Superannuation Guarantee Rate Change to 10% from 1 July 2021 – Employer’s Guide

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What is Superannuation Guarantee?

The Superannuation Guarantee (SG) is the minimum percentage of a salary that an employer must contribute to an employees super fund. This percentage is legislated by The Australian Government and is controlled by the ATO.

The current SG percentage rate is 9.5% of employees “ordinary time earnings” or commonly known as OTE.

The SG percentage rate will change to 10% from 1 July 2021.

What is OTE?

Ordinary Time Earnings (OTE) is generally what your employees earn for their ordinary hours of work. It includes commission, loadings, allowances. It does not include overtime or reimbursements.

Who is eligible for superannuation?

Generally, superannuation contributions must be paid for, except:

  • aged under 18 years of age and working 30 hours or less per week;
  • non-resident employees paid for work done outside Australia;
  • resident employees paid by non-resident employers for work done outside Australia;
  • covered by bilateral superannuation agreements with other countries;
  • certain senior foreign executives who hold certain visas or entry permits;
  • paid to do work of a domestic or private nature for not more than 30 hours per week (part-time nanny or housekeepers for your personal home);
  • members of the various Defence Forces (the Defence Forces has a scheme called Military Super);
  • high-income earners with multiple employers who have ATO approval to opt-out of receiving super with an exemption certificate for a specific period of time.

What is changing?

The Superannuation Guarantee rate is increasing to 10%, effective 1 July 2021 and will then continue to increase until it reaches 12% on 1 July 2025.

PeriodSuperannuation Guarantee (SG) %
1 July 2018 – 30 June 20199.50%
1 July 2019 – 30 June 20209.50%
1 July 2020 – 30 June 20219.50%
1 July 2021 – 30 June 202210.00%
1 July 2022 – 30 June 202310.50%
1 July 2023 – 30 June 202411.00%
1 July 2024 – 30 June 202511.50%
1 July 2025 – 30 June 202612.00%
1 July 2027 – 30 June 2028 and onwards12.00%

Source: https://www.ato.gov.au/rates/key-superannuation-rates-and-thresholds/?anchor=Superguaranteepercentage

Are contractors and self-employed business owners eligible for the Super Guarantee?

The law provides that contractors may need to be paid the SG if the service they provide is based on time, rather than an outcome. In addition, the work needs to be carried out by the contractor personally rather than by another company, trust or partnership.

The ATO offers a handy employee/contractor decision tool designed to help you decide whether you should treat a particular worker as an employee or contractor more generally.

For superannuation guarantee purposes, you can use its superannuation guarantee eligibility decision tool to help deduce whether you will need to pay SG contributions for the contractor.

If you’re a business looking to be proactive in meeting the new superannuation changes, get in touch with us at admin@simprotax.com.au

Employer’s Guide for Superannuation Guarantee

Due dates for SG Charge and SGC Statement

When you make SG contributions on behalf of your employees, your payment must be made in full by the quarterly due date, which is 28 days after the end of each financial quarter.

If you don’t meet this payment deadline, you are required to lodge an SGC Statement and pay the SGC by the due date in the following calendar month (see table).

QuarterPeriodSG contribution due dateSG statement & charge due date
11 July – 30 September28 October28 November
21 October – 31 December28 January28 February
31 January – 31 March28 April28 May
41 April – 30 June28 July28 August

If you know you will be unable to lodge your SGC Statement or pay the SGC by the due date, you can apply to the ATO for extra time.

Applications for an extension must be in writing and state why you need the extension. They must also be received by the ATO before the due date. Nominal interest will continue accruing until you lodge, with the general interest charge applying from your deferred payment date to the day you pay the SGC in full.

What are the SGC and SGC Statement?

If you do not pay super contributions for your employees by the quarterly due dates – or do not pay the full amount – you are required to pay an SG Charge (SGC).

You are also required to lodge an SGC Statement with the ATO. And to top it off, you are ineligible to claim a tax deduction for your SG contributions against your business income.

