May 2021 Newsletter
- ATO Commences SMS Debt Reminders
- ATO Turns on Online Services for Business
- Pro’s and Con’s of Working in the Gig Economy
- AFSA Spells Out the Consequences of Bankruptcy
- 7 Reasons you can Access Superannuation Early
- Assessing Equity in the Family Home
The ATO has flicked the switch on its new Online services for business, officially replacing its existing Business Portal.
The change makes Online services for business the ATO’s default service for businesses that interact directly with the ATO online, with businesses and self-managed super fund auditors now able to access the new service through their myGovID.
Although bankruptcy can provide relief if you are unable to repay your debts, there are consequences which may affect you. Being aware of these consequences can help you decide if this is the best option for you.
As Bernard Salt’s article in Firstlinks on ‘the 2020s baby boom retirement surge‘ pointed out, Australians retiring today have never been healthier, better educated or longer living. There is an increasing emphasis amongst retirees on quality of life in retirement and maintaining a standard of living commensurate with their pre-retirement lifestyle.
This generation has also had the benefit of rising property values over recent decades, with the consequence that a large proportion of their wealth resides in the family home.
Announcements:This month we wish Lyndel a very Happy Birthday. We also congratulate Margaret on 10 years service!
Important ATO Dates
|Lodgement Program||Due Date|
|Quarter 3 (January–March) PAYG instalment notices (forms R and T)||28/04/2021|
|Quarter 3 (January–March) GST instalment notices (forms S and T)||28/04/2021|
|Quarter 3, (January–March) super guarantee contributions||28/04/2021|
|Fringe benefits tax (FBT) return – Final date for lodgment and payment if required||21/05/2021|
|April monthly activity statements||28/05/2021|
Single Touch Payroll for Closely Held Payees
Single Touch Payroll (STP) is a new way of reporting tax and super information to the ATO. Using payroll software or another STP solution you will send your employees’ salary and wage information, pay as you go (PAYG) withholding and super information to the ATO each time you pay your employees.
Closely held payees
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
Your Obligations from 01/07/2021
If you only have closely held payees then you are required to start STP reporting from 1 July 2021, amounts paid to closely held payees must be reported through STP enabled software in any of the following ways:
- Report actual payments on or before the date of payment
- Report actual payments quarterly when your activity statement is due
- Report a reasonable estimate quarterly when your activity statement is due
Note: You will be required to make Superannuation Guarantee contributions quarterly by the 28th of the following month to avoid SGC liabilities and General Interest Charges (even if using the quarterly estimate method).
Also, you are still required to report STP each pay day for your arm’s length employees!
How to calculate the reasonable estimate amount
With closely held payees you may need to estimate the pay amounts. The methods for estimating a reasonable amount includes:
- Withdrawals taken by the payee. (Do not include payments of dividends or payments which reduce liabilities owed by the business to the closely held payee).
- Calculating 25% of the total salary or director fees from the previous year (or year of the last lodged tax return of the closely held payee).
- Vary the previous years’ amount of the total salary or directors’ fees up or down by 15% to take into account current trading conditions.
How to lodge the quarterly STP report
The quarterly STP report needs to be lodged through an STP-enabled solution which must be registered with the ATO. You can either lodge the report yourself or have your registered agent lodge on your behalf. Please note that the STP report can’t be lodged through ATO portals. It is not an additional label on your activity statement.
Finalisation declaration due dates
If you report for your closely held payees on a quarterly basis, you will have up until the due date of your income tax return to make your finalisation declaration. Finalisation is still required by 14 July for all arms-length employees.
Looking for a cost effective STP compliant software option? We recommend and use Keypay (https://www.keypay.com.au/) but can advise on other popular options. Alternatively, we can process the STP reporting on your behalf for a nominal fee.
The team at Watts Price Accountants & Knights Accounting are here to help, you can contact us at:
Watts Price Accountants 03 5382 3001 or firstname.lastname@example.org
Knights Accounting 03 5385 5330 or email@example.com
Farm Safety Rebate Scheme
The Victorian Government (through Agriculture Victoria) has provided an opportunity to improve safety outcomes on farms with the establishment of the Farm Safety Rebate Scheme.
Rebates of up to $5,000 excluding GST are available with at least 50% co-contribution to assist eligible farm businesses within Victoria to invest in infrastructure and equipment to improve safety for farming families, workers and visitors to Victorian farms.
Only one rebate payment is permitted, and all eligible claims must be included on your Application Form.
The availability of rebates is subject to funds being available. No rebates will be offered beyond the allocated total Victorian Government funding of $3 million (ex GST).
Applications open 25 February 2021 and close on 31 December 2021, rebates are available until the closing date or when program funds are fully allocated, whichever is sooner.
To find out more visit: https://www.ruralfinance.com.au/industry-programs/farm-safety-rebate-scheme
Farm Safety Rebate Scheme Guidelines: https://www.ruralfinance.com.au/uploads//grant_files/farm-safety-rebate-guidelines.pdf