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TAX TIME 2019

TAX PLANNING - HOW MUCH TAX WILL YOU PAY IN 2019?

Tax planning offers many opportunities for taxpayers:

- Legally arrange your affairs in a manner to minimise your taxation liabilities
- Control the amount of tax you pay
- Maximise your access to tax rebates
- Plan your cash flow by knowing your taxation liabilities in advance.

Book your tax planning appointment before 30 June 2019 to review your 2019 profit, to estimate your tax payable and to put in place tax minimisation strategies.

The superannuation concessional contribution cap for the 2018-19 financial year is $25,000.

Concessional contributions include:

- compulsory employer contributions (superannuation guarantee)
- any additional concessional contributions your employer makes
- salary sacrifice payments made to your super fund
- contributions you are allowed as an income tax deduction*

*  Eligible employees are now able to claim a tax deduction for contributions personally made to a superannuation fund.  The total of all concessional contributions including superannuation guarantee, salary sacrificed contributions and personal deductible contributions must not exceed $25,000 per year.

NEW REBATE FOR DRONES

The NSW quad bike safety rebate has been extended to include the purchase of a drone.  Only one $500 rebate per business can be claimed towards the purchase of an eligible drone. 

More details can be found here: https://www.safework.nsw.gov.au/resource-library/agriculture,-forestry-and-fishing-publications/quad-bike-pubs/quad-bike-safety-improvement-program-FAQs

OPT-IN OR LOSE YOUR INSURANCE COVER

The Government has recently passed new legislation that now requires you to opt-in by  1 July 2019 to retain the insurance cover you  have in your superannuation fund.

If your superannuation fund account has not received a contribution from you or your employer or a rollover in the previous 16 months, superannuation funds are required by law to discontinue your cover. 

This new legislation applies regardless of your superannuation fund's balance and applies to all types of insurance; life insurance, total and permanent disability (TPD) insurance and income protection insurance.

The insurance opt in requirement is part of a reform package called Protecting Your Super Package that commences on 1 July 2019 and includes:

• Insurance becoming opt-in for members whose accounts have been inactive for 16 months
• Fund members with balances under $6,000 whose accounts have been inactive for 16 months will have their accounts paid to the ATO, who will then chase taxpayers to consolidate their superannuation accounts
• Fee caps will be imposed on certain fees for account balances under $6,000
• Exit fees will not be charged for moving money from a superannuation account

The storm and flood event that occurred in the Hilltops and Cootamundra/Gundagai LGA's on 5 February 2019 has been declared a natural disaster.  Natural disaster relief loans are available to primary producers, small business, non-profit organisations and sporting and recreation clubs.

  Loan amount   Loan term   Interest rate    Loan purpose
Primary producers   $130,000  10 years  1.37% • continue to operate your farm business for the next twelve months or until the next income is received
• replace and repair damage caused to the property and associated improvements not covered by insurance.
 Small business  $130,000  10 years  1.37% • return to its normal level of trading or until the next major income is received within 12 months from the date of disaster
 • replace and repair damage caused to your small business and associated improvements not covered by insurance
 Non-profit organisations  $25,000  5 years  1.37% • for the restoration of essential facilities that have been damaged or destroyed by a natural disaster
• temporary storage or leasing of alternate premises
 Sporting and recreation clubs  $10,000  5 years  1.37% • meet the costs of restoring essential club facilities, equipment or other assets that have been damaged or destroyed by a natural disaster

A natural disaster assistance transport subsidy is available to eligible farmers who are affected by a declared natural disaster event. This subsidy pays for the cost of transporting:
• fodder and/or water to an affected property
• stock to sale or slaughter
• stock to/from agistment.
www.raa.nsw.gov.au/disaster-assistance/declared-natural-disasters

NSW Treasury grants for sporting and recreation clubs Further assistance may be provided to sporting and recreation clubs and associations for clean-up and removal of debris.

 A grant of up to $2000 is available to any single applicant from NSW Treasury.

