Kepler Business Solutions

25/06/2024

You’ll need to calculate super contributions for eligible workers at 11.5% of their ordinary times earnings. This applies to payments of salary and wages from 1 July.

Your super contributions for the current quarter (ending 30 June, due by 28 July 2024) are still calculated at the 11% rate for payments made prior to 1 July.

22/06/2024

Data-Matching Program for Benefits and Entitlements

Services Australia, in collaboration with the ATO, runs a data-matching program from 2019 to 2026. The program aims to ensure accurate claims for Medicare levy exemptions and surcharges, promote voluntary tax compliance, and speed up processing of tax returns and refunds. It helps verify claims, prevent fraud, and educate taxpayers about compliance. The data collected includes identification details and entitlement periods, adhering to strict privacy guidelines.

For more information, visit the ATO's data-matching protocol.

13/06/2024

Top 10 Tips to Help Rental Property Owners Avoid Common Tax Mistakes

Owning a rental property can be a great investment, but it also comes with tax responsibilities. Here are the top tips from the Australian Taxation Office (ATO) to help you avoid common tax mistakes:

1. Initial Repairs and Capital Improvements:
- Immediate deductions aren't allowed for initial repairs or capital improvements. Claim them over several years as capital works.
- Example: Replacing broken cupboard doors can be claimed over time.

2. Interest on Your Loan:
- Only claim interest related to your rental property, not personal expenses.
- Tip: Separate the interest for the rental property from private use.

3. Borrowing Expenses:
- Spread deductions over five years for expenses over $100.
- Example: Loan establishment fees and mortgage document costs.

4. Purchase Costs:
- No deductions for buying the property (e.g., conveyancing fees, stamp duty outside ACT). These are added to the cost base for capital gains tax (CGT) purposes.

5. Construction Costs:
- Claim building costs like extensions and structural improvements at 2.5% per year for 40 years.

6. Body Corporate Fees and Charges:
- Deduct administration fund payments in full, but claim special purpose funds for major capital improvements over time.

7. Co-Owned Properties:
- Declare income and claim expenses according to your ownership interest.

8. Private Use of Property:
- Apportion expenses to reflect the area and days rented if the property is used for private purposes.

9. Keeping Records:
- Keep all records of income and expenses, and retain them for five years after selling the property.

10. Capital Gains on Sale:
- Calculate capital gains or losses by subtracting the cost base (purchase price plus improvements) from the sale price.
- Include the gain or loss in your tax return the year you sign the sale contract.

For more details, visit the ATO's resources:

https://ato.gov.au/rentalrepairsfactsheet
https://ato.gov.au/Rentalinterestexpenses
https://ato.gov.au/Rentalborrowingexpenses
https://ato.gov.au/CGTpropertysale
https://www.ato.gov.au/rentalpropertyguide



By following these tips, rental property owners can ensure they meet their tax obligations accurately and avoid common pitfalls.

30/05/2024

Key Superannuation Changes in the 2024 Federal Budget

The 2024 Federal Budget introduces several important changes to superannuation that will impact both individuals and businesses:

Superannuation Guarantee (SG) Rate Increase:
The SG rate will rise from the current 11% to 11.5% on July 1, 2024, and then to 12% on July 1, 2025. This means employers will need to contribute a higher percentage of employees' earnings to their super funds.

Superannuation on Paid Parental Leave:
Starting July 1, 2025, superannuation contributions will be paid on Commonwealth-funded Paid Parental Leave (PPL). This change aims to reduce the retirement income gap for parents, particularly benefiting mothers who take time off work for childcare.

Additional Tax on Large Super Balances:
From July 1, 2025, superannuation balances exceeding $3 million will incur an additional 15% tax on earnings. This measure targets high super balances and is designed to ensure a fairer distribution of tax benefits.

Contribution Cap Increases:
From July 1, 2024, the concessional (pre-tax) contributions cap will increase from $27,500 to $30,000, and the non-concessional (post-tax) contributions cap will rise from $110,000 to $120,000. This allows individuals to contribute more to their superannuation each year.

Support for Recovering Unpaid Super:
The Fair Entitlements Guarantee Recovery Program will be enhanced to better assist in recovering unpaid superannuation entitlements from employers in liquidation or bankruptcy, starting July 1, 2024.

Enhanced Fraud Detection:
The ATO will receive additional funding to improve its efforts in detecting, preventing, and addressing fraud within the tax and superannuation systems. This will include better security measures for handling superannuation contribution data.

These changes are designed to improve the superannuation system's fairness, security, and efficiency, ensuring better retirement outcomes for all Australians.