The SGC has three components:

  1. SG shortfall amount (including any choice liability), which is when you do not pay the full SG contribution for your employee. It is calculated using your employee’s salary or wages (not their ordinary time earnings)
  2. Interest on this amount,with thecurrent interest rate being 10%.
  3. Administration fee of $20 per employee, per quarter.

To report and rectify missing SG payments, you are required to lodge your SGC Statement by the due date (see below) and pay the outstanding SGC amount.

Even if you pay only a few days or weeks late, you still need to lodge an SGC Statement and pay the balance of the SGC.

If you’re a business looking to be proactive in meeting the superannuation requirements, get in touch with us at admin@simprotax.com.au

Single Touch Payroll (STP) Phase 2 – What You Need to Know

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What is Single Touch Payroll?

Single Touch Payroll (STP) legislation requires employers to report wages, PAYG withholding, and superannuation information directly to the ATO using an online payroll system. It was introduced by the Australian government in 2018 as a way to encourage small businesses to be more compliant in the way they report superannuation or PAYG instalments to employees.

Is Single Touch Payroll Compulsory?

Yes.

Single Touch Payroll (STP) reporting has been compulsory for small businesses (those with 20 employees or less) since July 1, 2019.

STP has been compulsory for employers with over 20 employees since July 1, 2018 – but by now everyone should be involved.

What is Single Touch Payroll Phase 2?

STP phase 2 aims to streamline the reporting obligations for the payer and payee and remove the need for manual reporting to other government agencies. 

With this, phase 2 will bring more complex reporting and therefore like phase 1, businesses and vendors will have to prepare for the challenges of the next roll-out.

Key changes in Phase 2

The additional information you need to report should already be captured in your current payroll software.

The key changes to the STP report include:

Disaggregation of gross income

Your STP report will separately itemise the following components of the gross amount:

  1. Allowances
  2. Bonuses and commissions
  3. Director’s fees
  4. Overtime
  5. Paid leave
  6. Salary sacrifice

Allowances

The expanded STP report will now report all allowances separately, such as:

  1. Cents per km vehicle costs
  2. Overtime meals
  3. Travel
  4. Tools
  5. Tasks
  6. Qualifications and certificates

Employment Conditions

You will provide extra employment conditions information, such as:

  1. Cessation date and reason
  2. Employment basis
  3. Tax treatment

As you provide detailed information, this means that you will no long need to send TFN declarations to the ATO.

Paid leave

Paid leave will no longer be incorporated as part of gross earnings when reporting earnings via STP. Rather, paid leave will be reported using itemised leave type codes.

What happens if I do not comply with Single Touch Payroll?

There is a $210 fine every 28 days that a Single Touch Payroll report is overdue. This can accumulate up to a maximum value depending on the size of the business. These are:

•             $1,050 for small businesses

•             $2,100 for medium businesses

•             $5,250 for large businesses

•             $525,000 for significant global entities

Get ready for Single Touch Payroll Phase 2

Ensuring you’re with a reliable software vendor that will be ready for the mandatory start date is key for STP success. Our awesome team is already working on the phase 2 STP changes to ensure new reporting requirements are ready for January 2022.

If you’re a business looking to be proactive in meeting STP phase 2 requirements, get in touch with us at admin@simprotax.com.au

2020 Tax Tips – by Gerard

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The coronavirus pandemic has had a significant effect into the way we live, including our personal finances. In this upcoming tax season, it may also change the way we claim our tax deductions.

Strict social distancing measures have forced millions of Australians to work from home in the later part of the financial year.

Here are some tax tips that you can use for the 2020 tax season:

I had to work from home since the pandemic started. What kind of tax deductions can I claim?

New: Shortcut rate for all costs, starting 2020

Initially for the period to 30 June 2020, claims for the period commencing 1 March 2020 can be calculated at the rate of 80 cents per hour.

The optional 80 cents rate method covers all costs associated with working from home, including heating and cooling, electricity, mobile phone, internet and depreciation of office equipment.

So opting to use the 80 cents method precludes any other home office costs being added to the claim.

