Issue 127 - February 2019
On 1 July 2018, the Australian Tax Office (ATO) introduced a new process to streamline the way employers report payroll information. Single Touch Payroll (STP) currently provides a reporting framework for larger employers with 20 or more employees to deliver payroll and superannuation information to the ATO earlier than that currently applies under the PAYG withholding ordinary provisions. This means an employer paying weekly wages will report gross wages, tax withheld and superannuation contributions to the ATO every week when the employee is paid.
New legislation extends the STP reporting obligations to smaller employers who have 19 or less employees. This commences on 1 July 2019.
Many employers' current payroll software solution should be suitable for the new STP reporting requirements, with a minor update required to enable the feature. Accounting software providers such as MYOB, Xero and QuickBooks have STP reporting available to use now.
If your business currently does not use payroll software, the ATO will not force you to purchase such software. Low-cost STP solutions such as simple payroll software, mobile phone apps and portals are currently in development to help smaller employers deal with the changes. The ATO has a requirement that such solutions cost $10 or less per month.
For employers with 1-4 employees, alternate options will be made available by the ATO to help with the transition to STP reporting obligations. Other options available include initially allowing your registered tax or BAS agent to report quarterly, rather than each time you run your payroll, or a full exemption to STP reporting if you have no internet or an unreliable connection.
If you have any concerns or would like further information, please speak to your Brentnalls SA team member.
Brentnalls SA now has a dedicated Construction, Building and Allied Services Team. "It made sense, Brentnalls SA has a long and valued history of services to the construction, building and allied sectors." said Christina Gulliver, Principal. We asked Christina a few questions.
Why should you use Brentnalls Construction for Accounting & Business Advisory needs?
We are passionate about ensuring our clients are informed and in control of their business and personal finances. Being profitable and in control allows clients to achieve their lifestyle and financial goals.
What makes Brentnalls Construction different?
We have a specialised team of advisors with combined experience in excess of 100 years in the construction sector, we understand the nuances of the industry and can connect you with specialist construction industry consultants such as lawyers, financial planners and bankers.
How does Brentnalls Construction help you achieve the outcomes you are seeking?
Historical reports are important; however, we can produce much more than a static profit & loss and balance sheet. We have data analytics specialists who thrive on analysing your business data to provide you with insights on where you should be focusing your attention to get the most out of your business. We can tailor these reports to the needs and operations of your business. The reports can answer questions such as: Who is my best performing team member and why? Which type of projects do they perform best on? Which areas of my business are the most profitable? Where should I be focusing my efforts? It is vital that you are making informed decisions about the future, in line with your strategy.
Brentnalls Construction can help create peace of mind in a range of areas:
- Strategic Planning
- Financial Modelling
- Budgeting & Cashflow Planning
- Business & Data Analytics
- Business Succession & Building a Sustainable Business Model
- Tax Minimisation
- Risk Management
- Financial Advice and Wealth Creation
- Accounting, Compliance & Tax Services
Call now for a FREE consultation on 08 8241 8444 and find out how we can meet your needs, alternatively you can head to our website and download our Construction Brochure.
Increase and Extension To Instant Asset Write-Off For Small Businesses from 29 January 2019
The government has announced an increase to the instant asset write-off for small businesses from $20,000 to $25,000 and extended the scheme for another year, until 30 June 2020.
The scheme will allow small businesses with less than $10 million in turnover to immediately deduct the purchase of an asset costing less than $25,000 (GST exclusive) instead of claiming a deduction over a number of years.
As a result of bringing forward the tax deductions, small businesses will benefit from improved cash flow and therefore have more opportunity to increase their business activity, reinvest in their operations and replace or upgrade their assets.
Legislative change will be required to extend the write-off and the government will be seeking to legislate the change when Parliament resumes in February.
Borrowing In Self Managed Super Funds-Not Dead Yet!
Self Managed Superannuation Funds (SMSF's) have been able to borrow for some time however recent developments have seen the levels of borrowing within SMSF's reduce.
Despite speculation that the Royal Commission into the Financial Services Industry may see a ban on SMSF borrowing, the recommendations released on Monday 4th February 2019 made no mention of any changes to current SMSF borrowing arrangements.
