Rolling in soon: Single Touch Payroll

Single Touch Payroll (STP) is a way of streamlining tax and super information to the ATO from your payroll or accounting software. Designed to provide ‘real-time reporting solutions, the implementation of STP will mean employers will now report figures at the time of payroll, and employees can access year-to-date tax and superannuation details as they require them.

So what does this mean for employers and employees alike?

For the Employers

All businesses will be required to comply with Single Touch Payroll from 1st July 2019. In the coming months, we will see new software solutions and options enter the market. Early adoption is possible, and some businesses may have seen this already as providers have begun rolling out new software options for those businesses wanting to uptake this method of data processing. Businesses utilising STP will be able to report employees’ salaries and wages, allowances, deductions (for example, workplace giving) and other payments, pay as you go (PAYG) withholding, and superannuation information, while eliminating the need to provide end of year payment summaries.

For Employees

The main change for employees is the introduction of real-time reporting meaning we will slowly see the reduced need for EOFY PAYG Withholding Payment Summary. This information will now be available via your myGov account, allowing access to year-to-date taxation summaries and super information, continuously being updated in real-time as your employer pays you. You will also be able to continually check your super contributions and receive your tax-ready payment summary information (income statement) via myGov.

For more information, visit the ATO website.

Follow our handy Personal and Business Tax Time Checklists to make sure you’re prepared.

So it’s that time of year yet again! If you are new to lodging a tax return or if you are a new Start-Up Business or Sole trader/contractor – even if you’ve been doing it for years – getting all of your financial documentation together can be a daunting task.

If you just don’t know where to start, the Hrkac Group are here to help. We strive to take the guesswork out of Tax time and have put together helpful checklists for both personal and business taxation clients, so that you can be confident that you have everything in order.

For those looking to lodge a personal tax return, here is a list of some of the items required by your registered tax agent:

A Copy of your previous years income tax returns (new clients only)
PAYG payment summaries Group Certificates
Dividends and other investment income
All Rental Property Information
Receipts for any possible claims/deductions including:
Motor Vehicle expenses
Any Travel expenses
Uniform purchases and Laundry costs
Self Education Costs
Any Work related expenditures
Tax agent fees paid during last financial year (new clients only)
Your account bank details for any refund
Any Gifts or Donations
Income Protection premiums paid
Private Health Insurance Annual Taxation Statement

For those of you running a business, here is a list of some of the items required by your registered tax agent:

Backup or invite your agent to join your Accounting program
(i.e MYOB/Reckon/Quickbooks/Xero)

Bank Statements for all business accounts including loan statements
Documentation for any new Capital purchases such as Motor Vehicles or properties
Trade Debtors listing as at the end of the period
Trade Creditors listing as at the end of the period
Detailed payroll records
Do you have any carried forward capital losses? If yes, how much

New clients will also need:

a copy of most recent years financials and tax returns
Previous accounting fees paid
Personal and business details

Download our Personal Tax Checklist or our Business Tax Checklist here!

If you would like to know more or to make a time to see one of our Geelong based Personal or Business Tax Specialists, feel free to contact the Hrkac Group today!

The Hrkac Group has access to a Car Buying Service for both Corporate and Private car buyers with an impartial, cost-effective, and stress-free solution for purchasing your new motor vehicle. An average car purchase takes approx. 40 hours from start to finish, this service can eliminate all that stress.

The process is, we get to understand the client’s new vehicle requirements and can offer suggestions if required. We arrange a test drive at your local dealership in the chosen vehicle or it can be brought to your home or workplace without any obligation to buy. We handle all the price negotiations with our preferred dealers to ensure the exact vehicle you want at the very best price.

We can sort out your trade-in also to obtain the best price. We arrange the paperwork, car accessories, and registration. We can deliver the car to your home or work and we can take you through your new vehicle. If you prefer, your car can be picked up at the dealership. There are no fees for this service. You pay the best price that has been negotiated for your new vehicle.

Should you, your staff, family, or friends like further information, contact The Hrkac Group Finance Department, on 5221 2355 or email paul@hrkacgroup.com.au. We have had multiple clients use it so far and it has saved them time and stress and as a result, they have recommended it to others already.

Are you an employer? Are you aware of the recent changes?

