Paying super is an important part of being an employer.

Here’s how to run a quick check of your super obligations to make sure you’ve got everything sorted.

Check you’re paying super to all eligible workers.

• Some contractors may be entitled to super.

Check that you’re paying the right amount.

• Currently, you need to pay a minimum of 9.5% of their ordinary time earnings.

Check you’re paying on time.

• It is tax deductible against your business income.
• At a minimum, you can pay super quarterly.
• If you fail to pay on time, you may need to pay a superannuation guarantee charge, which is not tax deductible.

Check you’re paying to the right place.

• Pay super into your workers fund of choice.
• If they haven’t given you the details, pay it into your default fund.

Check that you’re paying the right way.

• Pay the SuperStream way – send both the payment and data electronically in a standard format.
• You may be able to use the free Small Business Super Clearing House to distribute payments to your employees’ super funds.

Check you’re keeping accurate records.

• Have evidence to show you’ve met your obligations.

Employing people involves lots of obligations, including superannuation.

Source: https://www.ato.gov.au/Business/Super-for-employers/Run-a-quick-check-of-your-super-obligations/

This tax time, small businesses with a turnover of less than $10 million can write off assets costing less than $20,000 each in their 2016-17 return. All simplified deprecation rules will apply to assets when choosing this method.

To use simplified depreciation rules correctly you must:

• write off eligible assets costing less than $20,000 each
• pool most other depreciating assets that cost $20,000 or more
• write off the small business pool balance if it is less than $20,000 at the end of an income year
• only claim a deduction for the portion of the asset used for business or other taxable uses.

The $20,000 write-off threshold now applies until 30 June 2018.

Source: https://www.ato.gov.au/Tax-professionals/Newsroom/Income-tax/Applying-the-$20,000-instant-asset-write-off-/

Tax time is coming and the Australian Taxation Office (ATO) wants people involved in ride-sourcing to make sure they understand their tax obligations.

Assistant Commissioner Tom Wheeler said that drivers in the sharing economy should be aware that anything they earn is assessable income that needs to be included in their tax return.

“It pays to know what your tax obligations are as a driver so you can report and fulfil them correctly from the start,” he said.

“The ATO collects more than 650 million pieces of data each year and has recently started receiving information directly from ride-sourcing facilitators to better support drivers to report their tax obligations correctly. This also means that if you misreport your income, red flags will be raised in our systems and we’ll start asking questions.”

Mr Wheeler said the ATO is reminding taxpayers that have a ride-sourcing enterprise, that they must be registered for GST regardless of their turnover, and pay GST on the full fare.

“If you’re providing ride-sourcing services and do not have an Australian business number and GST registration, you should make this your first priority,” he said.

“By reporting your ride-sourcing income and GST you can also claim tax deductions and GST credits in respect of your business expenses, such as your car, fuel, servicing and your smartphone and data usage.”

“Remember, if you purchase something that’s used for both business and private use. You can only claim the part that relates to your business use.”

Mr Wheeler said taxpayers that provide ride-sourcing services are generally considered to be sole traders, unless they have made other formal arrangements for their business structure.

“The good news is that the myDeductions tool in the ATO app is now available for use by sole traders, and will let you store your business income and expenses in the app and upload them to your tax return or registered tax agent later. You can also use the tool to say what portion of the deduction is for business purposes as well as an easy way to track your trips.”

Source: https://www.ato.gov.au/Media-centre/Media-releases/Don-t-take-your-tax-return-for-a-ride/

From 1 July 2017, Simpler BAS reporting will be the default GST reporting method for small businesses with a GST turnover of less than $10 million. When submitting through the portals or the PLS, small businesses will only be required and be able to report:

• G1 Total Sales
• 1A GST on Sales
• 1B GST on Purchases

When submitting through ECI or ELS, a zero will be required to be added at labels G10 and G11.

If your GST turnover is $10m or greater businesses will not be able to access the Simpler BAS reporting option.

Provided the accounting software used by the business supports Simpler BAS bookkeeping, the business can choose the bookkeeping settings to use for GST classification coding – either the Simpler BAS approach (fewer GST classifications) or the existing detailed classification approach.

Source: https://www.ato.gov.au/Tax-professionals/Newsroom/Activity-statements/Simpler-BAS-starts-1-July/

A stocktake can be an important part of running a business. If your business buys or sells stock, recent law changes could affect whether you need to do a stocktake this financial year.

