- If you are an Employer with estimated wages of under $1.5 million for 2018-19 from 1 July 2019, you will no longer be required to pay payroll tax in South Australia if your Australia-wide wages, or group wages, continue to remain below $1.5 million.
The Federal Treasurer, Josh Frydenberg, handed down the 2020/21 Federal Budget on 6th October 2020. The Federal Budget aims to assist job creation, investments and household spending through significant personal income tax cuts, incentives for businesses employing new staff under 35 and immediate write off for any eligible business asset purchases.
Income Tax Cuts
Personal income tax cuts will flow through to more than 11 million taxpayers. The changes are worth an estimated $1,080 per year for people earning between $45,000 to $90,000 and up to a maximum of $2,430 per year for people earning more than $120,000.
Sole Traders will also benefit from the unincorporated tax discount of $1,000. These tax cuts will be backdated from 1 July 2020, resulting in the extra money being returned to bank accounts as soon as the legislation has passed through Parliament.
Those people currently receiving Government payments, including Aged Pensions, Carer Payments and Family Tax Benefit will receive two $250 cash payments in December 2020 and March 2021.
In addition, a one-off $1,500 pandemic leave payment will be made to eligible individuals who are unable to work while under direction to self-isolate, quarantine, or who are caring for someone who has tested positive for COVID.
As at July 2021, the Australian Prudential Regulation Authority (APRA) will conduct benchmarking tests on the net investment performance of MySuper products and will prohibit underperforming products from receiving new members to funds.
Individuals will now keep their existing superannuation fund when they change jobs and the new employer will pay super into the employees existing fund, rather than creating a new account.
Superannuation Trustees will be required to comply with a new duty to act in the best financial interests of all fund members.
A JobMaker Hiring Credit has been created as a 12 month wage subsidy for businesses that hire 16 to 35 year olds for at least 20 hours per week, who are on JobSeeker. This subsidy will be $200 per week for those under 30 and $100 per week for those aged 30-35. JobMaker hiring credits will be reported using Single Touch Payroll.
Businesses that hire new apprentices will also be eligible for a 50% wage subsidy, supporting over 100,000 apprentices available to business of all sizes.
There is an extension of the Instant Asset Write-off out to June 2022, allowing for immediate depreciation on eligible assets, with no cap on the value of these assets.
Small companies with an annual turnover of less than $20 million will have R&D tax offset capped at 18.5 percentage points above the claimants’ company tax rate and there will be no cap on annual cash refunds.
Companies will now be able to offset losses incurred to June 2022 against prior profits made in or after the 2018/2019 financial year.
The budget also brings additional funding to national level infrastructure projects of over $7.5 billion in an effort to boost the Australian economy.
Should you have any queries that you would like to discuss, please contact your Advisor at 360Private on 8291 2111
In an aim to assist in the COVID recovery around tourism, the South Australian Government has introduced a Tourism Industry Development Fund aimed at supporting and stimulating private sector investment in new and improved regional accommodation, and the development of quality tourism product and experiences.
Through the South Australian Tourism Commission, the State Government is committing $20 million to the Tourism Industry Development Fund over two years to support regional tourism in South Australia. There are two streams in the Tourism Industry Development Fund – Regional Infrastructure Projects, and Regional Product and Experience Development Projects.
The Tourism Industry Development Fund aims to:
Applicants can seek grants from $20,000 to $500,000 (excluding GST) with a maximum of 30 per cent State Government grant of the total project value.
Full details of this Fund are available at the SA Government Website, or please feel free to contact your 360Private Advisor to discuss further.
The Australian Government has extended the JobKeeper Payment by a further six months to March 2021. The JobKeeper payment which was originally due to run until 27 September 2020, will continue to be available to eligible businesses (including the self-employed) and not-for-profit organisations until 28 March 2021. In addition, from 03 August 2020 the relevant date of employment will move from 01 March to 01 July 2020, increasing employee eligibility for the existing scheme and the extension.
Support will be targeted to businesses and not-for-profit organisations that continue to be significantly impacted by the Coronavirus. The payment rate will be reduced and a lower payment rate will be introduced for those who work fewer hours.
From 28 September 2020 the payment rate for eligible employees and business participants will be reduced from $1,500 to $1,200 per fortnight and then to $1,000 per fortnight from 04 January 2021. Lower payment rates will apply for employees and business participants that worked fewer than 20 hours per week in the relevant reference period.
Businesses and not-for-profits seeking to claim the JobKeeper payment will be required from 28 September 2020 to demonstrate that they have suffered a decline in turnover using actual GST turnover (rather than projected GST turnover) and will be required to reassess their eligibility with reference to their actual GST turnover in the September quarter 2020 to be eligible for the JobKeeper payment from 28 September 2020 to 03 January 2021.
JobKeeper will continue to remain open to new recipients, provided they meet the eligibility requirements and the turnover tests that apply during the relevant JobKeeper payment period.
JobKeeper Payment Rate
From 28 September 2020 to 03 January 2021, the JobKeeper payment rates will be:
From 04 January 2021 to 28 March 2021, the JobKeeper payment rates will be:
More information on the eligibility rules for businesses and not-for-profits and their employees is at: www.ato.gov.au/General/JobKeeper-Payment/.
