Queensland Budget
|by Jason Cordner|Taxation and Compliance
Queensland Treasurer Jackie Trad set down the 2019 / 2020 Queensland Budget yesterday and there were some changes to payroll tax and land tax to be aware of. For a more complete overview of the budget impacts for small business, see this link: https://budget.qld.gov.au/files/Budget%20Statements%20-%20SMALL%20BUSINESS.pdf
Payroll tax
Small business initiatives include (subject to review of regulations / legislation):
• Increase in the threshold for the application of payroll tax from $1.1 million in taxable wages to $1.3 million;
• A payroll tax rebate for new full time employees of up to $20,000 (as far as it applies to those new employees);
• Reducing payroll tax rate by 1% for regional employers (i.e. employers with 85% of their employees outside of South East Queensland)
• An extension of the rebate scheme for trainees and apprentices
On the flip side, large businesses (payroll above $6.5 million) will have an additional amount to pay.
Land tax
Some changes to land tax were announced however it is not expected to have widespread impact. These changes include:
• Increases in rates for companies or trustees with Queensland land holdings worth more than $5 million;
• Australian citizens and permanent residents will be assessed as residents even if living overseas;
• Absentee surcharge (applying to foreign residents that do not ordinarily reside in Queensland) increased from 1.5% to 2%
• Foreign surcharge of 2% will be applied to foreign companies and trustees with Queensland land holdings of more than $350,000
For full details on the budget, follow this link: https://budget.qld.gov.au/budget-papers/
If there are any budget measures that you think may impact on your circumstances, please contact us on (07) 5504 5700
Blog
Related news
ATO Reminder Regarding Director Penalty Notices
Taxation and Compliance
The ATO has recently issued a reminder to current and former directors of companies, that if the company does not meet its Pay As You Go (PAYG) withholding, Goods & Services Tax (GST) or Super Guarantee (SG) obligations, the ATO may recover these amounts from the director personally.
By Steve Payne
Changes to STP reporting from 1 July
Taxation and Compliance
Most employers should now be reporting through Single Touch Payroll (STP) each pay day, unless they only have closely held payees or are covered by a deferral or exemption.
By Kamil Qureshi
Lifestyle Asset Purchases - Is the ATO watching you?
Taxation and Compliance
The Australian Taxation Office (ATO) has published a notice in the Commonwealth Gazette on 14th July 2021, detailing a new data matching program, that will extract data from insurance policies held on “lifestyle assets” (eg motor vehicles, marine vessels, aircraft, horses, artworks).
By Steve Payne
Tax planning considerations are as important as ever
Taxation and Compliance
The government have introduced several new measures aimed at boosting new investment and providing relief for both businesses and individuals.
By Caitlin Fruk
GST on imported services and digital products
Taxation and Compliance
Australian goods and services tax (GST) applies to sales of imported services and digital products to Australian consumers
By Cheryl Hindshaw
Professional Services Practices – ATO’s View on Treatment of Profits
Taxation and Compliance
The ATO recently release updated guidance (PCG 2021/D2) on their view of the treatment of profits earned by professional practices, in particular whether the profits earned by a practice entity or entities ought better be characterised as personal exertion income (i.e. taxable in the hands of the practitioner) rather than business profits.
By Jason Cordner
Watch out for ATO Impersonation Scams
Taxation and Compliance
If you are one of the many taxpayers who have lodged your personal income tax return by 31 October, it is vital to be aware of the ATO Impersonation Scams.
By Linda Bergesen
JobKeeper 1.1
Taxation and Compliance, Business Advisory
The government has announced on 14 August 2020 for the extension on the JobKeeper payments till 31 March 2021.
By Jun Yang
2020 Tax time and Government Support Measures
Taxation and Compliance
The 2020 financial year will be remembered as the year of uncertainty for all small businesses and individuals
By Rochelle Whitbread
Importance of Cash Flow Forecasting for Small Businesses
Taxation and Compliance, Business Advisory
To alleviate some of the mystery and anxiety around cashflow for a small business, it is important to have in place a fluid and accurate cash flow forecast.
By Zoe Farnworth
Importance of Tax Planning
Taxation and Compliance
As we are quickly approaching the end of financial year 30 June 2020, now is a good time to have a look at both your expected taxable income for the current financial year 2019-20 and your projected taxable income for 2020-2021 as they will help guide your tax planning strategy
By Kamil Qureshi
Covid_19 Update
Business Advisory, Taxation and Compliance
With the crisis escalating at an exponential rate, we do note and appreciate the elevated levels of concern in our community
By Jarrad Young
Stimulus Package
Business Advisory, Taxation and Compliance
Morrison government unveiled $23 billion stimulus package during the COVID – 19 crises in the hope to avoid Australian economy sliding into recession.
By Jun Yang
$30,000 Instant Asset Write-Off Before 1 July 2020
Taxation and Compliance
Considering the purchase of new assets for your business?
