Single Touch Payroll Is Coming – Start Preparing Now

If you have 20 or more employees, you should start thinking about Single Touch Payroll. You’ll be required to report payroll and super information to the ATO using a Single Touch Payroll enabled payroll solution from 1 July 2018. Visit ato.gov.au/singletouchpayroll for more information....

Penalty Rates Cuts – Hospitality & Retail Industries

Sunday and public holiday penalty rates will be reduced for full-time and part-time workers in the hospitality, retail and fast-food industries, the Fair Work Commission has ruled.   WHAT’S ACTUALLY CHANGING? Full-time and part-time hospitality workers will have their Sunday penalty rate cut from 175% to 150% Full-time and part-time retail workers will have their Sunday penalty rate cut from 200% to 150% Full-time and part-time fast food workers will have their rate cut from 150% to 125%. Public holiday rate in retail, hospitality, and fast food will also be cut. Casual workers in the retail and fast-food industries will also see their pay cut but rates for casuals in hospitality will remain the same. The cuts to public holiday rates will start from 1st July 2017.   WILL IT AFFECT ME? The workers who will be hardest hit are those in the retail, hospitality and fast food industries. Aussie’s who rely on penalty rates generally earn a relatively low wage. The ACTU estimates the FWC decision will cost low-paid workers up to $6000   IF YOU WORK IN FAST FOOD Fulltime and part-time level one fast-food workers will have Sunday penalty rates reduced from 150 per cent to 125 per cent. Level two and three employees will stay at 150 per cent.   IF YOU WORK IN HOSPITALITY Fulltime and part-time hospitality workers will have Sunday rates slashed from 175 per cent to 150 per cent. Sunday rates for casuals will remain at 175 per cent. If you’re on the national minimum wage, $17.70 per hour, an eight-hour Sunday shift would have earnt you about $248. Under the changes, that drops to...

GST on low value imported goods 1st July 2017

New Australian law applying GST to imported digital products and services will take effect from 1st July 2017 On 16 February 2017, the Government introduced law to Parliament that will amend the law to extend Goods and Services Tax (GST) to low value imports of physical goods imported by consumers from 1 July 2017. A vendor registration model will be used and suppliers with an Australian turnover of $75,000 or more in a twelve month period will be required to register and charge GST. The existing processes to collect GST on imports above $1,000 at the border are broadly unchanged. The change was designed to harmonise tax rules for Australian and foreign retailers after local stores blamed sluggish sales on their overseas competitors having an unfair price advantage on goods priced below $1000. According to Treasury, the measure will see a bump of $300 million in GST revenue over the forward estimates period, not accounting for collection expenses. Common questions Question: How is the $75,000 registration threshold calculated? Businesses will be required to register for GST if their GST turnover in Australia exceeds $75,000 (which will include sales of low value imported goods). However, if they do more than $75,000 of sales into Australia, but some of these sales are through an electronic distribution platform (a digital marketplace) and the balance of their direct sales is $75,000 or less then they will not be required to register for GST. Instead, the electronic distribution platform will register for and charge GST, provided it has more than $75,000 of Australian turnover. Question: How is GST applied by the vendor, electronic distribution platform or...

Tax Rules Change for Working Holiday Makers

  Tax Rules Change for Working Holiday Makers Visa (subclass 417) During the Federal Budget earlier this year, the government proposed changes to tax rules for working holiday makers. The changes have been revised and are now law, and will be coming into effect on 1st January 2017. There is no longer an option for working holiday makers to claim the tax free threshold. They will be taxed at 15% up to $37,000, and then taxed at ordinary marginal rates after that threshold. Employers of working holiday makers will be required to undertake a simple, once-off registration with the Australian Taxation Office to be able to withhold tax at this new rate. Employer registration has been extended to 31st January. If you are employing working holiday makers, you will not be penalised as long as you register by 31st January 2017. You can still use the new withholding tax rate of 15% from 1st January 2017. Employers who do not register will be required to withhold tax at the 32.5% rate or higher, as per the foreign resident tax rates. ATO Working Holiday Maker Employer Registration Form The worker must apply for this temporary visa before entering the country for the first time.  Although the visa is valid for up to one year, the worker can generally only be employed with one employer for a maximum of six months. ATO Notification Many registered agents and employers, who have previously employed foreign workers, have already been notified by the ATO of the coming changes and been advised to register for the new tax. Tax for Working Holiday Makers Weekly Earnings...

Simpler BAS for Small Businesses Commences 1st July 2017

The ATO are introducing changes to the GST/BAS system for small businesses. The ATO has been working on ways to deliver a simpler business activity statement (BAS) to simplify account set-up, record keeping, BAS preparation and lodgment for agents and their clients, and make it less costly. To achieve this, several GST labels will be removed from the BAS, with small businesses only required to report: GST on sales (1A); GST on purchases (1B); and Total sales (G1). They will begin user testing from 1 July 2016 and a simpler BAS should be the standard option for all small business from 1 July 2017....