What you need to know this tax season
With tax season in full bloom we’ve compiled a list of a few things we think you should be aware of.
Waiting for your payment summary? Check out myGov
If you are waiting for your annual payment summary from your employer, make sure they are not reporting through Single Touch Payroll (“STP”). If they have prepared for STP, you need to link your myGov account to the ATO to retrieve it.
The ATO will send you a myGov inbox message letting you know:
- you can access your income statement in ATO online services portal through myGov.
- your end of year payment summary (income statement) has been marked by your employer as ‘Tax ready’ and can be used in your tax return.
- you must include all income.
Newly qualified & traveling overseas? Don’t come home to an ATO debt!
This year, many more people will need to start repaying their student debts (such as HELP, VSL or TSL) because
- the income threshold at which Taxpayers with a student debt must make repayments has been significantly lowered. People with a student debt will need to make repayments on that debt if they earn more than $45,881. This new threshold is significantly lower than previous years.
- the base of people required to pay has been greatly expanded. New rules commence on 1 July for Australians with student loans who live or are travelling overseas. They need to notify the ATO of their new address and lodge an overseas travel notification. These Aussies must also report their worldwide income if they earn over $11,470 (AUD). Expats can lodge their tax returns through a pmw or through the ATO’s online services via myGov.
Personal income tax cuts
- As well as the much publicised tax offsets, individuals who earn above $90,000 will save another $135 in income tax this year. The top of the 32.5% tax bracket has moved from $87,000 to $90,000. Income in that bracket used to be taxed at 37%.
Just in case you missed our seminars, webinars and newsletters…
- STP reporting is now in effect! From 1 July 2019, employers are required to electronically send all employees’ tax and superannuation information to the ATO each time there is a ‘Pay Event’ (each time employees and superannuation contributions are paid).
- If you have prepared income statements for FY2019, have you correctly picked up reportable fringe benefits or reportable super in your employees’ summaries?
- Unsure of your requirements? Call your Relationship Manager or see the ATO’s STP fact sheets here.
Instant asset write-off increased and broadened
- Legislation is now in place which confirms the $20,000 instant asset write-off for small business has increased to $30,000.
- The end date for the write-off has been extended from 30 June 2019 to 30 June 2020.
- For medium-sized business ($10m+ in turnover and under $50m), an entitlement to a $30,000 instant write-off is allowed until 30 June 2020.
- The assets must be purchased after 2 April 2019.
No deductions for cash in hand payments
- This year, the government has announced its intention to focus on businesses who pay employees cash-in-hand to ensure these payments are being disclosed to the ATO.
- These new rules deny tax deductions for businesses who do not comply with obligations to withhold or report PAYG or superannuation.