All the major banks have withdrawn their SMSF lending products with CBA the last of the remaining 'Big 4' to remove their SMSF lending products in October 2018. Westpac had removed their SMSF lending products earlier in the previous year, NAB exited in 2015 and ANZ has never had a presence in the SMSF lending space.
Before dismissing either of these Big 4 banks as a lending option for SMSF, it would be worthwhile confirming this directly with your preferred banker as they may still be able to provide a SMSF borrowing solution to clients in certain circumstances.
It is important to note that SMSFs with existing borrowings with these banks will still be supported – they are just not accepting new borrowing applications.
While the Big 4 banks are no longer an option, a range of second tier and alternative lenders are still providing suitable products to support a SMSF wishing to borrow to acquire an investment. These banks include:
- Medfin (for health professionals)
- BOQ Specialist Bank (for certain professionals including health)
- Macquarie Bank
- La Trobe Financial
- Liberty Financial
An alternative to borrowing from a bank is for your SMSF to borrow from a related party. Under this strategy, the related party can borrow from the bank under normal lending conditions, and then 'on-lend' to the SMSF under a Limited Recourse Borrowing Arrangement. This strategy is becoming more popular as a means of overcoming the tightening of lending options by the SMSF directly.
With a Federal Election due in the middle of this year, the Labor opposition has previously proposed that it will prohibit SMSF borrowings to buy property. The current Coalition Government has no plans to restrict SMSF borrowing at this stage.
While there seems to be significant doubt as to whether SMSFs will be able to borrow at some time in the near future, as it currently stands, there has been no change to the ability and general appropriateness of a SMSF borrowing strategy. While the withdrawal of the major banks from this space has limited options, there are still enough players in the market who will be able to support this strategy.
If you believe a SMSF borrowing strategy is something that you would like to pursue, we recommend you get appropriate advice from your accountant, SMSF adviser and/or financial planner to discuss further and determine whether this approach is suitable, and if so, work with you to ensure it is established and structured correctly and effectively.
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- Asset Management, Predictive Maintenance, RFID integration. Reporting dashboards capturing GPS and status data
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By utilising versaSRS, workflow, communications and business processes become measurable and reportable. The ability to track incoming work gives business owners the ability to see areas for improvement unseen previously.
Please e-mail info@VersaDev.com or phone 08 8463 1914 to discuss how VersaDev's software solutions can assist with the optimisation your business. drive online storage offered.
Penny Smith is on the Waikerie Silo Art Committee,
the work in progress on the silo is looking very impressive.
| We congratulate Geoff Schell, Ray White Rural
SA and Clare Valley joint principal (pictured
below) on being crowned the state's top rural
salesperson at the Real Estate Institute of SA
annual awards for the second consecutive
We congratulate Austin Bunnik, Carlie Frantzis and Bryan Chong
for being selected to join us for 4 weeks work experience through
the CAANZ CA Achiever Program.
We welcome Olivia Barbaro who has joined us as a junior office administrator.
We welcome Courtney Duffy, Mariah Vagionas and Alan Lam who are joining us as junior accountants, starting later this month.
Congratulations to Zena Georges for recently marrying her partner Peter.
We also congratulate Stefan Sapio and partner Danielle on their recent nuptials.
We farewell Kayla McLeod and wish her all the best with her studies.
Guide Dogs SA/NT has a long and exemplary history in training and placing Guide Dogs and supporting people with a vision or hearing impairment in South Australia.
Fore more than 50 years, Guide Dogs SA/NT has enhanced quality of life through a culture of innovation, incredible dogs and qualified trainers.
Hi, my name is Wade Crane. I began working at Brentnalls SA in January 2017 as an undergraduate accountant.
Since graduating from the University of Adelaide in December 2018, I have commenced the next chapter of my studies; the Chartered Accountants program.
During my time at Brentnalls SA I have been constantly supported and challenged with each manager and mentor playing a significant role in shaping my professional development.
When I'm not at work, you can find me with friends and family enjoying the outdoors. If I'm not outside, I'll be inside laughing through a comedy marathon; because who doesn't love a good rom-com. I hope to continue with my love of international travel and eventually make my way back to South Africa, the place I was born.