it raises the prospect that the Federal Government could use powers it has under the Telecommunications Act to force internet service providers to block websites of overseas businesses that do not meet their Australian GST obligations. It remains to be seen if the Federal Government would deploy such tactics as part of its proposed removal of the LVT.

21.01.2022 INCREASED TAX OFFSET The centrepiece of the recent Federal Budget was immediate tax relief for individuals earning up to $126,000. This is in the form of the Low and Middle Income Tax Offset (LMITO) which the Opposition also states that it supports. It will apply to upcoming tax returns lodged for 2018/2019. Under the changes, the reduction in tax provided by LMITO will increase from a maximum amount of $530 to $1,080 per year and the base amount will increase from $200 to $...255 per year for the 2018/2019, 2019/2020, 2020/2021 and 2021/2022 financial years. Those on incomes between roughly $48,000 and $90,000 per year will receive the full $1,080 offset, while for individuals with incomes of $90,000 to $126,000 the offset will taper off at a rate of 3 cents per dollar for every dollar over $90,000. Those who earn less than $37,000 will receive an offset of $255. This offset does not need to be claimed separately in tax returns. Rather it will automatically be processed and provided to taxpayers when they lodge their upcoming 2018/2019 income tax returns.

19.01.2022 TRUSTS TAX REFORM SET TO GO AHEAD UNDER LABOR About two years ago, opposition leader Bill Shorten announced that Labor would reform the taxation of discretionary trusts to prevent income from being allocated to household members in lower tax brackets. As part of its reforms, Mr Shorten outlined that Labor would introduce a minimum 30 per cent tax rate for discretionary trust distributions to adults.... Following the release of a report on trusts and the tax system by RMIT University this week, shadow treasurer Chris Bowen said that Labors proposed trust tax would eliminate tax loopholes costing the budget billions of dollars through tax, avoiding income tax shuffles including income splitting via beneficiaries. Participants in the report suggested that reform in relation to trusts could include a withholding tax regime similar to that in place for salary and wage earners, or taxing the trust or trustee as an entity. Mr Bowen stated that Labors reforms to the taxation of trusts was merely an extension of John Howards work as treasurer, in seeking to apply a minimum standard tax rate of 30 per cent to discretionary trust distributions to beneficiaries over 18 years of age.

19.01.2022 NEW LAW PASSED No more salary & wage tax deductions for late paying Employers With effect from 1 July 19 employers who do not keep up to date with their PAYG obligations will not be able to claim a tax deduction for the payments to employees... Last week, the Treasury Laws Amendment (Black Economy Taskforce Measures No. 2) Bill 2018 passed both Houses, introducing new legislation to deny an income tax deduction for certain payments if the associated withholding obligations have not been complied with. Payments that are impacted includes salary, wages, commissions, bonuses or allowances to an employee; directors fees; payments under a labour hire arrangement; payments to a religious practitioner; and payments for a supply of services. The deduction is only denied where no amount has been withheld at all or no notification is made to the commissioner. The new law means businesses should take the opportunity to review payments made to employees and contractors to ensure withholding obligations are being met. Privately-owned businesses that may have historically waited until year-end to classify payments to directors as directors fees or bonuses are encouraged to review the withholding requirements when the payments are made to ensure compliance both with withholding obligations. Businesses who engage workers on a contract basis are also strongly encouraged to review the basis on which these workers are engaged. If the commissioner determines a contractor is an employee and payments have been incorrectly classified, the employer will not only be at risk for unpaid PAYG withholding and compulsory superannuation guarantee payments, the employer will also be at risk of being denied a tax deduction for such payments if the withholding obligations are not complied with.

19.01.2022 Running a Business From Home? In this increasingly flexible workforce, there is a growing trend for small businesses to operate from home rather than lease out separate premises. If you use your home as a place of business then you can claim occupancy expenses such as rent, mortgage interest, insurance and council rates. there are a large number of people who opt not to claim these occupancy expenses, believing they can preserve their main residence exemption from CGT. This ...strategy is misguided and is contrary to the law! Please follow the link for more detail: http://www.smeba.com.au/category/newsletters/ See more

19.01.2022 1st Dec 16 SUPERANNUATION CHANGES 23 Nov 16 super reforms passed through parliament Objective of superannuation Provide income in retirement to substitute or supplement the Age Pension... Intended to encourage people to save for retirement rather than an opportunity for tax minimisation. Transfer balance cap $1,6mil transfer balance cap into tax free retirement phase Excess taxed at 15% in accumulation account Concessional super contributions From 1/7/17 concessional cap will be $25,000 From 1/7/17 person earning over $250,000 pays 30% on all concessional contributions Any excess over the $25,000 cap is taxed at taxpayers marginal rate Annual non-concessional cap From 1/7/17 cap reduces from $180k per year to $100k Taxpayers with >$1,6mil in super are not allowed to make further non-concessional contributions Improved access to concessional contributions Currently take total income if greater than 10% is earned from salaries & wages, then any personal contributions are non-deductible. From 1/7/17 the 10% rule is eliminated from the equation. Catch up concessional contributions From 1/7/18 if you have a super balance of less than $500k you will be allowed to catch up concessional contributions for up to 5 years. Transition to retirement income streams. From 1/7/17 the earnings from these income streams will be taxed at 15% rather than zero. This will ensure that TRIS is not used as a tax minimisation strategy See more

