August 2018 Newsletter

Contents:

  • When is a contractor not a contractor?
  • How an SMSF can acquire related residential property
  • ATO dispels top tax time myths to clients as clampdown rolls out
  • Smartphones are changing the way our brains work
  • Recent Facebook Posts
  • Announcements

When is a contractor not a contractor?

Mistaking an employee for a contractor can devastate any business, with fines of up to A$63,000 per breach.

There’s nothing temporary about it: contract work is on the rise. A recent survey by PwC reveals that 46 per cent of global human resources (HR) professionals believe contractors …

 

How an SMSF can acquire related residential property

The acquisition of residential property from a related party of an SMSF trustee is ordinarily prohibited, even though this may form part of a sound investment strategy for the fund. There are however exceptional circumstances where such a prohibition does not apply.

 

ATO dispels top tax time myths to clients as clampdown rolls out

Ahead of one of its biggest deductions crackdowns, the tax office has released a series of common mistakes and misunderstandings taxpayers make at tax time.

The ATO has identified the top 10 tax myths and misunderstandings it says are causing incorrect claims, off the back of its landmark individuals not in business tax gap report, which purported that 78 per cent of agent-prepared returns required adjustments …

Smartphones are changing the way our brains work

How would you cope without your smartphone?

You may be unaware just how much of your time is taken up looking into the black mirror. A study conducted in 2017 found that, on average, we spend 23 days a year on our phones.

Smartphones have rapidly changed the way we operate as human beings.


Recent Facebook posts you may have missed:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Announcements:

This month we wish happy birthday to Phoebe & Paul!

Phoebe McPherson

Paul Mackereth

 

 

 

 

This month we see a number of team members bringing up anniversaries. Congratulations to Sylvia, Cris, Joanne & Paul (seen above)! 

Sylvia Hutchinson Cris Semmler Joanne Dreckow

 


Commonly Asked Question

What is the tax treatment of cryptocurrencies? 

The term cryptocurrency is generally used to describe a digital asset in which encryption techniques are used to regulate the generation of additional units and verify transactions on a blockchain. Cryptocurrency generally operates independently of a central bank, central authority or government.

The creation, trade and use of cryptocurrency is rapidly evolving. This information is our current view of the income tax implications of common transactions involving cryptocurrency. Any reference to ‘cryptocurrency’ in this guidance refers to Bitcoin, or other crypto or digital currencies that have the same characteristics as Bitcoin.

If you are involved in acquiring or disposing of cryptocurrency, you need to be aware of the tax consequences. These vary depending on the nature of your circumstances.

Everybody involved in acquiring or disposing of cryptocurrency needs to keep records in relation to their cryptocurrency transactions.

If you have dealt with a foreign exchange and/or cryptocurrency there may also be taxation consequences for your transactions in the foreign country.

https://www.ato.gov.au/general/gen/tax-treatment-of-crypto-currencies-in-australia—specifically-bitcoin

If you have any queries please contact our office!


Have you moved your accounting software to the cloud yet?

We have had more than 20 businesses in the last few weeks move from desktop accounting software to new cloud accounting software. It’s the ideal time to consider a move, so if you are interested in:

  • spending less time inputting data
  • greater accuracy
  • greater mobility
  • ability to share your file with multiple users simultaneously
  • ability to integrate with other great apps

then give us a call to discuss whether or not moving to the cloud is the right option for you.

All the best from the Watts Price Team!