Sky Update – June 2019

By Sky Accountants

In this Sky Update, we bring you all the latest tax news along with some other items that may pique your interest.

 

Annual Wage Review

The Fair Work Commission has announced a 3% increase to minimum wages from 1 July 2019.

The Fair Work Ombudsman (FWO) is in the process of updating their Pay Guides for Modern Awards to take account of this increase.

Employers are encouraged to keep an eye on the FWO website for the updated Pay Guides so that they can implement any relevant increases from the start of the new financial year.

 

Last minute superannuation contributions

Businesses are reminded that a deduction for superannuation contributions arises when those contributions are paid as opposed to when they accrue.

As such, employers wishing to secure a deduction in the 2019 financial year are encouraged to make payment of contributions as soon as early as possible to ensure that they meet the 30 June 2019 cut-off date.

The same goes for any individuals wishing to make personal deductible contributions.

If you need assistance, please do not hesitate to get in touch.

 

State Budgets deliver Payroll Tax relief

The 2019/2020 NSW Budget has honoured the previously announced commitment to increase the Payroll Tax threshold by $50,000 pa to reach $1m by 2021/2022.  The threshold for the 2019/2020 year will be $900,000.

Similarly, the Victorian Budget provides for an increase in the threshold to $675,000 in 2021/2022 and to $700,000 in 2022/2023.  The regional payroll tax rate will also be reduced to 2.02% from 1 July 2020, then to 1.62% from 1 July 2021, then to 1.2125% from 1 July 2022.

The Queensland Budget also includes a number of Payroll Tax announcements, including an increase in the threshold from $1.1m to $1.3m from 1 July 2019.

You don’t need to have a large business to pay Payroll Tax, as many smaller operators in the tourism, hospitality and retail industries can attest.

These announcements represent welcome relief that will support greater profitability and jobs growth.

 

Single Touch Payroll (STP) & Payment Summaries

Employees of businesses that have adopted STP will notice a change this year when they come to do their Income Tax Returns.

You will no longer be provided a Payment Summary by your employer.  Instead, you will receive an “Income Statement” that can only be accessed online (eg via a MyGov account).

Employers have until 31 July to finalise their employee’s Income Statements.  As such, the ATO is recommending that employees hold-off on lodging their Income Tax Returns until August to ensure that no income is inadvertently omitted.

Employees of businesses that have not yet adopted STP, will receive a Payment Summary as usual by the 14th of July and can proceed to lodge their Income Tax Returns from that time should they wish to.

 

ATO ramping up focus on dodgy deductions

The ATO is increasing their focus on incorrect tax deductions this tax time.

Last year’s audit activity revealed widespread non-compliance with deductibility requirements for work related items, car claims and investment properties.  Accordingly, the ATO will be increasing their focus on these areas this tax time.

Taxpayers are urged to take care with their deductions this year to ensure that they are eligible items, are calculated correctly and can be substantiated.

Many people wrongly believe that over-claiming deductions is a minor issue that attracts a slap on the wrist.  As a Queensland chef recently found out the hard way, wrongly claiming deductions is actually a very serious matter that can result in hefty fines and criminal convictions.

If you need assistance, please do not hesitate to get in touch.

Like this? Share it...
Twitter
Facebook
Pinterest
LinkedIn
Google+
https://www.skyaccountants.com.au/sky-update-june-2019">

Related Reading

Leave a Reply

Your email address will not be published. Required fields are marked *

Social media & sharing icons powered by UltimatelySocial