With less than four days until the end of the 2018/19 Financial Year, it’s time to pull out that tax time check list and make sure everything is in order.
Particularly this financial year, there have been significant changes to business and personal tax, which you should be aware of, before lodging your return.
Not sure what these significant changes are? Don’t stress. We’ve summarised the key changes for the 2018/19 financial year below.
Private health insurance statements
From July 1, 2019 health insurers will no longer be required to send private health insurance statements. Health insurance information will be available in the pre-fill report, usually by mid-August.
Remember, it is important to correctly report private health insurance as it is used to determine rebates and the Medicare levy surcharge where applicable.
Low and middle income tax offset
Taxpayers may be eligible for an income tax offset if they are an Australian resident for income tax purposes and their taxable income is in the appropriate income range. To find out if you are eligible, click here.
The good news is, your accountant will do the numbers for you and can amend your tax lodgement if the changes become law after July 1.
PAYG Payment Summaries replaced by Income statements under STP
If you haven’t already heard us talking about Single Touch Payroll, there’s no better time than now, to learn what that means for you.
Single Touch Payroll is an ATO initiative to encourage real time digital salary reporting for employers. This means employers are now required to report salaries and wages, PAYG withholding, and superannuation information, every time they pay employees.
If you already report through STP, you are not required to provide a payment summary to employees, instead, employees will get a notification in their myGov inbox to let you know when their statement is ready so they can complete their tax return.
Accelerated depreciation for small businesses
Small businesses can claim an immediate deduction for most depreciating assets purchased after May 12, 2015 and first used or installed ready for use:
· From 7:30pm on April 2, 2019 until June 30, 2020, if they cost less than $30,000 each
· From January 29, 2019 and before 7:30pm April 2, 2019, if they cost less than $25,000 each
· Before January 29, 2019 if they cost less than $20,000 each
The instant asset write-off threshold now includes businesses with a turnover from $10 million to less then $50 million. These businesses will be able to claim a deduction for the business portion of each asset that costs less than $30,000 if they are purchased and ready before April 2, 2019.
To view the full list of changes here.
If you need help navigating the tax changes,
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