Small businesses with a turnover up to $10 million will continue to be able to immediately write off expenditure up to $20,000 for a further year.
Eligible assets cost less than $20,000 first used or installed ready for use by 30 June 2018.
Only a few assets are not eligible (such as horticultural plants and in-house software).
Assets valued at $20,000 or more (which cannot be immediately deducted) can continue to be placed into the small business simplified depreciation pool (the pool) and depreciated at 15 per cent in the first income year and 30 per cent each income year thereafter. The pool can also be immediately deducted if the balance is less than $20,000 over this period (including existing pools).
The current ‘lock out’ laws for the simplified depreciation rules (these prevent small businesses from re-entering the simplified depreciation regime for five years if they opt out) will continue to be suspended until 30 June 2018. This measure will improve cash flow for small businesses, for another year.
From 1 July 2018 the immediate deductibility threshold and the balance at which the pool can be immediately be deducted will revert back to $1,000.
Ok, first things first. Do you employ more than 20 employees by headcount? If you don’t then you don’t need to worry, as this is not mandatory for you. If you do/you might/or you want to, read on…
On 1/4/18 you will need to do a headcount of your employees. If its 20 or more then we must have STP in place as at 1/7/2018. Smaller employers can volunteer to use STP and anyone can elect to enter earlier.
So what does it all mean? Every time you run a payroll, you need to submit it to the ATO. This will include gross wages, gross tax and Super (all year to date accruals).
The good news is, that Xero is going to ensure that it will be as easy as a click of a button.
The reason? The ATO want greater visibility of all employers, enabling earlier activity to ensure the employer is paying their PAYGW and their Super.
What else does it mean? It will also mean that the employer will no longer be required to provide payment summaries to their employees. The ATO will provide them. For this reason, it is very likely that I will encourage all of my clients who have employees to adopt the STP as soon as possible, reducing a lot of work at the end of the year in issuing payment summaries.
The Fair Work Ombudsman has issued a media release advising that it will audit East Coast retailers as part of a new campaign.
Hair and beauty salons and retail outlets are the focus of the new Fair Work Ombudsman compliance campaign.
Fair Work Inspectors will check employers are paying the correct minimum hourly rates, penalty rates, allowances and loadings and providing appropriate meal breaks.
Compliance with record-keeping and pay-slip obligations will also being monitored during the three-month campaign.
Do you know your legal obligations?
Most businesses - including small businesses - are now covered by the Fair Work Act 2009.
Fair Work Inspectors appointed the Fair Work Ombudsman have the power to enter a workplace at any time to inspect records and ensure compliance.
Employers risk penalties of up to $54,000 for each breach of the Fair Work Act 2009.
Do you need help with HR and compliance?
Engage us for a free consultation to assist you with your HR compliance.
You may have heard of the upcoming choice that business will have to lodge ‘Simpler BAS’. This is a move by the ATO to reduce the complexity of current GST tax types in current use, as a way to encourage businesses with turnover below $10m to lodge more accurate statements. From 1/7/17, these small businesses will only need to report GST on Sales, GST on Purchases and Total Sales. Regardless, BAS will still require PAYG Withholding and Instalments, WET, FBT, FTC and LCT (if required). Businesses will still need to implement the GST system and understand how GST applies to what they sell. A business will still need to understand what GST they are allowed to claim back.
Where we undertake your BAS, simpler BAS options will be applied, and any resulting efficiency gains will be passed onto you as a matter of course.
Bookkeeper, BAS Agent, Diploma Accounting, I love helping small businesses get their books back in order and create calm out of chaos.