Welcome to the July edition of our newsletter! As we embark on the second half of the year, it’s the perfect time to reflect on our financial journey so far and to set the stage for a prosperous 2025 financial year. At Bee Group Accountants, we are committed to providing you with the insights and tools needed to navigate the evolving tax and financial landscape with confidence and ease.
This month, we are focusing on the importance of cultivating new financial habits that will not only streamline your accounting processes but also enhance your financial health and business growth.
Thank you for your continued trust and partnership. Here’s to making the rest of 2024 productive and setting a strong foundation for 2025!
Scheduling for Annual Tax Work
As per last year, we would like to again schedule in your annual returns based on your preferences and tax requirements. This will help us help serve you better as we will be able to ensure that we have enough people in our office to ensure that work is done in a timely and efficient manner.
We will be reaching out to you with our suggested month to complete your annual returns, based on what we did last financial year. If the suggested schedule doesn’t work for you, please just let us know when you would prefer to have your work done as we can easily move things around at this early stage.
Engagement Letters
Please note that all new work will require a signed engagement letter to proceed. We use an application called Ignition to issue these letters. Please ensure that you read and accept the engagement letter, as we will not be able to start your work without this.
What do I need to provide to begin my annual accounting work?
To begin preparing your annual accounting work, we need certain information from you. We will review your files and previous annual return to determine what sorts of information and documentation is needed. This includes things like bank statements, investment portfolio reports, and rental income summaries.
We use a great system called Karbon that issues you with a specific checklist where you can upload the files we need, add comments, and check off work as it is completed. We would appreciate your assistance in using this system to send us your information, documents and comments this year.
Karbon has been a game changer for accounting as it is much more secure than your standard email client and it allows you to interact with the work we are doing for you.
Keep an eye out for these checklists and make sure you upload your information as soon as possible so that we can get started on your returns.
Tax Agent Update
We are updating our Tax Agent Number with a change to a company. This email is to let you know of this change as we will commence the process of transitioning all clients to the new number within the next week. The 2024 FY engagement letter will reference this new number. Just in case you need it, it is #26179868.
Upcoming Dates for July 2024
1 – Individual income tax returns due from now until 31 October if preparing and lodging yourself
14 – Employers must issue PAYG withholding payment summaries to employees by today
21 – Lodge and pay June BAS (if you lodge monthly)
21 – Lodge annual payroll reconciliation and pay any further liabilities
28 – Lodge and pay April-June 2024 BAS (if you lodge quarterly)
28 – Pay Super Guarantee Contributions for April-June 2024 quarter
28 – Quarterly transfer balance account report (TBAR) for self-managed super funds (SMSFs) due
FY2025 Stage 3 Tax Cuts
The Australian Government has legislated cost-of-living tax cuts for all Australian taxpayers.
From 1 July 2024, the tax cuts will:
- reduce the 19 per cent tax rate to 16 per cent for those on taxable incomes of $45,000
- reduce the 32.5 per cent tax rate to 30 per cent for incomes between $45,000 and $135,000
- increase the threshold above which the 37 per cent tax rate applies from $120,000 to $135,000
- increase the threshold above which the 45 per cent tax rate applies from $180,000 to $190,000
This is a redesign of tax cuts from what was originally proposed. With the cost of the tax cuts package overall remaining the same, this means that the tax savings have been distributed much more widely. They are now focused on low- and middle-income taxpayers, who were previously not well served by the tax cuts.
Need more information? Click here.
National Minimum Wage Increase
Just a friendly reminder that, effective July 1, 2024, the National Minimum Wage will increase by 5.75%, necessitating adjustments to employee compensation. If your staff aren’t on minimum wages, this change won’t directly affect you.
This year, the Fair Work Commission decided that:
- the National Minimum Wage will increase by 3.75% to $915.90 per week or $24.10 per hour
- minimum award wages will increase by 3.75%.
Need more information? Click here.
Record Keeping for Employers
As an employer, you need to keep accurate time and wage records for your employees for a minimum of 7 years. The Fair Work Commission has a comprehensive list of records that you must keep and what they need to cover here.