By contrast the 52 cents per hour claim method covers electricity, gas and depreciation, requiring other costs to be separately claimed and verified.

Under the 80 cents method the only records required to be kept are time records, showing the hours worked from home, and there is no requirement for a dedicated work area.

52 cents per hour for the year to 30 June 2019 and for 2019-20.

If the diary basis of claim is used (i.e. the pattern of work-related usage has been established), the Tax Office accepts a fixed rate of 52 cents per hour to cover electricity and gas (for heating, lighting and cooling) and the depreciation of office furniture applicable for the year ending 30 June 2019.

The rate continues to be applicable for 2019-20 if the 80 cent short-cut method is not selected.

I have received payments from JobKeeper or JobSeeker scheme. How will this affect my tax return?

Both the $1500-a-fortnight JobKeeper wage subsidy and fortnightly $1100 JobSeeker payments are part of a person’s taxable income and need to be reported to the ATO.

For Australians on JobKeeper, their employer should have already noted those payments on their PAYG summary.

And Australians on JobSeeker should receive an income statement from Centrelink outlining how much they have received, which needs to be lodged when filling out their tax return.

My rental property income has reduced due to the pandemic. How does it affect my tax return?

Last year, the Australian Taxation Office singled out property investors for overzealous rent deductions, with roughly 90 per cent of rent reduction claims containing an error.

Landlords who retain tenants (regardless of the amount they pay) can claim expenses on loan interest and management fees, even if they incur a net rental loss.

According to the ATO, those property owners may claim the full amount of their expenses against your rental and other income – such as salary, wages or business income.

There should be an alarm for property owners who now live in their rental properties.

If you made your home your base in lockdown, you would not be able to claim deductions for that period, as it’s become a property for your own personal use.

Deceased Estates – by Aaron

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Guidance for managing the tax affairs of deceased estates:

When a person dies, their estate is considered as an asset and can pass directly to beneficiaries, directly to a legal representative such as an executor who will need to finalise the deceased tax obligations. The ATO will need to know if the deceased person had a Tax File Number (TFN), if they lodged a tax return and if they should have lodged a tax return.

Tax responsibilities for executors

Any tax liability that may be generated from your role as executor is separate from your own personal tax liability. As a result, as executor you may need to apply for a separate Tax File Number (TFN) to that of the deceased.

 As an executor, your tax responsibilities include:

  • Cancel GST and ABN registrations in regard to businesses;
  • Obtain tax file numbers for the estate or for the estate with a business, if it is to continue to be operated by the estate;
  • Notify the ATO of death, if there has not been a previous notification of ceasing of lodgement of tax return;
  • Lodge outstanding tax returns;
  • Lodge a date of death return;
  • Lodge an estate tax return for the years of the estate operating if same is required;
  • Pay tax liabilities, as and when they fall due;
  • Notify the ATO of any events coming to an Executor’s knowledge that would trigger a review of the deceased’s tax affairs by the ATO.

Failure to any of the above is to leave an Executor exposed to actions by the ATO going forward.

Estate Tax Returns

An Executor needs to decide whether they are required to lodge a return for the deceased estate. Where the Executor has applied for and obtained a tax file number for the deceased estate the return should be lodged.         

The return to be lodged by the Executor is a Trust Income Tax Return for the estate. Where the estate is administered completely in the same income year as the death of the deceased it may be that an income tax return is not required. This can apply where no person has received any of the estate’s income and the taxable income of the estate is below the tax-free threshold. That exemption only applies in those limited circumstances with all the events occurring within the income tax year.

On the administration of the estate, completed in a year outside the year of death an income tax return would be required for each year the estate is administered and where the following may occur:

  • The estate has a net income greater than the individual tax-free threshold;
  • The estate received income from franked dividends and from capital gain;
  • Income was received from sources where tax was withheld;
  • The estate carried on a business;
  • A beneficiary (such as a minor) was presently entitled to a share of the income of the estate.