There are additional turnover tests around eligibility that your Advisor can assist you with so please contact our team today on 8291 2111.
On the 8th April 2020 the Government legislated the JobKeeper Payment measures to assist businesses impacted by Coronavirus in retaining their employees. The measure has now been further clarified with Treasury issuing an Explanatory Memorandum and Frequently Asked Questions guide, both of which are provided as links below.
Considering your eligibility for the JobKeeper Payment is now even more vital, as State Governments and Federal Governments are using it as the yardstick for which eligibility to other economic relief measures is assessed. For example, the recently announced Code of Conduct for commercial leases and the SA Government Emergency Cash Grants for Small Business, both rely on a business demonstrating eligibility for the JobKeeper program.
The JobKeeper scheme starts on 30 March 2020 and ends on 27 September 2020. Payment periods are measured on a fortnightly basis and the wage subsidy will be received by businesses a month in arrears, with the first payment occurring in the first week of May covering the period 30 March to 26 April (two fortnights).
A business that has suffered a substantial decline in turnover can be entitled to a JobKeeper payment of $1,500 per fortnight for each eligible employee. In order for an employee to be considered eligible that individual must be paid at least $1,500 per fortnight pre-tax. Self-employed individuals, or those operating through companies, trusts and partnerships may also qualify for this payment.
Currently, the two key issues in relation to your business qualifying for JobKeeper payments are:
The turnover comparison periods allow for comparison against months March through September 2019, or a quarterly comparison against quarters ended 30 June 2019 or 30 September 2019. Note that a business is only required to meet the turnover requirement once to ensure eligibility to the JobKeeper Payments, meaning a later increase in turnover will not remove the ongoing eligibility.
There are two parts to the decline in turnover requirement:
The ATO is responsible for administering the JobKeeper payment and assessing eligibility. The detailed application requirements are unknown for those businesses that anticipate a reduction in turnover but cannot yet demonstrate that against a comparable 2019 period. The Commissioner of Taxation does have discretion to consider alternative tests. More information will be available in the coming days as ATO systems are finalised.
Below we have provided some helpful resources for you to consider. We strongly encourage you to contact our office for assistance or further information. We are available to assist with determining your eligibility and considering a strategy for your business.
Please contact our office on 8291 2111 with any queries or requests for assistance.
Controversial South Australian land tax changes were approved and passed by SA Parliament on 28th November 2019. The new bill won the support of both houses after further concessions ensured the backing of the Greens in the upper house.
The reform package delivers $189 million in tax cuts to investors over three years, including tax relief for thousands of smaller family investors. It also slashes the top land tax rate from 3.7 per cent, the highest in the nation to 2.4 per cent. The Government hopes that this will deliver a more competitive, investment-attracting environment for the State, and would drive significant jobs and economic growth.
The government first unveiled the land tax reforms in the June state budget but the initial proposals were heavily criticised by business groups and investors. Since then it has revamped the legislation several times. In the most recent changes, it agreed to include a $25 million transition fund to help small investors who might be hit by the tax changes. The Government has kept one of the most controversial features, effectively closing a loophole which allowed some large investors with multiple holdings to avoid paying any land tax. The aggregation provisions stop people using complex ownership structures in order to reduce or eliminate their tax bill.
If you have any queries about Land Tax, please talk to your advisor today.
360Private is partnering with Ray White Marion and Brighton to present a Property Investment Seminar on Wednesday 28 August.
We invite you to attend and listen to a range of industry professionals who will present the most up to date information on assisting landlords and investors manage their portfolio and also gaining insight into how you can enter the market.
Please see the attached flyer with details of this complimentary seminar and ask you to book your ticket now through EventBrite via the link below, or contact Mel Charters for any assistance or queries you may have on 8291 2111.
Single Touch Payroll (STP) is an electronic method for employers to provide payroll information to the Australian Tax Office at the same time you pay your employees. This information will include details of salaries, wages, tax withholding and superannuation information. With the STP go-live date looming, the ATO and the Government have been busy releasing information on the practical application of STP in practice.
Below is a summary of some of the key announcements made that may affect you if you are a business that has employees.
If you would like to discuss the impact of STP to your business, please contact your 360Private advisor today.
Is a Will a must have or just something your advisors keep telling you that you need?
Let’s take a closer look.
When you pass away you will either have a Will, or not have a Will. If you have a Will then your Estate (a combination of your personal items, bank accounts, property, investments, superannuation, etc.) will be administered according to the terms of your Will and pass to the people you have nominated as beneficiaries. If you pass away without a Will it is said that you have died ‘intestate’ and your Estate will instead be distributed in accordance with the laws of intestacy.
Each Australian jurisdiction has legislation that prescribes how a person’s Estate must be distributed if they pass away intestate. This legislation varies significantly between jurisdictions.
In South Australia the laws of intestacy provide that:
The benefits of having a valid Will are:
People often say they do not need a Will because they do not have any assets. Even if this is the case now, a lot can change by the time you pass away. Assets such as life insurance and superannuation benefits may form part of your Estate and can be more significant that you think.
