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Superannuation guarantee amnesty introduced
The Government has introduced legislation to complement the superannuation guarantee ('SG') integrity package already before Parliament by introducing a one‑off, twelve-month amnesty for historical underpayment of SG.... (Read More...)
Increased scrutiny of home office claims
Last year, 6.7 million taxpayers claimed a record $7.9 billion in deductions for ‘other work-related expenses’, which includes home office expenses.
Fast-tracking tax cuts for small and medium businesses
The Government has fast-tracked the already legislated tax cuts to small and medium businesses by bringing them forward five years.
Company loans to shareholders under review
The Government has released a consultation paper outlining proposed reforms to ‘simplify’ the loan agreements that are generally required when a shareholder (or their associate) borrows funds (or receives a payment) from a related company.
Division 293 assessments
The ATO has been issuing ‘Additional tax on concessional contributions (Division 293) assessments’ with respect to liabilities relating to the 2018 income year.
Changes to the small business instant asset write-off
On 29 January 2019, the Prime Minister announced that legislation will be introduced to:
Personal income tax
The Government has proposed the following changes to the personal income tax rates:
Tax cuts become law
The Government has announced that more than 10 million Australians will receive immediate tax relief following the passage of legislation through the Parliament, which increases the top threshold for the 19% tax rate from $41,000 to $45,000 and increases the low income tax offset from $645 to $700 in 2022/23.
“Outrageous” deductions rejected
The ATO has published some of the most unusual claims that they disallowed last financial year.
Nearly 700,000 taxpayers claimed almost $2 billion of ‘other’ expenses, but the ATO's systematic review of claims had found, and disallowed, some very unusual expenses, including:
$30,000 instant asset write-off
The ATO is reminding businesses that are looking to expand or improve their business and thinking of buying new or second-hand assets, that medium sized businesses with a turnover up to $50 million (but at least $10 million) are eligible for the instant asset write-off.
Super guarantee opt-out for high income earners now law.
From 1 January 2020, eligible individuals with multiple employers can apply to opt out of receiving super guarantee ('SG') from some of their employers, to help them avoid unintentionally going over the concessional contributions cap.
PAYG and deductions for payments to workers
The ATO has reminded business taxpayers they can no longer claim deductions for certain payments to workers if they have not met their PAYG withholding obligations from 1 July 2019.
Lifestyle assets continue to be an ATO audit target
The ATO has revealed it will request a further five years’ worth of policy information from over 30 insurance companies about taxpayers who own marine vessels, thoroughbred horses, fine art, high-value motor vehicles and aircraft.
How can I find the right investment?
We find ourselves in a very interesting situation. Interest rates are at record lows and inconsistent market pricing have resulted in a potential asset price bubble. In this environment you may be asking yourself, “where should I be investing my money right now?”
Whilst it is a relatively straight forward question, the answer is decidedly more difficult.
Making sense of it all by Ali Roshan - The Coronavirus and Investors
The coronavirus has scared some investors which can affect economies and businesses. The recent coronavirus outbreak has shut down airports, frozen trade, and led to the rapid construction of new hospitals in China.
Special Edition: COV-19
knp Solutions has prepared a special edition newsletter outlining:
- Australian Government’s economic response to COV-19 & how this could relate to your business
- knp client meetings
- COV-19 symptoms & information for workplaces
As you are probably aware, many workplaces have been forced to work from home given the impact of COVID-19.
knp is well placed as we are 100% cloud-based and all staff have reliable computers with internet access. As such, we are confident we will still be able to produce high quality work in a secure environment.
knp COVID-19 Relief packages/stimulus (Federal Government, State Government & ATO)
COVID-19 has invoked an unprecedented response from the Federal Government, Victorian State Government & the Australian Taxation Office (ATO). The focus of these packages is on supporting businesses & individuals who will face a decline in income over the coming months. knp has identified five different strategies to assist business and individuals in these difficult times;
Estate planning from a tax perspective – by Mei Wu
Making sense of it all by Ali Roshan – Dealing with the personal financial aspect of the Coronavirus
The rapidly evolving COVID-19 crisis is continuing to create severe political, social and economic uncertainty.
