Single Touch Payroll (STP)

If agency has commenced using Single Touch Payroll (STP), employee’s payment summary data is known as an ‘income assertion’ in myGov. This is now the equal of your payment Summary (some human beings can also still seek advice from it as a group certificate).

The organization isn’t obliged to present you an end-of-12 months payment summary for the facts they file via STP (the law has changed).

The payment summary facts will now be available in myGov. ATO will send a notification to into myGov inbox when individuals’ earnings assertion is ‘tax ready’ so employee, or his tax agent, can complete tax return. Employee can contact ATO for a copy of income announcement.

STP software automatically sends your employees’ tax and superannuation records to the ATO. STP allows employees, too.

The main advantage of single touch payroll is to assist employers streamline their reporting system to the ATO. With data supplied after every payroll cycle, the ATO will be able to pre-fill PAYG sections of BAS for employers and take away capability mistakes and double handling.

For more information on online tax return 2020, Tax Return 2020 or any other tax related matter, please call our professional accountant on 1300 768 284 . For more information please contact us at 1300768284 or you can email us at enquiry@taxrefundonspot.com.au

Fringe Benefits Tax (FBT)

FBT is a tax on employers, for taxable benefits furnished to personnel or their associates, by way of the organization or associates. Typical varieties of benefit are the provision of a car, loans and the charge of expenses. To be taxable, the essential additives of a fringe benefit are:

  • there is an employment relationship
  • a benefit has been supplied
  • it isn't an excluded benefit

FBT: What’s new in 2019-20

  • no change in the FBT and gross-up rates
  • indexation factors for valuing non-remote housing

2019-20 FBT Year

The indexation elements for valuing non-faraway housing for the functions of segment 28 of the Fringe Benefits Tax Assessment Act 1986 for the fringe advantages tax year starting off on 1 April 2019

New South Wales1.020
Victoria1.019
Queensland0.997
South Australia1.008
Western Australia0.937
Tasmania1.043
Northern Territory0.948
Australian Capital Territory1.028

FBT record-preserving exemption threshold for 2020 uplifted to $8,714

  • FBT cents per kilometre for vehicle aside from a car prices uplifted
  • The FBT benchmark interest price for 2019-20 is 5.37% per annum
  • Reasonable meals and drink
  • Car parking daily rate threshold for 2020 is $8.95- adjusted annually

For more information on online tax return 2020, Tax Return 2020 or any other tax related matter, please call our professional accountant on 1300 768 284 . For more information please contact us at 1300768284 or you can email us at enquiry@taxrefundonspot.com.au

Payment Summaries and Group Certificates

Group certificates (officially called Payment Summaries) are presently required to be issued to employees by 14 July of every 12 months, covering earnings within the preceding year to 30 June.

Following their issue, the records should also be lodged through the business enterprise with the Tax Office, which enables the discharge of the electronic facts to myTax for taxpayers lodging their own returns online.

Under pay as you go (PAYG) withholding, agency should give every of your personnel, employees and different payees a charge summary displaying the payments you’ve got made to them and the amounts you withheld from the ones payments in the course of a economic yr.

Generally, enterprise must give each of your employees a payment summary via 14 July each yr, even though the withheld amount is nil.

You want to offer your payee with an amended payment summary if any of the following are wrong on the payment summary you issued:

  • the price quantity
  • the tax withheld quantity
  • the charge codes
  • the tax record number

For more information on online tax return 2020, Tax Return 2020 or any other tax related matter, please call our professional accountant on 1300 768 284 . For more information please contact us at 1300768284 or you can email us at enquiry@taxrefundonspot.com.au

Tax Offset

Tax offsets are quantities subtracted immediately from your tax payable. Tax offsets are also called tax rebates.

In contrast, a tax deduction is an amount subtracted from taxable income, which therefore handiest reduces your tax by using your marginal tax rate percent. (Because the tax charges move up in steps primarily based on earnings, your ‘marginal tax charge’ refers back to the tax percent applying to the top slice of your taxable profits).

Each type of tax offset can potentially bring about no tax being payable. Some tax offsets may be refunded in coins if the offset price is better than your tax payable. (“refundable offsets“). Most tax offsets however, aren’t refundable.

Private Health Insurance tax offsets are an instance of tax offsets which may be refundable if the offset cost exceeds your tax payable. The Low Income Tax Offset (“LITO”) is an instance of a tax offset which is not; the price of LITO is restrained to the quantity of tax payable, and so can’t bring about a refund.

