The ATO is making work-related car expenses a key focus again during Tax Time 2019. Assistant Commissioner Karen Foat said over 3.6 million people made a work-related car expense claim in 2017/18, totalling more than $7.2 billion.
The Government has announced that more than 10 million Australians will receive immediate tax relief following the passage of legislation through the Parliament, which increases the top threshold for the 19% tax rate from $41,000 to $45,000 and increases the low income tax offset from $645 to $700 in 2022/23.
Happy End of Financial Year everyone! Let’s just cut straight to the chase because we’ve got some new financial year resolutions for you to reinvigorate your business. It’s this point in the year when business owners can feel a little drained and unsure of which business steps to take to move forward.
At Aspect Accountants and Advisors West Perth, we’ve put together some easy to follow steps to help grow your small business. Check them out below.
Why should you know the value of your business if you are not thinking about selling? Let’s take a quick multiple choice test, answer each of the following yes or no:
- Do you think you may want to retire some time in the foreseeable future?
- Do you know who the buyer of the business may be or whether a buyer may exist?
- What will happen if you are unable to run the business for any reason (sickness, accident etc)
- Do you have a plan for the succession (someone to take over or buy your business)?
- Do you have adequate business insurance to protect this asset?
If you answered yes to any of the above, you should know the value of your business and here’s why.
From 1st of July 2019, the ATO reminds employers that any ‘cash in hand’ payments will not be considered tax deductible.
It is important that employers comply with their pay as you go (PAYG) withholding obligations.
Should contractors not supply their ABN and the business does not withhold any tax, these payments will also not be tax deductible from 1 July, 2019.
In addition to the loss of a tax deduction, penalties will be imposed for employers who are caught not complying with their PAYG obligations for failing to report correct amounts under the PAYG withholding system.