The end of the month is upon us, again. Does time really fly by, or what?
It is time for the latest tax news from May. So, here is all you need to know…
Trial before you hire!
Are you looking for staff? Finding the right person can be challenging sometimes…
Even the Australian Government knows this, so they launched a great program called Youth Jobs PaTH (Prepare-Trial-Hire). This program makes it easier for businesses to find and recruit the suitable person for the job.
How does it work?
Youth Jobs PaTH offers employees the possibility to host a young job candidate (aged between 17 and 24 years) in an internship program at their company. This can be a great way for you to find out if they fit the job description and can handle the set of responsibilities that come with the job.
[ctt template=”7″ link=”8538K” via=”no” ]PaTH internships qualify as supervised work experience. They can vary between 2 and 12 weeks.[/ctt]
The good news for employers is that the interns are not going to be payed by you. The Australian Government will provide each intern with $200 per fortnight on top of their income support payment. The Government will also cover their insurance during the internship.
The benefits for employers
Apart from the opportunity to test the waters before hiring an employee, there’s also a significant monetary benefit.
Being part of this program can earn you $1,000. This is how much the Australian Government offers you to help cover the costs of hosting an intern. If you decide to employ your intern, you may be eligible for a wage subsidy of up to $6,500 or $10,000 (GST inclusive).
You may also be interested in: 4 Important Things You Need To Know If You’re An Employer
Trusts, timing and getting it right…
30 June 2017 is the deadline for trustees and trustee company directors to decide on the distributions they plan to make.
Another thing you should consider is checking your trust deed. Most trust deeds require resolutions to distribute trust income by 30 June each year.
Remember: Distributions don’t have to be paid by 30 June. The deadline only refers to the trustees’ obligation to decide on the distributions that need to be made.
Failing to do so will increase the risk of the taxable income of the trust being assessed by the hands of a default beneficiary (if the trust deed provides for this) or the trustee (in which case the highest marginal rate of tax would normally apply).
Delay income: one-off opportunity for high-income earners
Now, taxpayers with assessable income over $180,000 have an additional 2% tax on every dollar above this level. The good news is the 2% tax will end on 30 June.
Starting with 1 July taxpayers have a one-off opportunity to reduce their taxable income through salary packaging and other planning initiatives.
If your business’ cash flow is good right now, make all the purchases and investments you need before the end of this financial year. This will ensure you claim the deduction, particularly with numbers under $10 million.
If you’re an individual, this is the perfect time for charitable acts.
Single touch payroll is coming
Single Touch Payroll (STP) is not bound to come for another year, but the Australian Taxation Office (ATO) has already begun to release more details about this system.
STP will be mandatory from 1 July 2018 for businesses with 20 or more employees. But the ATO wants to start informing and educating both employees and employers on how STP works.
Just a heads up: Businesses will have to perform a headcount on 1 April 2018 to determine whether they are required to adopt STP.
Employers who report through STP will no longer need to provide employees with a payment summary at the end of the financial year. Businesses using STP will need to finalise their reporting and notify the ATO by 14 July each year. The ATO will then make the information available to employees and tax agents from ATO Online and will pre-fill employee tax returns.
You may may also be interested in: April Tax And Accounting Roundup: Things You Need To Know
Cyclone Debbie assistance
Refunds will be processed faster for people affected by flooding and other extreme weather caused by cyclone Debbie. The ATO will also extend lodgement deadlines for affected taxpayers as well as their agents.
The good news is you won’t have to apply for any of this, because the ATO will do this automatically based on postcode information.
The ATO will also suspend debt recovery action until the end of May 2017.
Want to know more about how these updates affect you?
One of our specialists here at Shuriken Consulting is ready to assist you with any questions you might have about the latest tax and accounting updates. Get in touch with us today: