News

This is a friendly reminder that as an Australian employer, you need to have made your superannuation contributions for Quarter 1 by October 28th.

The ATO may impose penalties and additional charges for employers who do not pay minimum super contributions for Quarter 1 by this date.

Due to Superannuation Clearing House processing times, it is recommended to approve superannuation batches within your payroll software by the 18^th of the month to ensure payments are received by the super funds before the due date.

You can find out more about the super guarantee statement here.

If you are working from home this financial year, there are requirements the Australian Taxation Office (ATO) has implemented regarding the deductions you can claim. The ATO advises individuals working from home to begin keeping records of their work-related activities now in preparation for the 2025 financial year.

From 1 March 2023, the ATO will not accept estimates or a 4-week representative diary of hours worked from home. You need a record of the hours you worked from home, kept at the time you worked those hours, for the entire income year (such as timesheets, roster or diary).

There are two methods for calculating home office expenses:

Fixed Rate Method – 67 cents
The fixed rate method is available from 1 July 2022. You can claim 67c each hour you work from home during the relevant income year. The rate includes the additional running expenses you incur for:

home and mobile internet or data expenses
mobile and home phone usage expenses
electricity and gas (energy expenses) for heating, cooling and lighting
stationery and computer consumables, such as printer ink and paper.

The rate per work hour (67c) includes the total deductible expenses for the above additional running expenses. If you're using this method, you can't claim an additional separate deduction for these expenses.

Actual Cost Method
This method works by figuring out the deduction by calculating the actual additional expenses you incur when working from home. This includes expenses such as:

Decline in value of depreciating assets
Cleaning expenses
Electricity and gas for heating, cooling and lighting
Phone, data and internet
Stationary and computer consumables

You can use the Home office expenses calculator to help work our your deduction.

For further information on claiming work from home expenses you can read more at this ATO link.

The ATO is ramping up its efforts to ensure compliance in the rental property sector, targeting those who may be falsely claiming deductions or misreporting capital gains. As part of this crackdown, the ATO is expanding its data matching program, requiring property management software companies to share user records dating back to 2018.

Key Focus Areas:

Rental Deductions: Inflated claims to offset increased rental income.
Capital Gains: Omitted or incorrect cost base reporting.
Compliance: Ensuring tax returns and rental schedules are lodged on time.

The ATO has expanded its capabilities after reporting that 9 out of 10 landlords are getting their tax returns wrong. Forcing property management software companies to hand over records, the ATO is now capable of utilising this information to compare against tax returns being lodged and identifying incorrect and fraudulent returns. If you are a landlord it’s more crucial than ever to lodge correct returns, maintain your own records and review previous lodgments for accuracy.

At KSR Partners, we’re here to help you navigate these changes and ensure your tax returns are accurate and compliant. If you need assistance or want to speak with our team about your rental property deductions, please contact the office on (03) 9830 1555 for expert advice.

We are reaching out with a friendly reminder that as your business is in one of the ATOs taxable payment reporting industries (building and construction, cleaning, courier and road freight, information technology and security, investigation or surveillance), you have a reporting obligation.

If you have engaged the services of subcontractors, consultants and independent contractors you will need to report payments made on a TPAR (Taxable Payments Annual Report) by 28 August.

Most of the information needed to prepare your TPAR lodgment can be found on your contractor’s invoices and reported via your accounting software.

If you would like assistance with preparing your TPAR lodgment please contact your accountant on 03 9830 1555 or by emailing reception@ksrpartners.com.au to book an appointment.

We are reaching out to keep you updated on things at KSR Partners.

Over the past few months, the team at KSR Partners have supported our community and each other through various fundraising efforts, including raising funds for cancer research by hosting a Biggest Morning Tea, donning blue to raise awareness for Dolly’s Dream, and raising over $1000 whilst giving up our chosen vices during FebFast to support disadvantaged young people in Australia.

The team have had a strong start to the new financial year, with renewed enthusiasm after our EOFY year party, where we celebrated the success of the past year with some team activities, good food, a few drinks and a whole lot of laughs.

We have seen an increase in early tax return requests this year already, with many clients keen to have their tax returns prepared amid the current cost-of-living crisis.

