360Private

Fri03May2019

'Go Live' Single Touch Pay Date Looming

NEW STP Go Live resized for Block

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.

  • The ATO will offer micro employers (one to four employees) help to transition to STP and a number of alternative options — such as allowing those who rely on a registered tax or BAS agent to report quarterly for the first two years, rather than each time payroll is run.
  • Small employers can start reporting any time from 1 July to 30 September 2019. The ATO may grant deferrals on an application basis.
  • There will be no penalties for mistakes, missed or late reports for the first year.
  • The ATO will provide exemptions from STP reporting for employers experiencing hardship, or in areas with intermittent or no Internet connection.
  • Employers who do not have an Australian Business Number (ABN) but instead have a Withholding Payer Number (WPN) are exempt from reporting under STP for the 2018/19 and 2019/20 financial years.
  • Insolvency practitioners are exempt from mandatory reporting through STP for the 2018/19 financial year in respect of the entities they administer.
  • STP reports lodged by employers will be shared with social security agencies from 1 July 2020.

If you would like to discuss the impact of STP to your business, please contact your 360Private advisor today.

Recent posts

  • Economic Relief for Business

    Written by 360Private

    Published: 16 April 2020

    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: Continuing to pay your employees the minimum $1,500 pre-tax per fortnight; and Considering whether you believe you will suffer the threshold decline in turnover against a comparable period in 2019. 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: Determining the percentage decline threshold that applies to you (30% for businesses with aggregated turnover less than $1 billion, 15% for eligible ACNC registered charities and 50% for businesses with turnover exceeding $1 billion); and Determining if you will suffer that percentage decline. 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. Resources: Enrol for the JobKeeper payment (from 20 April onwards) Explanatory Statement - JobKeeper Payment JobKeeper Payment - Frequently Asked Questions $10,000 Emergency Cash Grants for Small Business (South Australian measure) Code of Conduct - Commercial Leasing Principles during COVID-19 Please contact our office on 8291 2111 with any queries or requests for assistance. 
  • Important Land Tax Changes

    Written by 360Private

    Published: 12 March 2020

    As you may be aware there are significant changes being implemented with respect to Income Protection insurance.  From 31 March 2020, under instruction from the Australian Prudential Regulation Authority (APRA), insurance companies will no longer be able to offer Agreed Value Income Protection policies and will only issue Indemnity policies. What are Agreed Value and Indemnity Income Protection Policies ? An Agreed Value policy ensures that the sum insured is guaranteed to be paid at claim time, regardless of any reduction of income since policy commencement. When the cover is put in place, the insurer assesses your income to determine the benefit due payable at claim and this provides certainty to you regarding the benefit you may receive. An Indemnity policy requires you to provide proof of earnings at the time of claim. This involves more administration at claim time and importantly, if your income has reduced since putting in place your cover, the benefit you receive may be reduced below your insured amount. Therefore, there is a risk that you may pay premiums for an insurance benefit amount that is reduced at claim time. Our Advisors at 360Private have commonly recommended Agreed Value policies where possible for our clients to provide enhanced cover and certainty. If you are a holder of an Income Protection policy, you will need to consider taking the following course of action: If you already have an Agreed Value policy you will not lose this benefit. However, if you have had an increase in your income and your Income Protection policy does not reflect this – please contact us now! We can assist with updating your cover details to ensure you continue to benefit from this superior policy type. If you have an Indemnity Value policy, now is the time to contact us for a review to alter to an Agreed Value policy whilst it is still possible to obtain this type of policy. If you do not have any Income Protection cover, but would like to find out the benefits, you should contact our office as soon as possible to ensure we have the ability to source the superior policy type prior to it being disallowed. We are available to discuss any questions you may have about these changes, your existing cover or any new cover requirements. Please contact your Advisor, or our Risk Advice team today.
  • Land Tax Changes Passed

    Written by 360Private

    Published: 12 December 2019

    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.
  • Property Investment Seminar

    Written by 360Private

    Published: 26 August 2019

      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. https://www.eventbrite.com.au/e/property-investment-seminar-tickets-63616002175
  • Why should I have a Will?

    Written by 360Private

    Published: 19 March 2019

      Why Should I have a Will? 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. 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: If you have a spouse (this includes wedded spouses as well as domestic partners) and no children then your Estate will pass to your spouse. Sometimes it can be quite complicated for the surviving partner to prove the existence of the domestic relationship, especially in the case of blended families. Ex-spouses are also entitled to benefit in some circumstances, in which case your Estate may be split between spouses! If you have a spouse and children, then your spouse will receive your personal items and the first one hundred thousand dollars ($100,000.00). The remaining assets will be split with half going to your spouse and the other half to your children. This can cause a lot of anguish and even financial hardship for your spouse if, for example, he/she only receives half of the house. The other half of the house will be held by the Public Trustee on behalf of any minor children until they reach the age of eighteen. This means that your spouse may be unable to sell the property without the consent of the Public Trustee.  If you do not have a spouse or children then your parents will receive the full benefit of your Estate. If you do not have any parents living then your siblings and then nieces and nephews will benefit.  A Valid Will  The benefits of having a valid Will are: You are able to ensure that the people you wish to benefit from your Estate do benefit. You are able to gift specific items or cash amounts to different people. You are able to choose who will make arrangements for your Estate after you have passed away and to administer your Estate (this person is called the Executor).  You are able to ensure that your beneficiaries receive their inheritance at an age you think will be appropriate. You may wish to ensure they do not have access to a large sum of money until they are older and more mature.  You may direct that your assets are to be held in a Testamentary Trust for the benefit of one or more beneficiaries and their lineal descendants. Testamentary Trusts are tax effective and give additional protection to your inheritance from your beneficiaries’ spouses, bankruptcy and/or spendthrift habits!  Your Estate will likely incur fewer costs and will be administered more quickly. 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.

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Client testimonials

As relevant today as they were 20 years ago

SPORTSMED SA has been proudly associated with the team from 360Private for over 20 years. Both SPORTSMED SA and 360Private have grown considerably over this time and the challenges have been many and varied. The range of services provided by 360Private are as relevant to our business today as they were 20 years ago and are supported by strong client/advisor relationships and leadership.

- Alan Morrison, CEO Orthopaedics & Hospitals, SPORTSMED SA

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