In This Issue
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Considered Value
Issue 133 - February 2020Changes to Super Guarantee Requirements for Employees who Salary Sacrifice SuperNew legislation was passed on 1 January 2020 which ensures that the superannuation contributions made by an employer on their employees' behalf are not reduced by salary sacrificed amounts. Before the legislative change, the superannuation guarantee was calculated on the salary and wages for the employee, excluding any salary sacrificed amounts. They were technically allowing an employer to reduce the mandatory superannuation guarantee amount. For example, an employee who earns $10,000 per quarter has $2,000 salary sacrificed into super. The minimum superannuation guarantee amount which an employer was liable for was calculated on the $8,000 paid as salary and wages. As the $2,000 was already paid by the employer (via salary sacrifice), it removed the potential liability for superannuation guarantee charge. From 1 January 2020, you will no longer be able to reduce the superannuation guarantee base amount by an employee's salary sacrifice to super. To ensure you will not have a shortfall and be liable for super guarantee charge (plus penalties), we recommend you:
If you require any further assistance on this measure, please contact this office.
Open Banking ChangesFrom July 2021, all banks will be required to open up banking information to accredited third parties, with consent from account owners. This means, customers will have control of their data, making it easier to switch products and find better deals. Currently, it isn't straightforward for customers to get hold of their full financial data and for banks to send that data to each other and other providers. Open banking will allow customers to request their data be sent to other banks, financial institutions and authorised organisations when they want. Some practical examples where open banking can be used:
The timeline for releasing this information
Our Invoicing Process ChangeOver the last year, we have made changes with the way we send out our debtor statements. We are now making the same changes to our invoicing, which gives you an additional payment option. If you receive an email from the above, please do not disregard as spam. However, if you suspect it is not legitimate, please contact our office to discuss before clicking on the pdf or any links. Should you have any queries regarding this, please contact your Brentnalls SA team member.
Microsoft Windows 10 Update Microsoft has released security updates for the Windows 10 application. The Australian Cyber Security Centre recommends that updates be applied urgently. Learn more about the update via the Microsoft Guide here: https://support.microsoft.com/en-au/help/4027667/windows-10-update
Here's Why You Shouldn't Abbreviate to 20 on Legal DocumentsIn the past, it has been acceptable to shorten the year by not writing it in full for example 03/01/20. However, we are now warned that this shortening habit could open you up to significant risk of fraud. The concern is around the ease of which you can add on a date from the last two decades. For example: 03/01/20 to 03/01/2019. This allows scammers a chance to defraud you. With this in mind we suggest that you make a new habit by completing the full year on any document that you sign. Better to be safe than sorry!
Advisory Boards - The Saviour For Family BusinessFamily businesses are often run by one or two people at the head of the family and have an informed decision-making process. While this can be fine for small businesses at first, more mature and growing family businesses can benefit from a more formal board structure. Board meetings may sound tedious; however structured get-togethers can make the difference between success and failure. In family businesses, it is wise to ensure that all major decisions are based on informed data/analytics and receive due scrutiny. The advantage of regular advisory board meetings, which include family members, key personnel, advisors or trusted business associates reduces the load on the critical decision-makers. Also, they assists with intergenerational involvement, and reduce resentment if things don't go to plan. All board members get to have their say and 'buy-in' to crucial decisions, giving them a higher chance of success. Regular board meetings cover many aspects of business management, including:
The outcomes of advisory boards include:
Advisory Boards tend to meet quarterly with structured annual plans, standard agendas, action lists to govern outcomes and follow up. They should also annually review their performance and achievements. If you think an Advisory Board could help your business, please contact us for more information.
First made available in the 2016 Financial year, 'myDeductions' is a record-keeping tool within the ATO app that has progressively developed over time. It can now track and record a range of tax deductions throughout the financial year. Primarily a tool to assist individual taxpayers, it can be used by employees, non-employees and sole traders alike to record their:
These records can then be emailed to tax agents to assist in the preparation of income tax returns or uploaded and prefilled directly into a tax return ready for review and lodgment. However, if you are a sole trader in primary production activities or earning personal services income, data can be recorded and shared via email. Note: it should not be uploaded to prefill your tax return. The tool is free and can be accessed here:
https://www.ato.gov.au/General/Online-services/ATO-appmyDeductions/ If you have any questions, please contact our office.
Brentnalls NewsShali Manolev | Partner is celebrating 20 Years at Brentnalls SA. "Doesn't time fly! I started my career in February 2000 working as a junior accountant at Hinks & Smith before moving with Craig Farrow and John Crouch when Brentnalls SA was established in November 2000. Over the last 20 years of my career, I have seen many changes in tax policies, worked with multiple clients in many different capacities and grown both professionally and personally. Thank you to all the partners, staff and clients who have supported me over this journey." - Shali Manolev | Partner
We congratulated our recent CA Graduate, Jade Gurung.
We welcome Alyssa Clapp as a Junior in the Administration Team. We welcome Ivy Hoang and Dino Mirascija, who are here as our CA Achievers for 2019. Ivy and Dino will be spending four weeks work experience with us. We warmly welcome Rocco Lagana and Luke Furlan who will be starting on 10 February as Junior Accountants. Sadly we say goodbye to Stefan Sapio who has been with us since 2011. We would like to thank Stefan for his contribution to the firm and wish him well for the future. We also farewell Joshua Zigori who is moving back to Sydney. We would like to wish Joshua all the very best for the future. This month Brentnalls SA is supporting: CFS FoundationMeet Vanessa Willans
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The information provided in this newsletter does not constitute advice. The information is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. We recommend that you contact Brentnalls SA before making any decision to discuss your particular requirements or circumstances. Brentnalls is not a partnership or a joint venture. Instead, the business of Brentnalls SA is independently owned and operated and it is an independent member of the Brentnalls Affiliation of Accounting Firms. Individual member firms do not accept responsibility or liability for the actions or inactions of any other individual member firm. |