If you have a spouse and/or children then passing away without a Will leaves them in a tough spot. They will likely incur significant legal costs, not to mention emotional hardship, in proving their relationship and/or paternity to the court. This sometimes creates disputes with your parents and/or siblings.
If you do not want the intestacy laws to apply to you, do not want additional costs to your Estate and wish to provide guidance and support to your next of kin then a Will is a must have!
Please contact Mark Lumley at 360Private Legal for personal and professional legal advice.
Entering a retirement village is a major financial and lifestyle decision. It is prudent to include your family in the decision to move in to a retirement village.
Retirement villages for the most part offer a fulfilling, communal lifestyle but you need to be aware of some of the key features of the retirement village model, these being;
The financial contribution required to enter a retirement village comprises three categories of fees;
Your solicitor or financial adviser will be able to discuss these fees with you and give you a general idea of how much of your ingoing contribution will be returned to you or your estate once you leave the village. It should be noted that the amount that gets deducted will vary according to the length of your tenure – the longer you stay, the greater the deductions.
The contract and ancillary documents provided to a prospective resident are lengthy and comprehensive and can be quite overwhelming. In South Australia the contract must state in clear terms that it is recommended that you obtain legal and financial advice before entering the contract.
While it is not compulsory it is recommended that a prospective resident obtain independent legal advice before signing the contract. In addition to the financial considerations there are other matters that need to be considered such as;
It pays to know where you stand before you sign on the dotted line!
If you are considering moving in to a retirement village please contact Mark Lumley at 360Private Legal for personal and professional legal advice.
As you may be aware Single Touch Payroll (STP) is expected to become a requirement for all employers, regardless of employee headcount, from 1 July 2019.
Employers with more than 20 employees have been required to comply with STP since 1 July 2018, and generally do so using electronic payroll software specifically designed to handle the reporting requirements.
What is Single Touch Payroll?
Single Touch Payroll (STP) is an electronic method for employers to provide payroll information to the Australian Tax Office at the same time you pay your employees. This information will include details of salaries, wages, tax withholding and superannuation information.
STP provides businesses with opportunities for efficiency, particularly around the end of the financial year. Organisations reporting via STP will no longer be required to complete employee payment summaries, as payroll and super information will already be available to employees through the MyGov system.
Australian Taxation Office Compliance
The ATO will initially take a soft-touch approach to STP compliance for smaller businesses, and have communicated that they will not force businesses to utilise a payroll or bookkeeping software. The intention is to support small businesses by assisting them to meet the requirements.
Although yet to be confirmed, micro-employers (1-4 employees) are expected to benefit from additional reporting options not available to larger employers, such as quarterly reporting via their registered tax or BAS agent initially rather than reporting each pay cycle.
Check your Software
If you have employees in your business, your existing payroll software may need to be upgraded for STP reporting – you will need to confirm these details with your current software provider or accountant.
Our team of Advisors are able to answer any queries that you may have around the introduction of STP, and have a great deal of experience in assisting with software transitions or upgrades.
Please contact us on 8291 2111 if you would like further information regarding STP, advice on your specific obligations and requirements, or assistance with selecting and moving to appropriate software packages.
You automatically insure your car and house, and more than likely you have medical insurance too, but what about those things that are most important to you? What could be more important that your family, your income and your life?
With any luck you will enjoy life without ever having to make a claim, but if something should befall you, insurance makes a world of difference to you and your family, relieving financial pressure at an already difficult and stressful time and ensuring you maintain your independence.
During 2018, 360Private have secured benefits for our Clients of over $630,000 – you and your family’s lifestyle is something you have worked hard to achieve, so protecting it is essential.
Whether you are looking to buy a new home, start a family, or nearing retirement our Risk Advice team can assist with a private assessment of your needs. Please contact us today.
Payroll Tax Reduction 1 January 2019
Please note that legislative amendments which reduce payroll tax for small businesses will come into effect from 1 January 2019, with businesses with an annual taxable wage of up to $1.5 million no longer liable for payroll tax. Those with taxable wages between $1.5m and $1.7m will benefit from a reduced payroll tax rate. As these changes come into effect mid-financial year, the 2018-19 financial year will be split into two return periods:
Period 1: 1 July 2018 to 31 December 2018
Period 2: 1 January 2019 to 30 June 2019
There is no change. You will continue to lodge your monthly and annual reconciliations returns using your current deduction entitlement (up to $600,000 p.a.).
Please call your Advisor today if you have any further queries.
Important: Clients should not act solely on the basis of the material contained above. Items herein are general comments only and do not constitute or convey advice per se. Changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. This is issued as a helpful guide to clients and for private information. If you need any clarification or direct advice please call us and make an appointment with an Adviser.
Whether it be a query about superannuation, investments, insurance, mortgage or any other financial based questions, get 360Private to check on your financial health.
The team from 360Private have been providing auditing and financial services to our Group of Companies for over 20 years.
We have remained a client over the duration as there has always been a very experienced team of diligent and reliable specialists available, uniquely qualified to support us in our engagement.Read more ...