Newsletter – June 2020

June 2020 Newsletter

Contents:

  • $150k instant asset write-off set for significant drop
  • ‘Deep disappointment’ as China barley tariff move confirmed
  • The quicker and cheaper way to finalise a divorce
  • How voluntary administration helps companies get back on their feet
  • Why you shouldn’t rush your next trip
  • 10 Practical Tips for Business Survival
  • Announcements

$150k instant asset write-off set for significant drop

The $150,000 instant asset write-off will soon revert to its original threshold of $1,000 in just over four weeks, with businesses urged to consider the measure ahead of the end of financial year.
Announced in the first round of the government’s stimulus package in early March, the instant asset write-off threshold was increased by fivefold, rising from $30,000 to $150,000.
 

‘Deep disappointment’ as China barley tariff move confirmed

The Australian barley industry has expressed its “deep disappointment” with the news that China will place tariffs of up to 76.3 per cent on Australian barley exports and called on the Federal Government to pursue the issue with the World Trade Organisation.
 
 
 

The quicker and cheaper way to finalise a divorce

A growing number of separating couples are turning to private courtrooms to fast-track their divorce property settlements at a more affordable cost, according to a law firm.

Barry.Nilsson. principal Will Stidston has highlighted how access to video conferencing technologies has enabled property settlements to be outsourced to private arbitrators in a “quicker and more affordable” way.

How voluntary administration helps companies get back on their feet

It’s not surprising that each day we’re hearing more reports of businesses going into voluntary administration. The perfect storm of cyclones, drought, bushfires and now the coronavirus pandemic are being blamed for the spate of companies — big and small — going down this path. Retailers, advertising agencies, restaurants, sporting groups, even major airlines have gone into or are facing voluntary administration.
 
 

Why you shouldn’t rush your next trip

Eager travellers are being told to be patient and make sure they understand the terms and conditions on any pay now, book later travel deals.

Western Australia’s Commissioner for Consumer Protection, Lanie Chopping, advised travellers looking for their next dream holiday that despite regional borders opening up, interstate and overseas travel still have restrictions.

 

10 Practical Tips for Business Survival

In times of crisis, it is important for leaders to stand tall and lead. There is no doubt that the current Coronavirus pandemic and the resulting impact on the Australian and International economies are serious matters. As a business owner, now is the time for you to lead your business decisively and with purpose. This will give your business the best possible chance of survival.


Announcements:

This month we wish a Happy Birthday to Brian and congratulate Gabi on achieving 23 years service at Watts Price Accountants.
 

Brian Watts

Gabi Freijah  
     
 

Important Notice for All Employers

As the 2019 – 2020 financial year draws to a close, employers need to be aware of their obligation to lodge a Finalisation Report by July 14, 2020. 

All employers will need to:

Use their STP solution to ensure the Finalisation Report is lodged by 14 July 2020

Inform their employees that:

  • They will not be issued with a payment summary
  • They can access their salary information via their myGov account via the ‘Income Statement’
  • Let employees know that they should not lodge their tax return until their status reads ‘Tax Ready’ (check myGov or ask your accountant)

Where Watts Price Accountants or Knights Accounting process your STP obligations:

  • We will be in touch this month to get the relevant employee wage information from you
  • You will need to provide us with a total by employee of the wages paid to date for the year
  • You will need to sign and return to us a ‘STP Finalisation Authorisation to Act’ form to allow us to process the finalisation on your behalf
  • Note: If you will not be paying any more wages between now and the end of the month please let us know

For more information see our Blog post or call us in Horsham (03) 5382 3001 or Rupanyup on (03) 5385 5330.

NB: Single Touch Payroll for Closely Held Payees
 
If you only have closely held payees then you are not required to start STP reporting until 1 July 2021.

A closely held payee is one who is not at arm’s length. This means they are directly related to the entity from which they receive payments, for example:

  • family members of a family business
  • directors or shareholders of a company
  • beneficiaries of a trust

 


Rural Financial Counselling Service

A message from the Rural Financial Counselling Service:

There has been a number of changes to the farming Centrelink support payment Farm Household Allowance, affecting both eligibility and rates of payment. If farmers wish to apply for the Farm Household Allowance, Rural Financial Counsellors can meet with them on-farm and assist them in completing the relevant application forms.

Another significant change to the Rural Financial Counselling Service (in the West Wimmera, Horsham Rural City Council and Northern Grampians Shires) is that we can now offer our services to all small businesses.  That means we can offer financial counselling, cash flow assistance, and business support to all types of businesses – hair-dressers, retail shops, cafes or tourism operators.   We can assist small businesses in understanding their financial situation so that they can make a more informed decision.  Similar to farmers, we can also assist small business in accessing Centrelink or other government assistance payments.

Our Service also has access to some funds (through a program known as the Professional Services Fund) where eligible small business clients can apply for up to $5,000 of funding to access specialist third party advice where it can be shown that the specialist advice will aid business recovery.  Potential eligible advice can include financial advice, specialist taxation, accounting, legal and business planning advice.

If small business owners would like assistance to help them understand where they are situated financially, or even to apply for some of the assistance measures that are currently available, a Small Business Financial Counsellor is available to meet with them, either at their business premises or at another preferred location.

The contact number for the Horsham office of the Rural Financial Counselling Service is (03) 5381 1646.

 
All the best from the Watts Price Team!