TEN TIMES THE FINE, WON’T LEAVE YOU FEELING FINE

fined

09/10/2017- Ten times the fine, won’t leave you feeling fine!

Employers beware! The Australian Government has recently imposed harsher penalties for employers who fail to comply with the Fair Work Act in keeping the wages for their business accurate. Under this new legislation which was passed through the Senate in September this year, employers can now receive penalties up to 10 times for this new category of ‘serious contraventions’. This is not to be taken lightly because, as of now, the new maximum penalty will increase from $12,600 to $126,000 per contravention for individuals, and from $63,000 to $630,000 per contravention for corporations. That’s a serious increase!

In addition to this, the Act explicitly prohibits an employer from devising or keeping employee records that they know to be false or misleading or submitting a pay slip that is known to be false or misleading. Also, employers that do not comply with their record keeping obligations and cannot give a reasonable excuse for non-compliance will have to deal with court time to dispute the claims.

From the 27 of October 2017 onwards, this Act also has serious implications for franchisors in particular. During the case of non-compliance, franchisors will have increased liability and potential penalties imposed on them, where there appears to be a significant degree of control or influence over the franchisee’s affairs, if they knew or could have known of franchisee non-compliance. At the end of the day, if you are a franchisor, you now have greater responsibility to demonstrate that you have taken ‘reasonable steps’ to prevent a breach by your franchisees.

Now that the entire franchise sector is under the microscope, the FWO won’t overlook the legal obligations of a franchisee. These increased penalties magnify the impact on franchisees and sanction that all employers across all industries and sectors are liable for their practices within the workplace

Keeping up with all of these constant changes in legislation as a business owner can be time consuming and easily overlooked. Here at Tradie Bookkeeping Specialists we are always across these new laws and will confidently keep your business covered so you can run your business freely and not have to worry about the red tape! Contact Ari today for a free consultation!

Tradie Expense claims

tradie

13/09/2017- Tradie Expense claims

It always pays to know exactly what you can claim at tax time – especially if you’re a construction worker or in the construction industry. IF you aren’t sure, Tradie Bookkeeping Specialists have you covered. Let’s break it down:

Travel Expenses

Do you travel to remote locations from your usual place of work? Does it require an overnight stay?

You can definitely claim a deduction for your travel expenses and accommodation providing the cost is incurred while attending your duties. You will however, need to prove the costs involved and how it was directly related to the income you have earned.

 

Car Expenses

There is quite a few deductions you can claim should you use a car in your hours of work. Let’s see what you can claim:

– If you work for two separate employers and drive your car between job sites on the same day.

– Driving between alternate points of work for the same employer on the same day (such as building depots, worksites, etc)

– You are transporting large pieces of equipment and machinery with you and your employer requires this equipment to be transported for work. It is an essential part of earning your income, or you can’t store the equipment in a secure area at your workplace

– The equipment weighs 20+kgs and is difficult to transport.

To claim the expenses you will need to keep a daily log and/or make reasonably accurate calculations using the cents/km method.

 

 Clothing & Apparel

You may claim a deduction for the cost of purchasing, hiring or cleaning certain uniforms that are directly related to your job. Protective clothing that you are required to wear (eg. Steel capped boots, high-vis vests, sun-protective clothing, etc) can also be claimed.

 

Depreciation of Tools and Equipment expenses

You may claim depreciation for purchased tools valuing more than $300. The depreciation cost will be spread over a number of years. You can only claim an immediate deduction where the tools cost $300 or less.

 

Other deductible work-related expenses

If you purchase anything that relates directly to your employment you may claim a deduction.

Eg. Sunscreens, Hats, sun glasses, or any other protective equipment – Harnesses, goggles, breathing apparatuses, etc.

So there you have it – it really does PAY to know what you can claim at tax time. If you have any questions about what you can and can’t claim as an everyday Tradie – contact Ari today!

The value of a good Bookkeeper

value-of-a-good-bookkeeper

28/08/2017- The value of a good Bookkeeper

Owning a business is not easy and you may have found that by owning your own business, you seem to spend hours, if not days and weeks trying to keep your accounting in order, instead of doing what you enjoy. Tradie Bookkeeping Specialists can really help you put your strengths and skill back into the frontline of your business and not have to worry about being buried under in a pile of paperwork.

