Personal income tax cuts

1 July 2018 Personal income tax cuts

New personal income tax rates come into effect from 1 July 2018. 

payrollThe top threshold of the 32.5% personal income tax bracket will increase from $87,000 to $90,000. Dovetailing into the tax bracket change is the introduction of the Low and Middle Income Tax Offset for those with taxable incomes up to $125,333. The offset is a non-refundable tax offset that you receive when you lodge your income tax return.

If your annual taxable income is $80,000 in 2018-19, then the personal income tax changes provide an annual tax reduction of $530 per year. If your annual taxable income is $120,000, then the changes give you an annual reduction of $215.

New minimum pay rates from 1 July 2018
New award wages and allowances come into effect from 1 July 2018. If you're an employer, it's important that you are aware of the new rates and apply them. The Fair Work Ombudsman's online Pay Calculator can help you determine the right rates to apply.

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Business for Good 2018

International win highlights Collins Hume's charity
Collins Hume Accountants and Business Advisers were recognised for their charitable giving efforts by being named 2018 Impact Award Winners over the weekend.

Impact Award winnersThe awards formed part of B1G1's Business for Good Conference celebrating 150 million giving impacts worldwide, held in Singapore.

"This award recognises your stunning achievement of making a massive and sustainable difference to our world and to the lives of people in it," said B1G1 CEO and Founder Masami Sato.

"You haven't just set an example – you continue to be one. Many congratulations!"

Read more…

Small business deduction extended

$20k accelerated deductions for small business extended another year

The ability for small business entities to claim an immediate deduction for assets costing less than $20,000 has been extended for another 12 months until 30 June 2019.

deductionFrom 1 July 2019, the immediate deduction threshold will reduce back to $1,000.

There are no limits to the number of times you can use the immediate deduction assuming your cash flow supports the purchases.

If your business is registered for GST, the cost of the asset needs to be less than $20,000 after the GST credits that can be claimed by the business have been subtracted from the purchase price. If your business is not registered for GST, it is the GST inclusive amount.

Leadership in FY19

A Manager has to gain the respect of those being led

Good leadership is needed in every type of business. Where do you start in understanding leadership?

collins hume team ballinaFirstly, distinguishing between management and leadership. They're both different, but interdependent and must be closely related to be fully effective.

Management is essentially about the establishment of organisations, structures, processes and procedures including: 

  • staffing
  • management of costs
  • implementation of ideas
  • team training

Leadership is about creating the environment in which people work willingly together to achieve commonly agreed ideas and goals.

Read more…

Are You Being Scammed?

Are You Being Scammed?

We all get calls from the Australian Taxation Office and we tend to think a call from them is the real thing because honestly, who wants to pretend to be from the Tax Office?

scamThis common belief is being used by scammers to target individuals and small businesses. 

The Australian Taxation Office has released a step-by-step process of what will happen if they do call you:

  1. At the beginning of the call the ATO officer (or representative) will state that they are calling on behalf of the ATO, explain the call may be recorded for coaching purposes, offer the opportunity to stop the call recording, if preferred and offer access to the ATO privacy policy.  Read more…