As of October 1^st 2016 the ATO have put out changes to the PAYG withholding tax rate for employees earning over $80,000 a year.

These changes see the 32.5% Tax threshold increase from $80,000 to $87,000 in the withholding schedules as a result of personal income tax relief changes.

If any extra tax was withheld from your employees before the rate change on October 1^st, your employees will be credited when they lodge their 2016-17 income tax returns. No employer adjustment or refund is required.

Feel free to contact us at The Hrkac Group for advice on these PAYG tax rate changes and download the updated tax rate tables here.

Follow our handy Personal and Business Tax Time Checklists to make sure you have everything in order.

So it’s that time of year again! For some it has become like driving a car or riding a bike, you just go into autopilot and you can get everything in order without breaking a sweat. For others, in particular those that are new to lodging a tax return or for a new Start-Up Business or Sole trader/contractor, it can be a daunting task. Where do you just don’t know where to start?

Luckily at the Hrkac Group, we strive to take the guess work out of Tax time, and have put together some helpful hints, so you know that you have everything in order.

For those looking to lodge a personal tax return, here is a list of some of the items required by your registered tax agent:

A Copy of your previous years income tax returns (new clients only)
PAYG payment summaries Group Certificates
Dividends and other investment income
All Rental Property Information
Receipts for any possible claims/deductions including:
Motor Vehicle
Any Travel expenses
Uniform purchases and Laundry costs
Self Education Costs
Any Work related expenditures
Tax agent fees paid during last financial year (new clients only)
Your account bank details for any refund
Any Gifts or Donations
Income Protection premiums paid
Private Health Insurance Annual Taxation Statement

For those who own a business, here is a list of some of the items required by your registered tax agent:

Backup or invite your agent to join your Accounting program
(i.e MYOB/Reckon/Quickbooks/Xero)

Bank Statements for all business accounts including loan statements
Documentation for any new Capital purchases such as Motor Vehicles or properties
Trade Debtors listing as at the end of the period
Trade Creditors listing as at the end of the period
Detailed payroll records
Do you have any carried forward capital losses? If yes, how much

New clients will also need:

a copy of most recent years financials and tax returns
Previous accounting fees paid
Personal and business details

Download the version of our Personal Tax Checklist or our Business Tax Checklist here!

If you would like to know more or to make a time to see one of our Geelong based Personal or Business Tax Specialists, feel free to contact the Hrkac Group today!

What to look out for to ensure you’re not falling victim.

Have you received emails, phone calls or letters from the Australian Tax Office, demanding payments for outstanding tax bills using iTunes cards? Be careful, these could be part of a new sophisticated tax scam defrauding Australians.

Typically, when emails are used as correspondence, these emails contain links to fake websites that look remarkably genuine and may have attachments containing system-corrupting Malware or, in some cases, “Ransomware” which seeks payment for unlocking access to your own computer files.

Little can be done to stop scams such as these, with the criminals responsible often being based offshore and using techniques that are near-on impossible to trace by local authorities.

As your authorised Tax Agent, contact from the ATO about your taxation affairs should always come via our office. In particular the Australian Tax Office DOES NOT make phone calls soliciting payments for outstanding debt without first writing to taxpayers. Should you receive any direct contact purporting to be from the ATO, notify us immediately and we will work to verify it as genuine. Alternatively you can take matter up directly with the ATO in 1800 008 540.

Under NO circumstances should you pay an alleged Tax Debt without establishing its validity with us first.

Follow the link here to read the Tasmanian Police Media release. Follow the link here to read the Australian Tax Office Media Release.

If you have any queries or concerns or feel you may have been caught up in this scam, feel free to contact one of the Geelong based Tax specialists at The Hrkac Group.

What has changed and what you need to know.

In early November the Federal Government passed a bill to make an amendment to legislation regarding the repayment of Fee HELP/HECS Loans for those people who have moved overseas.

Previously, the legislation was that If you went overseas and said that you were no longer an Australian tax resident, i.e. you had no intention of ever returning to Australia (different to being an Australian citizen); your HELP/HECS Debt would just sit there regardless of what you earn overseas. If you never returned to Australia, you would never repay your debt.