Your Self-Managed Superannuation Fund (SMSF) and Investment Properties during COVID-19 – by Victoria Kogan
Budget, cashflow and tax planning by Mei Wu
Join Mei Wu in this video edition on the importance of preparing budget, cashflow and tax planning.
We will look at why every client should consider and the benefits of having them in place.
Cashflow Takes Corona’s Crown! – by Norman Same
The COVID-19 pandemic impacted our lives in ways we could not have imagined.
Federal and State Governments introduced several very expensive programs to both business and consumers in a short time frame, to curb major economic fallout. Some economists have already predicted that this may not be enough, and it could take many years to repay the enormous debt incurred.
Claiming Home Office Expenses in Your 2020 Tax Return – Holly Laidlaw
In response to the demand for workers to work from home, for the 2019/2020 Tax Year there have been some changes to the options available to taxpayer’s wanting to claim expenses related to them working from home. There are three options available to taxpayers, we have detailed each of these below.
Making sense of it all by Ali Roshan - The SMSF Investment Strategy
The start of the Financial Year is an opportune time to review your investment strategy. As a trustee of a self-managed super fund (SMSF), you should review at least annually the investment strategy and document any decisions arising from the review.
Stage 4 Restrictions "Business as usual (almost)"
As you are probably aware with the recent stage 4 restrictions announced by the Victorian government, many workplaces have been forced to close their workplaces & where possible, work entirely from home.
WorkSafe regulations - requirement to report COVID cases in the workplace
Effective 29th of July 2020, Worksafe Victoria announced new regulations requiring employers to notify WorkSafe immediately (within 48hrs) of being aware that an employee or contractor has visited the workplace during the infectious period following a positive testing of COVID-19.
Our People - by Norman Same
All too often I hear business leaders say, “Our people are our most important asset!” The first time I heard this, I was taken aback as I consider, being an accountant, an asset as something valuable owned by a company. Companies or businesses do not own people
Making sense of it all by Ali Roshan - 3 easy strategies to continue building your retirement savings
The Coronavirus Pandemic has caused significant emotional and physical turmoil for many people around the world. A positive that has come out of this crisis is that it has encouraged people to think about their financial goals and objectives.
Special Edition - 2020/21 Federal Budget
The Government has announced that it will bring forward changes to the personal income tax rates that were due to apply from 1 July 2022, so that these changes now apply from 1 July 2020 (i.e., from the 2021 income year). These changes involve:
Tax cuts pass Parliament
The Government announced various tax measures in the 2020 Budget on 6 October 2020, and it was able to secure passage of legislation containing some of the important measures very shortly afterwards, as summarised below.
End of year closure
knp would like to take this opportunity to thank you for your support over this very challenging year. Our office will close on Tuesday 22nd December 2020 at 12.30pm and reopen on Monday 18th January 2021. knp wishes you all the best over the festive season.
Stage 4 Restrictions
In line with the stage 4 restrictions announced this afternoon by the Victorian Government our office will be physically closed on the following dates:
New measures applying from 1 January 2021
The Government has provided an update of a number of new measures which came into effect from 1 January 2021, including (among others):
On 1st March 2021, it is with great pleasure that knp Solutions welcomes aboard new director, Snehal Shah. Snehal has merged his practice Ben Kaplan & Associates (BKA), into knp Solutions. He was the Principal for over three years at BKA and is an experienced Chartered Accountant having previously worked at GMK and Deloitte in senior roles.
Fringe Benefits Tax (FBT) Update – Rebecca Chan
With the end of the 2021 fringe benefits tax (FBT) year upon us, if you, as an employer, provided fringe benefits to your employees or their associates between 1 April 2020 to 31 March 2021, you may incur FBT and be required to lodge an FBT return. FBT is separate to income tax and is calculated on the taxable value of the fringe benefits provided.
Employee Share Schemes – Horace Hung
To promote employee motivation and loyalty, employers often use employee share schemes (ESS) to provide employees with free or discounted shares or options. ESS generally fall into two categories – concessional and non-concessional, with different tax treatments depending on the terms of the scheme which are set out in a prospectus. Such terms may include disposal restrictions or circumstances under which those shares or options could be forfeited.
