Max Accountants

Deny deductions for ATO interest charges

2024-09-24T01:25:00+00:00

The cost of tax debt will likely increase from 1 July 2025. The Government has proposed that all taxpayers will no longer be able to claim a deduction for ATO interest charges in the 2025-2026 income year onwards.

Taxpayers with outstanding debts or those currently negotiating repayment plans with the ATO need to consider the potential impact of these changes.

The ATO interest rate applies to taxpayers who fail to pay their taxes on time. At present, the interest rate is 11.38%.

Small businesses will be impacted by this measure as the interest rate are akin to an unsecured loan. There maybe other strategies to implement to minimise this measure.

Contact Max Accountants if you want to discuss this further.

Tax Stall Opening Hours

2024-07-04T06:02:00+00:00

TAX STALL

Saturday bookings now open with Jennifer
&
longer appointment times from Monday to Friday

We will now be opening 9:30am to 5:00pm with prices starting from $120
at the tax stall
Appointments are available by calling the office on (07) 5580 4455 or email on info@maxaccountants.com.au

Small Business Incentives

2024-02-20T05:05:00+00:00

Small Business Incentives

The Technology Investment Boost encouraged businesses to adopt digital technologies by providing a 20% bonus deduction for eligible expenditure incurred for the purposes of an entity's digital operations. However, this 'boost' applied to eligible expenditure incurred until 30 June 2023.

However, there are currently two further 'boosts' outlined below, which apply to eligible expenditure incurred up until 30 June 2024:

The Skills and Training Boost to support small businesses to train and upskill their employees, which applies to eligible expenditure incurred from 29 March 2022 until 30 June 2024; and

The Small Business Energy Incentive (Boost) to support small business electrification and more efficient energy use, which applies to eligible expenditure incurred between 1 July 2023 and 30 June 2024.

The Skills and Training Boost provides 'small or medium businesses' with a bonus 20% deduction for eligible expenditure incurred on external training for employees.

The Small Business Energy Incentive (Boost) provides 'small or medium businesses' with a bonus 20% deduction for the cost of eligible depreciating assets and/or eligible improvements incurred in relation to existing depreciating assets that support electrification or energy efficiency.

To be eligible for either of the above 'boosts', a business taxpayer must satisfy a number of conditions. Also, the Small Business Energy Incentive (Boost) is subject to the passage of the Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Bill 2023 (which is currently before Parliament).

Energy Efficiency Grants for SMEs program $10,000 to $25,000

2024-02-20T04:51:00+00:00

Energy Efficiency Grants for SMEs

The Federal Government is delivering a further $41 million in Energy Efficiency Grants (EEG) for small and medium enterprises (SMEs) to improve energy efficiency. The grants between $10,000 and $25,000 can be used to upgrade to more efficient equipment. This includes replacing air conditioners with high efficiency units or gas heating boilers with heat pumps, helping SMEs lower power bills and emissions.

The first round of grants awarded $15.5 million to 674 businesses for energy savings from upgrades to pool covers, heat pumps, air conditioners, as well as more efficient hot water pumps and compressed air improvements. Round two is a $41.2 million investment that will help businesses use less energy and improve competitiveness, while reducing their carbon footprint. The $41.2 million will be allocated to states and territories in proportion to the national distribution of SMEs. Applications for the grants will open across the country on different dates starting from 22 February 2024.

Low and middle income earner tax offsets to be hit in 2023 financial year

2023-06-19T04:52:00+00:00

The low and middle income tax offset (LMITO) ceased on 30 June 2022. As a result, low to middle income earners may see their tax refunds for the 2023 financial year and beyond, reduced by between $675 and $1,500.

For the 2023 financial year, you may be eligible for the low income tax offset (LITO) only, if you earn up to $66,667. The maximum amount of the LITO is $700, with a reduction applying for taxable incomes between $37,500 and $66,667, and reduces to nil above this higher threshold.

Marginal Tax Bracket 2023 - Australia

2023-05-06T12:12:00+00:00

As the 2023 financial year is coming to an end, it is important to understand the Australian tax rates and how it will impact you financially. In this article, we will explore the marginal tax rates in Australia in 2023 and how it is treated if you are an Australian tax resident or a non-tax resident.

What is the marginal tax rate?

The marginal tax rate is the amount of additional tax for every dollar earned. In Australia, there are currently five tax brackets, with the highest being for individuals who earn over $180,000 per year. The tax rate for this bracket is currently 45%.

It is important to note that tax brackets and rates can change from year to year.

So, what will the tax rates be in Australia in 2023?

The table below shows the tax rates in Australia.