By Sophie Shepherd
Tax Issues for Deceased Estates
Taxation and Compliance
Although death is generally not a taxing event, whenever assets move from one person to another, there may be potential income tax, capital gains tax (CGT) and stamp duty implications.
By Michael Courtin
Payroll tax issues for Medical Centre business arrangements
Taxation and Compliance
Recent events highlighted in “Accountants Daily” by Matthew McKee of Brown Wright Stein Lawyers, has changed the understanding and treatment of some aspects of medical centre operations.
By Steve Payne
Dodgy ‘phoenix’ firms are facing a crackdown
Taxation and Compliance, Business Advisory
Companies rising out of the ashes to avoid paying tax, wages and other debts will face a crackdown when regulators get increased powers.
By Jarrad Young
Incoming SME tax changes for the FY 2020
Taxation and Compliance
The start of the new year has brought some core changes that will affect many SME’s in the way they conduct their business.
By Kamil Qureshi
Removal of main residence exemption for foreign residence
Taxation and Compliance
Government has passed the bill to remove the main residence exemption for Australian non-resident. The bill is part of the Housing Tax Integrity Bill 2017 which was first introduced in the government budget 2017.
By Jun Yang
Lodgement and payment deferral to taxpayers impacted by the recent bushfires
Taxation and Compliance
Due to the recent catastrophic bushfires in QLD and NSW, the ATO has granted a two-month lodgement and payment deferral for taxpayers in affected areas. The extension has been applied automatically, so there is no need for taxpayers to do anything.
By Linda Bergesen
Ways to reduce the risk of a Tax Audit
Taxation and Compliance
Every year the Australian Taxation Office (ATO) contacts about 2 million Australian taxpayers to clarify or question information provided in their tax returns.
By Michael Courtin
TPAR Reporting requirements for Builders, Cleaners, Road Freight, IT or Security, Investigation or Surveillance Services
Taxation and Compliance
If your business operates in one of the above industries, you will need to complete a TPAR to report the total payments you make to each contractor for providing those services on your behalf.
By Linda Bergesen
Holding Costs for Vacant Land from 2020 - Government denies deduction claims
Taxation and Compliance
In the May 2018 Federal Budget, the Government announced that from 01 July 2019 (ie the 2020 income year), it would be looking to deny deductions for expenses associated with holding vacant land.
By Steve Payne
TAX DEBTS CAN NOW BE NOTIFIED TO CREDIT AGENCIES, DEDUCTIONS DENIED FOR VACANT LAND AND MORE - NEW TAX LEGISLATION PASSED
Taxation and Compliance
’Schedule 5” of The Treasury Laws Amendment (2019 Tax Integrity and Other Measures No. 1) Bill seeks to create a legislative framework that decriminalises the disclosure of taxpayer information by a taxation officer where an authorised disclosure is made to a credit reporting bureau.
By Kamil Qureshi
Cash is King
Taxation and Compliance
In business there is an old saying, “Cash is King” (origin of which is unknown but was used in 1988 by P. Gyllenhammer after the 1987 global stock market crash i.e. Black Monday)
By Shaun Ralph
Is your passive investment company carrying on a business?
Taxation and Compliance
The ATO has issued a final tax ruling, TR 2019/1, which replaces its previous views expressed in TR 2017/D7. The ruling takes a broad view of the meaning of ‘carrying on a business’ which will extend to companies that hold mainly passive assets, such as shares or property, as long as its activities are carried out with a view to making a profit.
By Michael Courtin
The difference between a budget and a forecast
Business Advisory, Taxation and Compliance
A budget is a financial plan, derived based on where you want your business to go
By Linda Bergesen
Tax Cut
Taxation and Compliance
Tax Cut - The government delivered tax cut package of $158 billion plan on 4 July 2019. You will get the tax cut when you lodge your tax return for 2019.
By Jun Yang
Death and Taxes
Taxation and Compliance
“The only things certain in life are death and taxes” - Benjamin Franklin
By Elsa Howarth
Changes to Compulsory Study Loan Repayments
Taxation and Compliance
Graduating university or trade college is a milestone in every student’s life. Unfortunately, once the celebrations are over, you are left with a debt that many do not think about until the compulsory repayments kick in at tax time.
By Lara Sorrentino
Claiming Deductions on your Tax Return
Taxation and Compliance
As we are approaching fast towards the end of the financial year the income tax returns will be due for lodgements very soon. Historically ATO audits were targeted at big business but this has now changed.
By Kamil Qureshi
Queensland Budget
Taxation and Compliance
Queensland Treasurer Jackie Trad set down the 2019 / 2020 Queensland Budget yesterday and there were some changes to payroll tax and land tax to be aware of.
By Jason Cordner
Changes to Company Loss Rules - The Similar Business Test
Business Advisory, Taxation and Compliance
In February 2019, the Federal Government enacted changes to the company loss rules, which were first announced in 2015.
By Michael Courtin
Tax policy update
Taxation and Compliance
By now I am sure you have heard all about the most unexpected election result in some time – at least since 1993. As unbelievable as it seemed pre-election, there are plenty of analysts out and about explaining how we (they) should have seen it all along.