With the ATO adopting a firmer approach to recouping on outstanding debts and regulatory bodies imposing new compliance requirements, the team at KSR are working to ensure that our clients are provided a consistently professional service with a family-first approach.

As many of the accounting industry's providers have increased their pricing at the start of the financial year, we postponed a review of our pricing schedule to consider the impact of this on our clients. As a result of this, we have decided to maintain most of our fees without increase. We believe that this will benefit our clients of all sizes and circumstances, and demonstrates our principles in practice.

It is our hope that in continuing to provide an affordable accounting service to our clients, that our clients continue to choose KSR Partners as their trusted accounting professionals, work with us to exchange information efficiently, and pay all invoices as and when they fall due.

We look forward to working with you and your family again soon.

Stuart, Jamie and the team at KSR Partners

This is a friendly reminder that as an Australian employer, you need to have made your superannuation contributions for Quarter 4 by July 28th.

The ATO may impose penalties and additional charges for employers who do not pay minimum super contributions for Quarter 4 by this date.

You can find out more about the super guarantee statement here.

As the deadline of 14 July fast approaches, we would like to remind you of the importance of ensuring your Single Touch Payroll (STP) data is up to date and lodged on time in accordance with the Australian Taxation Office (ATO) requirements.

Timely and accurate submission of your STP data is essential to avoid any potential penalties imposed by the ATO for non-compliance.

For more detailed information on the STP finalisation process and to ensure that all your payroll data is lodged correctly, please visit this link.

The Fringe Benefits Tax year ended on 31st March 2024, and returns must be lodged soon after.

To help you gather necessary information we have provided you a Checklist and Information Booklet (click on the links below).

We appreciate that the Booklet is extensive, it covers all the potential FBT obligations for all our clients. Get in touch with your accountant so they can show you which sections which are applicable to you.

Collect Odometer Readings as close to 31st March as practical (if not already recorded).

Click to Download Check List

Click to Download Information Booklet

So we can get your FBT return lodged on time, please fill out and return the above Checklists and Schedules before 19th April 2024.

Please email the completed for to your accountant (or reception@ksrpartners.com.au) or post it to PO Box 2184 Hawthorn VIC 3122.

As an employer, you MUST consider all benefits provided to employees/associates during the fringe benefits tax (FBT) year 1st April 2023 to 31st March 2024.

A fringe benefit may take the form of a car being supplied, personal telephone, private expenses paid by your business or even a loan of money.

Irrespective of whether you pay FBT or use the employee contribution method, an FBT return must be lodged;

1. If you pay Fringe Benefits Tax you must lodge a Fringe Benefits Tax Return and pay the balance of any FBT no later than 21st May 2024.

2. If you do not pay Fringe Benefits Tax but rather have an employee contribution you must still lodge a Fringe Benefits Tax Return no later than 21st May 2024.

An employee contribution has a GST impact. This means 10% of an employee contribution must also be included in your June 2024 Business Activity Statement, which must be lodged no later than 28th July 2024.

If you have any queries please ensure you contact your Accountant on 03 9830 1555 or by email.

As of the 5th of March, the cost of Xero Cashbook (Non-GST, GST and Payroll) plans will increase in Australia:

Non-GST Cashbook plans increase by $3 per month to $15 per month

GST Cashbook plans increase by $5 per month to $28 per month

Payroll Cashbook plans increase by $9 per month to $42 per month

All pricing is in AUD and includes GST.

If you have any queries, please contact the office.

Thank you,

KSR Partners

As of the 13th of September, the cost of Xero Starter, Standard, Premium and Ultimate plans will increase in Australia:

Payroll Only plans increase by $5 per month to $15 per month
Starter plans increase by $3 per month to $32 per month
Standard plans increase by $6 per month to $65 per month
Premium 5 plans increase by $9 per month to $85 per month
Premium 10 plans increase by $12 per month to $99 per month
Premium 20 plans increase by $16 per month to $125 per month
Premium 50 plans increase by $21 per month to $170 per month
Premium 100 plans increase by $28 per month to $205 per month
Ultimate 10 plans increase by $5 per month to $115 per month
Ultimate 20 plans increase by $10 per month to $135 per month
Ultimate 50 plans increase by $15 per month to $180 per month
Ultimate 100 plans increase by $25 per month to $215 per month

If possible, please pay your Quarter 4 super guarantee contribution prior to June 30 to ensure you receive a tax deduction for it in this 2023 tax year. Please note that most superannuation funds impose a cut-off date of June 25th for the contributions to be processed in the current financial year.

