Understanding Payroll Tax

 

Many business owners find payroll tax confusing. Some common questions they ask are “when should I pay payroll tax,” “how do I pay for it,” and “how do I calculate payroll tax.”

Let’s get up to speed as we answer some frequently asked questions about it. 

How does payroll tax work? 

Payroll tax is a type of state based tax that’s calculated on your business’s monthly total wages. If you plan to have employees in different states or territories, keep in mind that payroll tax varies — depending on where your employees are located. 

Should I register for a payroll tax? 

Not all businesses need to pay payroll tax. To determine whether you need to register, calculate your total wages paid. If you wage costs exceeds $54,166 in a month (Victorian threshold), then you will have to register. To do so, create an account via PTX Express and complete the application process. 

Once you have submitted your application, it could take about 14 days for the process to complete. However, if the SRO needs more information, it may take up to 30 days. 

When is my due date and where can I pay?

The deadline for lodging your monthly return and payment is one week after the month closes for the particular return. If you don’t have payroll tax payable for the month, you would need to lodge a “nil” return through PTX Express.

I made a mistake when I lodged our monthly return, could I still make changes? 

Yes. If you need to change anything on your monthly return, you can override it by lodging a replacement return for the month. 

What happens if I fail to pay our payroll tax?

If you fail to settle your business’s monthly payroll tax obligation, you will receive a default assessment. This includes an interest fee and penalty. 

The same goes when you pay after the deadline. You will incur interest and penalties.

Payroll tax doesn’t have to be complicated. But it does require you to lodge your monthly return on time and accurately. 

Glance Consultants can assist with your payroll tax obligations. If you need help with yours, call 03 9885 9793. You can also reach us at enquiries@glanceconsultants.com.au or fill out our contact form.

 

Guide to estate planning

 

 

As COVID-19 continues to sweep across nations with no end in sight, many have started to consider their estate plans seriously. This may not be easy to think about for some. But, it never truly hurts to prepare yourself, your estate, and your family for what could happen.

What is Estate Planning?

Estate planning is more than preparing a will. It also includes appointing an inheritance manager or guardian if you have children below 18 years old. Additionally, it involves setting up instructions for your care should you be unable to decide for yourself. 

Estate planning also includes planning to cut unnecessary fees, court costs, and taxes when passing on your assets to your loved ones. 

Why Should You Consider Estate Planning? 

Estate planning is an essential part of life. With instructions and guidance on what to do, an estate plan eases the stress and uncertainty your loved ones may feel after you’ve passed. Furthermore, it gives you peace of mind that you’re leaving your assets to people you trust.

What are the Documents You Need to Get Started? 

Before thinking about distributing your assets to family, you must consider the debts you’ll be leaving behind. 

When you’ve passed, your assets will be used to pay off your debts. Once those are cleared, any remaining assets will be distributed to your beneficiaries. This means that you may have less to distribute than you initially thought.

To start estate planning, prepare documents pertaining to the following:  

  • Bank accounts 
  • Vehicles owned 
  • Real estate properties 
  • Investments 
  • Businesses

How to Choose the Right Executor? 

Typically, you hire an estate planning expert or attorney to help you with your estate plan. You would also need to choose an executor. It’s the person who will make sure that your instructions are followed.

Apart from making sure your instructions are carried out as you wish, your executor will also be the one responsible for clearing your debts and executing any end-of-life plan you’ve set up. 

Many choose a family member as their executor. However, if you don’t want a family member to become your executor, you may also appoint a close friend. You could also choose an institution, a professional, or a bank to become your executor. 

Are you ready to start estate planning? We are here to help. Our firm has access to an excellent team of professional lawyers who can assist. We’d love to get to know you and understand your estate planning goals. Send an email to enquiries@glanceconsultants.com.au or call us at 03 9885 9793 for more information.

Is starting a business during a pandemic, good or bad?



It has been a challenging time for many. We have remained cooped up in our homes and businesses have turned to digital means to survive the pandemic. Some have opted to shut down because they have exhausted their options to stay afloat. However, others have seen that it is also an excellent opportunity to start their own businesses. So, if you have been considering starting your own business, this maybe an opportune time.

Do not be afraid of the new normal

You might be hesitant given the difficulties that most businesses are facing. Yet there are those aspiring entrepreneurs who have understood the potential of companies to thrive despite the global pandemic. It has led to many people to rethink their business strategy, which has created a flurry of brands and services that are new and exciting.

There is no better time than today

If you can establish a business in this type of environment, you would be in a better position to face the challenges your business might come across in the future. The focus is on survival and maximizing all of your strengths to take advantage. If you can play your cards well, then despite being a start-up business, you would be in a better position to attain success.

