Can you believe that May is here already! The end of financial year is fast approaching and now is the time to focus on wrapping things up for the tax year and getting ready for the new financial year.
Any outstanding returns which are ready for lodgement will be lodged this month with the ATO. If you have any tax obligations to pay, please remember that these will now be due. We will be in touch to confirm your lodgement has been completed and advise of any amounts owing.
Please reach out to us if you have any questions or if there is anything we can assist with.
1 – Labour Day Public Holiday
15 – Due date for lodgement of all 2022 Financial Year Tax Returns for companies, trusts, partnerships, and individuals
21 – Lodge and pay April BAS (if you lodge monthly)
21 – FBT (Fringe Benefits Tax) Return 2023 Due (if you lodge yourself by paper)*
26 – Lodge and pay Q3, 2022–23 Activity Statement (if lodged electronically)
28 – FBT (Fringe Benefits Tax) Return 2023 Due (if you lodge electronically)*
* Note: The FBT tax year runs from 1st April to 31st March.
We are planning some new service offerings, courses, free training, and events so keep an eye on our newsletters to make sure you are the first to know.
Coming up in May – Due dates for accounts
The final deadline for lodgement for all company, individual and self-managed super fund clients is Monday the 15th of May, 2023.
If you have not yet completed your returns, now is the time to get started to ensure we have enough time to gather all of the required information, prepare the returns and lodge them. If we are waiting on information from you, we would appreciate your efforts to pull them all together and send them through to us as soon as possible. The ATO is issuing harsh penalties for missing lodgement deadlines, so please reach out to us if there are any questions on being able to lodge by the due date.
Government scraps low and middle-income tax offset (LMITO)
You may not be aware, but the government have abolished the low and middle-income tax offset (LMITO). The former Liberal government established the LMITO with an end date of 30 June 2022 and the current Labor government have no intentions to extend it past this date.
With current cost of living increases and pressures from higher interest rates, this is not welcome news and has the potential to greatly impact those who may have been expecting a refund in their income taxes this year.
Under the LMITO scheme, eligible individuals earning up to $126,000 were provided a tax offset of up to $1,500 when they lodged their annual tax returns. With its removal, taxpayers may now notice an increase in tax liabilities or lower refunds come tax time.
Tax Gap – Fact or Fiction?!?
You hear us talking about the Tax Gap because the ATO and the media are and basically treating it like everyone in Australia is ripping off the system.
We thought we’d take a few minutes to actually explain what it is. The tax gap refers to the difference between the amount of tax the Australian government expects to collect, and the amount actually collected.
The Australian Tax Office (ATO) estimates that the tax gap for individuals and small businesses is around $10 billion annually. The ATO is focusing on reducing this gap through measures such as increased data matching, audits, and education campaigns.
This is BAD news for you as a small business owner. It means that there will be a lot more compliance activity targeting small business operators and the full range of rules will apply. We have seen this coming with some of the language being used by Government and the ATO over the past 12-18 months and it was the reason that we chose to offer Audit insurance this year.
Supporters of the ATO’s efforts argue that reducing the tax gap is essential for ensuring that all taxpayers are paying their fair share and that the government has the funds it needs to provide essential services. They also argue that tax avoidance and evasion can create an uneven playing field, where some businesses are able to gain an unfair advantage by not paying their fair share.
Critics of the ATO’s approach argue that it can be overly aggressive and punitive towards small businesses and individuals. They also point out that some of the tax gap is the result of unintentional errors or misunderstandings, rather than deliberate evasion.
But is this Tax Gap even a real thing? I personally don’t believe it is. The Government has not been shown to be very good at budgeting and quite frankly relies on a lot of inputs and adopts a methodology in calculation that is questionable. That said, we have to work with what we are given.
While we believe that Australians should pay the correct taxes, the reality is that this needs to be done in a way that is fair and balanced. The ATO must ensure that its efforts to reduce the gap do not unfairly target small businesses and individuals, and that it provides adequate education and support to help people comply with their tax obligations.
Likewise, taxpayers will need to take responsibility for ensuring that they are meeting their tax obligations and seek assistance when necessary.
Sharing platforms to share information to ATO
Starting from 1st July 2023, sharing platforms operating in Australia will be required to share data with the Australian Tax Office (ATO) about the income earned by users on their platform. This means that platforms such as Uber, Airbnb, and Deliveroo will need to provide the ATO with details of the income earned by their users, including the following information:
- ABN and business / trading name (where applicable)
- First, middle and surname/family name (for individuals)
- Date of birth (for individuals)
- Residential or business address
- Email address and telephone numbers
- Bank account details
- And, for short-term accommodation platforms:
- Listed property name
- Listed property address
- Number of nights booked.
The ATO will use the data shared by the platforms to identify taxpayers who may be underreporting their income or not meeting their tax obligations. For taxpayers, this means that they will need to ensure that they are accurately reporting their income from sharing platforms in their tax returns.
Failure to do so could result in penalties and interest charges. It is important for taxpayers to keep accurate records of their income from sharing platforms, including any expenses incurred in earning that income.
This move by the ATO is part of a broader crackdown on tax avoidance and evasion, and highlights the need for individuals to ensure they are meeting their tax obligations in an increasingly digital economy.
May is Queensland Small Business Month!
May is Queensland Small Business Month, a time dedicated to celebrating the important role that small businesses play in our economy and communities.
Throughout the month, there will be a range of events and activities taking place across the state that aim to support, connect, and inspire small business owners and entrepreneurs.
Whether you’re looking to learn new skills, network with other business owners, or simply celebrate the achievements of the small business community, there is sure to be an event that suits your needs.
So why not get involved and join the celebrations? Connect with like-minded individuals, gain valuable insights, and help to create a vibrant and thriving small business community in Queensland.
With events happening across the state, both in person and online, check out the QSBM2023 events calendar here: https://www.business.qld.gov.au/starting-business/advice-support/support/small-business/qsbm/activities-events
We’d love to know how you will celebrate your Small Business this month – so share it with us on social media!
Changes to Workplace Laws
The Fair Work Ombudsman has released information on recent and upcoming changes to Workplace Laws, including:
- New workplace sexual harassment laws from March 2023
- Paid family and domestic violence leave from February 2023
- Fair Work Act amendments from December 2022
- Upcoming changes to pay secrecy, job ads and flexible work from 6th June 2023
To keep on top of these changes, visit the Fairwork Ombudsman website where you can sign up for email updates and download a timeline of recent and upcoming changes.
New Psychosocial Hazards Code of Practice
The new psychosocial hazards code of practice under the Work Health and Safety Act 2011 (WHS Act) provides guidelines to assist duty holders in managing and addressing the risks associated with psychosocial hazards in the workplace.
Psychosocial hazards refer to the interactions between work, the environment, and the individual that can impact mental health and well-being. The code of practice outlines the steps employers should take to identify, assess, and control psychosocial hazards in the workplace, including providing support and resources to employees.
It also emphasizes the importance of consultation and collaboration between employers, employees, and other relevant parties in creating a safe and healthy work environment.
For more information including a recording of a livestream event about the Code and a communications toolkit, click here.
SMSFs targeted by scams and organised crime
Self-Managed Superannuation Funds (SMSFs) are regulated by the Australian Taxation Office (ATO) and have strict rules regarding the use of superannuation funds. SMSF trustees have a legal obligation to manage their fund for the sole purpose of providing retirement benefits to its members.
Any use of SMSF funds for other purposes, such as paying off debts or purchasing a home to live in, is generally prohibited.
SMSF trustees should be cautious of any scams or fraudulent schemes that claim they can use superannuation money to pay off debts, purchase a home to live in, or engage in any other activity that is not solely for the purpose of providing retirement benefits to its members. Such schemes may involve promoters who charge high fees or use your funds for high-risk investments.
It is important to seek professional advice from a licensed financial advisor or tax agent before making any decisions regarding your SMSF. Trustees should also be vigilant of unsolicited offers, especially those promising high returns or early access to funds, and should report any suspicious activity to the ATO.
Remember, any use of SMSF funds for non-retirement related activities can result in severe penalties, including the loss of your retirement savings. Stay informed, be cautious, and seek professional advice to protect your SMSF and your financial future.
Financial Year Wrapping Up
Things are gearing up at the Bee Group as we approach lodgement deadlines and the end of the 2023 financial year. If you are still in the process of sourcing documents for us to complete your 2022 financial year returns, we would appreciate if you could provide these to our team urgently as we need time to review and process them.
We understand that life can be hectic, and you may also be coming in to a busy time of the year, but getting your paperwork to us ASAP will help us make sure your returns are done right and submitted on time. Unfortunately, the ATO are issuing harsh fines for late lodgements and these fees are difficult to dispute without evidence of supporting circumstances.
We’re here to help you and will do everything we can to make things easier at tax time. So if there is something that you need, just let us know.
Need to update your contact details?
Visit our knowledge base for help on how to do this:
https://help.thebeegroup.com.au/articles/updating-my-contact-details
Need Help?
The Bee Group Knowledge Base is filled with articles to help you with everyday frequently asked questions:
https://help.thebeegroup.com.au/
Alternatively, you can submit a help request online via our site at:
https://www.thebeegroup.com.au/support/
As always, please reach out to us if you have any questions or queries. We look forward to hearing from you.
Have a great May!
Sheree and 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.
