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Key Tax Changes for the New Financial Year 2021

2020 is already halfway and we are all heading into the new financial year. Despite there are quite many changes from the government stimulus package, there are still some key changes that we can take a look at for Financial Year 2021.

Happy New Financial Year

A new financial year is an important time for all kinds of businesses, from sole traders to big corporate. It is not only to meet your tax obligations with the Australian Taxation Office, but also the perfect time to plan for the next 12 months of your business.

Don’t Miss Out the $25K HomeBuilder Grant

Given the impact of Bushfire and COVID-19, Australia has entered into an economic recession first time in the last 30 years. Last a couple of weeks, we have witnessed the Federal Government announced that they have been working with States and Territories to offer a $25,000 HomeBuilder Grant

Don’t let coronavirus sink you and your business

The last few months have shown a constant display of obscure challenges related to maintaining business during the COVID-19 pandemic for business owners and leaders everywhere. The latest obscure challenge is possibly the trickiest yet: how to cautiously recommence businesses after the government announced the major easing of coronavirus restrictions.

How SME get recovered after the COVID-19

As the lockdown has been gradually lifted, how would SME self-adjust their business and catch up with the changing market in order to bring their business back to normal or even beyond?

It’s ‘TAX’ time again

Tax time is fast approaching and for some of you this might be the last thing on your mind. There might be other things that are more important for you to get through this uncertainty. However, now is the best time to get your tax affair in order and avoid last minute planning that can cost you.

The Second and Third Stimulus Package Plan – Which One Suits You

Followed by the first Stimulus Package plan announced on 12th March 2020, the federal government has rolled out the second and third Stimulus Package plan with a total amount of up to 200 billion dollars in last two weeks aiming at helping small and medium business

Simplifying deductions for working from home

As the coronavirus outbreak grows, more people are forced to work from home. While working from home can come with its benefits like getting to sleep in longer, avoid the daily commute and work from bed in your pyjamas, it can also hurt your hip pocket if you’re having to fork out for expenses your employer would normally cover, like increase utility bills, phone and home internet bills.

The Tax-Free Payments to Employers

With the announcement from Federal Governments Economic Response to the COVIC-19 Coronavirus, the cash flow grant for employers measure is designed to support employing small and medium sized businesses and to improve business confidence. The measures also supports the activities of not-for-profits (including charities) at a time where they are facing increased demand for services.

COVID-19 Business Continuity Plan

The COVID-19 situation is bigger than any of us have ever faced. Our clients, professionals, mum’s and dad’s don’t understand how badly they need accountants and advisors’ help. They are scared and don’t know what to do, and most probably haven’t really thought through what the consequences will be for them.

How small and medium business benefit from the Stimulus Package

Hit by the bushfire, Coronavirus (COVID-19) and global economy downturn, the Federal Government has announced a $17.6 billion Stimulus Package on 12 March 2020 to maintain Australians in jobs,

COVID-19 and your business

With the development of COVID-19 from epidemic to pandemic status, businesses across Australia are facing the possibility of harmful effect. We are all aware of the impact and potential expansion of Coronavirus on the world, but what are the potential…

ATO and other authorities’ support for bushfire victims

The country is suffering billions of dollars’ loss during the bushfire season. Returning life to normal is a long way to go for most of us. Therefore, we summarize some assistance available offered by the ATO and other

CGT exemption on Main Residence is not any more to Foreign Resident

The proposal in 2017-18 Federal Budget for stopping foreign residents from claiming CGT main residence exemption has passed by the Parliament before Christmas 2019 and takes effect retrospectively from 9 May 2017.

