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Sadly, we know that many people and communities are, and have been, impacted by the bushfires currently affecting much of Australia. While the crisis has affected us all in some way, our hearts go out to those whose lives and homes have been devastated beyond repair. It is at time like these, we reflect the most important things in our lives are not "things" but family and friends. From everyone here at the Davies Thompson & Wright team every good wish to you all, and a huge thank you to our firies, our everyday heroes. If you have been impacted in any way, and there is something we can do to assist, please let us know. We will endeavour to provide a priority service for those affected by bushfires.
The ATO has also offered support, stating "If you've been impacted by these bushfires, we don't want you to be concerned about your tax affairs. Now is the time for you, your family and community. We'll help you sort out your tax affairs later."
Automatic ATO Lodgement Deferral: Automatic deferrals have been put in place for both lodgements and payments if your postcode is listed as an affected area.
- ATO Bushfire Information
- ATO Affected Postcode List NSW, other states can also be found on the ATO website.
Do not be concerned if your postcode does not appear, the tax office will still recognise that you have been impacted. Let us know and we can assist by contacting them on your behalf. If you are in an area impacted, the automatic deferrals are as follows:
Self-preparers:
- For quarterly BAS due on 11 November 2019, the new deferred date is 28 January 2020
- For monthly BAS due 21 November 2019, the new deferred date is 21 January 2020
- For monthly BAS due 21 December 2019, the new deferred date is 21 January 2020
- For 2018–19 income tax bills due on 21 November 2019 the new deferred date is 21 January 2020
Tax and BAS Agents
- For quarterly BAS due on 28 November 2019, the new deferred date is 28 January 2020
- For monthly BAS due 21 November 2019, the new deferred date is 21 January 2020
- For monthly BAS due 21 December 2019, the new deferred date is 21 January 2020
Mental & Emotional Wellbeing: We all know these types of disasters have ongoing ripple effects into the lives of those both directly and indirectly affected, and their loved ones. While the adrenaline is running high this may not be as obvious, so we all need to watch out in the many months of recovery we have in front of us. Please take care of yourselves and those around you. If you are struggling, or know someone who is, there is help available and it is important to seek it:
The team at Davies, Thompson & Wright take this opportunity to thank all our valued clients for your continued support throughout 2019.
We wish you all a Merry Christmas and a safe and Happy New Year for 2020 - along with some much needed rain!
Our office will close at 5:00 pm Thursday 19 December 2019 and re-open 9:00 am Monday 6 January 2020.
Silly season is here, and it seems to be getting more so each year as we are inundated with new trends such as the 'Black Friday' and 'Cyber Monday' sales that go for weeks... For many Australians, Black Friday is just confusing – shouldn't 'Black Friday' be on Friday 13th?
Superannuation - are you making sure your payments are made in time to claim them as a tax deduction? Beware of the trap a lot of business's fall into without knowing...
On a more serious note, those affected by bush fires have been granted an extension of time for lodgement and payment of Activity Statements usually due in November and December 2019. Check out our update for more information.
Read more about these items and more...
Business and Tax Update December 2019
Can the ATO take money out of your bank account? Following on from the media "Your Right to Know"campaign, we discuss some of the ATO's powers in our November 2019 update.
Capital Gains Tax and the family home: expats and foreign residents in the ATO's sights again. Read more about the governments plans to remove the main residence exemption for non-residents. Following from our September update where tax residency does not always align with other residency rules, expats or other non-residents with Australian property should be aware of these proposed changes.
Finally legislation has been passed to close the superannuation loophole preventing employers from claiming any salary sacrifice superannuation as part of their Superannuation Guarantee Contribution commitments. We provide an update on this welcome rule due to commence July 2020.
Holding vacant land with the intention of building an investment property? Read here for an overview on the changes which will affect 'Mum & Dad' investors from 1 July 2019:
Business and Tax Update November 2019
Superannuation Guarantee Amnesty - for those employers that are behind in their superannuation guarantee payments, the amnesty legislation is again before parliament. This will give those employers the chance to "self-correct" without facing crippling penalties. However, be warned, those that do not take advantage of the amnesty to voluntarily disclose short payments or non-payment of superannuation guarantee amounts will face tougher penalties under the proposed new legislation. Find out more in our October update.
Falling Interest Rates - what does this mean to you? Economist Emmanuel Calligeris discussed the impact of low interest rates.
Read more here: Business and Tax Update October 2019
The ATO's 'gloves off' approach to overseas income. Determining your tax residency is not always straight forward, nor is determining the overseas income and assets that need to be reported. Our September update covers this topic in more detail.
Rental Property Expenses - the tax office's favourite subject and always open to close scrutiny. Read more here to refresh your memory or learn more about what you can and can't claim.
Confused again at tax time? Our August update covers what the changes mean to you. Who is eligible for the new Low & Middle Income Tax Offset and how much you are entitled to.
Does your business receive $10,000 or more in cash? The government intends to restrict cash payments going forward with severe penalties for those who ignore the limit.
And on a much lighter note read here for some of the weirdest tax deductions on the ATO's list of most unusual claims:
Our first update for the new financial year is here: Business and Tax Update July 2019
Topics covered include:
Changes to Superannuation 1 July 2019
Single Touch Payroll for family members
Laundry claims being reviewed by the ATO
Who owns the assets in a Trust?
Don't Lodge Your Tax Return Too Soon!
The Australian Taxation Office has been flooded with 90,000 calls as tax cuts pass, according to ABC news. The Federal Government's tax plan includes changes to the Low and Middle Income Tax Offset (LMITO), reducing the amount of tax low and middle income earners need to pay. The Federal Government estimates that 4.5 million Australian taxpayers will be eligible for the full LMITO, and a further 5.6 million will receive a partial offset. 
This will encourage taxpayers to lodge their returns as soon as possible and while the ATO has said it would aim to process online tax returns within two weeks, has previously warned Australians not to lodge too early.
Assistant Commissioner Karen Foat has asked taxpayers to wait until around August to lodge. "Most employers have until July 31 to finalise their employees' income statements so, we strongly encourage taxpayers to wait a few weeks before lodging their tax return," she said. "If you lodge your tax return before your income statement is tax ready, your employer might make changes, and you may need to lodge an amendment. In some cases, additional tax and interest may be payable." Waiting also allows more time for other information, such as from banks , health funds and government agencies to be reported to the ATO.
The Government has increased the base and maximum amount of the LMITO to $255 (from $200) and $1,080 (from $530):
- Less than $37,000 get $255
- Between $37,001 and $48,000 get $255, plus 7.5 cents per dollar above $37,000
- Between $48,001 and $90,000 get $1,080
- Greater than $90,000, the offset decreases at a rate of 3 cents per dollar, ceasing at income of $126,000
Warning - if you owe the ATO money and are entitled to the new $1,080 offset, that entitlement will firstly be applied against your existing ATO debt before you receive the rest.
Read the ATO statement regarding the changes here ATO Statement on the Low and Middle Income Tax Offset
The team at Davies, Thompson & Wright take this opportunity to thank all our valuable clients for your continued support throughout 2018.
We wish you all a Merry Christmas and a safe and Happy New Year for 2019 - along with some much needed rain!
Our office will close at 5:00 pm Thursday 20 December 2018 and re-open 9:00 am Monday 7 January 2019.