However if you can not pay by June 30, it must be paid by July 28th to comply with the SGC requirements. You need to have made these super contributions for Quarter 4 (April-June).

Employers who do not pay minimum super contributions for Quarter 4 by this date, must pay the super contribution charge and lodge the superannuation guarantee charge statement.

You can find the super guarantee statement here .

With the deadline of 31 March fast approaching, time is of the essence - which is why we strongly recommend making the transition to STP Phase 2 today. To meet your reporting and compliance obligations, if you don’t transition by the deadline, the ability to file pay runs may be affected until the STP Phase 2 setup has been completed.

The good news is, payroll admins are now able to transition all payroll data and opt-in to STP Phase 2 with just a few steps. To start, head on over to the STP Phase 2 Portal in Xero Payroll to progress through each of the following steps:
Step one: Updating employee records to meet the new STP Phase 2 filing requirements.
Step two: Updating income pay items to the new STP Phase 2 filing requirements.
Step three: Categorising existing paid leave types to the new filing requirements.
Step four: Switching to Phase 2 reporting. Once your payroll data is updated and you’ve marked each step as complete in the STP2 Portal, you’ll be able to opt-in to Phase 2 reporting.

Don’t forget to mark each step as complete in the STP Phase 2 Portal before moving forward. This ensures your payroll data is accurate and could help reduce filing errors later down the line.

STP can be a technical process – and the larger and more complex your business is, the larger and more complex the task ahead will be. So the sooner you can tick this off your to-do list, the more prepared you’ll be to meet this important compliance requirement.

Once you’re ready to start, head to the STP Phase 2 Portal in Xero Payroll and progress through each stage of the transition process to get your payroll data ready.

Thank you,
KSR Partners

Immediately, the cost of Xero Starter, Standard and Premium plans will increase in Australia:

Starter plans increase by $2 per month to $29 per month
Standard plans increase by $5 per month to $59 per month
Premium 5 plans increase by $6 per month to $76 per month
Premium 10 plans increase by $7 per month to $87 per month
Premium 20 plans increase by $9 per month to $109 per month
Premium 50 plans increase by $12 per month to $149 per month
Premium 100 plans increase by $14 per month to $177 per month

And, from 15 March 2023 the monthly price of Cashbook and Xero Ledger plans is changing.

Non-GST Cashbook plans increase by $1
GST Cashbook plans increase by $2
Payroll Cashbook plans increase by $2
Xero Ledger plans increase by $1

The price of Xero Payroll Only, Ultimate plan and any optional add-ons you have as part of your subscription will not change. This web page tells you more.

All pricing is in AUD and includes GST.

If you have any queries, please contact the office.

Thank you,
KSR Partners

REMINDER: COMPANY DIRECTORS MUST APPLY FOR THEIR DIRECTOR ID BY 30 NOVEMBER 2022

This is a reminder that company directors need to verify their identity as part of a new director identification number (director ID) requirement. A director ID is a unique identifier that a director will apply for once and keep forever – which will help prevent the use of false or fraudulent director identities.

For directors of a company, registered Australian body or registered foreign company, appointed under the Corporations Act 2001, how and when you apply for your director ID depends on the date you become a director:

on or before 31 October 2021 – apply by 30 November 2022
between 1 November 2021 and 4 April 2022 – apply within 28 days of appointment
on or after 5 April 2022 – apply before appointment.

Existing directors have from 1 November 2021 to 30 November 2022 to apply for their director ID number. New directors appointed from 1 November 2021 to 4 April 2022 will have just 28 days to apply for their ID. After 5 April 2022, new directors will have to apply for their director ID number before their appointment.

The new Australian Business Registry Services (ABRS) is responsible for administering the director ID initiative.

ASIC is responsible for enforcing director ID offences set out in the Corporations Act 2001. It is a criminal offence if you do not apply on time.