Superannuation Guarantee Amnesty

The Government has restored the Superannuation Guarantee (SG) amnesty aiming to provide employers who have fallen behind with their SG obligations the one-off opportunity to “self-correct”. However, this time those continually fail to take any action will be heavily

Managing Cash Flow

Cash flow is one of the most important components of success for a SME business. Without cash, profits are meaningless. Organisations that don’t implement good cash management may not be able to make the investments needed to compete, or they…

Deduction Changes of Vacant Land Affecting Small Property Development

A new law has come into effect through the Parliament last month, denying the deductions for holding expenses associated with vacant land, which currently would be deductible in the ordinary course. The legislation is not only retrospective but also go beyond purely vacant land. Before, the old law allows those who hold vacant land with an intention to build a rental property on it to claim the tax deduction for costs of holding the land

Guide to Low and Middle Income Tax Offset (LMITO) of $1,080

We have received questions from our taxpayers wanting to know the recent tax relief of $1080. Although the immediate relief has been introduced in the 2019 Federal Budget, this article will explain in more detail aiming to provide you with a better understanding about this tax cuts. Firstly, tax offset of $1080 will not automatically come to you when you lodge your tax return. So what is the Low and Middle Income Tax Offset?

PAYG Withholding Tax Deduction Denial

Government has passed a legislation right before Christmas 2018 which will prevent a deduction from being claimed for salary and wages (and certain other payments) by a business that fails to meet its PAYG withholding obligations. This change will apply to payments made from 1 July 2019 onwards. The existing penalties for failing to comply with PAYG withholding obligations are already significant, this adds another financial incentive for businesses to ensure that they are compliant with PAYG withholding obligations.

For All Business – Single Touch Payroll

From 1 July 2018, ATO has enforced a new legislation on the payroll reporting system. The new legislation requests business with 20 or more employees to use the Single Touch Payroll (STP) enabled software to report employees’ payroll information including superannuation. Business with less than 20 employees has to implement Single Touch Payroll system too by 1 July 2019 (this hasn’t been lawed yet). Under the new Single Touch Payroll reporting system, payroll information will be instantly sent to ATO at each pay run.

Ebay and Amazon overseas sellers are hammered by the new GST legislation

Recently, the Australian government has introduced a new GST legislation on the imported low value goods. The new legislation will be effective from 1 July 2018 and it will affect thousands of online platform overseas sellers whose annual GST turnover is over $75,000,

Find Your Suitable Business Structure

If we metaphorize a business to a building, structure to the business will be as important as foundation to the building. A suitable structure can provide tax effectiveness and assets protection to a business. Contemporarily, sole trade, company and trust are common structures used in business. 

Investment property tax return

Investment property tax return can be very tricky and complicated, especially new laws will be enacted according to the recent federal budget. No matter you are in Australia or an overseas investor, you will have to lodge the tax return by 31 October every year if you are having an investment property and earning rental income or capital gain in Australia.

Income tax return and tax deduction

Along with the closing of financial year 2017, here comes the tax return time again. During the years, we have seen many clients made mistake with their tax return and led to either ATO penalty or hundreds and thousands dollars losing in tax payment

NSW will raise Surcharge Purchaser Duty and Land Tax Surcharge again to foreign persons

Recently, the NSW government has announced that the surcharge purchaser duty and land tax surcharge will be raised again to foreign person investing in residential

Federal Budget 2017 Tax Highlights

The Australian government has just announced 2017 Federal Budget tonight. At Pitt Martin, we closely keep update our knowledge with government tax legislation and economy changes. Here is some key points we think can be relevant to the tax payers and business owners.

Land Tax Surcharge

From 1st January 2017, if you or your family and associates are a foreign person, your NSW residential land might be subject to 0.75% land tax surcharge charged by Office of State Revenue.

Tax Planning – Super

Are you a high wages owning employee or a self-employed business owner who paid too much tax last year? There is an effective way to reduce the tax liability by directing the income into your super.

Individual or Corporate Trustee for Self Managed Super Fund

In Pitt Martin, we specialized to help clients set up SMSF and manage the super fund tax affairs. Call us today on 02 9221 3345 or email to connect@pittmartin.com.au.