While many people invest in rental properties, a common oversight that’s made is not including a depreciation deduction for capital items. This could mean that you’re missing out on significant tax deductions.
Single Touch Payroll (STP) is coming
For employers with more than 20 employees, Single Touch Payroll (STP) is starting on 1 July 2018. For all other employers, the change will happen on 1 July 2019.
STP will mean that every time an employee is paid, information will be sent from your accounting software (MYOB/Xero/QuickBooks Online etc) to the ATO. As a result of STP, businesses will no longer be required to complete payment summaries at the end of the financial year as it will have already been done and available to employees through myGov. You will report your employees’ payroll information (including salaries, wages, PAYG withholding and super information) directly to the ATO from your accounting solution. This will provide real time information to the ATO and other government agencies (Centrelink) about payments being received by employees.
What are the next steps?:
Step 1: Do a headcount of the employees you have on 1 April 2018 – if more than 20, you will need to start reporting through STP on 1 July 2018.
Step 2: Update your payroll solution when it’s ready – the major software providers are all working to be complaint by the start date.
Step 3: Start reporting through Single Touch Payroll
If the change doesn’t affect you until 1 July 2019, it’s a good idea to start looking at your payroll processes in the coming year to ensure that you’re compliant and ready to report under the new reporting rules.
For more information or if you need help implementing Single Touch Payroll contact Marko on 0402 412 592.
UPDATE: $20,000 instant asset write-off extended to 30 June 2019
The instant write-off deduction for assets costing less than $20,000 has been extended to 30 June 2019.
Your business is eligible to use simplified depreciation rules and claim the immediate deduction for the business portion of each asset (new or second hand) costing less than $20,000 if:
you have a turnover less than $10 million, and
the asset was first used or installed ready for use in the income year you are claiming it in.
Any assets costing more than $20,000 will be depreciated using the small business General Pool diminishing value depreciation rates of 15% in the first year and 30% for future years.
Your HELP debt and moving overseas
$20,000 instant asset write-off is scheduled to end on 30 June 2018
Airbnb – What are the tax implications?
There's a lot of people looking to make some extra cash by renting out a spare room in their house through Airbnb or other accommodation sites. The sharing economy is transforming the market and making it easier for people to get involved, but have you considered the tax consequences that might arise by becoming an Airbnb host?
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