NEW DIRECTORS- HOW TO APPLY FOR YOUR DIRECTOR ID

If you are a current director, you must apply for your director ID by 30 November 2022.

The fastest way to do this is online using myGovID app. The Australian Business Registry Services website provides instruction on how to apply for your director ID.

Step 1- Set up myGov ID

Step 2 – Gather your documents

Step 3 – Complete your application

If you have applied for and received your Directors ID please advise KSR in order for us to update your records.

Should you have any queries please contact our office. We are always happy to assist in any way we can.

Kind Regards,
The KSR Team

The Fringe Benefits Tax year ends on 31^st March 2022, and returns must be lodged soon after. It is now time to gather your information.

To help you gather necessary information we have provided our clients with a Checklist and Information Booklet (This has been sent to our clients with FBT requirements).

So we can get your FBT return lodged on time, please fill out and return the above Checklists and Schedules before 19 April 2022.

Please send completed form to PO Box 2184 Hawthorn VIC 3122 or email to you accountant.

As an employer, you MUST consider all benefits provided to employees/associates during the fringe benefits tax (FBT) year 1^st April 2021 to 31^st March 2022.

A fringe benefit may take the form of a car being supplied, personal telephone, private expenses paid by your business or even a loan of money.

Irrespective of whether you pay FBT or use the employee contribution method, an FBT return must be lodged;

1. If you pay Fringe Benefits Tax you must lodge a Fringe Benefits Tax Return and pay the balance of any FBT no later than 21 May 2022.

2. If you do not pay Fringe Benefits Tax but rather have an employee contribution you must still lodge a Fringe Benefits Tax Return no later than 21 May 2022.

An employee contribution has a GST impact. This means 10% of an employee contribution must also be included in your June 2022 Business Activity Statement, which must be lodged no later than 28 July 2022.

If you have any queries please ensure you contact your Accountant on 03 9830 1555 or by email.

Kind Regards,
The Team at KSR Partners

2022-23 Tax and Accounting Budget Report Summary

The Federal Treasurer, Josh Frydenberg handed down the 2022-23 Federal Budget on 29 March 2022, delivering a cost of living package for Australians, digital support for small business and detailing steps to an enduring economic recovery. This year's Federal Budget covers a range of measures aiming to reduce the pressure from increased costs of living and help more people into homes.

2022-23 Federal Budget Highlights

Personal Taxation

Cost of living tax offset: The Low and Middle Income Tax Offset (LMITO) will increase, providing an additional $420 to reduce tax payable for eligible taxpayers in the 2021/22 financial year. Halving of fuel excise: For six months from 12:01am 30 March 2022, the excise on fuel and petroleum-based products will be halved.

Indexation of the Medicare thresholds: The Medicare Levy low-income thresholds are indexed each year. From 1 July 2021, the thresholds are expected to be as follows:
- For singles: $23,365 (increased from $23,226)
- For families: $39,402 (increased from $39,167) plus $3,619 per dependent (increased from $3,597)
- For single seniors and pensioners: $36,925 (increased from $36,705)
- For family seniors and pensioners: $51,401 (increased from $51,094) plus $3,619 per dependent (increased from $3,597)

Home ownership

Affordable housing measures: The First Home Loan Deposit Scheme and Family Home Guarantee allow eligible individuals to purchase a home with as little as a 2% deposit, and the Government will guarantee the loan removing the need for lenders mortgage insurance. From 1 July 2022, changes to the existing home guarantee schemes will be made by allocating a total of 50,000 guarantees as follows:
- 35,000 places under the First Home Guarantee (formerly the First Home Loan Deposit Scheme
- 5,000 places under the Family Home Guarantee targeting single parents regardless of any previous home ownership
- 10,000 places under a new Regional Home Guarantee targeting individuals who have not owned a home in five years who relocate to a regional location and can supply a 5% deposit

Business taxation

Small business training deductions: The Government is proposing to allow a deduction of 120% of eligible costs incurred in training staff in small businesses.

Small business technology deductions: Small businesses may be eligible to deduct up to 120% of eligible business costs which support the business adopting digital technologies, such as cloud services or cyber security systems.

Changes to Pay As You Go (PAYG) instalments: The Government proposes to allow PAYG instalments for businesses to be calculated from approved software systems, based on current financial performance from 1 January 2024, subject to industry feedback.