Normally the Commissioner assesses the income for an estate in those circumstances under Section 99 of the ‘Income Tax Assessment Act’ 1936. This will continue to be the position for an estate for a period of three years from the deceased’s date of death. Should an estate remain unfinalised and earning income for a period greater than three years after the date of death, then the estate will lose the tax-free threshold and will pay tax on all income.

First three income years

For the first three income years, the deceased estate income is taxed at the individual income tax rates, with the benefit of the full tax-free threshold, but without the tax offsets (concessional rebates), such as the low-income tax offset. No Medicare levy is payable.

Fourth income year and later

For deceased estates that continue to be administered beyond the third year, the following tax rates apply

Deceased estate taxable income (no present entitlement)Tax rates
$0 – $416Nil
$417 – $67050% of the excess over $416
$671 – $37,000$127.30 plus 19% of the excess over $670 If the deceased estate taxable income exceeds $670, the entire amount from $0 will be taxed at the rate of 19%
$37,001 – $90,000$7,030 plus 32.5% of the excess over $37,000
$90,001 – $180,000$24,255 plus 37% of the excess over $90,000
$180,001 and over$57,555 plus 45% of the excess over $180,000

Capital gains tax (CGT) implications

When the assets of a deceased estate are distributed, a special rule applies that allows any capital gain or loss made on a CGT asset to be disregarded if the asset passes:

  • to the executor
    • to a beneficiary, or
    • from the executor to a beneficiary.

However, if an executor sells an asset of the deceased estate and then distributes the proceeds to the beneficiaries, the sale is subject to the normal rules and CGT applies.

Basically this means, in most cases, the transfer of CGT assets into a deceased estate and then out to their beneficiaries will not incur an income tax liability.

There are many tax implications of deceased estates. Our professional tax agents are well-versed in working with deceased estates. We can help you with the information you’ll need or can handle the process for you if it’s too much. We will also work with the legal representatives of the deceased estate to help ease the process through such trying times. Please do contact us at 0481 309 696 or admin@simprotax.com.au for any enquiries or to book an appointment with us for consultation.

Capital Gains Tax for Foreign Residents – by Sam

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As a foreign resident, you must lodge a tax return in Australia. You must pay tax on all Australian-sourced income, except for income that has already been correctly taxed (such as interest, unfranked dividends and royalties).

Australia has tax treaties with other countries and this may affect the amount of tax you need to pay. Ensure your Australian financial institutions have your updated overseas address and residency status so they deduct the correct amount of tax. This will reduce follow-up actions by Australia or a treaty country when discrepancies are found.

Non-tax residents are only subject to CGT on Taxable Australian Properties (TAP). Generally, you must include capital gains you make on assets that are considered taxable Australian property in your Australian tax return and pay tax on that amount.

TAP includes:

  • A direct interest in real property situated in Australia
  • A mining, quarrying or prospecting right to minerals, petroleum or quarry materials situated in Australia
  • A CGT asset that has been used for carrying on a business through a permanent establishment in Australia
  • Holding 10% or more of an entity

No tax on franked dividends

Non-tax residents who are authorised to franked dividends will not be able to utilise franking credits as it is intended to eliminate double taxation for Australian tax residents.

Non-resident withholding tax

Unfranked dividends paid out by Australian shares are subject to a non-resident withholding tax of 15% – 30%, depending on your country of residence.

No capital gains tax

Non-tax residents are not subject to CGT on Australian share investments. However, if you hold more than 10% of shares for the company or the company invested in principally invests in property, then CGT will apply.

Once you acquire Australian residency for tax purpose, the shares held will be considered to have been obtained at the market on that date.

Tax return obligations

One perk of being a non-tax resident is there is no obligation to lodge a tax return IF you only receive interest, franked dividends, or royalties where the withholding tax has already been withheld. Similarly, if you receive unfranked dividends and non-resident withholding tax has been withheld, then they won’t be required to be included in your tax return.

In saying that, if you are a non-resident working in Australia, then the Australian sourced income will most likely be subject to income tax at the end of the financial year.


