Avoid the taxing hang over!Don’t be ‘that guy’ who leaves it to the last minute and spends the EOFY eve burning the midnight oil and drowning in accounts mixed with a shot of something strong.Here is everything you need to know about what is coming up and how you can prepare.We know you don’t have time to take it all in – so jump to the number that talks to you.Failing to prepare is preparing to failStart off the new financial year on the right foot by taking control of your current customer base and finding new ways to grow it.Master these top five lead generating activities by clicking here to download your complimentary guide.Penalty rates – what you need to doChanges to the public holiday and Sunday penalty rate affecting employee wages come into effect from 1 July 2017.Public holiday penalty rates will be reduced on 1 July 2017 while the Sunday penalty rates will have a transitional arrangement from 1 July.To navigate these changes, call the Workplace Advice Line on 13 29 59.Keeping up with the Fair Work CommissionThe Fair Work Commission has handed down its annual wage review decision.The announcement was made that a 3.3% increase will take place from 1 July 2017 for modern awards, national minimum wages and national minimum wages for juniors, employees under training arrangements and employees with a disability.For help with these increases, call the Workplace Advice Line 13 29 59.Tax Ch-ch-changes: Small business company tax rate
- 27.5% company tax rate for small businesses. The maximum franking credit that you can allocate to a frankable distribution is also 27.5%.
- 30% company tax rate remains for companies that are not small business entities.
- 8% small business income tax offset (up to $1,000) limited to businesses with a turnover of less than $5 million. It applies only to business income for sole traders, or share of business income for partnerships or trusts.
- $10 million small business turnover threshold (previously $2 million). This means more businesses can access a range of small business concessions, including the $20,000 instant asset write-off and reduced company tax rate.Do you need help balancing the books with these changes? Don’t forget to check the Member Directory for access to accountants and tax experts within your membership network – simple search ‘accounting.’ Click here to access the member dashboard.Spend up! If you buy an asset (new or second hand) before 1 July 2017 under $20,000 you can deduct the business portion in your tax return.You are eligible if:
- You have a turnover less than $10 million
- The asset was first used/installed for use in 2016-17 income year.In the 2017 Budget the government extended the $20,000 instant asset write-off threshold to 30 June 2018 which still needs to be passed. Currently – if it doesn’t pass the threshold reduces to $1,000 from 1 July 2017.Remember: check the Member Directory for access to accountants and tax experts, many even offer member specials. Click here to access the member dashboard.Hot tip: to stay on top of your deductions for next financial year, take advantage of the ATO app myDeductions which allows you to snap and upload deductions on the go.Don’t forget, help is at hand: Remember, if you have any concerns about how to manage your business in the new financial year, speak to us about how your membership can help you. Register for a call back by clicking here or call our hotline on 13 26 96.