In this Sky Update, we bring you all the latest tax news along with some other items that may pique your interest.
Low & Middle Income Tax Offset (LMITO) Now Law
On the 4th of July, the legislation to give effect to the previously announced LMITO was passed just in time for tax time 2019.
With up to $1,080 on offer, there has been much talk about the LMITO with many rushing to lodge their 2019 income tax return. However, the devil is in the detail and some people have been disappointed to find that their entitlement does not stretch to $1,080.
For those wanting a better understanding of their LMITO entitlement, the following are the relevant rates and thresholds:
- If you taxable income does not exceed $37,000, you will be entitled to an offset amount of $255 on your tax payable;
- If your taxable income exceeds $37,000 but is not more than $48,000, you will be entitled to an offset amount of $255, plus 7.5% of the excess above $37,000 to a maximum of $1,080;
- If your taxable income exceeds $48,000 but is not more than $90,000, you will be entitled to the maximum offset amount of $1,080; and
- If your taxable income exceeds $90,000 but is not more than $126,000, you will be entitled to an offset amount $1,080 less 3% of your taxable income above $90,000.
If you require assistance to better understand your LMITO entitlement, please contact our office.
Community Benefit Statements (CBS)
Victorian Clubs with gaming machines are required to submit their audited CBS for the 2018/19 financial year by the 30th of September. The CBS is required to verify that the venue is providing a community benefit of at least 8.33% of its net gaming machine revenue.
Failure to provide the minimum benefit and/or to complete the CBS can have very significant implications for a Clubs Electronic Gaming Machine Entitlements (EGMs).
Clubs should be getting organised to ensure that they can submit their CBS by the due date. If you need assistance with completion of your CBS, please get in touch.
Paying Staff Correctly?
The high profile wage underpayment case involving celebrity chef George Calombaris highlights the importance of understanding the requirements under your industry award.
Awards such as the Fast Food Industry Award, Hospitality Industry Award, Restaurant Industry Award and Registered & Licensed Club Award are notoriously complex and it is very easy to make a costly mistake.
Businesses operating in this space are encouraged to use the tools available through the Fair Work Ombudsman and to seek advice and support to ensure that they are not exposed to a costly compliance issue with the Fair Work Ombudsman. If you need assistance, please do not hesitate to get in touch.
Single Touch Payroll (STP) Has Started
From the 1st of July, STP has commenced for smaller employers (<20 employees). These businesses should now be completing STP filings as part of their routine payroll.
If your business is not yet up to speed with STP, there is still time to get organised before the ATO commence compliance action.
If you are yet to implement STP in your business, please do not hesitate to get in touch to discuss the options available to ensure you are compliant.
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