Increase to JobTrainer: The Government has proposed an additional 15,000 places in their JobTrainer program, which provides free or subsidised vocational training in select industries such as aged care and disability support.

Superannuation:

Continuation of the reduced minimum pension drawdown: The budget proposes to extend the minimum amount that needs to be drawn from account-based income streams to the 2022/23 financial year. This means individuals with account-based pensions or term allocated pensions will be required to draw less from their savings, in line with the current year minimums.

Social Security:

Cost of living payment: Eligible social security recipients resident in Australia will receive a one-off $250 payment in April 2022.

Paid parental leave changes: Parental leave pay is proposed to be combined with Dad and Partner Pay resulting in a single scheme of up to 20 weeks leave which can be shared between parents as they see fit. Single parents are also expected to be able to access an additional two weeks of leave.

Lowering the Pharmaceutical Benefits Scheme (PBS) safety net: From 1 July 2022, the Government proposes the PBS safety net to come into effect earlier, with 12 fewer scripts being required for concessional patients and 2 fewer scripts for general patients each calendar year before the safety net activates. Once within the safety net, concessional patients do not pay for PBS medicines whilst general patients only pay the concessional co-payment rate (currently $6.80 per script).

The full Budget papers are available at www.budget.gov.au and further key initiatives as outlined by Thomson Reuter can be accessed by clicking below:

Thomson Reuters Federal Budget Tax Bulletin

DIRECTOR ID: YOUR REQUIREMENT AS COMPANY DIRECTOR

Company directors need to verify their identity as part of a new director identification number (director ID) requirement. A director ID is a unique identifier that a director will apply for once and keep forever – which will help prevent the use of false or fraudulent director identities.

For directors of a company, registered Australian body or registered foreign company, appointed under the Corporations Act 2001, how and when you apply for your director ID depends on the date you become a director:

on or before 31 October 2021 – apply by 30 November 2022
between 1 November 2021 and 4 April 2022 – apply within 28 days of appointment
on or after 5 April 2022 – apply before appointment.

Existing directors have from 1 November 2021 to 30 November 2022 to apply for their director ID number. New directors appointed from 1 November 2021 to 4 April 2022 will have just 28 days to apply for their ID. After 5 April 2022, new directors will have to apply for their director ID number before their appointment.

The new Australian Business Registry Services (ABRS) is responsible for administering the director ID initiative.

ASIC is responsible for enforcing director ID offences set out in the Corporations Act 2001. It is a criminal offence if you do not apply on time.

NEW DIRECTORS- HOW TO APPLY FOR YOUR DIRECTOR ID

If you are a new director appointed from 1 November 2021 to 4 April 2022 you need to apply for your own director ID within 28 days.

The fastest way to do this is online using myGovID app. The Australian Business Registry Services website provides instruction on how to apply for your director ID.

Step 1- Set up myGov ID

Step 2 – Gather your documents

Step 3 – Complete your application

If you have applied for and received your Directors ID please advise KSR in order for us to update your records.

Should you have any queries please contact our office. We are always happy to assist in any way we can.

Kind Regards,
The KSR Team

March 2021 Tax Reminder

We want to ensure that all of our clients' lodgment requirements remain up to date.

If you haven't sent us your 2020/21 work, please send it to us as soon as possible so that we can prepare your lodgement.

You may be entitled to a refund, so acting now allows you to receive this sooner. Alternatively, if you are expecting a payable, remember that we can complete the work, but postpone (hold) lodgement until the final due date, allowing you additional time for budgeting.

Don't worry if you can't find all of your documents. We have access to ATO Prefill reports which include details of Group Certificates, Allowances, Interest, Dividends, Health Insurance, etc.

You are welcome to call for an appointment, but if it's more convenient, you can post or email your information directly to us and we will contact you with any questions during preparation.

Mail: PO Box 2184 Hawthorn VIC 3122
Email: uploadportal@ksrpartners.com.au
Phone: 9830 1555

Should you have any queries please contact our office. We are always happy to assist in any way we can.

Regards,
The KSR Team

Things are changing quickly and our services may be impacted

As we continue adjusting to living with COVID-19 there will be more changes for the month of January due to the surge in Victorian cases.

