May 2019 Newsletter
- Family Business in Crisis: Who will take over as Baby Boomers retire?
- 4,500 taxpayers set for rental property audit
- Strategies if franking credit refunds stop
- 19k employers, $100m in SG declared during proposed SG amnesty period
Australians have long been fascinated by the Shakespearean succession dramas among families such as the Murdochs and Packers. But as we move into the peak Baby Boomer retirement years a crisis may be looming – who will take over the family businesses? At the start of The Godfather Michael Corleone assures his future wife Kay that he won’t be joining the family business. A later scene reveals that Michael’s father, Vito, had hoped his son could pursue a political career rather than becoming …
Australians with property investment portfolios have a bigger chance of being audited this tax season, as the ATO plans to double its allocation of rental deduction audits. The Tax Office recently did a spot check on property investors’ tax claims, and found that nine out of 10 returns with rental deductions contained an error.
As a result, the Tax Office thinks it’s justified to up its audit activity.
One of Labor’s signature tax reform proposals is to cease franking credit refunds from 1 July 2019, which will impact most individuals and smaller superannuation funds from the 2019/20 financial year. At this stage, we don’t know the detail of the proposal, as it depends on the outcome of the May election and the passage of legislation. Based on what we understand, individual taxpayers including SMSFs will not be able to receive a refund of any franking credits which are in excess of any tax payable. There are some exceptions …
Over $100 million in superannuation has been reunited with employees, with 19,000 employers coming forward since the SG amnesty was announced, despite the bill failing to be passed, the ATO has revealed.
Facing questions during the Senate estimates hearing, ATO deputy commissioner James O’Halloran revealed that the ATO has received a “10 to 15 per cent” increase in employers coming forward with outstanding super guarantee obligations since the SG amnesty was announced on 24 May 2018.
Announcements:This month we celebrate one birthday and one work anniversary. We wish Lyndel a very Happy Birthday and congratulations to Margaret on bringing up 8 years at Knights Accounting!
Single Touch Payroll Presentation
Horsham: Monday 17 June 2019 @ 6pm – 6.45pm, TBC
If you employ staff you should by now know what Single Touch Payroll is. If not you soon will! Single Touch Payroll (STP) is a government initiative to streamline payroll reporting to the ATO and it starts 1st of July 2019 for businesses with less than 19 employees (those with 20 or more commenced 01/07/2018).
The reporting of payments to employees such as salary and wages, PAYG withholding and super liabilities needs to be via STP compliant software. What this means is employers need to start thinking about finding a payroll solution very soon to meet the July start date.
To find out more about Single Touch Payroll please join us at our free STP information session.
This is a must attend session for any employer!
To register your attendance or to discuss any of the above information please call on 03 5382 3001 or email us at email@example.com
Commonly Asked Question
Q: Why is PPSR registration so important?
The Personal Property Securities Register (“PPSR”) allows you to check if the personal property you wish to purchase, such as a car or boat, has a security interest attached to it. The PPSR also makes it easy to undertake searches to see who owns or has a claim over a particular asset (security), helping to avoid nasty disputes in the event of non-payment, bankruptcy or external administration.
Don’t have a registration? Then, unfortunately, your claim over the property may not exist or be valid. With a first-come-first-served approach to ownership, you must register any property that belongs to you before or immediately after you lease it, finance it, or sell it under invoice or consignment terms.
This includes: cars, motorcycles, caravans, boats, livestock, inventory, equipment, intangible property, and financial property. It does not include land or buildings.
If you have an interest in property but have not registered it with the PPSR or your registration has lapsed, you may be at risk of some pretty serious consequences.
Here are two examples that help explain why:
Example 1: You own a commercial property containing expensive equipment, and lease it to a business owner. The business owner goes belly up and the liquidators come in and seize all the assets – including yours.
Example 2: You are a lender, and a borrower asks you for $20,000 to buy a car, with the car as collateral. You lend the money but fail to register on the PPSR, and the borrower also receives finance from another lender, with the same car as collateral. Who gets the car if the borrower can’t pay?
In both examples, a quick and inexpensive registration with the PPSR would be enough to avoid a likely time-consuming and expensive legal process (possibly costing more than the property is worth).
To find out more about the PPSR please contact our office.
Source: LawCentral Newsletter Issue 551: Time’s up: why you may need to renew your PPSR registration
All the best from the Watts Price Team!