At Simpro Taxation Services, we understand the challenges and complexity being faced in Australia. If you are considering on making tax-free capital gains on Australian shares whilst working as a non-tax resident, please contact us today for more information!

CGT Implications on Inherited Dwellings – by Gerard

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Inherited dwellings

If you inherit a dwelling and later sell or otherwise dispose of it, you may be exempt from capital gains tax (CGT), depending on:

  • when the deceased acquired the property
  • when they died
  • whether the property has been used to produce income (such as rent)
  • whether the deceased was an Australian resident at the time of death.

If you’re not exempt, or only partly exempt, you need to know the cost base of the dwelling to work out your capital gain. The cost base may be the value of the dwelling when the deceased acquired it or the value when they died, depending on the circumstances above.

The same exemptions apply if a CGT event happens to a deceased estate of which you’re the trustee.

These rules don’t apply to land or a structure you sell separately from the dwelling – they are subject to CGT.

Cost base of an inherited dwelling

If you inherit a dwelling there are special rules for calculating your cost base.

The first element of the cost base or reduced cost base of a dwelling – its acquisition cost – is its market value at the date of death if any of the following apply:

  • the dwelling was acquired by the deceased before 20 September 1985
  • the dwelling passed to you after 20 August 1996 (but not as a joint tenant), and just before the deceased died it was their main residence and was not being used to produce income, or
  • the dwelling passed to you as the trustee of a special disability trust.

In any other case, the acquisition cost is the deceased’s cost base or reduced cost base on the day they died. You may need to contact the trustee or the deceased’s tax adviser to obtain the details. If that cost base includes indexation, you must recalculate it to exclude the indexation component if you prefer to use the discount method to work out your capital gain from the property.

If you’re a beneficiary, the cost base or reduced cost base also includes amounts that the trustee of the deceased’s estate would have been able to include in the cost base or reduced cost base.

CGT exemptions for inherited dwellings

If you inherit a dwelling and later sell or otherwise dispose of it, you may be fully or partly exempt from capital gains tax (CGT).

Deceased died before 20 September 1985

If you inherited the dwelling before 20 September 1985, any capital gain you make when you dispose of it is exempt.

Any major capital improvements you make to the dwelling on or after 20 September 1985 may be taxable.

Deceased acquired the dwelling before 20 September 1985 and died on or after 20 September 1985

In this situation, the dwelling need not have been the main residence (home) of the deceased person.

CGT does not apply to the dwelling if either of the following conditions is met:

  1. Condition 1 (disposal within two years):

You dispose of your ownership interest within two years of the person’s death – that is, if the dwelling is sold under a contract and settlement occurs within two years. This exemption applies whether or not you use the dwelling as your main residence or to produce income during the two-year period.

  • Condition 2 (main residence while you own it)

From the deceased’s death until you dispose of your ownership interest, the dwelling is not used to produce income and is the main residence of one or more of:    

  • a person who was the spouse of the deceased immediately before the deceased’s death (but not a spouse who was permanently separated from the deceased)
  • an individual who had a right to occupy the dwelling under the deceased’s will
  • you, as a beneficiary, if you dispose of the dwelling as a beneficiary.

The dwelling can be the main residence of one of the above people, even though they may have stopped living in it, if they choose to continue treating it as their main residence.

A dwelling is considered to be your main residence from the time you acquire your ownership interest in it if you move in as soon as practicable after that time.

Deceased acquired the dwelling on or after 20 September 1985

You disregard any capital gain or loss you make when a CGT event happens to the dwelling (such as selling it) if either of the following applies:

  • the dwelling passed to you on or before 20 August 1996, and:    
    • Condition 2 (main residence while you own it) above is met, and
    • the deceased used the dwelling as their main residence from the date they acquired it until their death and did not use it to produce income
  • the dwelling passed to you after 20 August 1996, and:    
    • Condition 1 (disposal within two years) or Condition 2 (main residence while you own it) above is met, and
    • just before the deceased died it was their main residence and was not being used to produce income.