Tradie Bookkeeping Specialists can help you:

–        Keep your records current and generate accurate financial reports

–        Keep your bills down

–        Avoid late penalties keep obligated compliance for PAYG, GST and Superannuation

–        Minimise risk of fraud or potential financial issues

–        And most importantly.. Free up your time so you can focus on your business and do what you do best

We take pride in what we do and adhere to our very own Tradie Bookkeeping processes which are:

Checklists: We are consistent, professional and keep all bases covered.

Sales Processes: Whether its sale orders, invoicing clients or payments, we will keep yours current.

Purchase Processes: We can help with purchase orders, bill payments and billing.

Payroll Processes: Setup new employees on  payroll, process pay runs and cover any employee entitlements

Banking Processes: Reconciliation of your business bank accounts, any point-of-sale systems and credit arrangements.

Generation of Reports: We can provide you and your Accountant with accurate financial reporting as and when requested.

With Tradie Bookkeeping Specialists, you have a registered BAS agent on your side which allows your business can run more efficiently, be more profitable, and in the end be more competitive. Contact Ari today to see how we can help you.

WorkCover Premium for hiring Apprentices

workcover

17/07/2017- WorkCover Premium for hiring Apprentices

The Queensland Government has recently announced a new WorkCover premium and benefits package which will provide a saving to Queensland Businesses of $58.7 million dollars per annum. Included in this new package is a plan to embolden small to medium businesses in the hiring of more apprentices. They have implemented this plan by offering employers a discount on their premium if they choose to employ new apprentices.

Direct from the Worksafe Government spokesman –

“From 1 July 2017 we are implementing an ‘apprentice discount’ which will offer savings to employers who employ apprentices by removing apprentice wages from their premium calculation. Wages are a major factor in an employer’s premium calculation, so removing wages via the apprentice discount will result in a cheaper premium.”

If your business is not hiring apprentices at the present time but is considering this in the near future, the apprentice discount will mean your premium will not increase as a result of hiring an apprentice.

Employers should happy to know this new advantageous discount will begin on July 1st 2017 and whence there after you declare your wages during the renewing of their implemented accident insurance policy.

Please be aware that you will need to declare all wages paid to your employees (inc. Apprentices) in the 2016-2017 financial year and the additional estimation of wages for 2017-2018 financial year and lastly, to qualify for this discount, you must employ and to at least one apprentice and can claim this discount for every apprentice you employ ongoing.

This is fantastic news for employers and employees a like to strengthen Queensland business owners and build a positive future. For more information contact Ari from Tradie Bookkeeping Specialists today and enquire how this system can be implement for you!

Simpler BAS may not be so simple!

Simpler-BAS

03/07/2017- Simpler BAS may not be so simple!


 

Now that we are in the new financial year and the federal election is not far off – there has been some changes that SME businesses need to take into account.

One of the major changes proposed by the government is to simplify the GST of your business activity statement (BAS). They’ve called it ‘Simpler BAS’- Now while this should be considered a welcome change to make our lives easier (let’s face it – any way to make the administrate side of running a small business easier would come as a relief when dealing with ATO) – It is important to note that nothing has really changed in regards to the GST component and you will still need to know and understand which items have and do not have the GST applied.

Other things to be aware of are that:

The accounting software used by your business –

Some software companies may not have implemented the changes necessary to be compliant with these new obligations – so if you are using an old version of your accounting software you may be caught out and be hit with fines.

DIY can still be quite risky –

This new look ‘Simpler BAS’ may tempt some business owners to take the cheaper DIY approach in which the ATO website provides some new options of DIY without the suggestion of using a specialist professional who looks after TAX compliance. When it comes to the importance of compliance, a minor mistake could end up causing major headaches in the long-term and ultimately could be detrimental to your business in the way of fines and loss of time.

Here at Tradie Bookkeeping Specialists we are across all changes made by the government and as well as any future updates as further changes are made. We are your expert on all things TAX and when it comes to dealing with the ATO and your business – we will get it right for you. Feel free to contact Ari today with any enquires!

ATO is clamping down

late-fee

30/05/2017- ATO is clamping down


Just a head’s up to Tax payers out there that the Australia Taxation Office is being quite gung-ho this year in regards to late BAS and PAYG lodgments and are issuing a lot of late lodgment fees this financial year!

