Is your contractor an Employee!
From today there are changes to the way you determine if a contractor is an employee.
The new test: Whole of Relationship Test:
Constitutionally covered businesses use the whole of relationship test to determine if a worker is a contractor or an employee starting from 26 August 2024.
Why is my tax refund so small?
The low and middle income earners offset delivered up to $1,080 from 2018-19 to 2020-21, and up to $1,500 in 2021-22 for those earning up to $126,000, is gone. This was a significant boost for many people each tax time and bolstered the tax returns of millions of Australians. For many, the end of this offset has meant that their tax refund has reduced dramatically compared to previous years.
Important: 1 July 2023 wage increases
For employers, incorrectly calculating wages is not portrayed as a mistake, it’s “wage theft.” Beyond the reputational issues of getting it wrong, the Fair Work Commission backs it up with fines of $9,390 per breach for a corporation. In 2021-22 alone, the Fair Work Ombudsman recovered $532 million in unpaid wages recovered for over 384,000 workers.
The 120% technology and skills ‘boost’ deduction
The 120% skills and training, and technology costs deduction for small and medium business have passed Parliament. We’ll show you how to take maximise your deductions.
Almost a year after the 2022-23 Federal Budget announcement, the 120% tax deduction for expenditure by small and medium businesses (SME) on technology, or skills and training for their staff, is finally law.
A Broken Promise for Broken Super
OK, lets start by getting one thing clear. Saying things like “We’ve said we have no intention of making any super changes” during an election campaign, and then making changes less than 12 months later, is clearly a broken election promise.
ATO announces changes to working from home deductions
Work from home deductions changing for the 2022/23 financial year. The fixed rate amount is increasing and some of the record keeping rules are easier to comply with.
Paid - Family and Domestic Violence Leave, New Rules
Employees of non-small business employers can now access 10 days of paid family and domestic violence leave in a 12-month period.
Employees of small businesses can access the leave from 1 August 2023.
Employees have had an entitlement to unpaid family and domestic violence leave (FDVL) for some time as part of the National Employment Standards (NES). But as of 1st February this is a paid leave entitlement for employees of larger employers and 1 August 2023 for employees of small employers (fewer than 15 employees).
January PAYG withholding statement (IAS) is due on the 21st
January activity statement due on the 21st, don’t forget to lodge yours.
Am I taxed on an insurance payout?
Australia has had its fair share of disasters over the last few years – drought, bushfires and floods – that have ramped up the volume of insurance claims. Most people would assume that if and when they need to claim on their insurance, the insurance payout covers the damage and is not income assessed for tax purposes - but this is not always the case.
Do you have your Directors ID yet!
In October 2021 the Government introduced a new identification system for company directors, a Directors ID. A number of transitional measures were put in place to make it easier for existing directors to comply with the new regime. The last of those transitional measure is fast approaching on 30 November 2022. If you are a director and have not applied for your Directors ID by 30 November 2022 you could face stiff penalties.
How to sell your business
We’re often asked the best way to sell a business.
There are two key components at play in the sale of a business: structuring the transaction; and positioning the business to the market. Both elements are important and can significantly impact your result.
ATO Debt Recovery and Director Penalty Notices
The ATO has increased its activity around recovering unpaid business debts. During the pandemic, it paused debt recovery, but has now resumed its pursuit of debts.
FBT 2022 - Tips and what to look out for
Fringe Benefits Tax (FBT) is one of the focus areas for the Australian Taxation Office. It is important for business owners to understand when FBT may apply, and what benefits they can provide employees that do not attract FBT. For most small and medium employers, it is best to avoid non-exempt benefits as record keeping when it comes to FBT can be quite onerous.
2022–23 Federal Budget
The Federal Treasurer, Mr Josh Frydenberg, handed down the 2022–23 Federal Budget at 7:30 pm (AEDT) on 29 March 2022.
In an economy emerging from the pandemic, the Treasurer has confirmed an unemployment rate of 4% and an expected budget deficit of $78 billion for 2022–23.