For more details, visit the ATO Superannuation Changes and Treasury Budget Papers websites.

28/05/2024

When starting a business, picking the right structure is important. Here are the main options and some key points to consider:
1. Sole Trader
Simple Setup: Easiest and cheapest to start.
Tax: Report all business income on your personal tax return.
Liability: You are personally responsible for all business debts.
2. Partnership
Shared Ownership: Two or more people run the business together.
Tax: Each partner reports their share of the business income on their personal tax return.
Liability: Partners share responsibility for debts and obligations.
3. Company
Separate Legal Entity: The business is its own legal entity.
Tax: The company pays tax on its profits at the company tax rate.
Liability: Limited to the company's assets; personal assets are protected.
4. Trust
Managed by Trustee: A trustee manages the business for beneficiaries.
Tax: Income is distributed to beneficiaries, who then pay tax on their share.
Complexity: More complex to set up and manage.
Key Considerations
Liability: Consider how much personal risk you are willing to take on.
Control: Decide how much control you want over the business.
Tax: Understand the tax obligations for each structure.
Future Needs: Think about how your business might grow.

For more detailed information, visit the ATO Business Structures Guide and Business.gov.au.

Making this decision is not a easy one, and you should get this right from the start, At Kepler Business solutions our friendly experts are here to help you make the right decision.
Give us a call Today for your free consultation to discuss.

27/05/2024

Key ATO Tax Compliance Focus Areas for 2024

As we head into 2024 tax time , the Australian Taxation Office (ATO) has outlined several critical areas for tax compliance. Businesses and individuals must pay attention to these focus areas to ensure accurate and timely tax filings:

Work-Related Expenses: The ATO is closely examining claims for work-related expenses, especially those related to working from home. Accurate record-keeping is essential to substantiate these claims.

Rental Property Deductions: Many property owners make errors in reporting rental income and expenses. The ATO is focusing on ensuring that deductions for repairs and maintenance are accurate.

Undeclared Income: Reporting all sources of income, including from the sharing economy, is crucial. The ATO is vigilant about identifying undeclared income to prevent tax evasion.

Superannuation Guarantee: Ensuring employers meet their superannuation obligations is a priority. This includes timely and accurate reporting to ensure employees receive their correct entitlements.

Fraud and Evasion Prevention: The ATO is enhancing efforts to detect and prevent tax fraud and evasion using advanced data analytics and technology.

Debt Collection: There is a strong emphasis on recovering high-value and aged debts. The ATO is implementing targeted strategies to encourage timely payment and prevent new debts from accumulating.

Staying informed and compliant with these focus areas will help businesses and individuals avoid potential issues with their tax filings.

27/05/2024

24/05/2024

Let us manage your payroll while you focus on your business.

23/05/2024

"Struggling with Accounting & Bookkeeping? Let us help you. Give us a call today for a free consultation

23/05/2024

🚀 Exciting Updates from the 2024-25 Federal Budget! 🚀

Hey everyone! We’ve got some crucial news from the latest Federal Budget that will impact your finances and our small business community. Here are the highlights:

🔹 Personal Income Tax Cuts: Starting 1 July 2024, new tax rates will mean more money in your pocket. For example, the 19% rate drops to 16% for incomes up to $45,000!

🔹 Increased Medicare Levy Thresholds: More Australians will benefit from higher low-income thresholds, easing healthcare costs.

🔹 Small Business Boost: The instant asset write-off threshold jumps to under $20,000 for 2025, allowing for greater investments in growth.

🔹 Energy Bill Relief: Small businesses will receive an additional $325 to help with rising energy costs.

🔹 Cyber Security Support: New programs to protect small businesses online, including free training and resilience services.

🔹 Superannuation on Parental Leave: From 1 July 2025, parents will get super on government-funded Paid Parental Leave.

🔹 Household Energy Rebates: Every household will get a $300 rebate on their electricity bills starting 1 July 2024.

These changes aim to support individuals, families, and small businesses through economic challenges and ensure a more secure financial future. Stay tuned for more updates and detailed advice on how these measures can benefit you!

For businesses and individuals, understanding these changes and their implications is crucial for strategic planning and compliance. If you have any questions or require further analysis on how the 2024/2025 Federal Budget may impact you or your business, please feel free to reach out to us.

Source: National Tax and Accountants'​ Association -
Link: https://www.linkedin.com/posts/national-tax-and-accountant's-association_ntaas-federal-budget-summary-activity-7196256823811661824-oSGL/