Happy New Financial Year!!
Download our 2020/2021 financial year calendar to help remind you of key accounting and tax dates.
This year, we have two versions – our usual DL version in jpg picture format, which you can use this as a screen wallpaper, and an easy to print A4 pdf version.
As a small business owner, we all know how time consuming it is to manage the invoices, receipts and other documentation for our business. Now, there is a new app that can change your life and allow you to take back some valuable time.
Introducing Hubdoc, an app that auto-fetches key financial docs and seamlessly syncs them with your accounting system. With Hubdoc, you can say goodbye to chasing documents and data entry and say hello to increased productivity and automation.
Check out this 2 min video on Hubdoc to find out more.
If you want further information on how Hubdoc or any other cloud accounting system can help save you time, please email admin@gockcpa.com.au
For a limited time, we are offering a FREE 1 month trial of Hubdoc. Email admin@gockcpa.com.au for further details.
General advice disclaimer
General advice warning: The advice provided is general advice only as, in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making any decision on the basis of this advice, you should consider how appropriate the advice is to your particular needs, and objectives. Information is current at the date of posting and may change.
Take two minutes to read this blog article and we’ll explain:
According to the Australian Taxation Office (ATO) website, there are three things you need to claim a work-related deduction:
The ATO allows you to claim up to $300 for work related expenses without having kept any receipts – but you must have spent the money and it must be related to your employment.
If the expense was for both work and private purposes, you can only claim a deduction for the work-related portion.
If the cost of any item is over $300, it will have to be depreciated (a portion of the cost claimed each year over its effective life).
Many accountants seem to be working for the ATO. Instead of trying to maximise what you claim, they’re often too scared of upsetting the ATO rather than fighting to get you the largest legal tax deductions.
Rather than using an accountant who “works for the ATO” – use an accountant who works in your best interest.
At James Gock & Co – we’ll help you to claim every last dollar you can, and make sure you stay out of jail by not claiming anything you shouldn’t. Our team are aware of everything you can and can’t claim and what you should do this year to give you a bigger tax refund next year.
Our extraordinary accountants are all highly trained specialists at legally reducing your tax – so talk with us today!
Everyone wants to increase their tax refund (or reduce their tax payable). We’re here to help you to do this!
Tax saving strategies generally involve you spending money on “something” which creates for you a tax deduction. The “something” you spend your money on could be an expense, an asset, or an investment related payment (like superannuation or prepaid interest on an investment loan).
However – please don’t fall into a common trap of spending money just to get a tax deduction. You only save tax based on the marginal tax rate proportion on the amount you spend, NOT the full amount you spend.
For example, if you earn say $85,000 a year, your marginal tax rate (including Medicare levy) is 34.5%. This means any extra dollar you earn will be taxed at 34.5%, and any extra dollar you claim as a deduction will save you 34.5%.
So, if you spend $100 on something that you can claim a deduction for, you will get back $34.50 from the ATO. But it will still cost you $65.50. So only spend money on what you NEED, not just to create extra tax deductions for yourself.
It’s our job as your accountants to make the lodgement of your Tax Returns as easy and simple as possible.
We do this every day, so we know all the ins and outs of what to claim to make it easy for you.
If you want to have a look at some of the specific deductions you can claim, here are links to the ATO website (it’s actually pretty good for the ATO):
To make an appointment with us to discuss and prepare your 2017 Tax Return – CLICK HERE or phone 02 9267 1688 now.
General advice disclaimer
General advice warning: The advice provided is general advice only as, in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.]
Another financial year is about to finish! As a business owner, there are many obligations that you need to consider and action just before and after 30 June. Some of these will help to minimise your tax. We have outlined these action points below to assist you.
| Date | Action Required |
| BEFORE
30 June 2017 |
|
| 1 July 2017 |
|
| 14 July 2017 or before |
|
| 28 July 2017 |
(Note: If you fail to meet your requirements by 28 July 2017, you must complete a Superannuation Guarantee Charge Statement and forward it to the ATO together with underpaid superannuation plus administration fees and interest by 14 August 2017. Superannuation Guarantee Charge payments are NOT tax deductible.) |
| 14 August 2017 or before |
|
| 28 August 2017 |
|
Businesses need to take note of many key tax changes that apply from 1 July 2017. These include:
Effective 1 July 2017, the company tax rate for SBE (Small Business Entities) reduces by 1% from 28.5% to 27.5%. To be considered an SBE, your group aggregated turnover must be less than $10 million. This key concession for 2017 applies again in 2018.