A dwelling passes to you when you became its owner or, if you became absolutely entitled to it before or without becoming its owner, at that time. (The trustee or executor should be able to tell you whether or not you became absolutely entitled to it and, if so, when).

*source from ATO

Tips for Property Investor – by Jing

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  • Always remember to keep your records.

Make sure you have the supporting documents of your income and expenses if you wish to claim everything you are entitled to.

  • Claim your repairs and maintenance expenses right
  • Repairs that relate directly to damages that happened as a result of you renting out the property can be claimed in full in the same income year when you incurred the expense. Be aware that the initial repairs that already existed when you have purchased the property are not immediately deductible. Instead, the initial repair expenses are deductible on your profit when you sell the property.
  • Replacing a damaged item that is more than $300 and is detachable from the property must be depreciated over number of years.
  • Improvement of the property, such as replacing or renovating an entire structure are not immediately deductible. These are building costs that can be claimed at 2.5% each year for 40 years from the date of completion.
  • Claim your borrowing expenses

Borrowing expenses include loan establishment fees, title search fees, and costs of preparing and filling mortgage documents.

If your borrowing expenses are:

  • Less than or equal to $100, you can claim the full amount in the same income year that you incurred your expenses.
  • More than $100, the deduction is divided into 5 years.
  • Claim your interest loan

The part of the Interest on your rental property loan can be claimed as a deduction, only in the condition of when the interest is related to the rental property. Interest on any other personal use of some of the loan money cannot be claimed on that part of loan.

  • Claim your construction costs right

Certain building costs, such as extensions, alterations and structural improvements can be claimed as capital work deduction at 2.5% of the construction cost for 40 years from the date the construction was completed.

Be aware that the previous owners are required to provide you the information they used to calculate the costs if they claimed a capital works deduction.

  • Claim your expenses in the right portion

If you rent your property to family and friends below market rate, expenses can only be claimed as a deduction for that period up to the amount of rent you received.

You cannot claim your expenses when your family or friends stay at your property free of charge, or for the period of personal use of the property.

  • Claim your property manager’s fees

If you use a property manager, fees such as property agent fees and commission can be claimed as deductible expenses. In general, an organised property manager will provide you the relevant paperwork for ATO reporting.

  • Claim your offsetting costs

If you manage your investment property yourself, some expenses may be able to claim, such as:

  • Utilities including electricity, gas and water bills
  • Office stationery
  • Telephone and internet costs

*Source from ATO.

Our professional accountants are here to help you to identify expenses that you can claim and can’t claim. Please do contact us at 0481309696 or admin@simprotax.com.au for any enquiries or to book an appointment with us for consultation.

Do you need to lodge a tax return if your taxable income is under the tax free threshold?- by Brenda

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Conditions which require you to lodge a tax return

• Your PAYG (pay as you go) has been withheld from payments received during the year.
• There is a reportable fringe benefits amount or employer superannuation contributions on your PAYG payment summary.
• You are entitled to the private health insurance refund but did not claim what you are entitled to.
• You are an Australian resident for tax purposes and had exempt foreign employment income and $1 or more of other income.
• You made or can claim a loss made in a preceding year.
• You are a liable or recipient parent under a child support assessment, except if both of the following conditions are applied:
• You are a recipient of one or more Australian Government allowances, pensions or payments for the whole year.

Source from ATO.

What are the common business expenses I can claim? – by Grace

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The 3 Golden Rules

To claim for a business deduction:

  • it must be a business expense (not for private use)
  • claim only portion related to business if it is of mixed use (for both business and personal use)
  • keep receipt as record and evidence to prove.

What can be claimed?

The following lists the allowable deductions for businesses expenses:

  1. Business travel expenses

Airfares, train, bus or taxi fares when travelling for business or paying for employee travel can be claimed.

To claim expenses for overnight travel:

  • one night or more – keep written evidence of all expenses
  • six or more consecutive nights – keep a travel diary recording all the information of business activities.
  1. Motor vehicle expenses

The motor vehicle expenses you can claim and how to calculate the deductions depend on:

  • your business structure i.e. sole trader, company, partnership or trust;
  • the type of vehicle i.e. car, motor bike;
  • how the vehicle is used.

