December 2017 Newsletter
- Employing Backpackers – What you need to know!
- How will you pay for Aged Care
- Annual ‘Close Down’ Period – What you need to know!
- Top 10 tax tips for rental property owners
- Ordinary Time Earnings – what’s included!
- Outdated deeds a ticking time bomb
- Upcoming Events
- Recent Facebook Posts
- Most Asked Question of the Month
Almost 12 months ago a number of changes were made regarding the employment of backpackers, unfortunately many employers are still getting caught out regarding their responsibilities which opens them up to large fines.
Employees should withhold 15% tax from working holiday makers from January 1, 2017. This applies to the first $37,000 of a working holiday maker’s income.
By 2060, about a quarter of all Australians will be older than 65 so families need to understand how to engage with a “rapidly” growing aged care sector.
That’s according to the managing director and senior financial planner at Profile Financial Services. Phillip Win this week said that aged care is “an area that is growing rapidly” and which also “struggles to keep up with demand”.
Many businesses have a period of close down between the Christmas and New Year periods. For those businesses intending to close down over the Christmas period we recommend you ensure the following issues are covered:
1. Make sure any modern Award covering employees contains terms permitting your business to implement a close down.
The ATO has issued a list of tips that should help rental property owners avoid what it has found are their 10 most common errors.
1. Keeping the right records
Your client must have evidence of their income and expenses so they can claim everything they are entitled to. Capital gains tax may apply when they sell their rental property. So they should keep records over the period they own the property and for five years from the date they sell the property.
The superannuation rules stipulate that an employee’s earnings base must be the amount on which minimum superannuation contributions are payable to avoid the superannuation guarantee charge (SGC). This earnings base is determined as “ordinary time earnings” (OTE).
In general terms, this seems self-explanatory — that is, OTE is what an employee earns for their day-to-day hours of work.
A surprising number of older SMSF deeds pre-dating the 2008 financial year still remain, some of which contain inappropriate clauses exposing members to unforeseen risks, an industry lawyer warns.
DBA Lawyers senior associate William Fettes said while reviewing and updating a trust deed can be a costly exercise, it is generally recommended that SMSF trust deeds are updated every four or five years or when there is a major legislative change.
Recent Facebook posts you may have missed:
This month we wish Jan, Lee & Sylvia a happy birthday! We also congratulate Phoebe who is bringing up her first year anniversary of service!
December BAS and IAS is due 28 February 2018!
Most asked question of the Month:
What is the best accounting software?
We regularly get asked this question and I’m afraid there is no simple answer as each application has it’s strengths and weaknesses and will suit different business needs.
But having worked with all the leading applications we do find that we are regularly recommending some more than others. So we have put together a brief summary that you might find interesting, particularly if you are still using desktop software rather than cloud based applications.
‘Brief Accounting Software Summary’
If you have any queries please contact our office.
Festive Trading Hours
The team at Watts Price Accountants and Knights Accounting would like to wish you all a very Merry Christmas and a prosperous New Year!
We will be closing at 5.30pm on Friday 22 December and re-opening Monday 8 January at 9.00am!
All the best from the Watts Price Team!