Snapshot of the ALP Key Tax Policies
2019 Federal Budget
This year¹s federal budget has a few sweeteners, which was to be expected with the next federal election only about a month away and the Coalition Government trying to make up ground in the polls. The welcome news is the forecast return to surplus for the 2019-20 fiscal year. Also note that proposed changes to Division 7A will be deferred from 1 July 2019 to 1 July 2020, and that there are some useful changes to superannuation that will benefit older pre-retirees.
Single Touch Payroll
Single Touch Payroll (STP) is changing the way employers report their tax and super information to the ATO. If you have payroll software, all you'll need to do is update it once it has been 'single touch payroll' enabled.
You will then begin reporting the following:
- payments to employees such as salary and wages
- pay as you go (PAYG) withholding
- super information
The way you pay your employees won't change however you must send the ATO the information at the same time as you pay your employees. STP has already started and will be mandatory for all employers from 1 July 2019.
- Alternatives to a tax invoice for certain GST credit claims.
- Can the ATO's public rulings help your outcomes?
- What you need to know about the beefed-up director penalty regime.
- Instant Asset Write-off - updated information.
- Super downsizer scheme essentials.
- The approach to tax when you're working from home.
- Single Touch Payroll (STP) rollout for smaller employers.
- The tax deductions available for interest, dividends and other investment income.
- Deductions for donations.
- Staff training costs deductible, but beware FBT.
- The same business test to be replaced by a 'similar business' test.
- Removing tax deductibility of 'non-compliant' payments.
- New 'consumer' rules for GST and online purchases.
- Rental travel expenses mostly off the table.
- When valuations of property are important for tax.
- Tax incentive for angel investors in start-ups.
- Guide to making motor vehicle expense claims.
- The ATO is looking for personal services income diverted to Self Managed Super Fund's.
- for certain travel expense claims, the term 'itinerant' needs clarity.
Instant Asset Write-Off
If you are a small business (with a turnover of less than $50 million) contemplating buying machinery or equipment, the $30,000 instant asset write-off has been extended.
Small businesses may wish to consider bringing forward any planned asset investments to the current financial year – particularly in this current low interest-rate environment
2018 Federal Budget Update
As always, please feel free to give us a call on (07) 54391600 to have a chat.