18.01.2022 CHRISTMAS & THE TAXMAN GIFTS TO CLIENTS/ CONTRACTORS/ SUPPLIERS/ CUSTOMERS

17.01.2022 TOP TAX TRAPS CONT. 8. My phone plan is capped, so Im going to claim personal and work phone calls. This wont fly unless you use your phone exclusively for work. Otherwise, taxpayers can only claim the work-related portion.... 9. My agent will take responsibility for my claims. Thats a myth, Ms Anderson said. Whether you prepare your own return or you use an agent, you are ultimately responsible for ensuring your claims are correct," she said. 10. Im going to claim the standard deduction. Theres no such thing. Taxpayers listen to advice from many sources, including tax agents, colleagues, family and friends, and even helpful shop assistants. While some advice is correct, some isnt and its leading to mistakes and errors that can be costly, Ms Anderson said.

17.01.2022 Melbourne Cup Day! The Avenue Chatswood with Tim Paro

17.01.2022 SUPERANNUATION FEES The Productivity Commission found an increase of just 0.5% in fees can cost a typical full-time worker around 12% of their account balance (or $100,000.00) by retirement. It found an estimated four million member accounts worth around $275 billion were still held in funds with annual fees exceeding 1.5%.... All the recent research has shown that if youre paying a high fee, theres a good chance it will erode a lot of your investment returns. The average annual fee is around 1% so if you are paying more than this, chances are you are paying too much.

14.01.2022 CAUTION - EXTENDED DEFINITION OF EMPLOYEE Even where a worker falls into the category of contractor under the common law, contrary to popular belief, superannuation may still be payable by the employer where the contract (written or verbal) under which they are engaged is wholly or principally for the workers labour. Generally, a contract is principally for labour where more than 50% of the dollar value is for labour. A workers labour includes physical labour, mental effort... and artistic effort. If this condition is met, then superannuation will be payable where the worker: Must perform the contract work personally, and Is paid for the hours worked, rather than to achieve a result.

13.01.2022 TAX TIP - FBT SAVINGS WHEN PROVIDING EMPLOYEES WITH SMART WATCHES Smart watches function as a traditional wristwatch but often with smartphone-like abililties. As a result, many devices marketed as smart watches often have capabilities far beyond the classification of the device for marketing purposes.... A key requirement is that the device is a portable electronic device. The ATO issued a Private Binding Ruling (PBR) which accepted that a smart watch is potentially capable of satisfying the definition of a portable electronic device for the purposes of applying the FBT exemption under S.58X.

12.01.2022 A fantastic day out with other Bartercard Members

08.01.2022 BURYING YOUR HEAD IN THE SAND ISNT HELPFUL:ATO A woman who failed to lodge 91 tax returns has received a 12-month suspended prison sentence, in what the tax office is calling a message to the community. Geraldton woman Judith Ahearn was handed a 12-month suspended prison sentence this week after failing to lodge income tax returns and Business Activity Statements (BAS) 91 times.... Ms Ahearns non-lodgement streak began in October 2008 and continued through the 2009, 2010 and 2011 financial years, with the sentencing coming after years of warnings, the Australian Taxation Office said. The 65-year-old road freight business partner also received court-imposed fines of $20,000 and $30,000 before the sentencing. The two fines have not been paid. While were disappointed that we have not been able to resolve this matter outside of the court system, we hope that the sentence handed down today sends a message to the community that lodging your tax returns is not optional, assistant commissioner Peter Vujanic said. Our key message to anyone whos having issues is to work with us to sort things out. Burying your head in the sand isnt helpful for anyone. Mr Vujanic said that business owners who repeatedly shirk their tax obligations are gaining an unfair advantage. As such, the court and ATO action comes down to the ATOs commitment to maintaining a level playing field. No one is above the law, the assistant commissioner added. Despite our repeated attempts to engage with Ms Ahearn to resolve her outstanding tax returns, she has shown a complete disregard for her basic obligations as a member of the Australian community. He said that the decision is a reminder to Australians of the potential penalties that come with refusing to engage with the tax office.

06.01.2022 IMPLICATIONS OF REMOVING REFUNDABLE FRANKING CREDITS On request from the Treasurer, the House of Representatives Standing Committee on Economics will hold an inquiry into the implications of removing refundable franking credits. As a result of making the franking tax offset non-refundable, a resident individual or super fund taxpayer would only be able to use the franking credits to offset their tax liability, with no cash refund for any excess credits.... The proposal to remove refundable franking credits was first announced by Labor in March 2018 and is estimated to impact about 1.2 million individual taxpayers and about 200,000 SMSFs (which is approximately a third of all SMSFs).