Low Income Tax Offset (“LITO”)

The cause of the LITO is prevent low income earners paying tax. It correctly lifts the minimal tax threshold. For the years 2018-19 to 2022-23 its miles mixed with the Low and Middle Income Earners tax Offset (LMITO).

For more information on online tax return 2020, Tax Return 2020 or any other tax related matter, please call our professional accountant on 1300 768 284 . For more information please contact us at 1300768284 or you can email us at enquiry@taxrefundonspot.com.au

Capital Gain Tax (CGT)

The factor at that you make a capital gain or loss is generally when you enter into the settlement for disposal, not while you settle. So in case you sign a agreement to sell an investment property in June 2020, and settle in August 2020, you need to file the capital advantage or loss to your 2019–2020 tax go back. If you’re an Australian resident, CGT applies for your belongings anywhere in the world. For Norfolk Island citizens, CGT applies to property acquired from 23 October 2015. Foreign residents make a capital gain or loss if a CGT event takes place to an asset that is ‘taxable Australian belongings’.

  • Most personal assets are exempt from CGT, consisting of your home, car and personal use assets inclusive of furniture.
  • CGT additionally doesn’t observe to depreciating belongings used solely for taxable purposes, along with business equipment or fittings in a rental property.

If you promote a capital asset, including real estate or shares, you generally make a capital gain or a capital loss. This is the difference among what it price you to collect the asset and what you receive when you put off it. You want to document capital profits and losses to  our profits tax return and pay tax in your capital profits. Although it’s called capital profits tax (CGT), this is simply part of your profits tax, not a separate tax. When you are making a capital benefit, it is brought on your assessable profits and can significantly increase the tax you need to pay. As tax is not withheld for capital gains, you may want to work out how tons tax you may owe and set aside sufficient funds to cowl the relevant amount. If you are making a capital loss, you can not declare it in opposition to your other earnings but you could use it to lessen a capital advantage. All assets you’ve acquired considering that tax on capital profits started (on 20 September 1985) are situation to CGT unless specifically excluded.

Exemptions:

  • Any asset obtained earlier than 20 September 1985, called a pre-CGT asset. But an asset loses its pre-CGT popularity if massive adjustments are made to it (e.g. essential additions to a building), or on the loss of life of the authentic owner.
  • The house, unit, etc., that's the taxpayer's important residence, and up to the first 2 hectares of adjoining land used for domestic purposes.
  • Personal use belongings, acquired for up to $10,000, such as boats, furniture, electrical device, etc., which are for personal use. Items generally bought as a hard and fast must be handled together for the $10,000 limit.
  • Capital loss crafted from a private use asset. (S108-20(1) ITAA1997 … any capital loss crafted from a private use asset is disregarded)
  • Collectables acquired for up to $500, along with art, jewellery, stamps, etc., held for private enjoyment. Items normally sold as a hard and fast must be dealt with as a hard and fast for the $500 limit. If collectables sometimes rise in cost then this exemption may be a bonus to a taxpayer gathering small items.
  • Cars and other small motor motors which includes motorcycles ("small" being a sporting capacity less than 1 tonne and much less than 9 passengers). Since cars normally decline in price this exemption is genuinely a disadvantage. But the exemption applies even to antique or collectible automobiles, so if they upward push in fee then the exemption is a bonus.
  • Compensation for an occupational injury, or for private injury or illness of oneself or a relative. (However, reimbursement for breach of agreement is issue to CGT.)
  • Life insurance policies surrendered or offered via the original holder. Such profits are as a substitute taxed as everyday profits (whilst held for much less than 10 years). A third birthday celebration who buys the sort of policy will be challenge to CGT as on an normal investment.
  • Winnings or losses from gambling (which might be additionally free of earnings tax).
  • Bonds and notes bought at a discount (including zero-coupon bonds) and "traditional securities" (sure hobby bearing notes convertible to shares). Gains and losses from those are regular taxable profits.
  • Medals and decorations for bravery and valour, provided they're acquired for no (financial) cost.
  • Shares in a pooled development fund, that is a unique structure with regulations facilitating challenge financing. Certain different eligible venture capital investments are also exempt from CGT.