ATO tax rates

Taxable income	Resident tax	Non tax resident
$0-$18,200	Nil	32.5 for each $1
$18-201 – $45,000	19c for each $1 over $18,200	32.5c for each $1
$45,000 -$120,000	$5,092 plus 32.5c for each $1 over $45,000	32.5c for each $1
$120,001 - $180,000	$29,467 plus 37c for each $1 over $120,000	$39,000 plus 37c for each $1 over $120,000
$180,000 and over	$51,667 plus 45c for each $1 over $180,000	$61,200 plus 45c for each $1 over $180,000

It is important to understand that the highest tax rate for both resident and non-tax residents is 45%.

So, how does this information impact you? If you are an individual who earns over $180,000 per year, you will continue to be subject to the highest tax rate of 45% in 2023. If you are a non-tax resident you are paying $10,000 more compared to a tax resident on the highest tax scale.

Therefore, it is need to undertake proper tax planning before end of financial year to lower your tax rate.

Also below is a summary of tax differences between an Australian tax and non-tax resident.

Resident for tax purposes	Non resident for tax purposes
Lower tax. Tax free threshold	Higher tax. No tax-free threshold
Tax on worldwide income	Only taxed on Australian sourced income (most commonly Aust real property)
Pay Medicare levy	No Medicare levy
Interest income assessed at taxpayer’s marginal tax rate	Interest taxed at flat 10%, or 45% if no overseas address (or TFN) provided
Liable for CGT on worldwide assets	CGT only on “taxable Australian property” (most commonly Aust real property)

One resource that can be helpful in navigating tax laws and regulations is Max Accountants. Max Accountants is a professional accounting firm based in Australia that offers a range of services, including tax advice and compliance. Their team of experts can help individuals and businesses understand their tax obligations and maximize their financial position.

Tax Planning 2023

2023-03-16T06:01:00+00:00

Year End Tax Planning Reminder

THIS IS A REMINDER FOR THOSE INTERESTED IN TAX PLANNING FOR THE 2023 YEAR

The objective of tax planning is to maximise your after tax income. Good tax planning aims to reduce your tax burden.

Please review below if any of the following apply to you. If so, kindly contact us to discuss if you require tax planning for this year.

Operated a business which derived (incurred) a profit (loss) during the year? Review your latest Profit & Loss statement.
Bought or sold any investment(s) e.g. shares, properties, business, equipment etc?
Received any lump sum payment(s) e.g. salary bonus, inheritance, redundancy, ETP, etc?
Received any investment income(s) e.g. rent, managed funds, trust distributions, dividends, foreign income, etc?
Received any untaxed income(s) e.g. allowances, commissions, contracts, etc?
Have any unpaid compulsory superannuation payment(s) owing to employee(s)/contractor(s) (if applicable)?
Any employee(s) payments for which no PAYG taxes were remitted to ATO?
Any outstanding GST not lodged during the year?
Outstanding shareholder loans owed to the company as at 30 June 2023?

If you have any questions, please do not hesitate to contact our office.

Call: 0755804455

E-mail: info@maxaccountants.com.au

SINGLE TOUCH PAYROLL (STP) PHASE 2 REPORTING

2023-02-28T04:27:00+00:00

Dear all,

SINGLE TOUCH PAYROLL (STP) PHASE 2 REPORTING

STP is a way to communicate your employer's tax and superannuation information to the ATO in a timely manner. Phase 2 provides additional information that will be used by the ATO and Services Australia.

What is STP 2 all about?

Tax file number (TFN) declaration:

STP 2 will eliminate the need to submit a TFN declaration form for new employees.

Employee Separation Certificates:

These certificates are no longer required, as the reason why an employee has left the business will now be provided via STP reports.

Lump Sum E payments (Back pay):

Previously, if an employer makes a payment owing from previous years a Lump Sum E letter would need to be provided to the employee. This information must now be included in Phase 2 reporting, with details of the payment appearing in the employee’s income statement.

Child Support:

Businesses will have the option to include child support garnishees and deductions in their STP report, reducing the need to provide separate advice to the Child Support Registrar.

Employment Type:

Reporting of employment type will now be mandatory. You will need to declare whether your employees are full-time, part-time or cause, in addition to new categories such as labour hire or volunteer.

Disaggregation of Gross:

Income will no longer be reported as a gross sum, instead each component must be itemised including salary sacrifice, overtime, paid leave, bonuses, commissions, director’s fees and allowances (allowances must also be individually itemised).

Country Codes:

If you have Australian resident employees working overseas, businesses will need to provide details of the host country.

We have provided the below hyperlinks to each Payroll Software's STP Phase 2 Hub for more information and further assistance.

XERO

https://www.xero.com/au/programme/single-touch-payroll/stp-2/

MYOB

https://www.myob.com/au/comms/accountants-partners/stp-phase-2

RECKON

https://www.reckon.com/au/single-touch-payroll-phase-2-hub/

QUICKBOOKS

https://quickbooks.intuit.com/learn-support/en-au/help-article/payroll-compliance/single-touch-payroll-stp-phase-2-hub/L99nVN8A1_AU_en_AU

If you are using Xero's payroll software you have until 31 March 2023 to move to STP Phase 2. Please check your payroll system for the due date if you are using MYOB, Reckon or Quickbooks.

