September 2021 Newsletter

Contents:

Support for Businesses in Regional Victoria

A package of automatic cash grants jointly funded by the Commonwealth and Victorian Governments will provide regional Victorian businesses with the support they need following the extension of the Victorian lockdown to the whole of the state. Lockdown directions commenced at 1:00pm on Saturday, 21 August in regional Victoria and will continue until 11:59pm on Friday, 2 September, aligning with restrictions in metropolitan Melbourne.

ATO issues alert on rising investment schemes targeting super

The ATO is seeing an increase in the number of Australians being targeted by super schemes and falling victim to identity theft leading to stolen superannuation. In a recent update, the ATO said it has been seeing an increase in the number of Australians being targeted by investment schemes. Sometimes people will pose as financial advisers or superannuation experts promising to deliver higher returns and encouraging people to invest in fake schemes, risking their retirement savings.

Ruling feared to cost businesses billions overturned at the ‘expense’ of casuals

Employers and employees have been granted certainty moving forward with the High Court effectively shutting down what could have been a pathway for long-term casual staff members to have the same rights as paid leave workers.

 

In a High Court decision, which overturned an earlier Federal Court ruling in the WorkPac v Rossato case, the court upheld WorkPac’s appeal which sought to establish that Mr Rossato was correctly employed as a casual worker.

 

Adding a member to an SMSF: Pros and cons

SMSFs can now have up to six members (prior to 1 July 2021, a limit of four applied). We have since received considerable interest regarding many SMSFs wishing to add members. In particular, numerous parents wish to admit their children to their SMSFs.

While SMSFs are considered family friendly, family members still have disputes, get divorced or separate with their spouses ..

 

The tax trick that property investors need to get their renovation deductions in order

Knowing the difference between renovations and repairs can mean the difference between a timely tax return and an audit by the ATO. BMT Tax Depreciation has issued a timely reminder for property investors, warning them that getting the details wrong can come with costly penalties. BMT chief executive Bradley Beer said, “There are nuances when it comes to claiming work on investment properties, with differences between how a renovation and general maintenance is claimed at tax time.”

 

Mortgage v super: Which should I prioritise?

Are you better off putting your extra money into your home loan or your super fund? We lay out the pros and cons of both options, as well as other factors to consider when deciding. Picture this: you have an extra $500 per month and you’re wondering whether you should use the extra cash to pay off your home loan faster or to top up your super fund. Or maybe you are expecting a large tax refund worth thousands of dollars and you’re thinking whether you’ll get more of your money’s worth by making additional contributions to your mortgage or your super.

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Announcements:

This month we celebrate the following staff anniversaries, Jenny 13 years and Nicole 7 years, congratulations!

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Important ATO Dates

Exciting New Opportunity

It is with mixed emotions that we say farewell and good luck to Dee Schier. Dee has been working part time in our accounting team at Watts Price Accountants for just over 25 years. Dee is also a qualified fitness instructor who has been teaching various exercise classes in Murtoa part-time for quite some time now.

As part of her career change Dee, a Murtoa resident, will be providing various exercise classes out of Murtoa Neighbourhood House.

We wish Dee all the best!

Vic: Regional First Home Owner Grants

The Victorian State Revenue Office has issued a reminder that the $20,000 regional First Home Owner Grant (FHOG) ended on 30 June 2021. However, it also advised that for contracts entered into from that date, eligible persons can apply for the $10,000 FHOG instead.

Targeted assistance for childcare services during lockdown

The Federal Government will provide additional targeted support for child care providers impacted by extended COVID-19 lockdowns, through new fortnightly payments. Childcare services in Commonwealth-declared hotspots will be eligible for payments of 25% of their pre-lockdown revenue. Outside School Hours Care (OSHC) services will be eligible for payments of 40%. This will apply to services seven days after the hotspot is declared, where states have directed families to keep their kids at home. Where kids are still allowed to attend, the supports will kick in four weeks after the hotspot declaration.

NSW and Vic grants declared NANE

The Income Tax Assessment (Eligible State and Territory Covid-19 Economic Recovery Grant Programs) Declaration 2020 has been amended to declare grant programs administered by the States of NSW and Victoria as being “eligible programs” for the purposes of the grants being non-assessable, non-exempt income (NANE) under s 59-97 of the ITAA 1997.

Appointment Procedures Due to COVID

Our offices are closed in line with the most recent State Government COVID-19 lockdown announcement however we are still able to assist you despite the team working remotely at present!

We are able to provide phone and video appointments via Zoom. Those wanting a face to face appointment can register their interest and we will phone you to book an appointment once restrictions allow.

If you have any queries we can be contacted via:

Watts Price Accountants
P: 03 5382 3001
E: mail@wattsprice.com.au
M: PO Box 118, Horsham VIC 3402
 
Knights Accounting
P: 03 5385 5330
E: info@knightsaccounting.com.au
M: 16 Cromie Street, Rupanyup VIC 3388
 

Note: Both offices are equipped with mail slots so you can drop off paperwork at anytime.

All the best from the Watts Price Team!