Fees that apply:

General interest charge – is given to an unpaid tax liability from the due date until it and the accrued interest charges are paid.

Shortfall interest charge – is given where an additional amount of tax is payable because of an amended assessment.

Penalties are strictly imposed for oversight such as not taking responsible care in claiming a deduction to which you are not entitled, or making a false or misleading statement.

As of 31 July 2015 – 30 June 2017 – $180 is charged every 28 days and reissued up to a maximum of five 28 day periods in which your BAS is not lodged on time.

The buck doesn’t stop there though.. If your entity is considered as a medium size operation/business (with an annual turnover of 1 million up to 20 million), the $180 fine is then doubled and lastly – if it is classed as a large entity (annual turnover of 20 million or more), the fine is then multiplied by five times! – That’s gotta hurt!

But wait.. there’s more! This system is being reissued with a new fee on or after 1 July 2017 to a total fine on $210 with the reoccurring fees listed above! Sheesh!

The penalty fees are intended to make sure taxpayers take absolute care in complying with their tax obligation to the Australia Government.

Make sure you’re on time with Tradie Bookkeeping Specialists! Contact Ari today!!

Small to Medium Businesses wish granted with write-off relief

tax-writeoff

Great news! The Australian Government has elected to keep the $20,000 instant tax deduction going for one more year!

Instead of having assets depreciate over a period of time, your small business can now write off the depreciation immediately. This means your small business is able to buy that new vehicle it requires or that plant and equipment your business has been needing – worth up to $20,000 per asset. Writing it off immediately can make you much more efficient and increase your businesses growth.

Another new aspect with this grant is that the government now views small businesses differently. With a change by definition, they now include businesses with a turnover up to $10 million in the SME category. This massively increases the number of businesses that are able to access the write-off.

If you need any more information or assistance, call Tradie Bookkeeping today!

Tax planning with your accountant

REMINDER: BAS is due 28 April! Unless you have a registered BAS agent like Tradie Bookkeeping Specialists doing it for you – then then you get an extra 3 weeks!​

TaxPlanning

Are you looking to start a new business or restructure an existing business? Maybe you’re selling a business or purchase an investment property? Tax planning is an integral part of these processes.

Looking towards the future and planning ahead – tax can be minimised and your potential financial rewards increased. Poor investment structure can sometimes be too late to undo, therefore, before any serious financial decision is made, make sure you ask Tradie Bookkeeping for advice to find out what the tax outcome is likely to be.

As the saying goes – you don’t know what you don’t know and Tradie Bookkeeping works closely with a CPA Accounting firm who can provide you with the vital information you need.

Getting your financials in order

REMINDER: BAS is due 28 April! Unless you have a registered BAS agent like Tradie Bookkeeping Specialists doing it for you – then then you get an extra 3 weeks!​

financials-in-order

Getting your financials in order

The saying ‘No time like the present’ can be used for a lot of different things but when it’s regarding getting your financials in order – it really means a lot! One of the easiest things to do regarding your finances is to get organized. Creating a systematic method to store and process your financial information is extremely helpful in maintaining your finances.

  • Start a Basic Filing System
  • Keep Important documents organized
  • Store documents for the correct amount of time
  • Keep your information safe!

If in the event (heaven forbid) that something happens to you, your organised financial documents can tremendously help those who will be taking care of your affairs after you’re gone. Whether you come in to see us or we visit you on site – Tradie Bookkeeping will not only help you keep organized – we can help take the stress out of it.


 

It’s that time! BAS and Superannuation is due by 28th of April

superandbas

Just a friendly reminder that all Business Activity Statements (BAS) and Superannuation is due on the 28th of April 2017.

Unfortunately, if you miss lodging your BAS (and/or any other related tax forms) by the 28th of April, the ATO can sting you with an FTL Penalty ‘failure to lodge on time”.

As for Superannuation, if you are unable to pay your employee’s super on time, you cannot claim it as a tax offset in your year end figures – the super payment must reach the allocated fund by the 28th of April.

Of course, here at Tradie Bookkeeping Specialists we can help with both your BAS and Super so get in touch if you need assistance.

We wish you and your business the most fantastic success for 2017-2018 financial year and beyond!