If you have already set up your Payroll Software for STP Phase 2 reporting, then there is nothing further to do.

Otherwise, please advise if you require any assistance setting up your STP Phase 2 reporting and we can organise a quote for our estimated time.

If you have any further questions please do not hesitate to contact our office.

Want to buy EV Company car?

2023-02-20T02:49:00+00:00

The Federal Government is encouraging the take up of electronic vehicles (EV). As part of this plan, the Federal Government recently passed legislation to exempt Fringe Benefit Tax (FBT) on an EV.

FBT exemptions on EV

Broadly, a business that acquires a company EV (which is being used for private purposes/parked at private residences of an employee) will not be subject to FBT, if the vehicle meets all of the following conditions:

the car is a zero or low emissions vehicle
the car is held and used on or after 1 July 2022
the car is used by a current employee or their associates (such as family members)
below the luxury car tax threshold (currently $84,916)

Other concessions (temporary full expensing)

Further, a business may choose to claim a full tax deduction for the electric cars up to $64,741 for the 2022-23 year under the “temporary full expensing provisions.” At this stage, the temporary full expensing provisions ends 30 June 2023.

According to the Federal Government announcement,

if a model valued at about $50,000 is provided by an employer through this arrangement, the estimated FBT exemption would save the employer up to $9,000 a year per car.
for individual/employees using a salary sacrifice arrangement to pay for the same model, their saving would be up to $4,700 a year. A salary sacrifice arrangement involves the individual employee reducing their gross income to pay for the car, which therefore effectively reduces their personal tax bill.

If you have a business that pays employees (including yourself). The above concessions will apply to you.

If you have any questions, please do not hesitate to contact our office.

Call: 0755804455

E-mail: info@maxaccountants.com.au

How to Hire the Best Tax Accountants in Helensvale : 5 Important Tips

2022-11-25T03:49:00+00:00

You may be aware of the taxes if you are a business owner or an investor. However, having a tax accountant minimise the taxes and tax returns will make the job easier and maximise your returns.

Max Accountants, the best tax accountants in Helensvale, QLD, Australia, is a trusted organisation that can manage your taxes. We assist business owners and investors to avoid costly mistakes and provide valuable tax advice in your financial journey.

Trusting any tax accountants is not an easy task. So, we have come up with the 5 important tips that you should know before hiring the best tax accountants in Helensvale, QLD, Australia.

1- Licensing

The first and the foremost thing that you should consider before hiring a tax accountant is - Licensing. Do they have the qualifications and experience to act on your behalf? Are they authorised to liaise with ATO, in particular for an ATO audit.

At Max Accountants, we have the professional team of tax accountants with the licence to assist in an ATO audit. We are 100% proven and have the licensing requirements for tax accountants in Helensvale.

2- Experience

Secondly, experience is a must in the field of accounting. Before hiring an accountant, you must be aware if they have worked with clients in that industry. They should have the experience with issues that you want them to solve.

They should have the experience to advise on different types of tax returns such as individual, trusts, companies, partnerships, self-managed superfunds, etc.

Max Accountants has enjoyed a working and long-standing relationship with many clients in Helensvale and the Gold Coast. They have been established since 2005, having an experience of over 17 years.

3- Availability

You must have confidence of the availability of the accountants before hiring. Are they available for consultation? Will they take the time to meet or contact you to assure you that they understand your requirements? How much time will they take to answer your queries? These are the most important questions you should ask before hiring them. Max Accountants is available at any time of the day from 9.00 am till 5.00 pm (Monday to Friday). We will endeavor to answer your questions within 24 to 48 hours.

4- Security

Ask the accountants of what security protocols they have if you hire them - How do they protect your sensitive information? What are the security procedures before they release your information?

At Max Accountants, we endeavor to provide the maximum security for your information. We use a direct client-professional procedures to protect your information.

5- Fees

Fees are an important consideration when employing an accountant for your business or investment. You must find if there are any additional (hidden) charges, beyond the quotation fee.

Although, the fees shouldn’t be the only factor when you consider choosing a tax accountant but—it certainly plays a part. So, Max Accountants are one of those tax accountants in Helensvale who can meet your affordability as well as trustability.

Final Words

There are many tax accountants in Helensvale but finding the one that is trustworthy and reliable, is very important. We hope, by the above factors, you’ll understand what should be considered before hiring the best accountants.

At Max Accountants specialise in all types of taxation services. Understanding you and your business is our utmost responsibility before we do anything. You can visit our office today if you are in Helensvale or can call/email us now.

Call: 0755804455

E-mail: info@maxaccountants.com.au