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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!

TWOMEYS COMMUNITY INVOLVEMENT

Twomeys staff have been active over the summer months fundraising for Young Food Hall, Mercy Care Young, Cootamundra Can Assist and Best Friends Pet Rescue Association. Twomeys March fundraiser is supporting the Cancer Councils March Charge.  If you would like to support the team, please donate at www.themarchcharge.com.au/fundraiser/twomeys.

Twomeys staff in Young were extremely grateful to Young Meals on Wheels who delivered a most delicious morning tea recently.

The Twomeys Summer Golf competition in Cootamundra concluded last weekend with over 1164 rounds of golf played over the 16 weeks of competition.

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.

Heavy vehicles can be used in different activities both on and off public roads. The amount of fuel tax credits you can claim depends on what fuel you use, when you acquired it and if you use it:

  • for travelling on public roads
  • in all other activities, including off public roads, on work sites and to power auxiliary equipment.

You need to do separate calculations for different fuel tax credit rates.

To work out how much fuel was used in the different activities, you can use any apportionment method considered fair and reasonable for your circumstances.
Common methods and measures include where you:

  • add up all the eligible quantities of each fuel type that attract the same fuel tax credit rate
  • subtract any ineligible fuel, such as fuel you used in light vehicles on a public road, from the total fuel acquired
  • determine a reliable percentage of eligible fuel usage for a sample period and apply this over a number of tax periods.

The ATO's simplified method for working out fuel used in vehicles with auxiliary equipment can be found at:
www.ato.gov.au/business/fuel-schemes/in-detail/heavy-vehicles/?page=5#Methodsofworkingoutfuelconsumption_auxil and includes the following:
 

 Vehicle Percentage  Auxiliary equipment
 Concrete truck  30%  Mixing barrel and mechanisms for loading/unloading concrete
 Commercial coach  5%  Air conditioning
 Refrigerated vehicle  10%  Refrigeration unit
 Waste collection  15%

 Bin lifting equipment

The current fuel tax credit rate for heavy vehicles travelling on a public road is 15.8c/litre and for all other uses – including power auxiliary equipment of a heavy vehicle is 41.6c/litre. With such a large difference in the rates, it is important that you identify any non on road use of heavy vehicles and claim it at the appropriate higher rate.

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.
  • STP data will be available to tax agents in pre-filling.
  • 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 – first you will need to take a number of steps to be able to send the data to the ATO:

  1. Check the right person is authorised to lodge an STP report. The person lodging the report needs to understand the requirements of STP.
  2. Check that the ATO have the right contact person for your business. This should be the person or persons authorised to lodge an STP report.
  3. Check if an AUSkey is required. You do not need an AUSkey if you are using a sending service provider (SSP) to send the STP file to the ATO. The SSP will connect to the ATO using its own AUSkey.
    You do not need an AUSkey if you are using cloud-based or online software to send the STP file to the ATO. You
    will connect to the ATO using the unique software ID the software provider has given you (see step 4). You should check with your software provider if you do not have a software ID.
    You will need your own AUSkey if you are using software that connects directly to the ATO, such as an on-premise solution.
  4. You will need to give the ATO your software ID if you are using cloud-based or online software. It is similar to a serial number. You can notify the ATO of the software
    ID by phoning 1300 85 22 32, or completing a one-off notification through Access Manager (you need an AUSkey to use Access Manager).

NB: Not all payroll software will be updated to offer Single Touch Payroll reporting, such as older off-the-shelf or legacy products, so you may need to update or choose a new payroll solution if you are using an older product.

  • Report through a new Single Touch Payroll enabled software – the ATO has compiled a list of 31 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-single-touch-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 4 or less employees, your registered tax or BAS agent 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.

L:egislation was introduced into Parliament on 13 February 2019 to increase the instant asset write-off threshold for small businesses from $20,000 to $25,000. 

Small businesses can claim an immediate tax deduction for depreciating assets that cost less than $25,000 provided the asset is first used or installed ready for use on or after 29 January 2019 but before 1 July 2020. A small business for the purpose of the instant asset write off concession is a business with an aggregated turnover of less than $10 million.

NSW GOVERNMENT REBATES

A family with two children could save $1,000 by using Energy Switch and claiming the Active Kids voucher, Creative Kids voucher and the CTP Green Slip refund.

A pensioner concession card holder could save $1,200 if eligible for the Low Income Household Energy Rebate, Gas Rebate, CTP Green Slip refund and free rego.

First and second year apprentices registered with the NSW Department of Education and Training can apply for a registration rebate to help with the costs of registering their motor vehicle.

Frequent toll users who spend on average $25 per week or more in tolls or $1,300 over the year are eligible for one free 12 months registration for a car, ute 4WD or motorcycle for registrations due between 1 July 2018 and 30 June 2019.

For more information on Service NSW Cost of Living rebates: www.service.nsw.gov.au/campaign/cost-living

ROYAL COMMISSION UPDATE

Recently the government released the final report of the Royal Commission into the financial services sector. It's an important document which clearly calls out the need for change across the financial services industry.

The government has announced a comprehensive set of measures in response, and will now go about implementing the legislative and regulatory changes required for the recommendations to take effect. That process is likely to take a period of time to implement.

At Twomeys we welcome any changes that help to make high-quality advice available to more Australians. We are absolutely committed to continue to deliver a consistently high standard of service. We will keep our financial services clients updated on how the changes may impact their individual circumstances and what we will be doing to manage those changes.

If you have any questions about the Royal Commission or how we could potentially assist you with your financial advice needs, please contact Michael Gay.

TWOMEYS APPOINTS NEW PRINCIPAL

Michael has over 20 years experience in the Accounting and Finance industry and has been with Twomeys since 2013. Michael travels around to all Twomeys offices and provides tax effective financial and investment advice as well as assisting clients with strategies for wealth creation, wealth protection and planning for retirement.

Michael is married to Skye and they have three beautiful children, Charlotte, James and Angus.  When Michael is not in the office, he enjoys holidaying with his family, fishing and watching any code of football.