For more information on online tax return 2020, Tax Return 2020 or any other tax related matter, please call our professional accountant on 1300 768 284 . For more information please contact us at 1300768284 or you can email us at enquiry@taxrefundonspot.com.au

Deductions

When completing your tax return, you’re entitled to say deductions for some prices, most of which might be without delay associated with incomes your income.

Work-associated costs

To declare a work-associated deduction:

  • you need to have spent the money your self and weren't reimbursed
  • it should without delay relate to earning your income
  • you ought to have a report to show it.

If the rate turned into for both work and personal purposes, you could best declare a deduction for the work-associated portion. Work fees reimbursed to you by your agency are not deductible.

We can seek facts from your enterprise if we think you have got claimed a deduction for an expense that you have already been reimbursed for.

You can be able to claim a deduction for costs that without delay relate on your work, along with:

  • Vehicle and travel fees
  • Clothing, laundry and dry-cleaning expenses
  • Home office prices
  • Self-education prices
  • Tools, equipment and other assets
  • Other work-related deductions

Employees (consisting of casuals) can claim work-related expenses in the  economic  year  they’re  incurred. This is the case even if you begin employment in June however don’t get hold of  income until the next monetary year, you could declare deductions for work-associated expenses incurred in June.

If you employ a person to assist you on your employment, usually you can’t claim a deduction for using that person.

For more information on online tax return 2020, Tax Return 2020 or any other tax related matter, please call our professional accountant on 1300 768 284 . For more information please contact us at 1300768284 or you can email us at enquiry@taxrefundonspot.com.au

National Rental Affordability Scheme (NRAS)

The
national rental affordability scheme (NRAS) is designed to encourage
large-scale investment in affordable housing. The NRAS offers tax and cash
incentives to providers of new dwellings on the condition that they are rented
to low- and moderate-income households at 20% below market rates.

The NRAS
offers annual incentives for a period of 10 years. The incentive comprises:

  • a Federal Government contribution in the form of a refundable tax offset or payment to the value of $8,187.78 per dwelling per year in 2015-16
  • a state or territory contribution in the form of direct financial support or an in-kind contribution to the value of at least $2,729.26 per dwelling per year in 2015-16.

The
incentive will be indexed in line with the rental component of the consumer
price index. The Department of Social Services (DSS) is responsible for
administering and implementing the scheme.

What NRAS incentives are provided through the tax system?

The Federal Government contribution or incentive is paid in the form of refundable tax offsets for complying investors who can claim their entitlement to the tax offset using one of the following methods:

  • in their annual tax return
  • by lodging a short-form application if they are an income tax exempt entity who would not ordinarily lodge a tax return.

 What is a refundable
tax offset?

Most tax
offsets can only reduce the amount of tax you pay to zero – that is, if your
tax offsets are greater than the amount of tax you are liable to pay, you do
not get a refund of the excess amount. However, there are some exceptions to
this general rule. These exceptions are classed as refundable tax offsets.
Refundable tax offsets can reduce the amount of tax you are liable to pay to an
amount less than zero, which results in a refundable amount. The NRAS tax
offset is a refundable tax offset.

Who is entitled to the NRAS tax offset in their annual tax return?

Claims by individuals, corporate tax entities and super funds

An individual, corporate tax entity or super fund is entitled to claim a refundable tax offset provided both of the following apply:

  • they have been issued with a certificate from the Housing Secretary under the NRAS
  • the income year begins in the NRAS year to which the certificate relates.

Claims by a members of an NRAS consortium

An individual, corporate tax entity or super fund that is a
member of an NRAS consortium

Circumstances may arise where an individual, a corporate tax entity or a super fund is a member of an NRAS consortium. In these circumstances, these entities are entitled to claim a refundable tax offset provided all of the following apply:

  • the NRAS approved participant of the NRAS consortium has been issued with a certificate from the Housing Secretary under the NRAS
  • the income year begins in the NRAS year to which the certificate relates.

Capital
gains tax

There are no capital gains tax consequences from providing incentives or other benefits under the NRAS.

For more information on myTax 2019, online tax return 2019, myGov 2019, Tax Return 2019 , or any other tax related matter, please call our professional accountant on 1300 768 284 . For more information please contact us at 1300768284 or you can email us atenquiry@taxrefundonspot.com.au

Ancillary Fund Returns

Public and private ancillary funds (which are categories of deductible gift recipients) must lodge an annual information return with us, in addition to any requirement to lodge an income tax return.

