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J N Hartcher
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2021 Federal Budget
11 May, 2021 View




Single Touch Payroll
Closely held payees i.e. Family Companies with Directors as the only payees, will have reporting options.

9/2/2021 - The ATO has confirmed that STP reporting for closely held payees will commence from 1 July, after it had granted these employers a one-year exemption in the midst of the pandemic last year.

Guidance released by the ATO on Monday has revealed that small employers can report payments to closely held payees through STP in three ways: reporting actual payments in real time, reporting actual payments quarterly or reporting a reasonable estimate quarterly.

The first option, reporting actual payments in real time, is in line with how employers would report information on their arm’s length employees through STP on or before each pay day.

The option to report actual payments on a quarterly basis will be due on or before the due date for quarterly business activity statements (BAS).

The final option to report a reasonable estimate quarterly will allow employers to report quarterly amounts that are equal to or greater than 25 percent of the payee’s total gross payments and tax withheld from the previous finalised payment summary annual report (PSAR).

‘A game changer’

The Tax Institute’s senior advocate, Robyn Jacobson, said that while the option was welcomed, tax practitioners would need to carefully consider the implications for clients who commonly determine salaries, wages or directors’ fees after the end of the financial year.

“For those who have for many years ascertained salaries, wages or directors’ fees to closely held payees post-year-end and either amended their BAS or just dealt with the tax obligations upon lodgement of the individual tax return, this is a game changer,” Ms Jacobson told Accountants Daily.

“The ATO will not impose any failure to withhold penalties as long as you have complied with this reasonable quarterly estimate.

“There would, however, be general interest charge, and if you have not met your SG obligations, which in this case would be 28 July, then there would be SGC liabilities.

“What this does is allow a concessional approach to reporting the information through STP, and as far as PAYG withholding is concerned, you have got the ability to adjust post-year-end subject to the imposition of GIC.”

While a finalisation declaration for arm’s length employees is required by 14 July each year, the ATO will allow employers with closely held payees up to the due date of the payee’s income tax return to make a finalisation declaration.

The ATO also notes that STP reports will need to be lodged through an STP-enabled solution, and cannot be lodged through the ATO portals or through a BAS.

Reference: Accountants Daily



TAX 2020
Overview of Tax changes for 2020 view



Residential Rental Property Travel
Travel to inspect, maintain or collect rents for residential rental properties is no longer deductible.more



Other Tax Time Considerations
❁ Superannuation
❁ Rental Property
❁ Depreciation
❁ Travel and Meal Allowances
❁ Record keeping for Home Office and other minor expenses
❁ Motor Vehicle Record keeping
❁ HELP, HECS & other Loan Schemes
more



Instant Asset Write-Off
New or Second hand Plant and Equipment purchased prior to June 30th will qualify for the Small Business Instant Asset Write-Off. Acquisitions must be below the threshhold at the time of purchase which was $30,000 until 12th March and increased to $150,000 from that day until 31st December, 2020 for new or 2nd hand acquisitions. From 6 October 2020 till 30th June, 2022 temporary business expensing allows a deduction for the cost of the business portion of eligible business assets. more



Profile
JH   I commenced my Accounting Profession with a prominent firm in the Newcastle CBD and remained there from 1971-1985.
Eventually I moved on and opened my own Practice in downtown Raymond Terrace where I remained from 1986-1999.
In 2000 I relocated the Practice to a Home Office where my focus is now Small Business Accounting/Consulting and Taxation Services.
And there but for the grace of God, I still remain.

I have been using my own accounting software The WorkBench Delphi since the mid 1980's and it is now used by many of my clients. The package was purposely written with simplicity of use in mind and users rarely require assistance. Remote assistance is available for those who may.



Resident Tax Rates 2020-21
Taxable income Tax on this income
0 - $18,200 Nil
$18,201 - $45,000 19c for each $1 over $18,200
$45,001 - $120,000 $5,092 plus 32.5c for each $1 over $45k
$120,001 - $180,000 $29,467 plus 37c for each $1 over $120k
$180,001 and over $51,687 plus 45c for each $1 over $180k

These rates do not include the Medicare levy of 2%

HELP loan repayment rates: View


Tax