A rise in Job Seekers

A notable consequence of the pandemic is that many people have been laid off. This is an opportunity for you to hire talented people in your team. Since many would be looking for employment opportunities, you can potentially snag candidates that you know will help your start up survive and thrive.

Contact our team at Glance Consultants for assistance with the establishment of your business. Call us at 03 9885 9793 or fill out our contact form.

How to help your business cope after the Coronavirus outbreak



The coronavirus outbreak is ravaging the world economy. From air travel, sporting competitions, and to extensive activities; almost everything was postponed and even cancelled. In times of crisis, it can be not easy to keep calm and constructive. For business owners, however, remaining calm under the hammering pressure is key to business survival.

By taking constructive action today, you will be able to place your company in a more stable position and recover quicker when the recession subsides. China, the country where the virus first originated, is now showing signs of economic growth.

What Coping Strategies Can You Develop?

Based on your industry, location, size, and other important considerations, the risk reduction practices that your business can pursue can be enormous. These strategies may involve actions such as changing the budget from fixed costs to flexible expenses to achieve stability.

Here are some of the key considerations:

● The first thing you can do is handle your cash inflows and outflows effectively. During these challenging times, a lot of businesses struggle to manage their cash flow. Thus, you may consider cutting costs or boosting sales by coming up with more innovative ways to market your products or services.

● The COVID-19 pandemic is expected to affect not just on consumer behaviour but also on how work will be performed in organizations worldwide. In other words, social distancing and self-quarantine are expected to improve e-commerce revenues during this period. For safety purposes, most customers will prefer digital solutions rather than traditional retail, which is a behavioural shift that is expected to have a long-term effect.

● Businesses of all types in Australia should strive to support attempts to prevent the dissemination of the virus as much as possible. Demonstrating this sense of mission will have a positive influence on your employees, customers, and the broader business community once the pandemic had ceased.

Are you in need of cash flow management advice? Glance Consultants will be able to provide you with assistance when it comes to handling your finances effectively.

Get in touch – call us today on 03 9885 9793 or fill out our contact form.

The JobKeeper scheme has been extended from 28 September 2020 until 28 March 2021


The JobKeeper extension has passed — There will be important changes to the wage subsidies. Here’s what you need to know.

There are two separate extension periods. For each extension period, an additional actual decline in turnover test applies and the rate of the JobKeeper payment is different.

The extension periods are:


The rates of payment will change

The rate of the JobKeeper payment in each extension period will depend on the number of hours:

  • an eligible employee works, or
  • an eligible business participant is actively engaged in the business.

It will be split into two rates.


Employers and businesses will need to nominate the rate they are claiming for each eligible employee and/or eligible business participant.


JobKeeper extension 1

This extension period will run from 28 September 2020 to 3 January 2021.

You will need to show that your actual GST turnover has declined by 30% or more in the September 2020 quarter relative to a comparable period (generally the corresponding quarter in 2019).

The rates of the JobKeeper payment in this extension period are:

  • Tier 1: $1,200 per fortnight (before tax)
  • Tier 2: $750 per fortnight (before tax).


JobKeeper extension 2

This extension period will run from 4 January 2021 to 28 March 2021.

You will need to show that your actual GST turnover has declined by 30% or more in the December 2020 quarter relative to a comparable period.

You can be eligible for JobKeeper extension 2 even if you were not eligible for JobKeeper extension 1.

The rates of the JobKeeper payment in this extension period are:

  • Tier 1: $1,000 per fortnight (before tax)
  • Tier 2: $650 per fortnight (before tax).


What you need to do

From 28 September 2020, you must do all of the following:

  • work out if the tier 1 or tier 2 rate applies to each of your eligible employees and/or eligible business participants and/or eligible religious practitioners
  • notify us and your eligible employees and/or eligible business participants and/or eligible religious practitioners what payment rate applies to them
  • during JobKeeper extension 1 – ensure your eligible employees are paid at least
    • $1,200 per fortnight for tier 1 employees
    • $750 per fortnight for tier 2 employees
  • during JobKeeper extension 2 – ensure your eligible employees are paid at least
    • $1,000 per fortnight for tier 1 employees
    • $650 per fortnight for tier 2 employees.


What doesn’t change

To claim for fortnights in the JobKeeper extension 1 or 2:

  • You don’t need to re-enrol for the JobKeeper extension if you are already enrolled for JobKeeper for fortnights before 28 September.
  • You don’t need to reassess employee eligibility or ask employees to agree to be nominated by you as their eligible employer if you are already claiming for them before 28 September.
  • You don’t need to meet any further requirements if you are claiming for an eligible business participant, other than those that applied from the start of JobKeeper relating to
    • holding an ABN, and
    • declaring assessable income and supplies.


New JobKeeper participants

The JobKeeper scheme will remain open to new participants, provided they meet the eligibility requirements for the relevant period.