From 7:30pm on 12 May 2015, small business entities (SBEs) were able to claim an immediate deduction for depreciating assets costing less than $20,000.
Depreciating assets costing $20,000 or more will be allocated to the SBE’s general small business pool and will depreciate at a rate of 15% in the income year in which the assets are first used or installed ready for use. The assets will then be depreciated as part of that pool at 30% in subsequent income years.
If the balance of the general small business pool is less than $20,000 at the end of the income year, this balance is also written off.
Trustees (or directors of a trustee company) need to consider and decide on the distributions they plan to make by 30 June 2017 at the latest (the trust deed may actually require this to be done earlier). Decisions made by the trustees should be documented in writing by 30 June 2017.
If valid resolutions are not in place by 30 June 2017, the risk is that the taxable income of the trust will be assessed in the hands of a default beneficiary (if the trust deed provides for this) or the trustee (in which case the highest marginal rate of tax would normally apply).
Please contact our office before 30 June 2017 so that we can properly prepare this document for you to sign.
Small Business Entities (operational businesses with an aggregated turnover below $10 million) have access to a range of tax concessions. One of these concessions is the simplified trading stock rules. Under these rules, you can choose not to conduct a stocktake for tax purposes if there is a difference of less than $5,000 between the opening value of your trading stock and a reasonable estimate of the closing value of trading stock at the end of the income year. You will need to record how you determined the value of trading stock on hand.
If you would like to take advantage of the simplified trading stock rules, call us today to make sure you are eligible to use the simplified rules and to discuss how to use them properly.
You need to provide 2017 PAYG Payment Summaries to your employees and other workers by 14 July 2017. These must then be submitted to the ATO by 14 August 2017 or penalties will apply.
If you have any doubt about how to correctly complete your 2017 PAYG Payment Summaries, please contact us for assistance BEFORE you prepare them.
From 1 July 2012, new tax reporting rules apply for businesses in the building and construction industry. Businesses will have to lodge an annual report with the ATO setting out details of payments made to contractors. This will assist the ATO to reduce the “cash economy” by ensuring tax is paid on all income including “cash” payments.
You will need to record the following details of all payments made to contractors for building and construction services:
If you use computerised accounting software, your system should be able to track this information for you and prepare the required Taxable Payments Annual Report.
Ensure that you lodge your Taxable Payments Annual Report with the ATO no later than 28 August 2017.
Payroll tax applies to all entities that have an Australian payroll that exceeds state-based limits.
You should note that in addition to normal salaries and wages, the following items are generally also included in payroll expenses if payroll tax applies:
For more detailed information about whether payroll tax applies to your business, please contact our office.
The Annual Return/Reconciliation for payroll tax must be lodged by 21 July 2017 with your State Revenue Office.
Your WorkCover/WorkSafe insurer sends an annual reconciliation to all registered employers at the end of the financial year.
In completing your annual reconciliation, you will need to include the following items in addition to normal salaries and wages:
For more detailed information about what items to include in the reconciliation statement, please contact our office.
Once the reconciliation is received and processed by your WorkCover/WorkSafe insurer, you will be issued with a final assessment or a refund depending on the instalments you have paid during the year.
Complete and lodge the Annual Reconciliation with your WorkCover/WorkSafe insurer by the due date.
A reconciliation of GST should be performed as at 30 June 2017 to determine if there has been an under or over-payment of GST in the 2017 tax year. If a discrepancy has arisen, then it is possible to adjust a subsequent Business Activity Statement (BAS) to rectify the error, however there are limits imposed on adjustments that can be made in this way.
Income declared on your BAS should be reconciled to income declared on your income tax returns.
Also, please note that you are required by law to substantiate all Input Tax Credit claims with a complying Tax Invoice, and you need to retain these documents for a minimum of 5 years.
Complete the annual GST reconciliations, and check that you have all required tax invoices and other supporting documents.
Please note that the ATO and State Revenue Office are constantly increasing their audit activities. There has been an increase in audit activity for PAYG Withholding, Payroll Tax, WorkCover, GST, Division 7A loan accounts from companies, and Trust distributions from Discretionary Trusts.
