December 2019 Newsletter

Contents:

  • A taxing question — superannuation and permanent disablement
  • Small-Scale and Craft Program
  • Hiring a Contractor?
  • Government takes lead on e-invoicing with 5-day payment terms
  • Avoiding the age pension through property
  • Announcements

 

A taxing question — superannuation and permanent disablement

It is not uncommon for a self-managed superannuation fund (SMSF) to hold insurance on the life of one or more members of the fund.
In fact, the Superannuation Industry (Supervision) Regulations 1994, r.4.09(2)(e) makes it incumbent on the trustees of SMSFs to “consider insurance” for fund members when formulating, regularly reviewing and giving effect to the SMSF’s investment strategy.

 

Small-Scale and Craft Program

Grants to support premium small-scale producers, craft brewers and distillers

Through the 2018 election commitment ‘Taking Our Local Produce to the World’, the Victorian Government is supporting small-scale and craft agribusinesses across Victoria to grow, increase market opportunities for high-quality, high-value produce and strengthen Victoria’s regional food offerings to deliver flow-on benefits for jobs and tourism.
 

Hiring a Contractor?

There’s no one deciding factor that makes a worker an employee or contractor for tax and super purposes. As an employer, it’s a decision you can only make accurately when you review the whole working arrangement.
The only way to get to the right answer is to ask the right questions. Answer these six questions before you hire a worker:

 

Government takes lead on e-invoicing with 5-day payment terms

The government has committed to paying businesses within five business days or pay interest on any late payments as it looks to take the lead on e-invoicing.
Minister for Finance Mathias Cormann has announced that from 1 January 2020, the Australian government would adopt five-day payment terms on contracts where both the government and the business are using the e-invoicing framework.
 

Avoiding the age pension through property

Most Australians have an idyllic retirement situation all mapped out despite failing to plan for the years without income, a property investor has warned.

The head of research at Propertyology, Simon Pressley, in a bid to help Australians retire happily through property, has outlined seven facts he thinks are important for investors to know.  

 

Announcements:

This month we wish a Happy Birthday to Lee and Sylvia and congratulate Phoebe who celebrates another work anniversary at Watts Price.
 

Lee O'Grady

Sylvia Hutchinson

 

Phoebe McPherson    
 

Commonly Asked Question

Q: Employer registration for working holiday makers?

You must register as an employer of working holiday makers if you employ – or plan to employ – workers who hold either a:

  • Working Holiday visa (subclass 417)
  • Work and Holiday visa (subclass 462).

You need to register before making the first payment to them.

To register as an employer of working holiday makers you must be registered for pay as you go (PAYG) withholding.

Note: Penalties may apply for failing to register.

Once you register as an employer of working holiday makers you must withhold tax for them:

If you don’t register as an employer of working holiday makers, you must withhold tax for them:

How to register

If your business has an active ABN, you can register as a working holiday maker employer:

  

Q: Where can I find any lost super?

Recent legislative changes mean that small and inactive accounts – those with less than $6,000 and haven’t received a contribution in 16 months – are now transferred to the ATO, who then attempt to match the funds with a member’s active account (one that has been receiving contributions). If no active account can be found, this money will remain with the ATO until claimed by an individual. This is known as unclaimed super.
 
If you’ve ever changed jobs, or held a second job that paid superannuation, then it’s possible you have some unclaimed super that you don’t even know about. To find unclaimed or lost super you can create a myGov account with the ATO or use the Search tool on the AUSFund website. 
 
Alternatively, the ATO has added additional functionality to it’s Tax Agent Portal and your accountant can now perform this search on your request!
 

Q: What is happening to my AUSKey?

Many small business owners use an AUSKey to access business tools provided by the Tax Office via their Business Portal. From April 1, 2020 the AUSKey is being replaced by the Australian Government’s digital identity tool called myGovID which is an app that works on iOs or Android compatible mobile devices.
 
Business owners need to be aware that the myGovID is separate from a myGov account, it’s better to think of it as AUSKey version 2. Your new myGovID will be unique to the user and can utilise security features like fingerprint or face recognition (assuming your device supports these).
 
How to get started?
Step 1: Download the myGovID app onto your smart phone and follow the prompts to set it up. You will need a combination of Australian Passport, Drivers Licence and/or Medicare Certificate to complete the setup.
Step 2: Use the ATO’s Relationship Authorisation Manager (RAM) to manage your business authorisations
Step 3: Once you are linked to your business you can start inviting others to act online for your business
 
To learn more about myGovID and RAM visit the ATO website or contact our office.
 
If you have any queries on any matters in this newsletter please contact our office on 03 5382 3001 or email at mail@wattsprice.com.au
 

 
 
From all the team at Watts Price Accountants & Knights Accounting we wish you and your loved ones a happy festive season and we look forward to seeing you in the New Year!
 
Office Hours
Closed Tuesday 24th of December through to Friday 3rd of January. Business as normal from Monday 6th of January 2020!
 

All the best from the Watts Price Team!