To obtain an application for the grant assistance, contact NSW Treasury on 02 9228 5181 or send a request via e-mail to natural-disasters@treasury.nsw.gov.au.

TWOMEYS COMMUNITY INVOLVEMENT

Several Twomeys team members and their partners attended Mercy Care Centre Young's annual charity cocktail party held at Clifton House & Gardens to raise funds for the refurbishment of the centre's palliative care unit.

 

L to R: 
Owen Mackie, Sarah Mackie, Amber Beath,
Merralee Gordon
 L to R: 
Stephen Thurn, Kim Knox-Thurn,
Merralee Gordon, Amber Beath,
Maree Twomey, Michael Twomey
 

 

 

All primary producers can claim a tax deduction for the full cost of fodder storage assets if the asset was acquired o first used to store fodder on or after 19 August 2018. Fodder storage assets include silos, bins, hay sheds, grain sheds and bunkers.

All primary producers can claim a tax deduction for the full cost of fencing and water facility assets if the asset was acquired on or after 12 May 2015. Water facility assets include dams, tanks, bores, pipes, pumps and windmills.

A new Emergency Water Infrastructure Rebate is now available to primary producers in New South Wales. The rebate covers 25% of the cost of purchase, delivery and installation of water infrastructure that addresses animal needs and improves resilience to drought. 

Eligible activities include:

  • Pipes
  • Water storage devices such as tanks and troughs
  • Pumps
  • De-silting of existing dams
  • Bores and associated power supply.

Ineligible activities include:

  • Construction of dams
  • Water infrastructure for uses other than to supply water for livestock.

The rebate can be claimed for eligible water infrastructure expenses since 1 July 2018, up to a maximum rebate of $25,000 per farm enterprise. Apply at www.raa.nsw.gov.au/grants/emergency-water-infrastructure-rebate-scheme.

EMERGENCY DROUGHT TRANSPORT SUBSIDY

The amount that can be claimed under the NSW RAA Emergency Drought Transport Subsidy has increased from $30,000 to $40,000.  The subsidy can be applied for the cost of transporting fodder, water to a property for stock or domestic use, stock to and from agistment, and stock to sale or slaughter.

The subsidy covers up to 50% of the full cost of freight up to a maximum of $5 per kilometre and 1,500 kilometres per journey.

Applications close 30 June 2019.

Apply at www.raa.nsw.gov.au/grants/transport-subsidy-emergency-drought-relief.

Single Touch Payroll requires employers to send tax and superannuation information to the ATO every time they pay their employees and will commence on 1 July 2019 for all employers.

Features of Single Touch Payroll:

- Employers will no longer need to provide their employees with payment summaries for the information they report through Single Touch Payroll.
- Employees will find the information they need to complete their income tax return in ATO online services, accessed through myGov. Employees who choose not to have a myGov account can contact the ATO to get a copy of their payment summary information.
- Employers will no longer need to provide the ATO with a payment summary annual report (PSAR).
- From January 2020, the ATO will pre-fill activity statement labels W1 and W2.
- Employers will be able to offer online commencement forms to new employees, including Tax file number declaration, Superannuation (super) standard choice, Withholding declaration and Medicare levy variation declaration forms that can be sent to the ATO from myGov.

How to report through Single Touch payroll:

  • Report through your existing Single Touch Payroll enabled software
  • Report through a new Single Touch Payroll enabled software.  If you are a micro employer with one to four employees, the ATO has compiled a list of 24 companies that have put forward product proposals to offer low cost (ie less than $10 per month) Single Touch Payroll solutions. The list can be found at www.ato.gov.au/business/single-touch-payroll/in-detail/low-cost-singletouch-payroll-solutions.
  • Ask a third party, such as a registered tax or BAS agent or payroll service provider, to report through Single Touch Payroll on your behalf. If you have four or less employees, Twomeys will be able to report your Single Touch Payroll information quarterly for the first two years, rather than each time you process a pay run.

NB: If you have closely held payees (i.e. the payee is directly related to the entity from which they receive payments, for example family members of a family-owned business), you are exempt from reporting closely held payees for the 201920 financial year.