In this Sky Update, we bring you all the latest tax news along with some other items that may pique your interest.
Extension of $20,000 Instant Asset Write-off
In the most recent Federal Budget it was announced that the $20,000 instant asset write-off would be extended for a further twelve months to 30 June 2019.
On 12 September, the legislation to give effect to this announcement passed both houses of Parliament and is currently awaiting royal assent.
As such, small businesses can now invest with confidence knowing that the write-off will be available.
If you have questions around the write-off and small business accounting, do not hesitate to contact us.
Casual employee found to be entitled to annual leave
The recent decision in WorkPac Pty Ltd v Skene highlights a risk for employers engaging casual employees.
The Full Federal Court found that the worker was not a casual employee for the purposes of the Fair Work Act and was entitled to Annual Leave on the basis that the employee worked set, inflexible hours and had a degree of certainty around their ongoing work.
This finding will come as a surprise to many employers operating in industries that rely on casual employees such as the retail, tourism and hospitality industries.
Employers are encouraged to review their arrangements with casual employees in light of this decision. If you have questions around business management and accounting, please get in touch.
Community Benefits Statements Due
Per the Gambling Regulation Act 2003, Victorian club venue operators are required to prepare and lodge an audited community benefit statement for every financial year in which they receive gaming machine revenue.
The due date for lodging is 30 September.
If your club is yet to complete the community benefit statement there is no time to waste. If you need assistance in hospitality accounting, please contact our club specialist accountants.
Inquiry into the implications of removing refundable franking credits
The House of Representatives Standing Committee on Economics has announced an inquiry into the implications of removing refundable franking credits.
The Terms of Reference are to inquire into and report on the use of refundable franking credits, their benefits and the implications of their removal, including:
- analysis of who receives refundable franking credits, the opportunities it provides to offer alternative savings and investment vehicles to low and middle income earners, and the impact it has on lowering tax bills;
- consideration of how refundable franking credits support tax principles, particularly implications for tax neutrality, removal of double taxation and fairness; and
- if refundable franking credits are removed; who it would impact and how and the implications from expected behavioural change by investors, including for:
- increased dependence on the pension
- stress and complexity it will cause for Australians, including older Australians to adjust their investments
- if there are carve outs applied, what this might mean for additional complexity, uncertainty and fairness
- reduced incentives to save and distortions to which asset classes are invested in and funds are used, and
- the reliability of providing a sustainable revenue base over the longer term.
Submissions are being sought by Friday 2 November 2018. Submissions can be made online or by emailing firstname.lastname@example.org. For more information about refundable franking credits and other tax planning matters, do not hesitate to contact us.
Crowd-sourced Funding Eligibility Extended
Legislation to extend the crowd-sourced funding framework to eligible proprietary (private) companies has passed both houses of Parliament and awaits royal assent.
The passing of this legislation opens up crowd-sourced funding to a much larger pool of companies.
Whilst this will open up a new equity funding option for many start-ups and smaller businesses, care must be taken to ensure that the requirements can be satisfied, including the enhanced disclosure and reporting requirements.
If you would like more information about crowd-sourced funding and small business accounting, please get in touch.