How to avoid delays when processing your Tax Return this year


Avoiding delays when lodging your tax return this year could be quite challenging because of the ongoing pandemic.

Moreover, you can still lodge your tax return electronically until 31 October 31 or 15 May 2021 if you are using the service of a specialist tax accountant.

Before you start lodging your tax return, make sure you have everything covered to avoid delays. You should also make sure that you are aware of all the COVID-related deductions that you can claim.

On the flip side, take note that the ATO can sometimes delay the processing of your tax return, especially if you have old overdue tax returns to lodge.

The normal processing will only continue once you get your tax affairs up to date. If you want to save time, hiring a tax accountant is recommended when taking care of outstanding tax returns.

Tax Office

With the lifting of the lockdown restrictions, accountants are permitted to open their offices to accommodate their clients. However, with stringent social distancing guidelines still in effect, professional service firms do not have access to their offices.

Online Tax Return Service

If you’re taking precautionary measures and don’t have a way to see a qualified accountant in person, utilising an online tax return service would be a perfect alternative.

With an online tax return service, you can claim everything you are eligible for. We at Glance Consultants offer this valuable service.

When lodging your tax return this year, make sure to have a checklist of the necessary things that you need to do to avoid delays.

If you need further assistance, you can seek assistance from Glance Consultants to help you lodge your tax returns successfully. Our firm can provide a comprehensive checklist to cover your requirements.

Contact us on 03 9885 9793 or fill out our contact form to get in touch.

How to establish a long-Term business strategy amid the COVID-19 Pandemic



Today, various businesses in Australia have begun developing long-term strategies to help minimise the adverse effects of the coronavirus pandemic within the industry. Moreover, identifying the most effective way to maximise your market value relies heavily on your innovative solutions, specifically when it comes to generating leads, boosting ROI, and raising conversion rates.

While establishing a long-term strategy may sound like an easy thing to do, finding the best one that fits perfectly with your business needs is not that simple. So to help you develop a strategy that can support your business in these trying times, here are several points to consider:

Be Customer-Focused

Avoid focusing too much on numerical information — you need to understand the specific challenges that your consumers might be facing. For example, some of your consumers may be more price-conscious than usual due to a recent job loss or financial strain.

Stay Relevant

To get ahead of the curve against your competitors, you need to be able to answer and solve the problems that your consumers face amidst the ongoing crisis. However, take note that the issues you are attempting to address and solve could change – especially during a pandemic. That is why it is vital to be attuned to the current disposition of the business climate. By understanding the current state of the industry and staying up-to-date with the latest news, you should be able to arm yourself with the correct strategy while addressing the key issues that may affect your business.

Keep Your Message Clear

Due to the pandemic, many businesses continue to change the way they distribute products or services to their customers. Whether you are releasing a new product, offering innovative delivery options, or changing your time or availability, always make sure to keep your messaging clear in every digital marketing channel you utilise.

The COVID-19 pandemic is still on (at least until a vaccine is developed) and coming up with a long-term strategy is necessary for business survival. If you’re currently struggling with your finances, Glance Consultants will be able to extend help by providing you with expert advice and more.

Contact us 03 9885 9793 at or fill out our contact form to get in touch with us today.

The new Director Identification Regime



Background

The Director Identification Number (DIN) regime is coming.

The Treasury Laws Amendment (Registries Modernisation and Other Measures) Bill 2019 (Cth) (the Bill) was passed on 12 June 2020 and subsequently received Royal Assent on 22 June 2020.

The Bill, together with other legislative changes, is part of the Federal Government’s ‘Modernising Business Registers Program’ that is aimed at unifying the Australian Business Register and more than 30 other business registers that are administered by the Australian Securities and Investments Commission.

The introduction of the DIN regime is a central component of the Bill’s objective and is given effect through amending the Corporations Act 2001 (Cth) and the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (Cth).

What to remember

  • Directors will be required to have their identity verified and have a unique and permanent identifier issued to them.
  • Companies will need to put processes in place to ensure that all existing directors apply for a DIN within the prescribed timeframe once the DIN regime is implemented.
  • Once the DIN regime is implemented, companies will also need to ensure that director appointment processes include the necessary steps for new directors to apply for a DIN. Once the transitional period ends, this process will need to be undertaken prior to a director appointment.

The DIN regime

The DIN regime is part of the Federal Government’s wider objective of:

  • tackling illegal phoenix activity;
  • making company directors more traceable and accountable;
  • streamlining business registers by providing a single-point of contact; and
  • furthering the Government’s ‘Deregulation Agenda’ by creating an electronic system than is readily accessible to everyone.

