October 2019 Newsletter

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

October – 2019

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

Salary sacrificing loopholes – Under current laws, employees who sacrifice some of their salary in return for additional super contributions may end up receiving less than they expected because of the following loopholes:

1. Employers may choose to count the salary sacrifice contributions they make for an employee towards satisfying their obligation to make minimum Superannuation Guarantee contributions of 9.5% for that employee; and

2. Employers may calculate their 9.5% superannuation guarantee obligation on the employee’s salary after deducting sacrificed amounts, rather than on the pre-sacrifice salary.

Proposed new laws before Parliament will close the above loopholes from 1 July 2020.

Claiming work trips for business owners – When a trip is clearly for business purposes the rules for deducting your expenses are fairly straightforward. But the rules become a little more complicated when your work trip has a private portion. For example:-

Airfares – If business is the primary purpose of your trip, you can claim a deduction for the cost of your return airfares. However, if you have a significantly longer holiday, mixing business and pleasure, you may need to apportion your airfares. Further, if the primary purpose of the trip is clearly private with some incidental work activities, you generally can not deduct any airfares.

Accommodation – Accommodation deductions are limited to the nights that are required for the business purpose. For example, if you add two days sightseeing to the end of a work trip the accommodation costs for those two nights will not be deductible.

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