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MBA’s top 10 tax planning tips for 2019

Want to know the best tax tips to look out for in 2019? The experts at Macquarie Business Accountants have put together the top 10 for you.

Check them out below or download our infograph!

1. The instant asset write-off

Allows instant deductions for capital assets (up to $30,000 per item**) acquired prior to 30.06.19.

2. Super for employers

Ensure your super obligations are paid by 30.06.19 to get a deduction in 2019.

3. Super for employees

All employees can claim a tax deduction for any additional superannuation contributions they make, over the standard SGC (up to specified limits).

4. Prepaying expenses

Certain payments made in advance can give instant tax deductions, for example, annual premiums and memberships.

5. Trusts

Analyse your current year's profit and make your distributions wisely – carefully allocating profits to the right beneficiaries can save you thousands.

6. Write-offs

Check your plant & equipment lists from the prior year and identify all items that have been scrapped or have no value. Also review your debtors, any bad debts should be identified and removed.

7. Capital gains & losses

If you've made gains, consider realising some losses to help offset those gains.

8. Investment properties

If you own a rental property, do you have a tax depreciation report? These reports can often give you more deductions for the property.

9. Be sceptical

If you hear about a tax saving scheme that sounds too good to be true, chances are it is.

10. Priorities

Don't needlessly spend money chasing tax deductions. When spending your hard earned dollars, tax should always be a secondary consideration. Always ask yourself "Do I really need this?".

(** for assets acquired after 02.04.19)


If saving tax is a priority for you contact us to discuss your options.

Class March 2019 Benchmark Report

The Class SMSF Benchmark Report for March 2019 is now available. This quarter's special feature casts a spotlight on the characteristics and trends of newly established SMSFs, including the average number of members, establishment age, fund balances and asset allocations.

Some of the revealing insights include:

  • Over 72% of SMSFs are established as two-member funds from the outset, making it important to consider overall fund balance when determining the viability of setting up an SMSF
  • Males have a 42% higher average balance than females when funds are established, which compares with a significantly lower gap of 21% overall across all SMSFs
  • The average establishment age for newly established funds is 48.9, with a small difference occurring between genders.

Download the full report https://bit.ly/308wdcP

Headlines only explain so much. In this special update, we examine the pivotal policies from the ALP on tax, superannuation and business.

There are no guarantees, however, that any policies or announcements not already legislated will come to fruition – that will depend on the Senate composition. At the next election, 40 of the 76 Senate seats will be contested - 6 in each State and 2 in the Territories. The final Senate composition will determine what policies become a reality, the more controversial the policy the less likely it is to pass the Senate. Let's take a look at a Labor Government on tax and super!

Read more…


When determining whether a worker is a contractor or an employee, the courts say "… the distinction between an employee and an independent contractor is "rooted fundamentally in the difference between a person who serves his employer in his, the employer's business, and a person who carries on a trade or business of his own." 

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New laws passed by parliament directly target the behaviour of taxpayers that don't meet their obligations.

Read more…

From 1 July 2019, single touch payroll – the direct reporting of salary and wages, PAYG withholding and superannuation contribution information to the ATO – will apply to all employers. What employers need to report will also be extended to include certain salary sacrificed amounts.

Employers with 20 or more employees have been required to use single touch payroll since 1 July 2018. The new rules push all businesses with employees into the single touch payroll system. This includes the situation where payments are made to the owners of the business in the form of salary, wages or directors fees.

The ATO states that to assist micro employers there will be, "a number of alternate options that are not available to employers with 20 or more employees – such as initially allowing your registered tax or BAS agent to report quarterly, rather than each time you run your payroll."

While the start date for small employers will technically start on 1 July 2019, the Commissioner of Taxation released a statement indicating that small employers can actually start reporting through single touch payroll any time from 1 July 2019 until 30 September 2019. No penalties will be applied to mistakes, missed or late reports for the first year.

Plus, if your business is in an area with no viable internet connection, such as some rural and remote regions, then exemptions may apply.

Read more…

Class December 2018 SMSF Benchmark Report


Check out last quarters SMSF Benchmark report from Class.

?Read the full report

MBA Budget Update 2019-20

On 2 April the Australian Government handed down it's 2019 Budget, earlier than usual thanks to the upcoming election.

We have reviewed the budget and here's our summary of the key points that relate to Personal Income Tax, Business Tax and Superannuation.

Personal taxation

  • From 2018-19, low and middle income tax offset will increase from a maximum amount of $530 to $1,080 per annum and the base amount will increase from $200 to $255 per annum.
  • The Medicare levy low income thresholds for singles, families, and seniors and pensioners will increase from the 2018-19 income year.
  • Changes to the Higher Education Loan Program set to commence from 1 January 2019, will now take effect from 1 January 2020.