06.01.2022 View our latest newsletter February 2014 for up to date tax related information on our web site: http://www.smeba.com.au/tax-super-newsletter-feb-2014/

05.01.2022 Equipment Purchases When you combine the current low interest rate environment with the Instant Asset Write-Off, there has rarely been a more favourable time for small businesses to invest in plant and equipment. The Small Business Instant Asset Write-Off allows small businesses (those with a turnover of less than $2 million including the turnover of related entities) to claim an outright deduction for the full cost of business equipment purchased under $20,000 (GST-exclusive...). Most equipment (new or second-hand) is eligible including motor vehicles. To claim a deduction in this financial year, the equipment must be not only purchased but also installed ready for use before 1 July 2017. From that date, the Small Business Write-Off threshold reverts back down to $1,000. Watch This Space Legislation is currently before the Federal Parliament to increase the Small Business Turnover Threshold from $2 million and $10 million. If this legislation passes through parliament, Treasury estimates that this change will open the way for an additional 90,000 to 100,000 businesses (i.e. those with a turnover of between $2 million and $10 million) to access the $20,000 write-off, plus a range of other Small Business Concessions. We will keep you posted on the passage of this legislation through Parliament. IMPORTANT! Please be advised that there will be NO FAX facility available at SME Business Accountants from the end of this week.

05.01.2022 CHRISTMAS & THE TAXMAN GIFTS TO EMPLOYEES AND ASSOCIATES (SPOUSES) This flowchart allows you to assess the tax treatment of gifts provided to employees/associates:

04.01.2022 Link to our latest Newsletter: http://smeba.com.au/blog/tax-super-newsletter/

04.01.2022 MYOB SET TO SCRAP ACCOUNTING DESKTOP PRODUCT MYOB will be discontinuing support services for one of its original accounting desktop products next year. AccountRight Classic, which has been in the market for about 20 years and is one of MYOBs original desktop products, wont be updated beyond September 30 next year. Until that point, support services and compliance updates will still be available.... For those that want up-to-date support and systems beyond September 2019, this will mean a forced upgrade to MYOBs cloud-based suite of products. Industry associations and some major partners have already been made aware of MYOBs plans this week. MYOB is currently in the process of informing accountants, bookkeepers and investors. According to MYOB boss Tim Reed, about three per cent of paying users are still on AccountRight Classic. He told Accountants Daily the bulk of new users, about 94 per cent last year, opt for online-only services. Mr Reed also said this move is absolutely in line with MYOBs broader plans to cease investment in desktop products. This is in line with what weve been telling clients about where were headed. Going forward, we envisage more of these announcements, Mr Reed said. At this stage, Mr Reed said dates arent set for further wind-downs. We will look at adoption rates and see when each product passes its tipping point, Mr Reed said. More to come!!

02.01.2022 Small Business Depreciation: . In what is a blow for small business cashflow, the new Government intends to abolish the following small business write-offs, with effect from 1 January 2014. For more detail go to: http://www.smeba.com.au/sme-business-accountants-small-bus/

01.01.2022 PROPOSED INCREASE IN INSTANT ASSET WRITE-OFF THRESHOLD (TO $25K) The government has proposed to increase the threshold for the instant asset write-off to $25,000 as it looks to entice the small business sector ahead of a federal election. Announced yesterday, Prime Minister Scott Morrison has pledged to increase the small business instant asset write-off to $25,000 from $20,000.... The write-off will be available for small business with an annual turnover of less than $10 million and will apply until 30 June 2020. The government will be seeking to legislate the change when Parliament resumes on 12 February. This measure is estimated to have a cost to revenue of $750 million over the forward estimates period, with an estimated 3 million small businesses eligible to access the write-off. The $25,000 instant asset write-off will improve cash flow by bringing forward tax deductions, providing a boost to small business activity and encouraging more small businesses to reinvest in their operations and replace or upgrade their assets, Mr Morrisons office told Accountants Daily. The governments decision to raise the threshold comes after Labor announced that it would introduce the Australian Investment Guarantee, a permanent feature which will allow businesses to immediately deduct 20 per cent of any new eligible asset worth more than $20,000. Labor has also pledged to introduce a dedicated small business minister in cabinet if it forms government.

01.01.2022 May 2018 Newsletter now available https://www.smeba.com.au//b/tax-super-newsletter-may-2018/

01.01.2022 THE 10 OCCUPATIONS THAT CLAIM THE HIGHEST TAX DEDUCTIONS OCCUPATION - AVERAGE DEDUCTION CLAIM Surgeons $21,184 Real estate agents $ 8,616... Lawyers $ 6,861 (heavily skewed up by high earners); up to $180k avg = $3,411 over $180k avg = $10,901 Truck drivers $ 5,058 Tradies $ 4,998 Farmers $ 4,450 Engineers $ 4,177 Vets $ 3,468 Accountants $ 3,169 Teachers $ 3,172 So how can you identify a deductible expense? If you can say yes to five key questions, then you can generally claim the expense as a tax deduction: 1. Is it directly related to your work or required for your work? 2. Do you have a proper receipt or evidence for the item? 3. Did you pay for it yourself? 4. Did you use your own money as opposed to a work credit card or petty cash to buy the item? 5. Did you carry the cost as opposed to getting a reimbursement from your company or anyone else?