The Navigator Network

17/05/2022

No reduction in the Private Health Insurance rebate as of 1 April 2022

An event that we have become accustomed to every 1 April, is that the amount of the Private Health Insurance (‘PHI’) rebate decreases.

The Australian Government rebate on PHI is annually indexed on 1 April by a Rebate Adjustment Factor (‘RAF’) representing the difference between the Consumer Price Index and the industry weighted average increase in premiums.

The RAF for 2022 has been calculated as 1.

This means there will be no changes to the PHI rebate on 1 April 2022.

Editor: With inflation at levels Australians have been unaccustomed to over the last 20 years, at least there is one very small piece of good news.

Read our Practice Update Newsletter on our website for further details. www.navigatornetwork.com.au

12/05/2022

$120 deduction for every $100 spent on technology

The Government intends to provide a 120% tax deduction for expenditure incurred by small businesses on business expenses and depreciating assets that support their digital adoption, such as portable payment devices, cyber security systems or subscriptions to cloud based services.

The technology boost will be available to small business with an aggregated annual turnover of less than $50 million.

An annual expenditure cap of $100,000 will apply to the boost.

The boost for eligible expenditure incurred by 30 June 2022 will be claimed in tax returns for the following income year. The boost for eligible expenditure incurred between 1 July 2022 and 30 June 2023 will be included in the income year in which the expenditure is incurred. That is, the additional deduction available under this measure is expected to be claimed in the 2023 tax return.

11/05/2022

Your Superannuation

Reduction in minimum superannuation drawdown rates extended again.

The temporary 50% reduction in superannuation minimum drawdown requirements for account-based pensions and similar products has been extended to 30 June 2023.

31/03/2022

Low and middle income cost of living tax offset increase
From: 1 July 2021 to 30 June 2022

The low and middle income tax offset (LMITO) currently provides a reduction in tax of up to $1,080 for individuals with a taxable income of up to $126,000.

The tax offset is triggered when a taxpayer lodges their 2021-22 tax return.

For the 2021-22, the LMITO will be increased by $420 which means that the proposed new rates for individuals are as follows:

30/03/2022

Temporary reduction in fuel excise

As widely predicted, the Government will temporarily reduce the excise and excise-equivalent customs duty rate that applies to petrol and diesel by 50% for 6 months from Budget night. That is, the current 44.2 cents per litre excise rate will reduce to 22.1 cents per litre from Budget night. However, the measure is subject to the passage of the enabling legislation so don’t expect to see a change right away.

The reduction extends to all other fuel and petroleum based products except aviation fuels.
At the conclusion of the 6 months on 28 September 2022, the excise and excise-equivalent customs duty rates revert to previous rates including any indexation that would have applied during the 6 month period.

The Australian Competition and Consumer Commission (ACCC) will monitor the price behaviour of retailers to ensure that the lower excise rate is passed on to consumers.

The measure comes at a cost of $5.6bn.

29/03/2022

Got a company or trust? We have new info for you..

Companies and trusts have their benefits, but they’re also two of the more complicated business structures.

If you’re a director, shareholder, associate of a shareholder, trustee or beneficiary, and you use your business’s money or assets for private purposes, remember to:

- keep complete and accurate records to explain these transactions
- report them correctly in your company or trust tax return and in your individual tax return.

There can be unintended tax consequences if you don’t. You may trigger Division 7A, which means that transactions may be treated as an unfranked deemed dividend in your assessable income and you will need to pay more tax.

Money or assets you wish to use for private purposes could include:

- salary and wages
- fringe benefits
- director fees
- dividends
- trust distributions
- loans from the trust or company
- allowances or reimbursements of expenses.

There are different reporting and record-keeping requirements for each type of transaction.

Remember, we can help you with your tax.

17/03/2022

Super to cover more employees

From 1 July 2022, you will need to pay super to your employees who earn less than $450 per month, provided they meet other eligibility requirements.

This change expands super guarantee eligibility so that employees can receive super regardless of how much they earn.

As we move closer to 1 July 2022, check your payroll and accounting systems have been updated so you can correctly calculate your employees' super guarantee payments. Your digital service provider may be able to assist with further information on how and when they will implement software changes to reflect the new requirements.

We'll provide further advice and guidance on this change, including updating our online tools and calculators on 1 July 2022.

16/03/2022

Aussies warned of fake charity, insurance scams in the wake of flood crisis.

Australians are being urged to be vigilant for online scams in the wake of the east coast's flood disaster as cybers criminals take advantage of the community's goodwill.

Westpac has warned that a common tactic employed by scammers in the wake of natural disasters is to set up fake donation sites and pose as relief funds for victims.

"Act immediately. If you think you might have been scammed, stop all communication with the scammer and contact your bank immediately," Westpac says.

Read more here: https://www.9news.com.au/national/australia-flood-crisis-warning-of-scams-by-cyber-criminals/d69929c1-e244-4859-af2a-cb50709f3214

15/03/2022

SUPERANNUATION
One in four Australians say they don’t have a superannuation fund but often just don’t know where it is, new research reveals
The simple mistake could leave a big hole in the hip pocket come retirement.

Read 7News Superannuation Tips below:

The simple mistake could leave a big hole in the hip pocket come retirement.

14/03/2022

Quote of the month

10/03/2022

Federal Budget 2022-23

The Federal Budget has been brought forward to 29 March 2022. With the pandemic and the war in Ukraine we have seen a lot less commentary this year about what to expect in the Budget. But, as an election budget, we typically expect to see a series of measures designed to boost productivity, many of which are likely to benefit businesses willing to invest in the future. Bolstering the workforce, and measures to increase the participation of women, is also a potential feature as Australia struggles with post pandemic worker shortages. Fiscally, the Budget is likely to be in a better position than expected in previous Budgets so there is more in the Government coffers to spend on initiatives.

Look out for our update on the important issues the day after the Budget is released.

09/03/2022

Keeping and maintaining SMSF records

Trustees of SMSFs have been put on notice by the ATO that keeping and maintaining good records is one of their key responsibilities and legal obligations. Good record keeping ensures trustees can ensure accurate and timely SMSF accounts, audits and income tax return lodgments.

As a result, the ATO has recently confirmed that even where SMSF trustees rely upon super or tax professionals to administer their SMSF, each trustee remains personally responsible for good record keeping.