We want to prevent our office from becoming an exposure site which will hopefully prevent staff needing to isolate and take time off work. However, we may not always immediately have the capability to fill the gaps if staff are on sick leave. KSR ask for your patience and understanding if we do become understaffed.

To try and prevent the spread we have asked that clients please not come into the office and continue to send their work in via POST, EMAIL or UPLOAD portal. Our staff have been given the choice to continue to work from home or from the office.

If your only way of sending in work is via dropping off at the office, please call ahead of time so we can organise collection.

KSR are here to continually support our clients throughout this hard time and we hope you are all keeping safe and well.

KSR will reassess the Covid-19 situation come February and continue to update our clients of any changes.

We thank you for your understanding once again.

Client Meetings

KSR is continuing to a to adapt to COVID-19 with our clients’ needs front of mind. We are available as per usual via phone call or email, only changes are that client meetings are now conducted over teams or zoom in an effort to protect the health of employees and clients. These changes will not effect our efficiencies.

You may be aware that as part of the Digital Business Plan, the government announced the full implementation of the Modernising Business Registers (MBR) program.

The MBR program will establish a new and modern registry service, the ABRS.

The ABRS will:

progressively roll out between 2021 and 2024
bring together the Australian Business Register (ABR) and more than 30 Australian Securities and Investments Commission (ASIC) registers in one place
introduce the director identification number (director ID) initiative.

The program aims to:

make it easier for businesses to meet their registration obligations – giving them more time to focus on their customers and business operations
make business information more trusted and valuable
improve the efficiency of registry service transactions.

The ABRS high-level milestones are to

establish the foundations for the new registry service
introduce director identification numbers
transition the companies register to the new registry service
transition the business names register to the new registry service
transition Australian business numbers (ABN) to the new registry service
transition the professional and historical registers to the new registry service.

As part of this roll out all directors are required to apply for a director identification number (director ID) this is a unique identifier you need to apply for once and will keep forever. You must apply for your director ID yourself to verify your identity.

If you were already a director on or before 31 October 2021, you have until 30 November 2022 to apply. That’s still the case even if you become a director of another company after 31 October 2021. But if you are becoming a new director of a new or existing entity you MUST apply for your director ID within the below time frame.

Between 1 November 2021 and 4 April 2022 - Within 28 days of appointment
From 5 April 2022 - Before appointment

You must advise KSR of your director ID as soon as you have obtained it in order for us to add it onto our systems.

Please find the following web page for further information regarding your director ID.

Please don't hesitate to contact the office if you have any queries or concerns.

Kind Regards
KSR Partners Pty Ltd

What is Single Touch Payroll Phase 2?

In the 2019–20 Budget, the Government announced that Single Touch Payroll (STP) would be expanded to include additional information.

The expansion of STP, also known as STP Phase 2, will reduce reporting burden for employers who need to report information about their employees to multiple government agencies. It will also help Services Australia’s customers, who may be your employees, get the right payment at the right time.

The mandatory start date for Phase 2 reporting is 1 January 2022.

Further information can be found on the Australian Taxation Office website, please see links below;

If you have any questions please contact us at the office, we are always happy to help.

Kind Regards,
KSR Partners

The Australian Tax Office has started to chase debts again in Victoria, NSW and the ACT after pausing its pursuit of unpaid taxes while the three jurisdictions were coping with COVID-19 outbreaks and lockdowns.

Public servants from the Tax Office, which was owed a record $55 billion at the end of June, began hitting the phones again, with the ATO confirming that those with the largest debts would be first to get a call.

Companies and their directors who failed to lodge their returns or pay tax on their workers’ superannuation payments were to be “prioritised” and financial penalties for non-compliance were expected to be “more noticeable” in Victoria, NSW and the ACT

KSR understand that some businesses have been under extreme pressures the past two years and have not regained their cash flows. You May receive correspondence from us on behalf of, or directly from the ATO regarding overdue tax debts. We highly recommend that if you have overdue lodgements and or tax debts to complete these as promptly as possible and, if required, a payment plan organised with the ATO to avoid penalties that could be incurred from inaction.

As always, If you require assistance or have any questions please contact us.