INSIGHTS
ATO LAUNCHES CRACKDOWN ON RENTAL PROPERTIES
The Australian Tax Office (ATO) is cracking down on people claiming excessive deductions on their rental properties. In the spotlight; holiday homes (in particular those in popular holiday destinations).
The ATO is urging taxpayers with rental properties to keep accurate records to ensure that the correct amounts of rental income are reported. For example; If a property is rented at below market rates, to family or friends, deduction claims must be limited to the income earned while rented.
Working out what deductions can and cannot be claimed on the holiday home can be challenging. If you are in any doubt, please contact us for more information.
EMPLOYERS YOU HAVE 1 MONTH LEFT!
1 month left to get your SuperStream compliance sorted that is (employers with 20 or more employees). For information regarding your SuperStream obligations click here.
A brief summary of the most popular software providers is outlined below:
MYOB – the latest online version of AccountRight Plus or Premier is SuperStream compliant. Desktop versions of MYOB Premier will need to be updated to Version 19.11
http://help.myob.com/wiki/display/ar/Set+up+Pay+Superannuation
Xero – all Premium subscriptions are SuperStream compliant
https://help.xero.com/au/PayrollProcessSuper
Reckon – Payroll premier product is SuperStream compliant
https://community.reckon.com/reckon/topics/setting-up-your-reckon-accounts-for-superstream
The start date for businesses with less than 20 employees remains as 30th June 2016, however due to improved accuracy and processing efficiency gains that the accounting systems outlined above provide, we would encourage you all to utilise these benefits in your accounting processes as soon as possible.
Heads up: Don’t be surprised if you receive a text message from the ATO inviting you to join an industry specific SuperStream webinar – If you are thus inclined, it is a great opportunity to gain some further industry specific expertise.
Should you need any assistance with your SuperStream compliance please contact your HK team immediately.
RETURN TO WORK SA: TWO MONTHS IN, WHAT’S THE STORY?
Return to Work SA chairwoman Jane Yuile released figures showing the scheme, formerly known as WorkCover, now has around $370 million in net assets. A year ago it had more than $1 billion unfunded liability.
The statement from the authority claims the improvements are due to a $426 million improvement to work outcomes and claims management, $992 million due to the one-off impact of the State Government’s legislative reforms, and another $228 million for strong investment return.
South Australian businesses for the most part have welcomed the changes which have seen the average premium for employers go from 2.75 per cent to 1.95 per cent from July.
It is now estimated the new scheme will save businesses up to $200 million a year.
ECONOMIC UPDATE SA
Based on the latest ABS data, SA’s economy contracted by 0.2% in the June quarter, and we estimate it is only growing at 1% per annum, well below Australia’s growth rate of 2% per annum.
Weak business confidence and conditions are not helping to arrest SA’s unemployment rate which is stuck around 8%. Building data is also mixed with apartments construction showing some promise in an otherwise subdued sector. The lower dollar has assisted many food & beverage exporters but overall State export earnings have still declined due to falling commodity prices slowing the mining sector.
On a positive note, retail trade is holding up with over 4% per annum growth, only just below the national average.
Click here for the full round-up
WARNING! SHAMELESS SELF PROMOTION FOLLOWING…
This month we celebrated two big winners at Hayes Knight;
Congratulations Ross Sicuro winner of the Australian Investor Choice Awards, category; Accounting. Click here to read more
Congratulations Joel Cross! By day he is ‘Joel the Accountant’ quiet, unassuming and valued member of the Hayes Knight SA & NT Team… By night he is ‘two-time’ winner of South Australia’s prestigious Magarey Medal. Click here to read more
GUILTY AS CHARGED? SLAVES TO THE INBOX
Email overload is suffered by over 67% of Australians, and according to new research each time we react to an incoming message, it takes anywhere between one and 24 minutes to refocus. A study by Human Capital Australia has found that we must change our approach to email if we are to take control of productivity in the workplace. The majority of us are at our most productive during the hours of 7am and noon, but waste this time checking and responding to emails that bear no relationship to the projects that lead to organisational success.
The advice is to schedule certain times to check emails and stick to that routine.
GRANT & FUNDING UPDATES
The Department of Industry and Science’s Entrepreneurs’ Programme focuses on enabling SME’s an opportunity to access advice, assistance and tailored support to help them improve business performance, capability and competitiveness. It is a key component of the government’s growth and productivity agenda, and importantly, is a free service for participating businesses.
To learn more watch this video.
PERSPECTIVES
SORTING THE WHEAT FROM THE ChAFTA
This week marked 100 days since the Chinese-Australia Free Trade Agreement was signed in Canberra, yet legislation to ratify the agreement has still not been passed (due to be debated when parliament resumes next month).
10 years in the making, this historic multi-billion-dollar agreement was for the most part considered a ‘no brainer’ deal. Now, 3 months on, 1 new Prime Minister later and the agreement’s labour provisions continue to cause considerable contention.
On the one hand Turnbull says all the talk of job losses in Australia to Chinese workers is a huge distraction from what ChAFTA is really about and on the other, Shorten has endorsed a union-led assault on the agreement.
Our vote however is with New Zealand Prime Minister, Mr John Key. When asked by the Australian Financial Review if he thought Australia should sign the agreement, he had this to say.
“The numbers speak for themselves. Having negotiated an agreement that is of the highest quality, surely you’d like to grab it with both hands. New Zealand will be quite happy to take it if you don’t.”
Click here for some further insight into the pros and cons of ChAFTA