Author Archives: EllcoAdmin

Changes to receiving activity statements and instalment notices

If you are an individual or sole trader and have linked your myGov account to the ATO, they will no longer send a paper activity statement or instalment notice.

You will now receive your activity statement or instalment notification through your myGov Inbox.

How does myGov work?

You can now manage your tax and super in one place using our online services for individuals and sole traders.  All you need is a myGov account linked to the ATO.

myGov is a fast, simple way to access government services online.  A secure myGov account lets you link a range of Australian Government services with one username and password, all in one place.

What can you do with myGov online?

• lodge, view and amend tax returns (although we do not recommend you do this without first talking to your Tax Agent)
• view your notices of assessment
• find and manage your super
• lodge, view and revise activity statements
• manage your PAYG instalments
• make a payment or create a payment plan
• view your tax and activity statement account balance and transactions
• view your study and training support loan account balance and transactions
• view and update your contact details
• receive most of your personal ATO letters directly to your myGov Inbox

Log in or create a myGov account

Already have a myGov account but forgotten your username and/or password?

Click the link to recover your username and/or password.

Beware of Phone Scams

Phone scams are the number one type of scam in Australia.  Scammers can impersonate ATO employees to obtain personal information for financial gain from you.  Generally, phone scams demand payment for an unexpected debt or offer an unexpected refund or grant.

It is important you are aware that scammers try to collect your personal information to steal your identity, including:

• tax file numbers
• names
• addresses
• dates of birth
• myGov user name and password
• bank account and credit card details
• drivers licence, Medicare and passport details.

This information is then used or sold to other criminals to commit identity fraud.  This can happen immediately or even months or years later.

Phone scammers are likely to be pushy or aggressive.  They may tell you that there is a warrant out for your arrest or offer to send a taxi to take you to a post office so that they can make a payment.

The ATO will never threaten jail or arrest and does not email, call or SMS asking for credit card or bank details to issue a refund.

Scammers pretending to be from the ATO are generally more common during tax time so we encourage you to be vigilant and to protect your personal information.

Work Related Deductions – basic rules you need to satisfy

This year the Australian Taxation Office (ATO) are focusing on unusually high work-related expense claims across all industries and occupations.

The ATO are also paying particular attention to claims:

• which have already been reimbursed by employers
• for private expenses such as travel from home to work.

When claiming work-related travel, you can’t claim for a normal trip between home and work, unless:

• you use your car to carry bulky tools or equipment which you use for work and can’t leave on the work premises
• your home is a base for employment
• you have shifting places of employment (you regularly work at more than one place each day).

If you are claiming a work-related expense deduction, you need to satisfy the following:

• you must have spent the money
• it must be related to your job
• you must have a record to prove it.

Take a look at the ATO’s work-related expenses videos to help you get it right this tax time.

Find out more

Deductions you can claim

Farewell Linda

After over 8 years of service, it is time for us to say goodbye to Linda Gibbs.

In recent years some of you may have noticed Linda’s passion for travelling the world.  To explore some more of what the world has to offer, Linda has accepted an accounting role with a charity in Canada.  Linda’s final day with us will be Thursday 13^th August 2015.

We take this opportunity to thank Linda for her service to Ellco Group and all of our client and associates.  We wish her all the best in her future adventures!

If you are a client of Linda’s, rest assured that we haven’t forgotten you!  We are currently delegating your files to the most appropriate accountant to assist you.  For more information, contact our office.

When there are 27 fortnightly pays in a financial year…

If you pay fortnightly wages, don’t forget to consider there are 27 fortnights in the current financial year.

You should let your employees know when this occurs so if they are concerned about a shortfall in tax withheld, they can ask you to withhold the additional amount in the table below:

   Please contact our office if you require assistance.

Our 2015 Tax Checklist is here!

Now that 30 June has ticked over, it is time to get your 2015 tax information together.

Our 2015 Tax Checklist is now available on our website.

The checklist is designed to ensure that all your allowable deductions are claimed.  It is important that if you make a claim the appropriate documentary evidence must be kept to support it.

If you have any questions, please telephone our office.

New minimum wages now available

The new minimum wages and allowances are now available in the Fair Work Ombudsman’s pay tools.

These rates apply from the first pay period that starts on or after 1 July.  So if your pay week is Thursday to Wednesday, the new minimum wages start to apply on Thursday 2 July.

How to find your new rates of pay

The Fair Work Ombudsman has made some changes to the pay tools to make it easier to find the new pay rates.