2021/2022 Federal Budget
As the economy recovers on the back of the Coronavirus, the Federal Government has kept the fiscal tap open with spending this year targeting unemployment, infrastructure and aged care.
We have summarised the key initiatives announced in this year’s Federal Budget under the following categories:
End of Financial Year Superannuation Tax Planning Strategies – Victoria Kogan
Our SMSF specialist, Victoria Kogan, has prepared the following superannuation tax planning strategies ahead of the end of financial year.
COVID-19 Update – Thursday 27th May
In line with the stage 3 restrictions announced this morning by the Victorian Government our office will be physically closed from Friday 28th May – Thursday 3rd June.
Whilst our office may be physically closed, we will resume working from home. During this time all our contact details remain the same with emails, phones & faxes all operational as usual.
While we expected it, the news that Melbourne’s lockdown will be extended for another seven days, impacts in various ways and people may experience a range of emotions and concerns. Lockdown is a difficult time to look after our self-care, but when we add home schooling, job insecurity, welfare of family and friends, it can feel overwhelming.
2021 Tax Planning Letter
Whilst the last 12 months has been difficult for businesses and individuals to plan, as the 2021 financial year comes to a close, it is still an ideal time to strategize providing you with more certainty.
This certainty provides us with an opportunity to better help our clients manage tax liabilities through tax planning strategies.
Below are our tax planning letters highlighting the year-end planning opportunities and challenges. There is a letter relevant for exclusively individuals, as well as one including the plans for businesses also.
Managing Data using Cloud Technology – Mei Wu
I am passionate about the ability of technology to simplify - it stores sensitive information efficiently and effectively.
This is an introduction to cloud software available today. You may be subscribed to Microsoft 365 (O365) with access to the general suite of applications ranging from Word, Excel, PowerPoint, Outlook, OneNote, OneDrive and Skype.
The Surprise Tax and the Impact of Data Matching – Genevieve Rajakulendran
The ATO now has more information about taxpayers than ever, due to digital data and a sharing economy.
Consequently, the ATO has recently increased its data matching activity using it as a powerful administrative and law enforcement tool. More amended assessments are being issued and you may receive an unexpected tax bill.
Personal Property Securities Register – Holly Laidlaw
What is the Personal Property Securities Register (PPSR)?
The PPSR is the official government index designed to protect the legal rights of asset owners. Personal property can include cars, company assets, boats, used goods and intellectual property, but not buildings or land.
Small Business COVID Hardship Fund
The Victorian Government announced several cash grants for small to medium sized businesses impacted by the lockdown.
The most recent measure introduced is the small business COVID hardship fund to provide grants of up to $10,000 provided a decline in turnover of at least 70%.
Self-Managed Super Fund (SMSF) Membership Change – Victoria Kogan
It is important to understand the purpose and responsibilities of superannuation, as well as to keep up with changes to legislation for SMSFs.
In June 2021, the government passed new legislation allowing SMSFs to have up to six members in a fund. This was previously capped at four members. It is a decision that includes family members, which can work well, but may not be for everyone.
Blended Families and Estate Planning
Whilst all families can experience estate planning issues, blended families are exposed to additional elements.
What is a Blended Family?
A blended family has many different looks: from a couple and the children they have together, as well as their children from previous relationships to step-parents looking after their step-children. Blended families are common in Australia, with 10% of families classified as stepfamilies or blended families. If you are in a blended family situation, you are encouraged to seek advice about your estate planning. The collaboration of experts in both law and accounting will ensure your assets are safely protected.
Assessing Software for Your Business
By Sean Myles
The explosion of cloud software in recent years can make it daunting to choose the best new software for your business. So how can you cut through to make the most appropriate choice of program?
Some areas to consider:
Clarify your needs
Invest the necessary time to clearly identify what you want to achieve. A helpful question might be: “What problems are you trying to solve?”
