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Small Business Tax Tips 2019!

Small Business Tax Tips 2019!


Trustees of discretionary trusts are required to make and document resolutions on how trust income should be distributed to beneficiaries for the 2018-19 financial year by 30 June.

If a Trustee fails to make a resolution to distribute the income of the Trust before the end of the financial year, the Trustee may be assessed by the ATO on the Trust income at the highest marginal tax rate of 47.00%, rather than the intended beneficiary(s) being taxed.


Professional expenses associated with starting a new business, such as legal and accounting fees, are deductible in the financial year those expenses are incurred rather than deductible over a five-year period as was the case previously. 

If you established a business during the year, you should speak to your Accountant about claiming professional advice fees as an expense.


Ensure superannuation guarantee payments for employees are up-to-date, and report and rectify any missed payments to the ATO.

From 1 April 2019, there are new offence penalties related to the payment of superannuation guarantee obligations.

Employers can also claim deductions for superannuation contributions made on behalf of their employees in the financial year they are made.


Single touch payroll (STP) reporting has been extended to all employers from 1 July 2019. A number of options are available depending on the number of employees you have, whether they are closely held and whether you report via your tax or BAS agent. 

Check with your payroll software provider to find out if your software is STP compliant. 

If you don’t currently use payroll software, you should consult your Accountant for advice.


Businesses can only obtain income tax deductions for bad debts when various conditions are met.

A deduction will only be available if the debt still exists at the time it is written off. Thus, if the debt is forgiven or compromised before it is written off as bad in the accounts, no deduction will be available. 

The debt must also be effectively unrecoverable and written off in the accounts as bad in the year the deduction is claimed. The bad debt must have been previously brought to account as assessable income or lent in the ordinary course of carrying on a money-lending business. 

Certain additional requirements must be met where the creditor is either a company or trust.

Contact one of our Accountants today to discuss the best options for your Small Business.

For further tips and details please read the attached CPA article

Small business benchmarks

Small business benchmarks!

The end of financial year is a stressful time for small business owners and their tax agents alike. Make things easier for you and your accountant by reviewing your business benchmarks this financial year.

The ATO publishes small industry benchmarks to assist in the comparison of a business performance against potentially similar businesses in the same industry. The benchmarks are calculated from income tax returns and activity statements from over 1.3 million small businesses.

Use the business performance check

The easiest and quickest way to see how your business compares to competitors is by using the business performance check tool.

Just enter your details in the tool, and it will calculate and compare the data you entered using the benchmarks to quickly show how your business compares to your competitors.

Download the app and compare

You can find the business performance check tool by:

  1. downloading the ATO app from the Google Play or Apple App Store
  2. go to Business
  3. select Business performance check
  4. have your information ready and enter the figures into the tool
  5. compare your business performance.

The personal information you enter isn’t recorded and will only be used for completing the tool.

Follow the attached link to find the right benchmark for your industry.

Minimum Wage to Increase by 3% on 1st July 2019

Minimum Wage to Increase by 3% on 1st July 2019!

Did you know from the 1st of July 2019 there will be a 3.0% increase to the minimum wage.

The new national minimum wage will be $740.80 per week or $19.49 per hour.

These changes will apply from the first full pay period starting on or after the 1st of July 2019.

More details can be found on the Fair Work website…/get-set-for-a-3-0-wage-increa…

Unsure if this will impact your business?
Contact our payroll team on (03) 5561 8618 or book an appointment online today.

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78 Henna Street, Warrnambool, VIC
Phone: (03) 55 618 618
Fax: (03) 55 618 600