When preparing your tax return this year, it is important to consider whether your claim for laundry expenses or clothing is legitimate. Last year the ATO paid out $1.5 billion to six million people for claims made under $150 where no tax receipt is required. This year they are hoping to claw back millions by adding this area to their hit list and more closely examining deductions made for work uniforms and washing and dry cleaning of them.
The ATO will review the arrangement you have with your contractors and may decide that they are \”employees\” . In many cases it does not matter if you have a written agreement in place, which states that they are a contractor.
On 1 January 2020 new superannuation rules were introduced in relation to how the 9.5% superannuation guarantee applies when an employee enters into a salary sacrifice arrangement.
Legislation passed both houses of parliament on 24 February 2020, which allows employers a one-off amnesty for outstanding superannuation entitlements. Employers who have not paid their workers their superannuation entitlements will be given an amnesty of 6 months from the date of royal assent to rectify this issue.
The Government has announced that it will assist small and medium business through economic times by offering a stimulus package to support employers and increase investment in business assets.
What options are available to businesses with Payroll Tax liabilities?
Small and medium sized businesses and not for profit entities, with an aggregated annual turnover of less than $50 million ( usually based on their prior year\’s turnover) that employ people, may be eligible to receive a total payment of up to $100,000 (with a minimum total payment of $20,000.
There are caps on the amount you can contribute to your super each financial year to be taxed at lower rates. If you contribute over these caps, you may have to pay extra tax.