They also have some useful templates available including a weekly time and wage records template, rosters template, and timesheet templates, and offer an online course to help you understand your requirements further. Click here for more information.
SMSF Record Keeping
As we approach the end of the financial year, it’s a good time to check on your records for your self-managed superannuation fund (SMSF).
When managing an SMSF, it is crucial to maintain accurate and organised tax records. These records help you comply with tax regulations and provide evidence of the fund’s financial activities. Establishing good record keeping habits also ensures a smooth annual returns process where you can provide accurate and complete documentation as evidence for the fund’s activities.
Here’s a list of tax records to keep for your SMSF:
Other relevant documentation: Keep any other relevant records specific to your SMSF, such as minutes from investment committee meetings, property valuations, borrowing arrangements, and any additional documents required by the ATO or other regulatory authorities.
Trust deed: The original and updated versions of your SMSF trust deed should be maintained. This document outlines the fund’s rules and governing provisions.
Financial statements: Prepare and retain copies of the fund’s financial statements, including the balance sheet, profit and loss statement, and cash flow statement. These statements provide an overview of the fund’s financial position and transactions.
Contributions records: Keep detailed records of all member contributions made to the SMSF, including personal contributions, employer contributions, and any other types of contributions. This includes contribution dates, amounts, and any associated documentation.
Investment records: Maintain comprehensive records of the SMSF’s investment activities. This includes documentation of purchases and sales of assets, dividend statements, rental income records, and any other investment-related transactions.
Bank statements: Retain copies of bank statements for all SMSF bank accounts. These statements should clearly show deposits, withdrawals, interest earned, and any associated fees.
Member statements: Keep records of member statements, which reflect individual member balances, transactions, and investment earnings. These statements provide a breakdown of each member’s entitlements within the fund.
Minutes of trustee meetings: Document and store minutes of trustee meetings, which outline decisions made by the SMSF trustees. These minutes serve as evidence of compliance with legal requirements and adherence to the fund’s investment strategy.
Tax returns: Maintain copies of the SMSF’s annual tax returns, including the accompanying schedules and supporting documentation. These records should reflect the fund’s income, deductions, and tax liabilities.
ATO correspondence: Keep copies of any correspondence with the Australian Taxation Office (ATO) regarding your SMSF. This includes notices of assessment, rulings, and any other official communications.
Compliance documentation: Maintain records demonstrating the SMSF’s compliance with superannuation laws and regulations. This includes documentation related to audits, legal advice, and any other compliance activities undertaken.
Insurance policies: Retain copies of insurance policies held by the SMSF, such as property insurance, liability insurance, or income protection policies. These records help verify the fund’s coverage and premiums paid.
The team at Bee Group Accountants are celebrating a fantastic finish to the 2024 financial year. The operational adjustments that we made set us up for a smooth end of year and we hope that you have also noticed the positive changes in our team.
We are all prepared for this new financial year, so keep an eye on any emails from us about your upcoming annual returns. We look forward to working with you again!
Free Resources for your Business
Have you checked out our website yet? We have loads of free resources that can help you increase efficiency or cash flow, define a new business idea, or onboard a new employee. Jump in and have a look today!
Need to chat or meet with us?
We have a dedicated bookings page where you can schedule a time to talk with one of us. This links directly to our calendars so you can choose a time that suits your schedule. When booking a time, please leave as much detail as possible about why you need to chat to us so that we can make sure we are prepared.
Bee Group Accountants – Bookings
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Need Help?
The Bee Group Knowledge Base is filled with articles to help you with everyday frequently asked questions.
Alternatively, you can submit a help request online here.
As always, please reach out to us if you have any questions or queries. We look forward to hearing from you.
Have a fantastic July!
Sheree & the Team at Bee Group Accountants
We have been working hard at improving our systems and building up our team. This means that we are now able to start accepting new clients. If you have someone that you know who is looking for an accountant – please ask them to get in contact with our office via phone, email or through our website.
If there is anything that you think we can improve on too, please be sure to let us know. We are working hard to improve your experience in working with us as well!
We truly appreciate the opportunity to help and welcome any recommendations.
