Important August Updates
Important updates for individuals and businesses
This newsletter includes a range of information, including:
Top 10 COVID-19 Frequently Asked Questions from Business Owners
Tax Consequences of Cryptocurrency
Record Keeping Tips for your next Tax Return
What to Avoid Doing When Making a Car-related Tax Deduction on your Return
New Reporting Regime for Share Economy to be Introduced
Dine & Discover Vouchers
Our Bookkeeping Services
Superannuation Services
JobSaver Changes
Business.gov.au's Top 10 COVID-19 Frequently Asked Questions From Business Owners
Here are the answers to the top questions asked of Business.gov.au in regards to COVID-19
Is there support for businesses in NSW?
Is there support for businesses in VIC?
Is there support for businesses in ACT?
Is there support for businesses in SA?
Is there support for businesses in QLD?
Where can I find out about business restrictions?
Are there any programs or financial assistance available for businesses?
As employer, can I make an employee get the COVID-19 vaccination?
Is there mental health support for myself and my employees?
What is the COVID-19 Disaster Payment?
Tax Consequences Of Cryptocurrency
Crypto may seem like just another form of money, however to the Australian Taxation Office (ATO) it certainly isn't. From their point of view, cryptocurrency is just another type of asset that people invest in, just like when they invest in shares. The tax treatment is fundamentally the same.
It is vital to declare your cryptocurrency to the ATO office during the tax period. as ATO receives the trading data from all crypto trading houses (including overseas trading houses). You won't be able to get away without declaring any trading profit from any crypto that you own.
If you are unsure as to how to treat your crypto gains and losses, please come and have a chat with us!
Record-Keeping Tips For Your Next Tax Return
Did you know that lost receipts are costing 25 per cent of Australian small businesses up to $10,000 a year when it’s tax time, with 8 per cent reporting a loss of up to $100,000 from lost receipts? It’s an outcome from a study released by NAB and Australian fintech firm Slyp, which you can learn from to prepare you or your business for your next tax return and avoid being a part of next year’s statistics.
It might not seem like much, but making sure that you have all of your records ready for us to do your tax return (be it as an individual or as a business) makes our job a lot easier. It can also benefit you, as we will be able to find exactly what we need to help you get appropriate deductions, claim expenses and generally fulfil your tax obligations. Here are a few efficient ways to employ record-keeping to prevent lost receipts, come tax return time:
The tried and true “shoebox method” of paper receipt collection
Ask for digital receipts (if possible) and store them in a folder on your computer as well as a hard copy
Ensure that evidence of Income Protection Insurance, investment expenses, rental property expenses and the cost of maintaining tax affairs is kept in a secure location for tax time
Create documented evidence of work-related expenses (such as travel, motor vehicle expenses, etc) in a logbook or diary to assist in the long-term tracking of your taxable deductions.
Some deductions and claims may require more specific information from you for proof, which we can determine if we have access to your receipts and records. Keeping copies of your receipts across multiple platforms (such as online, offline and hard copy) will ensure that there is always evidence to support your claims, even if something were to happen to one of the copies. You can also speak with us regarding your specific tax obligations and tax return, and we can provide you with more information about what might be required from you in terms of record-keeping.
What To Avoid Doing When Making A Car-Related Tax Deduction On Your Return.
Claiming car-related expenses as tax deductions might seem like the easiest way to get a larger return- but it's also one of the most carefully monitored.
Here are a few tips on what you need to watch out for when claiming car-related deductions:
Claiming The Cost Of Your Commute
There are specific rules around travel to and from work when it comes to tax deductions and your work commute expenses for travel are not covered as a tax deduction. Public transport and travelling by car are not claimable as a tax deduction.
Claiming Expenses That Can’t Be Backed Up
One of the most common mistakes that car owners can make is claiming car costs using the ATO’s cents-per-kilometre method without the receipts and paperwork to back this up. Keeping accurate and tax-compliant vehicle logbooks is essential. Businesses and employees must be able to prove their vehicle-related claims to the ATO if asked. The impacts of COVID-19 may have adjusted the driving patterns of individuals, which should be reflected in the logbook.
Overlooking Depreciation
Depreciation is an accounting method of allocating the cost of a tangible or physical asset over its useful life or life expectancy. If you rented your car out on a share economy platform, or used it for work, rather than try to work out the depreciation of the asset yourself, speaking with someone like us can avoid any complications.
New Reporting Regime For Share Economy To Be Introduced
Share economy platforms, like Uber, Airbnb and Menulog will be required to report information of all transactions to the ATO under a new reporting regime to be introduced next year.
The share economy, or “gig economy” as it is also known, has become somewhat of a lucrative sideline for many who may be looking for a short or long-term solution to additional income. Share economy platforms that relate to ride-sourcing or short-term accommodation services will be the first to adhere to the reporting regime and will be required to report these transactions from 1 July 2022. All other share economy transactions will fall under the new reporting regime from 1 July 2023.
If you are a share economy worker or use the gig economy to supplement your income, the to-be-introduced reporting regime will make it far easier for you to ensure that you are meeting your tax obligations, and reporting all of your income.
Dine & Discover Vouchers
Dine and Discover NSW has been extended!
Dine & Discover NSW Vouchers are now able to be used until 30 June 2022.
Our Bookkeeping Services
Ever wondered what services we provide for Bookkeeping? Please see our list of services available with the team here at Bush & Campbell.
Setting up clients in accounting and payroll software (eg. most commonly Xero, MYOB, Payroller but not limited to these software providers).
Converting clients to new accounting software from previous software – including importing chart of accounts, customers, suppliers, historical transactions/data, bank statements, etc).
Training clients and their staff in their accounting software, whether new software or in their existing software. This can be customised to their needs/requirements for their business.
We are on hand for troubleshooting, adhoc queries as required.
Recording and maintaining business transactions – including bank feed allocations, bank reconciliations, payroll processing, super, supplier and customer invoice processing and payments, monthly IAS, BAS preparation, STP filing and finalisation.
Review & streamline current processes.
Research ad-on apps for XERO & MYOB for specific client needs.
General administrative services.
Assistance with Apprenticeship subsidy claims.
On occasions we have assisted clients with debt collection just to help them get it under control when they haven’t had capacity in their business at a particular time.
Superannuation changes
From November 2021, new employees will be stapled to their existing super funds:
If you hire a new employee, but they don’t nominate a super fund, you must now pay super contributions to their existing stapled fund.
You can find out which fund your employee is stapled to via the ATO website.
Your employees can still nominate their preferred super account using a Choice of fund form.
You still need to offer a default super fund, in case your new employee doesn’t yet have a super account.
Offering a quality default super fund that is aligned to your business can also help other employees looking to join a fund that suits their occupation and needs.
JobSaver changes
If you’re a business, sole trader or not-for-profit organisation in NSW and you've been impacted by the recent COVID-19 restrictions, you may be eligible for the 2021 COVID-19 JobSaver payment.
JobSaver will provide cash flow support to impacted businesses in Greater Sydney and regional NSW to help maintain their NSW employee headcount.
You'll need to nominate the 2-week period in which your business first experienced the required decline in turnover on or after the start of the JobSaver scheme on 18 July 2021. Once approved, payments will be made in arrears and will begin from that nominated fortnight.
The payment will be equivalent to 40% of the weekly payroll for work performed in NSW:
minimum payment will be $1,500 per week
maximum payment will be $100,000 per week.
