01/07/2022
Changes to super guarantee
There’s some changes happening from 1 July 2022.
– The rate of super guarantee is increasing from 10% to 10.5%
– The $450pm eligibility threshold for when super guarantee is paid is being removed
What does this mean for you business?
– You’ll need to make super guarantee payments at the new rate of 10.5%
– Employees may be eligible for super guarantee regardless of how much they earn. This may mean that you pay super guarantee to some employees for the first time
What do you need to do?
– From 1 July 2022, you’ll need to make sure your software is updated to account for this change
– If this change means you’ll be paying super guarantee payments for the first time to an employee, make sure you have them fill out the Standard Choice Form
– If your employee does not fill out the form, review Stapled Super Fund to see what steps you need to take. (A stapled super fund is an existing super account linked to an individual employee)
17/02/2022
Tax planning
We know that many of our clients businesses are starting to return to ‘somewhat normal’ which generally means more profit and more tax payable. We will be starting our annual tax planning around April this year and if you believe your business will benefit for early planning prior to year end, we encourage you to get in early and lock in a time with Michael Jensen by calling our office on 03 9421 6026 or emailing [email protected].
Once the tax year has finished, there are only a limited number of ways that we can help you reduce your tax and freeing up more money to help grow your business.
If you are planning to sell either your business, your investment property and/or any other capital assets, careful planning can also help you reduce the tax you would have to pay. There may be certain tax concession you would be able to access to reduce the taxable amount or even make the gain tax free if the planning is done correctly – this can have a huge impact on your financial situation.
How do we go about the tax planning for your business?
Step 1
You will need to get your books up to date so that we have the latest figures to work with. Once this is done, we can project the revenue and expenses for the remaining year to arrive at the estimated net profit for the financial year.
Step 2
We will calculate the tax adjustments for the year to arrive at the projected taxable income and the tax payable, less any tax instalments already paid.
Step 3
This is where all the magic happens. We will work out the best way to minimise the tax using our knowledge of your business, your personal situation, the latest tax legislations and with 22 years of experience providing specialist tax advice, we assure every possibility is taken into account for you and your business. The advice is delivered through a pre booked meeting either via an online meeting or in person at our Richmond office.
Planning goes a long way, don’t underestimate it… Recently we helped one of our clients reduce the tax payable of the sale of his business to NIL through careful planning prior, that allowed him to access several tax concessions. Needless to say, the client was extremely happy for the advice he received and has bought forward an extended holiday that was planned a few years from now.
21/12/2021
Audit Shield
With government revenue authorities increasingly using data matching, artificial intelligence and even social media, they are able to compare disclosures made in your lodged tax returns to those of other taxpayers or benchmarks. If a data matching check escalates to an official inquiry, investigation, review or audit, our costs in defending your position can accumulate quickly, regardless of whether any adjustments are made to your returns or not. Our Audit Shield service covers those costs (up to predetermined limits).
Audit Shield is not just for business owners and SMSFs. The Australian Taxation Office has also identified individual taxpayers who have rental properties and those with excessive work related deductions for special scrutiny.
Benefits of our Audit Shield service:
– JobKeeper payment: Audits and reviews of payments are covered (n.b. post any payments being made by the ATO only).
– Retrospective protection: Previously lodged returns are covered automatically.
– Specialist fees: Fees of any other external specialist (e.g. taxation lawyers) or relevant consultant engaged or instructed by us to assist us in a response to audit activity are also covered.
– You have a choice: The offering is optional, so there is no compulsion to participate.
Important information about our Audit Shield service:
– We hold a tax audit insurance policy in our business name. By proceeding with our Audit Shield service, we will include you and your entities in our policy.
– The policy we hold is a group policy underwritten by AAI Limited (trading as Vero Insurance), a subsidiary of Suncorp Group Limited.
– Payment is tax deductible. In addition, included in your payment is a fee payable to us. This is simply used as recovery of our administrative costs for managing this service.
– You can benefit from the service on the proviso that we are acting as your registered tax agent.
– Participation in this service is not automatic. Protection will commence on the next business day after we have received your payment, and expires on 31 October 2022.
If you have any queries regarding this or would like to go ahead with this offer, please get in touch with our office. Thank you.
01/12/2021
Office opening hours
We wish all our clients the very best for the festive season Please note our office will be closed from 5pm Thursday 23 December 2021, reopening on Monday 10 January 2022.
Thank you,
MJAA.
10/11/2021
New director ID requirement – steps involved
For a detailed step by step approach please visit:
Step 1 – Set up myGovID
myGovID is different from myGov
myGovID is an app
You download the myGovID app to your smart device. It lets you prove who you are and log in to a range of government online services, including myGov.
Step 2 – Gather your documents
Your tax file number (TFN)
your residential address as held by the ATO
information from two documents to verify your identity.
Examples of the documents you can use to verify your identity include:
- bank account details
- an ATO notice of assessment
- super account details
- a dividend statement
- a Centrelink payment summary
Step 3 – Complete your application
Once you have a myGovID with a Standard or Strong identity strength, and information to verify your identity, you can log in and apply for your director ID. The application process should take less than 5 minutes.
How to apply if you cannot get a myGovID
You can phone the ATO between 8.00am and 6.00pm Monday to Friday on 13 62 50 to apply over the phone or follow the link below to apply via paper.
10/11/2021
Grants
As you may be aware, Business Victoria has provided various grants over the last 12 months ranging in levels of assistance for Victorian businesses and sole traders. Most of these Grants will be winding up as we move out of lock down and anticipate further easing of restrictions. Please see the below link for the roadmap out of lock down and support available.https://business.vic.gov.au/news-and-updates/2021/supporting-victorian-businesses-through-to-reopening