Menu
you are here: Home > News and Events
Welcome to Twomey Talk where you can take advantage of the specialist knowledge of our team & learn their thoughts on various issues that may
impact YOU!

SINGLE TOUCH PAYROLL

Single Touch Payroll will be mandatory for employers with 20 or more employees from 1 July 2018.

Employers will be required to report salary or wages, PAYG withholding and superannuation information directly to the ATO at the same time that payment is made to their employees. Employers who report through Single Touch Payroll will not be required to provide employees with Payment Summaries at the end of the year.

Single Touch Payroll will begin to be incorporated into payroll software from 1 July 2017.

SIMPLER BAS

Small businesses will have less information to report on their BAS from 1 July 2017. The only GST information required will be:

  • G1 Total Sales
  • 1A GST on Sales
  • 1B GST on purchases

Businesses will not longer have to report Export sales, GST free sales, Capital purchases and Non-Capital purchases.

TWOMEYS CLIENT PORTAL

Twomeys have recently added Client Document Portal functionality to our website.

You can now login to your own personalised secure area to access your documents, files, income tax returns and financial reports. You can also use the portal to send us data files or other documents to assist us with, for example, the preparation of your Financial Statements and income tax returns. The portal also enables us to send you documents for electronic signing.

Registration for the Client Document Portal is not automatic and you need to request access. If you are interested, please go to our website and request access at www.twomeys.com.au/client_login

RAA FARM INNOVATION FUND

The Farm Innovation Fund is a loan based initiative to assist farmers within NSW to identify and address risks to their farming enterprises, improve permanent farm infrastructure, ensure long term productivity and sustainable land use plus aiding in meeting changes to seasonal conditions.

Funding by way of a loan is available to meet the cost of carrying out permanent capital works in four main categories: drought preparedness, environment, farm infrastructure and natural resources.

For more information: www.raa.nsw.gov.au/assistance/farm-innovation-fund.

BEWARE OF SCAMS AND HACKERS

Scammers are becoming increasingly sophisticated and believable in their approach.

A current phone scam is circulating whereby the fraudster purports to be from the ATO or a debt collection company and tells the taxpayer that if they do not pay the debt owed to the ATO immediately, the sheriff will be on their doorstep that afternoon to arrest them. This particular scam even leaves a message on your answering machine with a number to call back on.

If you are in doubt about the legitimacy of any debt collection requests, please phone your local Twomeys office to confirm before providing any details to the caller.

Many companies, including Xero, Google and Apple are overcoming the risk of hacking by introducing a two-step verification when you login to your account.

The verification process combines something you know (eg your email address and password) with something you have (eg an app on your phone). Either an SMS with a code is sent to your phone or you use an authentication code that is created by an authentication app on your phone. If you cannot access your device, you can often still login using backup security questions.

We strongly recommend that you use two-step verification wherever possible to help protect you against identity theft.

HOW MUCH TAX WILL YOU PAY IN 2017?

You have until 30 June to book an appointment with your Accountant to review your 2017 profit, to estimate your tax payable and to put in place tax minimisation strategies.

The last thing we want for you is a nasty surprise when we prepare your 2017 income tax returns. Having an estimate of your tax liability enables you to plan ahead and be in control of your cash flow.

FARM MANAGEMENT DEPOSITS (FMDs)

The cap on making deposits to FMDs for primary producers has increased from $400,000 to $800,000 per individual.

FMDs give primary producers the ability to defer income by allowing a deduction on money contributed.

SUPERANNUATION UPDATE

Tax Deduction for Employee Superannuation Contributions

From 1 July 2017 employees will be eligible to claim a tax deduction for contributions personally made to a superannuation fund. The total of all deductible contributions, including superannuation guarantee, salary sacrificed contributions and personal deductible contributions is capped at $25,000 per annum.

Low Income Superannuation Tax Offset

Eligible taxpayers who earn up to $37,000 a year will get a tax offset, equal to 15% of before tax (employer and salary sacrifice) superannuation contributions, up to $500. The offset will be paid directly to the superannuation fund.

Spouse rebate

A tax rebate of 18% is available to individuals who make an after tax contribution of up to $3,000 for the benefit of a low income earning spouse. From 1 July 2017 the income the receiving spouse can earn is increasing from $10,800 to $37,000 for full eligibility with the phase out limit increasing from $13,800 to $40,000

Superannuation Co-Contribution

A government co-contribution is available to individuals who make an after tax superannuation contribution of up to $1,000. The co-contribution of $0.50 for each dollar contributed up to $500 is available for individuals under 71 with income under $36,021. The level of co-contribution phases out up to an income of $51,021.

Superannuation contribution splitting

Spouses are able to split up to 85% of concessional contributions (superannuation guarantee and salary sacrifice contributions) to their spouse's superannuation fund. The receiving spouse must be under 65 and not retired.

Section 293

From 1 July 2017 individuals with adjusted taxable income of more than $250,000 will be liable for an additional 15% tax on concessional contributions made on their behalf. This income limit is being reduced from its current level of

$300,000.

The small business restructure rollover allows small businesses to transfer active assets from one entity (the transferor) to one or more other entities (transferees), on or after 1 July 2016, without incurring an income tax liability.

This rollover applies to the transfer of active assets that are CGT assets, trading stock, revenue assets or depreciating assets.

To be eligible for this rollover, the transaction must not result in a change to the ultimate economic ownership of transferred assets. The ultimate economic owners of an asset are the individuals who, directly or indirectly own an asset. Where there is more than one individual with ultimate economic ownership, there is an additional requirement that each individual's share of ultimate economic ownership be maintained.

The following apply to transferred CGT assets:

  • Pre-CGT assets will retain their pre-CGT status after the transfer.
  • To be eligible to claim the CGT discount for any subsequent sale of the asset, you will need to wait at least 12 months before a CGT event happens to that asset.
  • For the purposes of determining eligibility for the 15 year CGT exemption, the transferee is taken as having acquired the asset when the transferor acquired it.

COMPANY TAX CUTS

Progressive reductions in the company tax rate have now been legislated:

  • 27.5% in 2017 for companies with a turnover less than $10 million
  • 27.5% in 2018 for companies with a turnover less than $25 million
  • 27.5% in 2019 for companies with a turnover less than $50 million
  • 27% in 2025 for companies with a turnover less than $50 million
  • 26% in 2026 for companies with a turnover less than $50 million
  • 25% in 2027 for companies with a turnover less than $50 million