Talking Concepts

December 2019 Newsletter

Work Christmas Parties & Gifts

Source: ATO Small Business Newsroom – November 2019

‘Tis the season to be jolly! But ho-ho-hold up before you start making spirits bright and rewarding your employees with gifts or parties this Christmas, as fringe benefits tax may apply when providing all the trimmings.

So you don’t get your tinsel in a tangle for your work Christmas party, consider:

  • how much it costs
  • where and when it is held – a party held on work premises on a normal work day is treated differently to an event outside of work
  • who is invited – is it just employees or are partners, clients or suppliers also invited?

Similarly, where you provide Christmas gifts, you’ll need to consider:

  • the amount you spend
  • the type of gift – gifts such as wine or hampers are treated differently to gifts like tickets to a movie or sporting event
  • who you are giving the gift to – there are different rules for employees and clients/suppliers.

Hiring a Contractor?

Source: ATO Small Business Newsroom – November 2019

There’s no one deciding factor that makes a worker an employee or contractor for tax and super purposes. As an employer, it’s a decision you can only make accurately when you review the whole working arrangement.

The only way to get to the right answer is to ask the right questions. Answer these six questions before you hire a worker:

  1. Ability to subcontract/delegate: can they pay someone else to do the work?
  2. Basis of payment: are they paid based on an agreed quote they provided?
  3. Equipment, tools and other assets: do they provide their own tools and equipment needed to get the job done?
  4. Commercial risks: are they legally responsible for their work and liable for fixing mistakes or defects?
  5. Control over the work: do they decide how the work gets done subject to specific terms in the contract or agreement?
  6. Independence: do they operate their own business independently of your business?

If the answer is no to some or all of these questions, you need to seek further information and advice before treating your worker as a contractor.

Are you using your ABN?

Not keeping lodgments up to date is a key indication that a business is no longer operating. ABNs which are not being used will soon be cancelled. To help us get this right, we use information from:

  • your tax return
  • other lodgments
  • third party information.

If we cancel your ABN and you want to start your business again, or we get it wrong because there’s some information we don’t have access to, you can reapply and get the same ABN back (as long as your business structure remains the same). If the business structure is different, for example you were a sole trader but your new business is a company, you will get a different ABN.

The ABN cancellation program is helping to ensure the integrity of information on the Australian Business Register (ABR).

Remember, registered tax agents and BAS agents can help you with your tax.

First Home Loan Deposit Scheme (FHLDS)

Effective from the 01/01/2020, the First Home Loan Deposit Scheme (FHLDS) will enable First Home Buyer’s (FHB) earning up to $125,000 annually or $200,000 for couples, to get a loan with only a 5% deposit and making available 95% Loan to Value Ratio (LVR) loans.

This will help FHB’s save around $10,000 in Lenders Mortgage Insurance (LMI).

The value of homes that can be purchased under the scheme will be determined on a regional basis, reflecting the different property markets across Australia. 

The First Home Loan Deposit Scheme will offer up to $500 million in the form of equity through the National Housing Finance and Investment Corporation (NHFIC) to focus on improving housing affordability. 

National Housing Finance and Investment Corporation’s has announced one of the two major banks to be appointed to the lending panel for the federal government’s first home loan deposit scheme will be NAB.

See the following articles for more information:

https://www.theadviser.com.au/breaking-news/39798-first-lender-for-fhb-deposit-scheme-announced?utm_source=TheAdviser&utm_campaign=27_11_19&utm_medium=email&utm_content=1&utm_term=ab0f726fb3&utm_emailID=b44abc817efdbea963719b92c5ccfab2e8c5aa518198434090ffdd452444f0f2

https://www.mortgagebusiness.com.au/breaking-news/13405-pm-announces-new-fhb-loan-deposit-scheme

myGov Account

Do you already have a myGov account?

If not it may be time to set one up.

Your also need to log onto your myGov account on a regular basis to check for notices received.

The Australian Taxation Office are now uploading most tax related documents to your myGov account. These may include:

  • Your payment summary (Group Certificate).
  • Your Income Tax Notice of Assessment
  • ATO Statement of Account
  • Changes to your PAYG instalments
  • Other ATO notices

These notices are no longer being  sent to our office, instead they are being uploaded to myGov accounts.

If you miss downloading a notice that requires payments, you run the risk of receiving penalties for late payment.

To set up a MyGov account you will need an email address

Other Notices

DATES TO REMEMBER

20 December – Lodge & pay November 2019 monthly activity statements

20 December – 4pm office closes for Christmas break

8 January – 8.30am office re-opens

28 January – Superannuation Guarantee contributions for December quarter due

28 February – December 2019 all quarter BAS are due NO EXTENSIONS 

Tax Man Travels

Are you going away soon? Next time you’re in the office, ask for a Tax Man and take him on an adventure!

Send your photos to concepts@cr.com.au for a chance to win a prize.

Relay for Life 2020

TARGET $10,000

Concepts & Results are again participating in the Cardinia Relay for Life in February 2020. Our team will walk in a relay, keeping at least one member of the team on the track for 18 hours. Everyone knows someone who has been affected by Cancer and raising money for the Cancer Council to help them find a cure is something that our team is very passionate about. Help us reach our target

If you would like to support our team, you can:

Donate (tax deductible) to the team. Search Cardinia Relay for Life – Team name Concepts & Results.

Donate goods or vouchers which we can use as raffle prizes or Auction Items

Support our fundraising:

Gold Class Movie Days – call or email Beth bcampbell@cr.com.au for details of our next event

Recipe Books $10 – call or email Sue scampbell@cr.com.au to order your copy.

Raffles – we are selling raffle tickets for $2 to win a Booze Bucket valued at over $500. Call or email Beth or Sue to purchase tickets. Raffle drawn 22 Feb 2020

TEAM Updates

Congratulations to Belinda Morris and the safe arrival of her second child – a daughter Georgia

We welcome Joe, Sam and Carol, who are all a part of our bookkeeping team

Interest Rates that start from…

2.85% p/a Fixed Rate                     3.36% p/a Comparison Rate

Based on our lender panel, Choicelend’s 2 Year Fixed Rate Performance Plus, provides the most competitive Interest Rate. Interest rates are correct as at 28/11/2019 and subject to change at anytime. The comparison rate is based on a loan amount of $250,000, over a 30 year term. WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees and other loan amounts might result in a different comparison rate. Terms, conditions, fees and charges apply and your full financial situation would need to be reviewed prior to acceptance of any offer or product.

Merry Christmas

Christmas is about spending time with family and friends. It’s about creating happy memories that will last a lifetime.

Our sincere thanks for everyone’s loyalty throughout the year and we look forwarding to working with you again next year.

Merry Christmas to you and your family.

Christmas Cracker Jokes

What does Santa suffer from if he gets stuck in a chimney?

Claustrophobia

What kind of motorbike does Santa ride?

A Holly Davidson!

Who delivers presents to cats?

Santa Paws!

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Visit us

Want to discuss the above face to face? Come visit our specialised team members to find out more.

612 Warrigal Road, East Malvern PO Box 61, Holmesglen, Vic 3148

Call us

Have any questions? Further discussions on the above can be may be held over a telephone appointment.

(03) 9569 5676

Contact us

For any and all queries regarding the above, you may contact Concepts & Reuslts by emailing us

concepts@cr.com.au

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