Updated: Aug 17
A message from our Director:
Welcome to our July e-news.
Well it's a new financial year and I know many in our office are breathing a sigh of relief. While it's been a busy few months for us at Roach Morgan-Jones, we look forward to the financial year ahead.
Many of our clients should be now be completing their end of financial year payroll and compliance obligations. For those using Single Touch Payroll (STP), it is now time to make your finalisation declaration. Before you make a finalisation declaration, it's important to ensure all STP information is correct. Once the declaration has been made, an income statement will be issued by the Australian Taxation Office allowing employees to lodge their tax returns.
Any employer with 19 employees or less has until 31 July to make their finalisation declaration. Because of this, the ATO is urging individuals to hold off from lodging their tax returns to ensure all information has filtered through the STP system. If a tax return is lodged before an income statement has been issued, it may need to be amended.
With many of our clients still recovering from drought and COVID-19, it's important business owners use the early part of the new financial year to plan their business strategy for the next 12-months. Having a plan in place will help you achieve your business goals in the most efficient and cost-effective way.
There are several key areas that business owners should be reviewing at this time of year and our range of tailored business advisory packages can help business owners get on top of their numbers.
I'd also like to remind clients impacted by drought and COVID-19 that we have a business package dedicated to the recovery phase. If you need assistance through this tricky period, we're here to help. Please give us a call at the office on (02) 6766 3777.
Our Narrabri office is now being serviced fortnightly by myself and Senior Accountant, Andrew Shiels. We always enjoy getting out and meeting with our clients face to face, so if you'd like to make an appointment, please get in touch.
And lastly, I'd like to welcome some new members to the Roach Morgan-Jones team. Chelly Abbott has joined as office administrator and she'll be working Wednesday to Friday, while Rachel Barrett is our new Superannuation Accountant. They both join Madeline Kulk, who started back in April as our Marketing Coordinator.
Yours in business,
Eligible entities who received initial cash flow boosts will automatically receive additional cash flow boosts when you lodge your activity statements for each monthly or quarterly period from June to September 2020. These will be delivered in either two or four instalments, depending on your reporting period. If you haven't made payments to employees subject to withholding from June onwards, report '0' for PAYG withholding when lodging your activity statement to ensure your business still receives the additional cash flow boost. It's important you don't cancel your PAYG withholding registration until you have received the additional cash flow boost. The cash flow boost is applied against the applicable activity statement lodgment to reduce the amount payable. If the cash flow boost exceeds the activity statement lodged this will be refunded in the coming weeks. The amounts will be equal to the total amount of initial cash flow boosts received and split evenly over the lodgments for the periods June 2020 to September 2020. If you lodge:
quarterly – you will receive 50% of your total initial cash flow boosts for each activity statement
monthly – you will receive 25% of your total initial cash flow boosts for each activity statement.
You can find more information, including examples of how the additional cash flow boosts will be delivered here.
It is now time for employers to make their Single Touch Payroll (STP) finalisation declaration. Any employer with 20 or more employees should have made their finalisation declaration before 14 July, while employers with 19 or fewer employees have until 31 July, 2020.
Before making a finalisation declaration, it is important to make sure all STP information is correct. Once your finalisation declaration has been made, an income statement will be issued to the Australian Taxation Office and your employees will be notified through their myGov account. This will allow them to lodge their tax returns. The sooner you finalise your employees’ information, the sooner they will be able to lodge their tax returns.
To make a finalisation declaration you must provide a finalisation indicator for an employee (and directors, contractors, etc.) as part of your STP reporting.
Once you have provided the finalisation indicator for the employee, the ATO will pre-fill the employee's income tax return and display the information as 'tax ready' in myGov. Anyone that can't make a finalisation declaration by the due date, will need to apply for a deferral, otherwise you may be subject to a penalty. You can find more information here.
The Australian Tax Office has recommended no individual tax returns be lodged in early July, to ensure all tax information has filtered through the Single Touch Payroll (STP) system.
Most employers have until 31 July to finalise their employee's income statements, through the STP system. Once income statements have been completed, the Australian Tax Office will notify individual employees via their myGov accounts.
It is important your income statement is marked as ‘tax ready’ in your myGov account before lodging. If you lodge before your income statement is ‘tax ready’, you may need to amend your tax return and, in some cases, additional tax may be payable.
You can find more information about accessing your income statements here.
It's the beginning of a new financial year, so that means NOW is a great time to plan your business strategy for the next 12-months.
If you want to achieve your business goals it is important you have a solid business plan in place. Where do you want to be in 2 years’ time? 5 years? 10 years? Have you got an exit strategy? If you don’t know where you’re going, how are you going to get there? And more importantly, how can you measure your progressive performance over the period? Important areas business owners should be reviewing now:
budget and cashflow
government assistance and grants
Roach Morgan-Jones has a wealth of experience in helping clients plan, set and achieve their business goals. We have a range of tailored business packages, that can assist you through every step of your business journey. We currently have our Recovery Package available to assist small business owners recovering from drought and COVID-19. It's designed to help business owners understand their current position and how they're trading during the recovery phase.
If you’d like more information on our packages, please get in touch at the office (02) 6766 3777 or visit our website.
If your small business or not-for-profit organisation has experienced a decline in turnover as a result of COVID-19, you may be eligible for a small business recovery grant of between $500 and $3000.
This grant helps small businesses meet the costs of safely reopening or up-scaling operations. These expenses include, but are not limited to:
fit-out changes and temporary physical changes (for example, plastic barriers at checkouts)
staff training and counselling
business advice and continuity planning
cleaning products and additional cleaning services
additional equipment necessary to comply with social distancing or other public health measures
marketing, communications and advertising
digital solutions (for example, e-commerce or business websites).
This grant can only be used for purchases of eligible expenses made from 1 July 2020, and only where no other government support is available. You can find more information about the grant here.
The $150,000 instant asset write-off has been extended until 31 December 2020.
Instant asset write-off can be used for:
multiple assets as long as the cost of each individual asset is less than the relevant threshold
new and second-hand assets.
It cannot be used for assets that are excluded from the simplified depreciation rules. Eligibility has been expanded to cover businesses with an aggregated turnover of less than $500 million (up from $50 million). More information here.
If you wish to participate in the Superannuation Guarantee Amnesty, the law requires business owners to apply by September 7, 2020.
The amnesty allows employers to disclose and pay previously unpaid super guarantee charge, including nominal interest, that they owe their employees, for quarters starting from 1 July 1992 to 31 March 2018.
The Australian Taxation Office has stated if a business owner has applied for the amnesty, but is now impacted by COVID-19 a payment plan can be arranged.
Please call the office on (02) 6766 3777
to make an appointment!