Do you know how many legislation changes came into effect in the 2018-19 Financial Year, or the year before? We haven’t calculated the actual number either, but it’s alot! What we have done is kept abreast of all these changes and written these blogs on the details to make sure you are aware of them. This year is no different!
In case you’ve missed seeing these, and while you still have an opportunity to plan for the year ahead, here are the three most significant changes affecting businesses that came into effect from 1 July 2019.
Single Touch Payroll
As discussed in Sonia Spaseski’s blog ‘Single Touch Payroll for Small Employers’, from 1 July 2019 small employers (those with 19 or less employees) will be required to register for Single Touch Payroll (STP).
So what does this mean for you? Well if you are currently using a commercial payroll software solution, setting up STP is relatively easy, with most software providers having a step-by-step guide on how to set it up.
The ATO have also provided some transitional arrangements for you to comply with the STP rules which are detailed in Sonia’s blog.
Instant Asset Write-off
From 2 April 2019 the instant asset write-off threshold was increased to $30,000 and was extended until 30 June 2020. As well as the increase to the threshold, the instant asset write-off is now available to businesses with a turnover of less than $50 million.
A few important things to note in relation to the instant asset write-off:
- The threshold applies to individual assets; it is not a yearly threshold.
- If you are registered for GST the cost of the asset is the GST exclusive amount.
- If you are trading-in an asset, the trade-in value does not reduce the cost of the asset for the threshold limit.
- The deduction is limited to the business use percentage of the asset.
Large Proprietary Company
The financial thresholds that determine whether a company is considered a ‘large’ proprietary company have been doubled from 1 July 2019, meaning many small to medium sized companies may be relieved of the requirement to lodge audited financial statements with ASIC.
Currently a proprietary company is considered ‘large’ if they meet at least two of the three thresholds, being:
- $25 million or more in consolidated revenue;
- $12.5 million or more in consolidated gross assets; or
- 50 or more full-time equivalent employees.
The new thresholds from 1 July 2019 are:
- $50 million or more in consolidated revenue;
- $25 million or more in consolidated gross assets; or
- 100 or more full-time equivalent employees.
To keep your payments and lodgments organised and arriving on time, you may find it helpful to take a look at the 2019/20 financial year due dates provided by Tim O’Brien. There is also a downloadable copy available on the page to keep on hand.
Our team is here for any queries you have regarding the changes above. Alternatively if you would like to discuss your business situation in more detail, please get in touch with our team at BLG Business Advisers online or by calling (02) 4229 2211.