We can offer a review of your records and record-keeping procedures if you are concerned about your ability to satisfy an audit.
Please contact our office if you would like to request this service.
Feel free to call our office any time on 02 9267 1688 or email us at admin@gockcpa.com.au – We can’t wait to provide you with better advice now for a beautiful future.
General advice disclaimer
General advice warning: The advice provided is general advice only as, in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.
We are pleased to announce that our new Client Document Portal is up and running. This is a convenient and secure way of communicating with your James Gock & Co accountant. You no longer need to deliver hard copy documents to our office or email files or spreadsheets.
Tax returns and financial statements can also be signed using a secure digital signature. Contact your James Gock & Co Accountant to setup your Client portal login today.
James Gock & Co – Client Document Portal
One of the most effective ways to boost your savings and/or add to your super is to cut costs around the house. Here we outline some effective opportunities for spending less without feeling as if you’re going without.
1 Dress for success
Using an air conditioner or heater in Australia, especially with increasing electricity costs, hits the hip pocket directly. Think of how you might avoid using the air conditioning for a few hours or a few days each week, by dressing differently or better insulating your home. Consumer body Choice says adjusting your air conditioner by a degree cooler in summer and warmer in winter will increase running costs by 10–15%.1
2 Be entertained
Check the entertainment options for which you’re paying. It’s no surprise that a high number of households now have broadband and/or a pay TV subscription. Weigh up the options and determine if you’re getting ‘bang for your buck’ from these services. How much are you spending on TV and movies, and how much do you really use? And are you paying for movies and documentaries when you’re only watching sport channels? Check with your service provider to see what package options are available and customise your subscription accordingly.
3 Shop around
From car insurance to mortgage costs to mobile phone plans, there could be better options that you’re missing out on. Figure out the services that cost you the most then have an honest conversation with the providers about how you might reduce those costs and then shop around. If they want to keep your business they will often find ways for you to save money or get more value out of the amount you’re paying.
4 Lose the landline
With the availability of unlimited mobile phone contracts, increasing options and quality of voice-over-internet protocol (VOIP) systems, you might find that you no longer require the traditional landline telephone. This will not only save money but it will reduce the chances of receiving human and recorded telemarketing calls. If you can do without it, don’t pay for what you don’t need.
5 Waste less, spend less
When shopping, look at your options when buying individual-sized cartons of juice, yoghurt, fruit, baked beans etc. They cost more and create more waste. It’s likely to be more cost-effective to buy in bulk, which will in turn keep money in your pocket.
6 Do you need it now?
When people begin to properly record their household expenses, many are surprised by the fact that they have become so comfortable with the ‘need it now’ mentality. Do
you need to buy the latest technology when last year’s still does the job? How about the newest mountain bike, running shoes, the most up-to-date fashion or a new car? This is a great way to save yourself thousands of dollars a year – by giving yourself permission to be happy with what you’ve got.
7 Budget, budget, budget
The savings tips highlighted above will only have an impact if you effectively map out your inputs vs outputs. Set yourself goals to work towards and implement the above tactics to give yourself the best chance of achieving them, and speak to your financial adviser to hear more cost-saving tips.
1. http://www.choice.com.au/reviews-and-tests/household/heating-and-cooling/home-cooling/ducted-reverse-cycle-air-conditioning-buying-guide/page/how-much-to-buy-and-run.aspx
Important information
Andrew Gock of James Gock & Co (ABN 19 372 236 695) is an Authorised Representative of Count Financial Limited ABN 19 001 974 625, AFSL 227232, (Count) a wholly-owned, non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124.
This document has been prepared by Count Financial Limited ABN 19 001 974 625, AFSL 227232, (Count) a wholly-owned, non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124. ‘Count’ and Count Wealth Accountants® are trading names of Count. Count advisers are authorised representatives of Count. Count is a Professional Partner of the Financial Planning Association of Australia Limited. Information in this document is based on current regulatory requirements and laws, which may be subject to change. While care has been taken in the preparation of this document, no liability is accepted by Count, its related entities, agents and employees for any loss arising from reliance on this document. This document is not advice and provides information only. It does not take account of your individual objectives, financial situation or needs. You should consider talking to a financial adviser before making a financial decision.