There is a saying “It is important to work on your business – not just in it.” It is easy to get lost in the day to day operations of your business and forget to consider the big picture items such as estimating your tax position for the year. We have had situations in our client base, where the client has lost track of the taxable income for the year and the tax bill comes as a surprise. There are some significant advantages of taking stock of your position and doing a little planning – ie. knowing your taxable income prior to the end of the financial year. If it looks to be a significant year, most times there are strategies that you can implement to reduce this. It is a little over three months to the end of financial year and generally the season has gone with us. Commodity prices have been moderately strong - which does not at this stage appear to be abating. This has meant that there is a need to keep an eye on the end of year figures and the tax that may result from trading in the 20/21 financial year. A prudent business owner will constantly look ahead and make an assessment of the problems that could be coming their way. That is why I am recommending you get a tax estimate done before 30 June 2021. There are a multitude of actions that can be taken to bring your tax liability under control but the strategy we recommend will depend on the size of your income for the year and the resulting tax. (This year has more actionable items than most because of new legislation surrounding depreciation of plant items.)
If this is of interest to you,
give us a call on (02) 68845542 or send us an email on admin@thefarmersaccountant.com.au This will save you getting caught out with an unexpected tax bill when your 2021 tax returns are lodged.
Fuel Tax Credit Update
The rate of rebates for fuel change every August and February based on the Consumer Price Index. From 1 February 2021, the claim for fuel usage for equipment not travelling on public roads is 42.7c/L and for heavy vehicles travelling on public roads, the rebate claim is 16.9c/L. This is the same for petrol, diesel, blended fuels and LPG.
A link to these updated rates can be found HERE.
Super Guarantee Amnesty has ended
The super guarantee amnesty ended in September 2020. After this date, employers will need to take the following steps:
Complete a Superannuation guarantee charge statement;
Pay the super guarantee charge;
Treat as non-deductible any payments made after the due date.
Superannuation payments can be missed for a number of reasons. Perhaps it wasn’t paid to the right fund, maybe the super account details supplied by the employee was incorrect or you were just plain busy in the business and it didn’t get paid. Now that the amnesty period is complete, the ATO will not be inclined to be gracious in situations where the super has not been paid and SGC forms have not been lodged. The ATO message on this issue is “Don’t be late with employee superannuation”. If you need information on how to lodge and pay your Superannuation Guarantee Charge CLICK HERE.
National Renewables in Agriculture Conference
On 19th May 2021, there will be a full day conference on Renewables in Agriculture held in the Dubbo Regional Theatre and Convention Centre. If you are looking to explore the opportunities for your agricultural property in the area of green hydrogen, electric utes, battery storage, bioenergy and hosting large scale solar and wind developments, then this seminar could be for you. This Expo offers the chance to talk to renewable energy providers.
For more information, CLICK HERE.