Changes in Australian Taxation Office (ATO) Processes for Self-Managed Superannuation Fund (SMSF) Establishment
By Victoria Kogan
The ATO has strengthened its compliance processes regarding the establishment of new SMSFs. In the new process, the ATO will undertake various checks on the SMSF before the SMSF is determined “compliant”. This can take from a few days, up to 56 days. Most SMSFs are regulated as “complying” in under two months, but it can take longer where a more extensive investigation is required.
Recent ATO Announcements
By Snehal Shah
Deferral of Single Touch Payroll (STP) Phase 2
Employers have been required to report their payroll details to the ATO on a real-time basis through the STP system since 2018.
STP Phase 2 was to be implemented from 1 July 2021, requiring employers to provide more granular detail, including:
Deep Cleaning Considerations (By Genevieve Rajakulendran)
With the alarming increase in Covid-19 cases and exposure sites throughout Victoria, it is absolutely crucial that you have considered the most effective and efficient process in managing this situation if your business is classified as an exposure site. Becoming an exposure site can be a stressful time for your business, so we have provided some key suggestions to assist you if you encounter this issue.
Super in your 40s. It’s time to get focused. (By Ali Roshan)
As more Australians now work longer, there is a greater opportunity to boost super. However, we are also living to older ages, so the superannuation balance needs to last longer too.
Typically, the forties are a time of established careers, teenage kids and a mortgage that is no longer daunting. There are still plenty of demands on the budget and retirement seems a long way off.
Digital Marketing - Emerging and Influencing all Industries (Peter Horovitz and Hamish McIntyre)
Change is constant in all businesses. There has been no more significant change than the evolution of technology and its impact upon the business world. With this change, marketing has rapidly adapted to the digital environment and its ability to shape the way companies communicate with their stakeholders.
Three integral factors of digital marketing on business growth are:
Can you afford to retire early? (Ali Roshan)
Ever dreamt of retiring early? Yet without winning the lottery or inheriting a fortune from a long lost relative, just how possible is it to structure your finances so you never have to work again?
Many Australians working for a living, dream of the possibility of retiring early, spending their days travelling or playing golf or doing nothing much at all.
There’s even a name for it these:
Tax Measure Changes (By Ronald Cheng)
In the 2021-22 Federal Budget, the government announced a one-year extension to the following two tax measures that were introduced in 2020-21 to provide support to businesses during the Covid19 pandemic:
Temporary full expensing
This tax measure allows eligible business entities to claim an immediate deduction in full (for the business portion) on their capital expenditure in the year it is first used or installed ready for use for a taxable purpose. Instead of depreciating the assets over several years, the immediate deduction encourages businesses to invest and improve on their own operations.
ATO Crackdown on Family Trusts
The long - awaited Division 7A and trust arrangements guidance in the form of draft rulings was released on the 23 February 2022 by the ATO.
Family groups will need to reconsider the way they use their family trusts in light of the new guidance.
The package of ATO materials released comprises the following:
2022/23 Federal Budget
1. Personal income tax changes
1.1 Increase to low and middle income tax offset (‘LMITO’)The Government has announced a once-off $420 ‘cost of living tax offset’ for the 2022 income year, which will be provided in the form of an increase to the existing LMITO. This will increase the maximum LMITO benefit to $1,500 for individuals and $3,000 for couples, and will be paid from 1 July 2022 when Australians submit their tax returns for the 2022 income year.
Early-Stage Tax Incentives (By Genevieve Rajakulendran)
Early-stage innovation companies (ESIC) have often struggled with trying to attract seed and pre-commercialisation funding during the earlier stages of their development. However, it is often through the high- risk period from initial funding to when a company starts generating revenue, that they need to attract investors to help them get off the ground and survive.
Estate Planning Essentials (by Mei Wu)
Estate planning is an important process that too many people avoid. Varied reasons include the following:
- The process is difficult
- You don’t want to talk about death
- My spouse and children will just inherit what I own
- Estate planning is only for the wealthy
- It is too early to start planning my estate
- I still have plenty of time to write my will
Why you need an up-to-date superannuation fund trust deed (By Victoria Kogan)
The Trust Deed for a self-managed superannuation fund (SMSF) is important, as it sets out all the rules for the fund. If it’s not up to date, you may have problems.
The ATO tells you what you can do, what you must do and for what you are responsible as a trustee.