Business taxation

  • Instant asset write-off increased to $30k and expanded to businesses under $50m from 2 April 2019 to 30 June 2020.
  • The significant changes to the way Division 7A works were intended to start taking effect from 1 July 2019.  These reforms have now been pushed back to 1 July 2020.
  • Eligible primary producers and tourism operators will be able to apply for a refund of any luxury car tax paid, up to a maximum of $10,000 for vehicles acquired on or after 1 July 2019. 
  • Qualifying grants paid to primary producers, small businesses and non-profit organisations affected by the North Queensland floods will be treated as non-assessable non-exempt income, which means that they should be tax-free.
  • Certain payments made to primary producers in the Fassifern Valley, Queensland who were affected by storm damage in October 2018 will be exempt from income tax.
  • $61m over three years has been provided to support Australian businesses to export Australian goods and services to overseas markets.
  • From 1 July 2021, Australian Business Number (ABN) holders will be stripped of their ABNs if they fail to lodge their income tax return. In addition, from 1 July 2022, ABN holders will be required to annually confirm the accuracy of their details on the Australian Business Register.

Superannuation

  • Australians aged 65 and 66 will be able to make voluntary superannuation contributions (concessional and non-concessional) without meeting the Work Test from 1 July 2020.
  • The age limit for spouse contributions will be increased from 69 to 74 years from 1 July 2020.
  • The Government will permanently extend the current tax relief for merging superannuation funds that was due to expire on 1 July 2020. 
  • The Government will delay until 1 October 2019, the start date for reforms that ensure insurance within superannuation is only offered on an opt-in basis for accounts with balances of less than $6,000 and new accounts belonging to members under the age of 25 years.
Download our Budget 2019-20 Ballot Box for full details.


The Australian Tax Office (ATO) is utilising data provided by the Australian Investments and Security Commission (ASIC) to data match share trades.

The ATO is accessing more than 500 million records detailing price, quantity and time of individual trades dating back to 2014. The information complements information that the ATO already holds from brokers, share registries and exchanges.

Utilising this wealth of information, the ATO will explore what has been reported on tax returns, specifically, capital gains on the sale or transfer of shares and the losses claimed.

Given that more than 5 million Australians now own shares, the ATO is keen to ensure that errors are minimised.

"Almost one third of all Australian adults own shares, and there is evidence that some taxpayers are getting it wrong when it comes to reporting their capital gains or losses from the sale of shares. In particular, we tend to see higher rates of error among those who don't regularly trade in shares and who are not aware of the tax implications," Assistant Commissioner Kath Anderson said.

With penalties as high as 75% of the tax shortfall, it is important to ensure that you have your documentation in place for share trades and transfers including records of share purchase and sale prices, as well as costs like brokerage fees. If you sold part of your share holdings, you need to keep records of the parcel you sold and the parcel you are still holding.

The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone.  If expert assistance is required, professional advice should be obtained.  

Article by Knowledge Shop


The daily processes and transactions involved in operating a business can mean long hours of repetitive tasks and occasional oversights due to human nature. Automating these tasks can result in significant savings in resources and eliminate mistakes caused by human error.

The key is to know which tasks should be automated and which ones warrant staff intervention and guidance.

Here are 6 activities that you should definitely be automating for your business.

Abandoned online carts

Not following up with visitors who've abandoned shopping carts on your site is just leaving money lying on the table. They've already expressed interest in your products. Automated engagement touch-points can create the perfect follow up to prompt them to finish their purchase. Exit pop-ups and follow-up emails are great devices to use when reaching out to visitors who've abandoned carts on your site. 

Lead capturing, nurturing, and scoring

Automating your lead development process can do wonders for your company's conversion rates. Both hot and cold leads require attention and targeted engagement in order to convert into paying customers. Using automation software can help to strategically guide prospects to end of the sales cycle, and it can also direct you towards the leads that will convert the fastest.

Engaging new contacts

Entrepreneurs meet new contacts all the time. Whether it's a potential business partner or prospective customer, automating your engagement with them can help you forge a solid rapport after your initial contact. There are several CRM options that'll allow you to group contacts by event, type, company, and location, amongst other settings to ensure that your business card collections don't go to waste. 

Personal direct mail 

Outreach efforts with a personal touch tend to gather higher engagement rates, which explains why businesses send out birthday cards, calendars, seasonal greetings, and other materials to customers. With the right software, you can set up automated, sequenced events to gather customer personal data and incorporate it into specific marketing activities.

Hiring processes

Automating your hiring process is one of the best things that you can do for your business. Everything from receiving applications and interviewing to setting up drug tests and completing new-hire paperwork can easily be done with automation. First, outline what your hiring process looks like. Next, determine staff member roles and duties within your process. And lastly, establish time frames that each activity should fall within. There are tons of HR software programs that can make automating your hiring process a breeze.

Word-of-mouth marketing 

Numerous marketing studies show that consumers are more likely to buy from companies if they've been referred by a friend. Encourage customers to give referrals about your products by simply asking for them.  There are several ways to automate this, including adding referral mentions to order confirmations, discount offerings, and email outreach campaigns. 

Set aside a week or two to take a look at any processes that can be automated within your business. Automating repetitive and tedious tasks can aid you in uncovering hidden cost-savers and potential sales opportunities for your business.

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