As always, there are a number of tax changes that may affect you or your business.  We’ve summarised a few of the key changes that you will need to take into account when thinking about your 2019 Income Tax Return, and for the new financial year.  Contact Burnett Business Centre to discuss any of these changes further.

A new tax offset comes in for low and middle income earners but a proposed increase is not yet law.

Car deductions claimed on a KM basis increased to 68c/km.

Single touch payroll (STP) requires all employers to report wages and super information electronically by 1 July 2019. Larger employers and many early adopters are already using STP. You will not receive a paper Payment Summary from an employer using STP.

The Small Business instant asset write-off $20,000 threshold has increased to (LESS THAN) $25,000 and then again to $30,000, as well as being extended to 30 June 2020. It will then revert to $1,000.  

Fodder storage assets can be claimed outright since 19 August 2018, instead of over 3 years.

Superannuation Guarantee

  • If you salary sacrifice into super, your employer will be forced to pay the same amount of SGC as if you were not making the salary sacrifice.
  • Employers now need to pay SGC on Leave Loading in most cases.
  • Not being paid your SGC super will be harder now contributions and wages are reported electronically and data-matched. Another change means that the worst employers can face criminal penalties (i.e. prison) for not paying super when the ATO sends a notice.

Insurance cover in a superannuation account will be cancelled automatically on 1 July 2019 on any super account that has not received a contribution or rollover in 16 months and has a balance of less than $6,000. Call your superfund or contact your Financial Planner immediately if you are not sure whether this has affected you.

Dam desilting on a drought declared property is now eligible for a 25% rebate from the DAFF on behalf of the Federal Government. Work done after 6 April 2019 will require an endorsed “Dam Desilting Statement”, but work done before that (back to 1 July 2018) does not have that requirement.

Courier and cleaning businesses need to report payments made to contractors. Businesses that supply road freight, security, investigation, surveillance or IT services will need to start collecting information to report payments made to contractors during the new financial year.

Tax deductions will be denied from 1 July 2019 if payments are made to a supplier of a service that does not have an ABN or provide a Statement by Supplier and the correct withholding procedures are not followed. This will also apply to payments to employees where the correct withholding and reporting procedures are not followed.

Other

  • Reduce your Private Health Insurance premiums by asking your fund to increase your excess without incurring the Medicare Levy Surcharge.
  • Regional students’ access to the Youth Allowance will improve by changing the parental income requirements.
  • The minimum wage has inceased by 3% on all award wages, effective from 1 July.

There are many other proposed changes that are yet to be legislated that we have not detailed here.  These will become clearer once parliament resumes, but rest assured we keep a close eye on these changes so that we can keep you up to date.

Please note that some of these measures are not yet law (as at the date of writing). You should not solely rely on the summarised information provided.  Contact Burnett Business Centre to discuss these issues further.