In this Sky Update, we bring you all the latest tax news along with some other items that may pique your interest.
Increasing the Instant Asset Write-Off
A Bill to increase the instant asset write-off from $20,000 to $25,000 and extend it 12 months to 30 June 2020 has been introduced into Parliament.
When the legislation is passed, the extended measures will apply from 29 January 2019 onwards.
The instant asset write-off is available to Small Business Entities and provides a cash flow boost through immediate tax deductibility of the purchase as opposed to depreciating the item over multiple years.
If you want to know more about the changes, please get in touch.
Take Care on Underpayment of Employees
In February the Fair Work Ombudsman (FWO) has reported taking legal action against a number of hospitality industry businesses for under payment of workers.
In each of the cases, significant back payment of wages has been required with significant penalties imposed. In one case, over $250,000 in penalties.
The FWO is continuing to target the hospitality industry with businesses in that space being put on notice to have their HR house in order.
The Awards that apply in the hospitality industry are complex and it can be very challenging for businesses to ensure that they are paying workers correctly. However, there are resources out there to help you to make sure you are getting it right such as the Pay And Conditions Tool (PACT).
If you need assistance with your payroll requirements, please contact our office.
Single Touch Payroll (STP)
In our January Sky Update we reported that the Bill to make STP mandatory for small employers (< 20 staff) had been passed by both Houses of Parliament.
Those smaller employers will be required to adopt STP from 1 July 2019 and need to start getting ready.
Acknowledging the short time-frame, Commissioner of Taxation Chris Jordan has issued a statement to reassure small employers that the ATO approach to extending STP will be “flexible, reasonable and pragmatic”.
Whilst the ATO will not be taking a hard-line initially, we encourage small employers to be proactive in implementing STP in their businesses. For those businesses, needing advice and assistance, please get in touch.
Software Development – R & D Incentive
In the wake of recent media coverage of R&D Tax Incentive claims gone awry in the tech space, a new guide tailored specifically to the software development industry has been issued.
The guide contains information on eligibility requirements, the expenditure that can be claimed and the record keeping requirements.
This is a useful resource for companies that are new to the program as well as those who have more experience.
With the 30 April deadline for registering R&D activities for the 2018 financial year now on the horizon, companies wanting to claim the R&D tax incentive should be getting organised.
If you would like more information on the R&D tax incentive or require assistance to register, please get in touch.