January 2020 Newsletter

Contents:

  • Primary Producers – Luxury Car Tax Refund
  • $10,000 limit on cash payments
  • Cash-flow Woes Continue to Drive Insolvencies
  • The Granting of Probate & Finalising of an Estate
  • Should your SMSF have an Individual or Corporate trustee?
  • The Top 5 Signs an Employee is About to Quit
  • Announcements

Primary Producers – Luxury Car Tax Refund

From 1 January 2020, primary producers can claim a refund of luxury car tax (LCT) they have paid on one eligible vehicle per financial year, up to a maximum of $10,000, for vehicles delivered to them on or after 1 July 2019.
 
 
 

$10,000 limit on cash payments

The Morrison government has sought to head off internal and crossbench anger over plans to forbid cash payments of $10,000 or more, outlining a string of exclusions it says will protect those who still want to use notes and cents.

Rules governing new laws around large cash payments make it clear they will exclude gifts, private transactions such as used car sales and situations where people have …

Cash-flow Woes Continue to Drive Insolvencies

Inadequate cash flow or high cash use continue to be the root cause for a company’s failure, ASIC’s latest corporate insolvency report shows.

Of the 7,498 initial external administrators’ reports lodged in the 12 months to 30 June 2019, 51 per cent nominated inadequate cash flow or high cash use as the top cause of business failure.
 

 The Granting of Probate & Finalising of an Estate

It’s not something anyone wants to have to think about, but there will come a time when you or a loved one will need their estate to be finalised. What’s the process?

Probate – the process of validating a will – sees a document issued by the Supreme Court in each state for the management of a deceased person’s estate in accordance with their will.

Should your SMSF have an Individual or Corporate trustee?

An SMSF can either have a corporate trustee or individual trustees.

We strongly recommend that an SMSF have a sole purpose corporate trustee for the reasons outlined below. Further, a sole purpose SMSF corporate trustee qualifies for a substantially reduced annual ASIC review fee compared to a normal company.

The Top 5 Signs an Employee is About to Quit

55% of Australians believe they can tell when someone is thinking of leaving just by the way they act. Here are the key warning signs that signal that an employee is about to quit.

 

 


Announcements:

This month we wish a Happy Birthday to Andrew and Gabi and congratulate Paula, Lee and Grant who all celebrate another work anniversary at Watts Price.
 
Andrew Price Gabi Freijah  
Paula Toll Lee O'Grady Grant Kuchel
 

Software Price Increases

Please note the following bookkeeping software price increases announced by the respective vendors.

Reckon – Effective 16 January 2020

Reckon Accounts Hosted Annual Licence    $705.00
Reckon Accounts Accounting 2019 Annual Licence         $530.00
Reckon Accounts Plus 2019 Annual Licence    $620.00
Reckon Accounts Premier 2019 Annual Licence (from)    $745.00
Reckon Accounts Enterprise 2019 Annual Licence (from)  $750.00
Reckon Accounts Personal Plus 2020 Annual Licence  $180.00
Reckon Accounts Home & Business 2020 Annual Licence  $240.00

Quickbooks Online – Effective 4 February 2020

Note: For clients that are paying Watts Price Accountants or Knights Accounting directly for their subscription you may be on a discounted licence that takes precedence over the rate changes below. If you are affected by the changes below we will contact you prior to the price change!

Simple Start $20.00 p/m
Plus $50.00 p/m

Xero – Effective 18 March 2020

Xero Standard $52.00 p/m
Xero Premium 5    $67.00 p/m
Xero Premium 10   $77.00 p/m
Xero Premium 20  $92.00 p/m

MYOB – Effective 1 April 2020

MYOB raise their subscription prices 1 April every year, at the time of writing we are not aware of the new rates. Listed below is the current rates, based on past experience you might expect up to a 10% increase.

Note: For clients that are paying Watts Price Accountants or Knights Accounting directly for their subscription we will continue to apply a 10% discount to the MYOB retail price.

MYOB Essentials   $48.00 p/m
MYOB Essentials + Payroll  $60.00 p/m
MYOB AccountRight Standard  $70.00 p/m
MYOB AccountRight Plus  $109.00 p/m
MYOB AccountRight Premier    $140.00 p/m

If you would like to discuss any issues relating to your bookkeeping software please contact us!

Watts Price Accountants: mail@wattsprice.com.au or 03 5382 3001
Knights Accounting: info@knightsaccounting.com.au or 03 5385 5330

 

 
Note: Watts Price Accountants & Knights Accounting have now re-opened the office after the Christmas break. 

All the best from the Watts Price Team!