March 2020 Newsletter

Please click on the following link to view our monthly accounting/tax newsletter for March 2020:

March – 2020

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

Super guarantee loophole closed – From 1 January 2020 salary sacrificed super contributions can not be used to reduce your super guarantee obligations, regardless of the amount your employee elects to salary sacrifice. Practically this means that the salary sacrificed amount does not reduce the employee’s ordinary time earnings’ base as it did prior to the closing of this loophole.

Insurance payouts: are they taxable ? – In recent months, parts of Australia have been battered by a combination of fire and floods. As people try to piece their lives together in the aftermath, insurance payouts can go a long way in helping rebuild homes and replace lost items. However, if you receive an insurance payout in relation to your business, home business or rental property you need to be aware that there may be associated tax consequences. Please contact us if you are not sure how to treat your insurance payout.

Foreign residents and the main residence exemption – Laws limiting foreign residents’ ability to claim the capital gains tax (CGT) main residence exemption are now in place. The restrictions apply to any person who is not an Australian resident for tax purposes at the time of disposal (i.e. when the contract is signed to sell the property). Therefore, in addition to current foreign residents, current Australian residents who are thinking of spending an extended period of time overseas may also be affected. Some limited exemptions apply for “life events”, as well as property purchased before 9 May 2017 and disposed of before 30 June 2020.

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