Its coming around to that time of year again so small businesses and their owners should be looking at their tax affairs before 30 June.
Here our our top considerations to ensure that small businesses are minimising their tax bills for the year.
Author: Staka Kovac
10 tips for buying a small business
Just like boat ownership, it is often the case that the happiest two days of a business owners life are they day they buy the business, and the day they sell the business.
With some foresight and planning however, hopefully the days in between can be just as rewarding.
Here are 10 tips to consider when looking at buying that small business.
Buying a property soon? Beware of new tax traps
From 1 July 2018, a number of changes will impact buyers of all property with a value of $750,000 or more, and all new residential property. Buyers should be aware of these changes given that in both cases, the burden to withhold and remit amounts to the Australian Taxation Office (ATO) will fall on them.
Tax Incentives for Early Stage Companies & Investors
Since 1 July 2016, investors in qualifying early stage innovation companies may have access to a range of tax incentives which were introduced by the Federal Government to encourage innovation, entrepreneurship and risk-taking. This article takes a look at these incentives and who may be eligible.
Read More “Tax Incentives for Early Stage Companies & Investors”
Jail time for Directors who fail to pay staff superannuation
Under new legislation drafted by the Federal Government, employers could face up to 12 months in jail for failing to meet their compulsory employee superannuation requirements.
Employers are generally required to pay 9.5% of an employees’ gross salary in superannuation. The proposed new rules have been put forward in response to recommendations made by the Superannuation Guarantee Cross Agency Working Group which was tasked with investigating non-compliance in the superannuation guarantee system. In their March 2017 report, the Working Group found, among other things, that small businesses account for approximately 70% of reported superannuation non-compliance.
The draft legislation contains a number of provisions including:
- extension of Single Touch Payroll to all employers from 1 July 2019 which will provide the Australian Taxation Office (ATO) with access to real time information about an employer’s superannuation compliance. Current legislation only required employers with over 20 employees to use Single Touch Payroll from 1 July 2018;
- requiring super funds to report each payment made to them by employers to the ATO when the payment occurs, effective from 1 July 2018;
- additional enforcement powers being granted to the ATO including strengthened arrangements for Director penalty notices and the requirement for security deposits for superannuation and other tax-related liabilities;
- the ATO will have the ability to apply for court-ordered penalties including up to 12 months’ imprisonment; and
- the closing of a loophole which allowed employers to short-change employees who salary-sacrificed some of their salary into super, by only paying the 9.5% compulsory superannuation requirement on the reduced gross salary.
The consultation period for the draft legislation ends on 16 February 2018.
If you are en employer who has fallen behind on your compulsory employee superannuation obligations, feel free to call us to discuss how we can help get you back on track.
Navarra Kovac Chartered Accountants 