Motor vehicle expenses from employee use are business related expenses for the employer. If the vehicle is for private use, fringe benefit tax (FBT) may apply to the employer.

  1. Repairs and maintenance

The expenses spent on repairs and maintenance on your business assets can be claimed. This includes:

  • painting;
  • mending leaks
  • conditioning gutters;
  • plumbing maintenance;
  • repairing electrical appliances;
  • repairing machinery.
  1. Running business from home

For home-based business, or home offices, you can claim:

  • occupancy expenses i.e. rent, council rates, land taxes, house insurance premiums
  • running expenses i.e. gas, electricity, water, phone, cleaning and depreciation of plant and equipment, furniture and furnishings.
  1. Salary, wages and super

Deductions for salaries and wages are calculated based on the business structure:

  • For a company or trust, any salaries and wages the company or trust pays to you or other workers can be claimed by the business.
  • For a sole trader or partnership, any nominal payment of a salary or wages to yourself or a partner is often considered as distribution of profit.

You can claim a deduction for super contributions you make for your employees.

For sole traders, you can claim a deduction for your own super contributions in your individual tax return. It cannot be claimed if you earned more than 10% of your total annual income from salary or wages.

If you hired a contractor, you can claim the amount you pay them.

  1. Other expenses

All other common expenses that can be claimed include:

  • Expenses on advertising and sponsorship;
  • Bank fees and charges;
  • Insurance premiums, i.e. accident, fire, burglary, motor vehicle, or workers’ compensation;
  • Stationery expenses;
  • Parking fees (but not parking fines);
  • Transport and freight expenses;
  • Clothing expenses (uniforms and protective or occupation-specific clothing);
  • Subscription costs for business or professional journals, information services, newspapers and magazines;
  • Costs for sunglasses, hats and sunscreen for outdoor work;
  • Registered tax agent and accountant fees;
  • Tax-related expenses.

To find out more about what deductions are claimable for your business speak to one of our accountants at Simpro Taxation Services or visit the ATO website.

Reasons to Hire an Accountant – by Grace

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An accountant can help you in the various stages of your business’s growth from setting it up to providing financial advice. For instance, if your work pay rate is $50 and you use 20 hours to do your taxes. Then, doing your taxes will cost you $1000 with the possibility of making errors. Is it a good use of time? If you get an accountant to do it, you have more time to earn. Moreover, you do not have to worry because it will cost less to let the expert deal with it.

Why & When to Hire an Accountant?

1. Advice on Business Structure, Business Plan & Setup

If you’re planning to start a new business, you want to start on the right foot.  To avoid the all the hassle and dilemma on business decisions, an accountant can help ease your life. Hire an accountant so they can assist you with:

  • Determining the best business structure for you;
  • Determining whether you need to register for GST;
  • Estimating the business start-up costs, operating costs and revenue forecast;
  • Providing advice on the accounting procedures and software that suits your business;
  • Providing advice and assistance on opening business bank account;
  • Creating a realistic and professional business plan for your business success;
  • Providing payroll solutions.

2. Deal with Tax-Related Matters

Accountants will be able to help you with preparation of your business activity statement and GST reports. They keep up with changes in tax regulations to ensure your business complies to all tax obligations and help save cost by minimising tax liabilities.

3. Help with Financial Tasks

You can maximise your profits by having an accountant analyse your business data. Often, business owners do not realise that their business has a large overhead, are over-staffed or has an excess inventory. They have great potential in gaining more profits but lose out their opportunity due to the lack of insight. They can help you understand your business better through analysing your financial statements.

Accountants prevent you from being audited. However, if your business does get audited, they are able to provide you guidance to get you out of it.

Small businesses want to save cost and think that they can’t afford an accountant. However, you don’t always need to hire a full-time or part-time accountant because you only need a couple of hours of their time. You can contact us at Simpro Taxation Services if you require any advice or help.