It’s now quicker and easier to get pay rates, penalties and allowances from the new Pay and Conditions Tool.  To find your new minimum wages in PACT, you’ll need to:

• set the date to 1 July
• know the employment status (full-time, part-time or casual)
• select the modern award and classification
• know the employee’s age (if under 21 years old)

Pay Guides

The Fair Work Ombudsman also have downloadable guides which have pre-calculated pay rates and allowances.  You’ll notice that the new guides also include the all the penalty rates from your award.

Staying up-to-date

Follow the Fair Work Ombudsman on Twitter or like them on Facebook for daily updates about your rights and obligations, answers to FAQs and other important news and information about your workplace.

The Fair Work Ombudsman also has a free newsletter for employers that is delivered straight into your inbox every 2 months.  The next issue is due out in August.  Sign up now for tips and information.

Source:  Fair Work Ombudsman

Last Chance! Things to do before 30 June 2015

Make a Superannuation Contribution

If you have not already done so, ensure you have paid your superannuation contributions prior to 30 June 2015.

Remember, you will not be entitled to a tax deduction if the superannuation fund does not receive the contribution prior to 30 June!

Withdraw your Superannuation Pension

If you are in Pension Phase, please ensure you have met your minimum pension withdrawal requirement prior to 30 June 2015.

If you are unsure of your withdrawal requirement please contact our office.

Purchase New Business Equipment

Following the recent budget announcement, small business owners can now obtain an immediate tax deduction for all business assets purchased for less than $20,000 (excluding GST).

Just to be clear, it doesn’t make sense to go on a spending spree just to get a tax deduction, but if you were already considering purchasing a new asset for your business now is the time to do it!

QBCC announces further changes to Building Licensing

The Queensland Building and Construction Commission (QBCC) has announced that phase 3 of the Queensland Building and Construction Commission and Other Legislation Amendment Bill 2014 will become effective on 1 July 2015.

Some of the key changes to licensing laws effective from 1 July 2015 are:

Reduction of 5 Year Exclusion to 3 Years

Under the old system, the QBCC would cancel the license of an individual for 5 years if:

• a company of which they were a director (within 1 year of liquidation), was wound up, or
• the individual went bankrupt.

Under the new system, the QBCC will cancel the license of an individual for only 3 years.

The penalty for two defaults (for example liquidation of a company and then bankruptcy of the individual) will remain unchanged.  In other words, a life ban for two defaults will still result under the new system.

Only Applies to Building Companies

A banning for being a director of a liquidated company will only apply if the company “directly or indirectly carries out building work or building work services”.  Just what this definition extends to will be interesting.  For instance, a director of a company that provides site cleaning services may be caught.

On the other hand, a director of a company that runs a retail outlet will not be hit with a ban if that company is wound up.

No Permitted Individual Applications

Previously, affected licensees were able to make an application to become a “Permitted Individual”.  Essentially, if the licensee could demonstrate the event of default (bankruptcy or liquidation) was out of their control and they did everything possible to prevent the default, their license could be reinstated.  Under the new provisions, this option is not available.

If you would like advice in relation to your QBCC licence, please contact our office.

Are you ready for 30 June?

A good strategy to reduce tax payable is normally to accelerate any income tax deductions into the current income year, which will reduce overall taxable income in the current year.

Common work-related claims made by individuals

The following outlines common types of deductible expenses claimed by individual taxpayers, such as employees and rental property owners, plus some strategies that can be adopted to increase deductions for the 2014/15 income year.

1. Depreciable plant, etc, costing $300 or less

Salary and wage earners and rental property owners will generally be entitled to an immediate deduction if certain income-producing assets costing $300 or less are purchased before 1 July 2015.

Some purchases you may consider include:

• books and trade journals;
• briefcases/luggage or suitcases;
• calculators, electronic organisers;
• electronic tablets;
• software;
• stationery;
• tools of trade.

2. Clothing expenses

Purchase or pay for work-related clothing expenses prior to the end of the income year, such as:

• compulsory (or non-compulsory and registered) uniforms, and occupation specific and protective clothing;
• other expenses associated with such work-related clothing, such as dry cleaning, laundry and repair expenses.

3. Self education expenses

Consider prepaying the following self education items before the end of the income year:

• course fees (but not HECS-HELP fees), student union fees, and tutorial fees;
• interest on borrowings used to pay for any deductible self education expenses.

Also bring forward purchases of stationery and text books (i.e., those which are not required to be depreciated).

4. Other work-related expenses

Employees can prepay any of the following expenses prior to 1 July 2015:

• union fees;
• subscriptions to trade, professional or business associations;
• magazine and newspaper subscriptions;
• seminars and conferences;
• income protection insurance (excluding death and total/permanent disability).

Note: When prepaying any of the expenses above before 1 July 2015, ensure that any services being paid for are to be provided within a 12 month period that ends before 1 July 2016.  Otherwise, the deductions must generally be claimed over the period of the prepayment.