Even if an ancillary fund is exempt from income tax, it must still lodge an annual information return.

Private ancillary funds

Introduction

This fact sheet explains the deductible gift recipient (DGR) category for private ancillary funds (private AFs) that came into effect on 1 October 2009.

It explains:

  • the requirements for endorsement
  • how to apply for DGR endorsement
  • other issues, such as revocation of endorsement and suspension of trustees
  • the transitional arrangements for existing PPFs.

Publications and contacts for more information are also provided.

What is a DGR?

A DGR is an entity that is entitled to receive income tax deductible gifts.

All DGRs must be endorsed by us, unless they are listed by name in the income tax law.

What is DGR endorsement?

DGR endorsement is the approval process for organisations that want to be endorsed by us as DGRs.

Endorsement as a DGR allows donors to claim tax deductions for most types of gifts or donations they make to your organisation.

From 1 October 2009, prescribed private funds (PPFs) are no longer prescribed in tax law and instead obtain their DGR status through the endorsement process. The category these funds seek DGR endorsement under is the category for private AFs.

For more information on myTax 2019, online tax return 2019, myGov 2019, Tax Return 2019 , or any other tax related matter, please call our professional accountant on 1300 768 284 . For more information please contact us at 1300768284 or you can email us atenquiry@taxrefundonspot.com.au

Unclaimed Superannuation

Keeping track of your super

Your super is your savings for retirement. It’s important to be aware how much is being contributed, what super accounts you have and what insurance they provide.

If you’ve ever changed your name, address or job, you may have lost track of some of your super. Having several super accounts could mean that multiple fees and charges are reducing your overall super investment.

Check your super

You can check, consolidate, find lost super and keep track of your super online by creating or logging in to your myGovExternal Link account.

You can also check your super via the ATO app or by calling our self-help phone service, available 24 hours a day on 13 28 65.

Working overseas

If you take up an Australian employer’s offer to temporarily work overseas, your employer must continue to pay super contributions for you in Australia.

Neither you nor your employer will have to pay super (or a super equivalent) in the other country if:

Unclaimed super

Twice a year, you report and pay to us:

  • unclaimed super of members aged 65 years or older, non-member spouses and deceased members
  • unclaimed super of former temporary residents
  • small lost member accounts and insoluble lost member accounts.

We use this information to update the unclaimed super money register (viewable in ATO online services) through which these amounts can be claimed.

For more information on myTax 2019, online tax return 2019, myGov 2019, Tax Return 2019 , or any other tax related matter, please call our professional accountant on 1300 768 284 . For more information please contact us at 1300768284 or you can email us atenquiry@taxrefundonspot.com.au

Check Your Super in ATO

It is important to keep track of your super. If you’ve ever changed your name, address or job, you may have lost track of some of your super. Having several super accounts could mean that fees and charges are reducing your overall super investment. There are a number of ways to check and manage your super.

Use myGov for a full view of your super

You can create a myGov account and link the ATO to:

  • see details of all your super accounts, including any you have lost track of or forgotten about
  • find ATO-held super – if the government, your super fund or your employer can’t find an account to transfer your super to, we hold it on your behalf
  • combine multiple super accounts by transferring your super into your preferred super account; if this is a fund-to-fund transfer it will generally be actioned within three working days.

Conduct a quick search online

You can find out if you have any lost or ATO-held super by doing a quick searchExternal Link

Quick search is also available via the  ATO app which can be downloaded from Google play, Windows phone or the Apple app stores.

You will need to provide:

  • your name
  • date of birth
  • tax file number.

The quick search is a limited search and will only provide details of lost or ATO-held super. For detailed information on all your super accounts you need to register for our online services.

Use our self-help phone service

You can find out if you have any lost or ATO-held super by using our self-help phone service, available 24 hours a day on 13 28 65 Fast Key Code then 2.

We will ask for your:

  • tax file number (TFN)
  • date of birth.

Make sure you have paper and a pen ready to write down the details of any lost or ATO-held super.

The self-help phone service is a limited search and will only provide details of lost or ATO-held super. For detailed information on all your super accounts you need to register for our online services.

For more information on myTax 2019, online tax return 2019, myGov 2019, Tax Return 2019 , or any other tax related matter, please call our professional accountant on 1300 768 284 . For more information please contact us at 1300768284 or you can email us atenquiry@taxrefundonspot.com.au