Monthly Tax Tip for February

Managing Senior Accountant - Chesterton Accounting

Welcome to our February monthly newsletter!

Bushfires have been spreading over Australia during the last few months with many individuals, business owners and farmers affected. The Australian Taxation Office have created a list of the impacted areas that will automatically receive lodgement and payment deferrals for income tax, activity statements, SMSF and FBT returns until 28 May 2020. You can check if your postcode is listed online or call the emergency support Infoline on 1800 806 218 for more information on what these concessions cover. There are also some other support services offered which include:
  • give you extra time to pay your debt or lodge tax forms such as activity statements
  • help you find your lost tax file number (TFN) by using methods to verify your identity such as your date of birth, address and bank account details
  • re-issue income tax returns, activity statements and notices of assessment
  • help you re-construct tax records lost or damaged in the bushfires
  • fast track any refunds you are owed
  • set up a payment plan tailored to your circumstances including an interest-free period
  • remit penalties or interest charged during the time you have been affected by the bushfires
We strongly recommend taking advantage of these concessions if you have been affected. We, as a firm have also made the decision to donate hours to those that are struggling to keep up with their accounting requirements. If you have been affected or know someone who has been, then please contact us to discuss what pro-bono services we can offer you to assist you and your family through this hard time and get you back on track.
Monthly tax tip:
 Do you contribute anything to your superannuation fund? A study by MYOB has found as many as one-third of the self-employed are not making any contributions to their own superannuation.
When you are employed by another person, they must contribute 9.5% on earnings to your superannuation account, but what happens when you are employed by yourself? The self-employed cannot rely on anyone else to make contributions for them, this can now only be made by them. This of course isn’t mandatory but can be a great way to ensure you set yourself up for your own retirement.
Personal superannuation contributions can be claimed as a tax deduction simply by completing a form and sending it to the superannuation company you use. The maximum amount that can be contributed and claimed is currently $25,000 for this financial year. This amount does include any contributions that can also be made by employers so if you are also employed by another person then you will have to ensure your contributions and their contributions will fall under the cap.
So why would you use this tax deduction? Well superannuation is taxed at 15% on earnings which is generally a fair bit less than what the average taxpayer would pay. The other benefit to this tax deduction is the fact that you are saving for your retirement. We recommend discussing your options surrounding retirement savings with your financial advisor. However, if you would like to know more about claiming superannuation contributions then please contact us.
If you would like to schedule a consultation with us then please jump onto our website where you can see our availabilities and book a time that suits you.
Important Dates!

21 February:

  • Lodge and pay January 2020 monthly business/instalment activity statement

28 February:

  • Lodge and pay quarter ending 31 December 2019 activity statement
  • Lodge and pay tax returns for new registrant self-managed superannuation funds
  • Lodge and pay annual GST return for the year ending 30 June 2019
  • Lodge and pay quarter ending 31 December 2019 superannuation guarantee charge statement if contributions were not paid on time*

*Superannuation guarantee charge is not tax deductible

Zoe Chesterton

Managing Senior Accountant - Chesterton Accounting

Here at Chesterton Accounting, we specialise in small businesses. We are passionate about the growth and succession of small businesses.

Chesterton Accounting

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