By Jason Cordner
Single Touch Payroll Is Coming – Are You Ready?
Taxation and Compliance
Single Touch Payroll (STP) is a system of reporting employer payroll obligations to the Australia Taxation Office (ATO) on a more frequent basis.
The implementation is an initiative by the ATO to streamline the reporting for employee payroll commitments, for the components of salaries & wages, PAYG Withholding (PAYG-W) and Superannuation.
By Steve Payne
How much can you contribute to super before 30 June 2019?
Self Managed Super Funds, Taxation and Compliance
As we approach 30 June, there are a few things to remember… and check… when it comes to superannuation contributions.
By Elsa Howarth
Labor’s Proposed Negative Gearing Changes
Taxation and Compliance
Negative gearing will be a key issue in this year’s federal election. If elected, Labor intends to reform the practice with the aim of improving housing affordability. The Coalition intends to leave negative gearing as is
By Michael Courtin
Family Trust Election
Taxation and Compliance
This article provides explanation of the main situations in which a family trust election may be required
By Kamil Qureshi
STP Bill now passed through Senate
Taxation and Compliance
What does that mean? The requirement for Single Touch Payroll (STP) was implemented from 1 July 2018 for all employers with 20 employees or more.
By Linda Bergesen
The Capital Gains Tax Consequences of Creating Rights
Taxation and Compliance
Although most of us think about the disposal of an asset when it comes to Capital Gains Tax (CGT), there are another 53 CGT events that have tax consequences.
By Michael Courtin
Business Health Check Up
Taxation and Compliance
Business Health Check Up
By Sarah Crowe
New Years Resolution: To Avoid Sophisticated Email Scams …
Taxation and Compliance
...
By Steve Payne
Contractors for payroll tax purpose
Taxation and Compliance
If your business is paying for contractors, you need to look closer on each contractor to see if the contractor is considered as a relevant contract for payroll tax purpose.
By Jun Yang
Base Rate Entity - Corporate Tax Rates
News, Taxation and Compliance
The corporate tax rate for Small Business Entity (SBE) companies was reduced to 27.5% from the 2017 financial year. To be an SBE, a company must have carried on a business in the current year and met a $10 million aggregated turnover threshold cap.
By Michael Courtin
Are you or your employees missing super?
Taxation and Compliance, Self Managed Super Funds
According to official records, there is still $17.5 billion in lost and unclaimed super waiting to be found. Some of it could belong to you or your employees.
By Linda Bergesen
FBT 2019 : Utes are No Tax-Free Perk
Taxation and Compliance
Although we are already one quarter into the Fringe Benefits Tax (FBT) Year, which runs 01/04/XX to 31/03/XX, the ATO have sought to clarify their position on a perceived “perk” in relation to FBT payable on employer-provided / salary packaged motor vehicles.
By Steve Payne
Queensland Absentee Land Tax
Taxation and Compliance
In the 2017-18 budget, the government announced a 1.5 per cent land tax surcharge absentee land taxpayers if the value of their taxable land was $350,000 or higher.
By Kamil Qureshi
Is it deductible?
Taxation and Compliance
Australian Taxation Office (ATO) has identified the top 10 tax myths and misunderstandings it says are causing incorrect claims.
By Linda Bergesen
GST Withholding on Property Settlement
Taxation and Compliance
The new GST withholding act on certain property settlement starts on 1 July 2018.
By Jun Yang
Home to work travel claims?
Taxation and Compliance
The ATO has announced that it will be closely scrutinizing Motor Vehicle deductions claimed in the 2017/18 income year.
By Steve Payne
The value of a good car log book
Taxation and Compliance, News
As the end of the Fringe Benefits Tax (FBT) year is fast approaching, it’s time to once again turn at least part of our attention to the collation and submission of data relating to benefits provided to employees.
By Steve Payne
Tips To Best Manage Payroll Compliance
Taxation and Compliance
Payroll compliance remains one of the biggest but preventable areas of risk for many businesses. Payroll is a process that, done well, should be invisible to the rest of the business.
By Kamil Qureshi
What is Single Touch Payroll Reporting, and does it affect you?
Taxation and Compliance
Single Touch Payroll Reporting is a new legal requirement, and it ensures that all payroll related information is instantly reported to the Australian Taxation Office (ATO) each time a pay run is processed.
By Linda Bergesen
BAS: The consequences of late lodgement
Taxation and Compliance
One of the biggest mistakes businesses make is putting off lodging their quarterly BAS returns. For those who do their own books, there are many reasons for this. They get caught up in the day-to-day running of their business or the person who has been doing their books for them is no longer available.
By Kamil Qureshi
Claiming Car Expenses
Taxation and Compliance
The ATO will be looking closely at work related car expense claims made under the cents per kilometre method with a focus on claims right up to the 5000km threshold which does not require detailed records to be kept.
By Christine Harvey