14 July 2016 PAYG Payment Summaries to be distributed to employees
21 July 2016 Due date for lodgement of Business Activity Statements - June 2016 Monthly
21 July 2016 Payroll Tax Annual Reconciliation
28 July 2016 Due date for lodgement of Business Activity Statements - June 2016 Quarterly
31 July 2016 Return to WorkSA (WorkCover Insurance) Annual Reconciliation
28 August 2016 Taxable Payments Annual Report for Building & Construction Industry
1. Essential End of Financial Year Tasks
The end of the financial year (EOFY) is a busy time for businesses but taking some time to get organised not only helps your business for the year that has just past but can set you up to work smarter in the year to come.
Some essential tasks to add to the EOFY checklist are:
PAYG Payment Summaries
If you have employees, their PAYG payment summaries must be supplied to them by 14 July 2016. Copies must also be supplied to the ATO by 14 August 2016.
Return to WorkSA & Payroll Tax Reconciliations
Return to WorkSA (Workcover Insurance) remuneration and reconciliation statements are available from 4 July 2016 and must be completed by 31 July 2016 to avoid an automatically generated statement.
Payroll Tax reconciliations are due to be lodged by 21 July 2016. Your monthly statement for June is not required to be submitted separately and should be included in the total submitted in the annual reconciliation.
If you require any assistance with the lodgement of Return to WorkSA or Payroll Tax, please contact your client manager.
Ensure you have all income and expenses, bank statements, asset purchases, stock, debtors and creditors recorded in an organised manner. If you have been struggling to keep things organised please speak to us for potential solutions.
Unfortunately some clients don’t pay for the work that you provided. A small consolation for this is that these bad debts are tax deductible. At year end, review your outstanding debtors to determine if any might be considered bad debts.
Check that you have the correct insurance in place for your business, especially if your circumstances have changed during the year. Review your current policy to see if your level of cover needs updating.
Taxable Payments Annual Report
If you are in the building and construction industry and pay contractors you need to lodge your taxable payments annual report by 28 August 2016.
It is important to safeguard against any unforeseen technical issues. For all non-cloud based systems, ensure your data is backed up appropriately.
2. Tax Planning
The deadline for superannuation contributions is fast approaching for both individuals and businesses. You will need to make payment of the contribution before 30 June 2016 in order to claim a tax deduction.
For individuals, a notice of intention to claim a deduction must also be completed prior to lodging your tax return for the respective contribution to be tax deductible.
Small Business Immediate Write-Off
Following the 2015 Budget, the depreciation rules changed for small businesses to increase the threshold under which certain assets can be written off from $1,000 to $20,000.
This threshold is available to all small business with a turnover of less than $2 million for the year ended 30 June 2016 but it was also proposed in the Federal Budget that this measure be expanded to include businesses with a turnover of up to $10 million from 1 July 2016.
Therefore, businesses with a turnover between $2 million to $10 million may wish to consider deferring the purchase of capital items costing less than $20,000 until after this date in the event that this does become legislation.
From 1 July 2017 the threshold will revert back to the $1,000 threshold.
If you are unsure of the tax effect it will have, please contact your client manager to discuss the potential outcomes.
Deductibility of car expenses
In our March newsletter, we outlined the changes to deducting car expenses. There are only two remaining methods to calculate car expenses:
Medical expenses offset
- Cents per kilometre
Limited to a maximum claim of 5,000km at a flat rate of $0.66 per kilometre for all motor vehicles.
If you don’t have a current logbook, so long as one is started no later than 30 June 2016 and maintained for 12 weeks, it can be used as a basis to claiming motor vehicle expense deductions the 2016 financial year. More detailed information on maintaining a log book can be found here.
The medical expenses tax offset has been wound back over the past few years and will only be available in 2016 to those who have expenditure relating to disability aids, attendant care or aged care.
3. Land Tax Changes
Revenue SA have recently issued a ruling which outlines how land tax is calculated for land held on trust. Previous provisions in the Land Tax Act allowed taxpayers with specific tax structures to prevent land tax being evaluated on an aggregated basis.
The new ruling states the following:
“Where two (or more) parcels of land are held by the same taxpayer on trust for the same beneficiaries - irrespective of whether the parcels are held in trusts established at different times - the land will be aggregated.”
What does this mean?
The method by which Revenue SA aggregates land is to match the trustees of the trusts that hold the land. If multiple parcels of land are held by the same trustee then they will be aggregated for land tax purposes and taxed accordingly. This is despite the fact the trustees are holding the land for different trust entities. If the trusts have separate trustees then Revenue SA will not group them together and hence not calculate land tax on an aggregated basis. However, if the trusts have the same trustee then it will be up to the taxpayer to prove that the beneficiaries of the trust are different. If this cannot be proved then Revenue SA will calculate the land tax on an aggregated basis.
What to do moving forward?
If you hold multiple parcels of land on trust and the trusts have the same trustee, the simplest way to ensure the ruling won’t affect you is to appoint a different trustee to the trust prior to 30 June 2016. In addition to this, the registered proprietor of each parcel of land will need to be changed to the new trustee.
4. Are you ready for SuperStream?
All large employers should have been using SuperStream from 31 October 2015 but small employers with 19 or fewer employees now have until 28 October 2016 to be ready.
As detailed in our March 2016 newsletter, clients using the Auto Super function in Xero will be able to prepare for SuperStream very easily as they take care of the electronic reporting for you. However, you will need to make sure all employees have the correct superannuation details within Xero.
If you are not already set up for SuperStream and need assistance with it, contact your client manager and they will be happy to help.
5. Tax Office Scammers
There are numerous scams that target individuals and business all year but they are especially active during tax time. Some of the more common scams include:
- Tax refund scams where the scammer claims you have overpaid tax and are entitled to a refund. To obtain this refund the scammer will ask for an administration fee.
- Tax liability scams where the scammer claims you owe tax and requests immediate payment.
- iTunes scams where the scammer requests payment via iTunes.
Please be vigilant when receiving phone calls or emails from people who say they work for the ATO. As your registered tax agent, we should be the first point of contact for the ATO on all tax related matters. Therefore, if you are unsure of whether it is a scam, please contact your client manager for assistance before taking action.
6. Xero Price Change
Effective from the 2nd of June 2016, Xero introduced new pricing plans that are now based on the number of employees per organisation. If you are currently using Xero then the change will have already taken effect but if you would like to review your current plan, please contact your Client Manager.
7. JM News
Welcome Liam McNamara
This month we welcomed Liam McNamara to the Jaquillard Minns team. Liam joins us as a Senior Accountant with several years experience in another boutique accounting firm. In addition to playing soccer, Liam is recently married and an avid Crows supporter. We look forward to introducing you to him as the opportunity arises.
It’s A Boy!
Congratulations to our Xero Bookkeeper, Dayna Jackiw, and her husband Dan who welcomed baby number three, Liam. All are doing well despite some sleep deprivation for Mum!