From 1 July 2016, you only need to do a stocktake for tax purposes if either:

• your business turnover is $10 million or more
• you have more than a $5,000 difference in stock levels at the beginning and end of the financial year – you can estimate this.

These changes might mean you are not required to do a stocktake for tax purposes, but it may be beneficial for business reasons. It can help you with a number of business processes such as pricing strategies, ordering processes and identifying missing stock.

Source: https://www.ato.gov.au/Newsroom/smallbusiness/General/Do-you-need-to-do-a-stocktake-this-financial-year-/

If you buy an asset before 1 July 2017 and it costs less than $20,000, you can immediately deduct the business portion in your 2017 tax return.

You are eligible to claim a deduction for the business portion of each asset (new or second hand) costing less than $20,000 if:

• you have a turnover less than $10 million (this has increased from $2 million), and
• the asset was first used or installed ready for use in the 2016-17 income year.

Assets that cost $20,000 or more can’t be immediately deducted. They will continue to be deducted over time using a small business asset pool. You can write-off the balance of this pool if the balance (before applying any other depreciation deduction) is less than $20,000 at the end of an income year.

In the Budget 2017, the government announced an extension of the $20,000 instant asset write-off threshold to 30 June 2018. This extension still needs to be passed in parliament – the threshold currently reduces to $1,000 from 1 July 2017.

Source: https://www.ato.gov.au/Newsroom/smallbusiness/Lodging-and-paying/Get-your-$20,000-instant-asset-write-off/

If you have graduated from studies in early childhood education, maths, science, education or nursing you may be eligible to apply for the HECS–HELP benefit.

This benefit is an incentive for these graduates to take up related occupations or work in specified locations to reduce their compulsory HELP repayments

The HECS–HELP benefit is coming to an end and the 2017 income year is graduates can claim the benefit.

Please discuss with one of our staff members to check if you are eligible. This will require you to lodge an application before lodging your income tax return.

Source: https://www.ato.gov.au/Tax-professionals/Newsroom/Income-tax/Claiming-the-HECS-HELP-benefit/

The ATO is reducing the amount of information needed for the Business Activity Statement (BAS) to simplify GST reporting.

From 1 July 2017, Simpler BAS will be the default GST reporting method for small businesses with a GST turnover of less than $10 million.

These businesses will only need to report:

• Total sales
• GST on sales
• GST on purchases.

This will not change the reporting cycle, record keeping requirements, or how businesses report other taxes on their BAS.

The ATO will automatically transition eligible small business’ GST reporting methods to Simpler BAS from 1 July 2017.

Small businesses can choose whether to change their GST bookkeeping software settings to reduce the number of GST tax classification codes.

Source: https://www.ato.gov.au/Tax-professionals/Newsroom/Activity-statements/Simpler-BAS-is-coming-soon/

On 9 May 2017, the Government announced that the Medicare levy low-income thresholds for singles, families, seniors and pensioners will increase from the 2016-17 income year.

The threshold increases mean that households will not pay the Medicare levy if their taxable income is below a statutory low-income threshold.

The singles threshold will increase to $21,655.

The family threshold will increase to $36,541 plus $3,356 for each dependent child or student.

The single seniors and pensioners threshold will increase to $34,244.

The family threshold for seniors and pensioners will increase to $47, 670 plus $3,356 for each dependent child or student.

Source: https://www.ato.gov.au/General/New-legislation/In-detail/Direct-taxes/Income-tax-for-individuals/Increasing-the-Medicare-Levy-low-income-thresholds/

On 9 May 2017, the Government announced that from 1 July 2018 individuals will be able to apply to withdraw voluntary contributions made to super after 1 July 2017 for a first home deposit.

Voluntary contributions include:

• Undeducted (non-concessional) personal contributions
• Deducted (concessional) personal contributions
• Salary sacrifice contributions.

Up to $15,000 of voluntary contributions made in a financial year count towards the amount that can be released.

The maximum amount that can be released is $30,000 of personal contributions plus an associated deemed earnings amount.

Concessional contributions and earnings that are withdrawn will be taxed at marginal rates less a 30 per cent offset.

Source: https://www.ato.gov.au/General/New-legislation/In-detail/Super/First-home-super-saving-scheme/