May 2019 Newsletter

Please click on the following link to view our monthly accounting/tax newsletter for May 2019:

May – 2019

We would like to highlight the following articles in this month’s newsletter:-

Super guarantee amnesty not yet law – The ATO has recovered around $100 million in unpaid superannuation from employers since the 12-month super guarantee amnesty was proposed on 24 May 2018, even though the law hasn’t yet changed to put the amnesty in place. The Bill to implement the amnesty lapsed on 11 April when the Federal Election was called, so the ATO must keep applying the existing law. This means employers who make a voluntary disclosure of historical non-compliance won’t be entitled to the proposed concessional treatment.

Instant asset write-off with budget changes now law – Proposed changes to the instant asset write-off rules have now become law. The instant asset write-off threshold increases to $30,000 from 2 April 2019 to 30 June 2020. The write-off applies for eligible small business with annual turnover of less the $50 million and works on a per-asset basis, so eligible businesses can instantly write off multiple assets. This means that for the 2019 financial year the instant asset write off for small business is $20,000 for assets acquired or installed ready for use between 1 July 2018 and 29 January 2019, $25,000 between 29 January 2019 and 2 April 2019 and $30,000 between 2 April 2019 and 30 June 2019.

Guidance on when a company carries on a business – New guidance is now available on the types of factors the ATO considers when deciding whether a company “carries on a business in a general sense”, and how the scope and nature of the business come into play when the ATO determines the tax consequences of a company’s activities and transactions. The guidance emphasises that it’s not possible to definitively state whether a company is carrying on a business. Rather it’s a question of fact that the ATO must decide on a case-by-case basis.

Please do not hesitate to contact us if you have any queries in relation to your tax and accounting matters.