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  What's The Most Important Thing You Can Be Doing Right Now? 
 
The end of financial year is almost here, the most important thing you can be doing right now is planning for the year ahead.

In a rapidly changing environment, clients that have thoroughly planned for the year ahead have a significant advantage over their competitors. These clients are able to consider changing circumstances, how they will react to cost pressures or tightening revenue and the ultimate impact on their cash flows. At the end of the day cash is king!

We are currently working with clients to forecast their profit and loss for the year ahead and then determining their closing bank balance at the end of each month.

We have successfully helped clients:

- By giving them confidence about the year ahead
  • Knowing the peaks and troughs of their bank balance throughout the year and when funding from the bank may be required
  • Ensuring enough money is set aside to cover tax commitments for the year ahead
  • Knowing the breakeven point for the business and therefore the minimum sales/revenue required per month
  • Knowing when and how much to pay in dividends throughout the year
  • Knowing the minimum hourly rate to charge out an employee to break even on a project
- By giving them the confidence to make a decision
  • Running different financial scenarios and determining the impact of those decisions on profit and most importantly cashflow
  • When to employ someone or perhaps even let someone go
  • When to buy a major asset
  • Whether to change premises or maybe buy a premises for your business
  • Whether the business will make sufficient cashflow to fund a personal project or a new investment
  • Whether and when to start selling a new product/service
- By having early warning signs when things aren't going as planned 

- By giving them the best chance to approach the bank and have their finance approved

So take control of the year ahead and consult with your Harris Black Team Member so that you will have confidence to rise above your competitors and reach your full potential.

 
  Payment Summaries And STP This Tax Time – Taxpayers May Need A MyGov Account 
 
Whilst it is being reported that many businesses are not ready for Single Touch Payroll (STP), (one report suggests that 70% of small and medium-sized entities (SMEs) are not ready), the employees of businesses that are operating STP face some changes.

As a result of the introduction of STP, taxpayers may need a myGov account in order to get the payment summary details they need to complete their 2019 tax returns.

Employers need to let employees know if they won't be giving them a payment summary this year.

TIP:
This major change for 2019 will see many taxpayers needing to set up a myGov account and link it to the ATO. This is not necessarily a straightforward process. If taxpayers have a myGov account already linked to other services such as Centrelink or Medicare, adding the ATO can be problematic. For example, the name on each account must match exactly – the ATO is likely to have a taxpayer's full name whereas a Centrelink account may only have first and last name. This may prevent the ATO from being added to a taxpayer's myGov account. The situation can be rectified but may require a trip to a Centrelink office.

 
  Ombudsman Calls On ATO To Cease Small Business Recovery Action Where Tax Disputes Are Before AAT 
 
The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) has issued a report into the ATO's enforcement of debt recovery. In a press release, the ASBFEO called for the ATO to immediately cease debt recovery action where tax disputes were before the Administrative Appeals Tribunal (AAT).

The report contains three key conclusions and seven recommendations. The ASBFEO also reminds small business taxpayers in dispute with the ATO of its Small Business Concierge Service, which started on 1 March 2019. This service provides legal assistance for AAT appeals for a limited cost.

The ATO issued a press release outlining its response to the report stating its longstanding policy on debt recovery for cases in dispute at the AAT is to only pursue disputed debt in "exceptional circumstances" and that there are only ''very rare cases'' (eg in 2017-18, it took garnishee action against small business in just four cases).

The ATO further stated that it will consider the report's recommendations while it awaits the Australian National Audit Office's review of how the ATO manages tax debts for small business.

 
  Cryptocurrency: Record Keeping Requirements And Data Matching Program 
 
The Commissioner has published a gazette notice setting out the record keeping requirements for cryptocurrency owners and traders. TheATO advises that it is undertaking a data matching program for 2014-15 to 2019-20 for such entities.

The data obtained from cryptocurrency designated service providers (DSPs) is being (and will continue to be) used to identify the buyers and sellers of crypto-assets and quantify the related transactions. Data will be matched against ATO records to identify individuals who may not be meeting their registration, reporting, lodgement and/or payment obligations.

The ATO will be working with other regulators, including the Australian Transaction Reports and Analysis Centre (AUSTRAC) and the Australian Securities and Investments Commission (ASIC), to ensure that tax law requirements align with a whole of system approach.

 
  Super Death Benefit For De Facto Partner Upheld 
 
The Federal Court has dismissed an appeal against a decision to pay a superannuation death benefit pension to a fire fighter's de facto partner instead of a lump sum to his estate in Howard v Batistich [2019] FCA 525.

The trustee of the Crown Employees Superannuation Fund determined that the respondent, Ms Batistich, was a "de facto partner" of the deceased at the date of his death under the Superannuation Act 1916 (NSW) and the Interpretation Act 1987 (NSW). Accordingly, the trustee determined that Ms Batistich was entitled to a fortnightly pension. If there was no spouse (including a de facto), a lump sum death benefit of $350,000 would have been payable to the deceased estate.

The deceased's parents, as the administrators of his estate, complained to the Superannuation Complaints Tribunal that Ms Batistich did not meet the definition of de facto partner.
In dismissing the appeal, the Court said it was not satisfied that the SCT had misunderstood its task or failed to consider all the circumstances of the relationship.
 

  STP Exemptions And Deferrals – ATO Reminders 
 
With reported unpreparedness for Single Touch Payroll (STP), mainly among small businesses, and with employers having less than 19 employees needing to report their employees' tax and super information through STP from 1 July 2019, the ATO has reminded businesses about the STP exemptions and deferrals that are available.

There are exemptions for reporting through STP for a particular financial year, for certain payments, or for certain employees.

TIP: Where there are extenuating circumstances that impact an employer's ability to regularly report on or before pay day (eg regular intermittent internet connectivity issues that result in the ATO receiving its report a couple of days after pay day), they can apply for a recurring deferral.

 
    MJS Floorcoverings Partners In Business Conference 
   
On 15th June 2019 Harris Black Director, Renee Bettenay, attended the Howard Smith Wharves complex having been invited to present at the MJS Floorcoverings Partners in Business Conference. To an audience of family business owners from similar industries, Renee spoke about ways to improve your business and also provided a timely update to all regarding what should be addressed by businesses prior to 30 June.

Economist Craig James (CBA), brokers Michael Kelly and Steve Carlton (RFS Finance) and Simon Taufel (Former International Cricket Umpire) also presented. The conference was a wonderful opportunity for family businesses from the same industry to get together and discuss issues and opportunities in their businesses.

Congratulations to Brett Sturgess and MJS Floorcoverings on running such a successful event. If you would like to see more please take a look at the following youtube videos.

 
Renee Bettenay | Harris Black
MJS Partners In Business Conference 2019

Click here for more videos.
 
    Important Tax Date 
   
30 June 2019

Happy End of Financial Year!

All at Harris Black are looking forward to assisting our valued clients further in the new financial year.

 
     
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This material is for guidance only, any professional advice should be obtained before acting on any information contained herein. Neither the publisher nor the distributors can accept any responsibility for loss occasioned to any person as a result of action taken or refrained from in consequence of the contents of this newsletter. We recommend that you contact your Harris Black team member before making any decision to discuss your particular requirements or circumstances.  

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Since 1994, Harris Black has been providing accounting and advisory services to our valued clients to help them achieve their business and personal wealth goals.

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