The DIN regime will involve a one-time application that requires directors of private and public companies (including foreign-born or foreign domiciled directors) and alternate directors to have their identity verified and then be allocated a DIN as a unique and permanent identifier. A DIN will continue to apply to the director even if he or she leaves their position.

DINs will be recorded in a new database that will be administered and operated by a registrar from an existing Commonwealth body. The identity of that Commonwealth body is yet to be announced.

The regime will make it easier for the registrar to verify director identities and refuse/cancel a DIN where an individual’s identity is in question. The requirements for identity verification remain to be confirmed, but will be contained in data standards made be the relevant registrar.

Additionally, the regime will also aid regulators and external administrators by establishing a transparent system that will in turn create a more timely and cost-effective process when investigating and commencing proceedings against directors.

When does a DIN need to be obtained?

The implementation date for the DIN regime has yet to be officially announced, with implementation to occur 2 years after the Bill received Royal Assent unless an earlier date is set. It is anticipated that the roll out will occur in the first half of 2021. However, commencement may well be later given the impacts of COVID-19.

Within the first 12 months following implementation, new directors will have 28 days after appointment as a director to apply for a DIN. Following this period, individuals must apply for a DIN before becoming a director. For existing directors, transitional provisions will provide a period during which they will need to obtain a DIN.

Whilst directors will be required to have a DIN, the obligation is to have applied for, rather than obtained, a DIN prior to appointment as a director.

This is to provide flexibility, and a defence, for circumstances where a DIN has not been issued for reasons outside the control of the relevant person (e.g. processing delays).

Consequences for non-compliance

Under the proposed regime, there will be civil and criminal penalties for:

  • failing to apply for a DIN within the prescribed timeframes;
  • failing to apply for a DIN if directed by the registrar;
  • intentionally applying for more than one DIN
  • intentionally providing a false DIN to a government body or relevant body corporate; and
  • being actively involved in the contravention of any the above offences.

Tax Considerations for Rental House

Investment property income you get from your property is considered by the Australian Taxation Office to be taxable income. It is taxed according to your marginal tax rate, and it should be declared on your income tax return.

With that said, it is essential to consider what are the critical tax considerations for your investment property in Australia. Here are some of them:

– Deductions

According to the ATO, investment property expenses can be considered as a tax deduction if they are connected to the investment property. Therefore, the management and the maintenance expenses you pay will offset any taxable income.

Some examples of what can be considered a deduction on investment properties are expenses on the advertisement in relation to advertising for new tenants, interest expenses on your investment property loan, landlord insurance, repairs & maintenance, depreciation, agent fees, mortgage insurance etc. Make it a habit to always keep your receipts for these expenses.

– Property Tax

You will also need to pay for separate property taxes such as council and water rates. These taxes are paid to the local government for activities such as public maintenance and rubbish collection. This tax is calculated based on the value of your property and its location.

– Land Tax

Land tax is calculated using the land value of your property and is paid to your state government.


Final Word

Owning an investment property and receiving rental income is a great investment option, but it also requires you to consider the income considerations. Hopefully, the considerations mentioned above will help you get a better idea of what to expect and how to legally minimize your taxes.

Talking about your tax implications can be quite overwhelming and sometimes confusing for many. If you have any questions, Glance Consultants will be happy to assist you.

Please fill out our contact form or call us at 03 9885 9793.

How an Audit for a Superannuation Fund works

The superannuation fund is an adaptation made by the Government of Australia to motivate its citizens to accumulate funds that will provide them with a stream of income in their retirement years. The state does this by making it compulsory for employers to contribute superannuation on top of their employees’ salaries and wages. They also provide tax benefits for further encouragement. 

If you have a superannuation fund, you need to know that it should have a mandatory audit done by an auditor accredited by the Australian Securities and Investment Commission. The audit will include a Financial Report Audit and a Compliance report audit. 

 

Financial Report Audit

The following are the primary requirement to get a financial Report Audit:

● An audit engagement letter signed by the trustees

● Trustee representation letter which is signed

● Financial accounting reports, such as member statements, income statements, balance sheets, etc. 

● Duly accomplished annual tax return

● Supporting documents

 

Compliance Audit Report

Here are the documents needed for the Compliance audit report

● A signed copy of pension documentation if it is in pension mode

● Permanent files copies

● Actuarial Certificate

● Life insurance certificate (if applicable)

● ASIC annual return if employers are acting fund trustees

Once the auditor receives the files mentioned above, they will proceed with their auditing task. If there are breaches, auditors will try their best to rectify the matter legally. 

 

Final Word

When getting an auditor who will be in charge of auditing your superannuation fund, make sure that ASIC accredits them. You can check their legitimacy by going to the website and confirming their registration. 

If you have more questions that are not covered by this article, kindly fill out our contact form or call us at 03 9885 9793.

We will help you and assist you with your superannuation fund concerns and enquiries. 

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