Under the new amendment, regardless of whether you are an Australian Tax Resident or not; if you have a HELP/HECS debt and total worldwide earnings are over the relevant Australian Taxable income threshold; you are now required to make repayment under Australian law.

The following bills passed the Senate without amendments:

Education Legislation Amendment (Overseas Debt Recovery) Bill 2015 and Student Loans (Overseas Debtors Repayment Levy) Bill 2015 .

The Bills propose amendments to implement a 2015-16 Budget proposal to ensure that the same debt repayment obligations that apply to debtors who live in Australia apply to those who live overseas.

The Overseas Debt Recovery Bill will create an obligation to make repayments on their HELP and TSL debts based on their total Australian and foreign-sourced income, known as their worldwide income. This will be imposed as a levy (to be known as the “overseas debtors repayment levy”) through the other Bill.

If you would like to know more about how this may impact you either currently or in the future, feel free to contact one of our Geelong-based Tax specialists!

So for borrowers, what are our alternatives?

On Wednesday evening, Westpac announced their intention to increase the interest rate on their owner-occupier and investor loans by 0.2% and the likelihood of the other major lenders following suit is quite high.

With this decision affecting those with personal loan, investment loans and business loans alike, it begs the questions; what is our alternative to the major lenders?

Well, the Finance division at the Hrkac Group Geelong can help! We have been provided with some very attractive alternatives to the major lenders with application and annuals fees being waived, interest rates reduced to record lows and cash rebates for refinancing on offer, there are thousands of dollars to be saved every year!

There has never been a better time to come in and see our Loan specialists at the Hrkac Group. We will review your current loan and help you understand the best possible options available to you, all free of charge!

We are living in a world that is ever more reliant on technology.

Now days, in Australia, you would be hard-pressed to find a business that doesn’t utilise a computer as a part of its day-to-day operations.

Whether it’s for basic invoicing and data storage or as a fundamental tool of your trade, the humble computer has become the workhorse of the modern business.

With that in mind, what would happen if you fell victim to a cyber attack? Would your business still be able to operate?

With scammers becoming more and more sophisticated, regular antivirus software is struggling to keep up. This is leaving businesses vulnerable to a security breach.

Today’s article comes from our friends at Universal Computer Solutions, a local Geelong based IT firm, and it talks to the best ways of combating a cyber attack.

“Top 3 Reasons Your AV Isn’t Stopping Fastbreak Spam” by Universal Computer Solutions.

If you would like to discuss the ways you can significantly decrease the risk of spam containing malware affecting your business, contact the team at Universal Computer Solutions by emailing admin@universal.com.au

The Reserve Bank of Australia has announced the result of its monthly board meeting.

The official cash rate has been reduced to a new record-low of 2.25 per cent after being left on hold at 2.5 per cent since August 2013.

The Reserve Bank’s decision has come as a surprise: a finder.com.au survey of 30 economists and commentators found that 28 expected the cash rate to remain unchanged.

However, a rate cut is hardly a shock given the weight of speculation that has occurred since the last board meeting on December 2.

If you have any questions regarding these announcements, feel free to contact our Finance Team.

Get in fast to ensure you receive the Tax Agents lodgement extension for your Income Tax Returns for the financial year ended 30^th June 2014*.

If you notify the Australian Taxation Office (ATO) of your appointment of an Accounting tax agent before 31^st October 2014, you may be eligible for the tax agent’s extension up until May 2015.

So there is no better time than now to lock in The Hrkac Group’s Taxation Services to look after all your Accounting needs.

*To be eligible for the tax agent’s extension, all prior years’ tax must be up to date.

Have you been putting off buying that new vehicle because the interest rates are just too high?

Did you miss our previous Finance offer of low interest rate of 4.99% for vehicles (up to three years old) over $35,000?

Then get in quick to see our Geelong Finance specialists to grab a great deal, with interest rates at a low 4.99%* (*used vehicle up to three years old)

This offer has been extended for a short-time only!

But what if you are looking for a vehicle that’s over $60,000? Don’t worry, The Hrkac Group Finance has a low interest rate for you, too! At a low 4.89% for vehicles up to three years old. There is no better time than now!

You don’t see interest rates this low everyday, so act now!

Please contact one of The Hrkac Group Geelong Finance specialists today via Contact Us, email or phone 03 5221 2355.