Business cash payments ruling

Why the Government does not want your business accepting cash payments of $10,000 or more

From 1 January 2020, the Government intends to restrict the value of cash payments a business makes or accepts to amounts under $10,000. 

cashIgnoring the limit will become a criminal offence with penalties of up to 2 years in prison and/ or $25,200*.

Payments of $10,000 or more will need to be made electronically or by cheque.

We'll, easy enough you say, just break it up into smaller amounts! But, the law has already thought of that. The cash payment limit will apply to the total price of a single supply of goods or services, regardless of whether the price is split into a series of payments over time. If a customer is making cash payments over time, for example instalment payments on a car, the total cash component cannot equal or exceed $10,000 – payments above this amount will need to be made using alternative payment methods.

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Confusion over personal income tax changes

What are you really entitled to?

The recent income tax cuts that passed through Parliament do not mean everyone automatically gets $1,080 back from the Government as soon as they lodge their income tax return. 

The Australian Taxation Office (ATO) has been inundated with calls from taxpayers wanting to know where their money is and how they can access the $1,080 they now believe is owing to them.

What changed?
From 1 July 2018
A low and middle income tax offset (LMITO), first introduced in the 2018-19 Federal Budget, provides a tax benefit to those with taxable incomes below $125,333. Recent changes increase the LMITO from a maximum of $530 to $1,080 and the base amount from $200 to $255, and make it applicable to a greater number of taxpayers by increasing the threshold from $125,333 to $126,000.

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Numbers should tell a story

Money is a tricky topic for a lot of business owners

There's the matter of how to account for it, how to present it and, of course, how to raise it. 

numbers tell a storyIn this day and age where accounting has been made a lot easier and financial information more transparent, how should business owners approach their numbers? 

Here are some things we figured out:

Numbers should tell a story
Proper accounting is more than just compliance. It's an opportunity to paint a picture of your business - where its strength and opportunities lie, as well as its risks and challenges which, in turn, can help business owners make better decisions.

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Work-related clothing and laundry expenses

Laundry expenses hung out to dry

The ATO is airing the 'dirty laundry' on work-related clothing and laundry expenses warning that it is closely reviewing claims.

uniform"Last year around 6 million people claimed work-related clothing and laundry expenses, with total claims adding up to nearly $1.8 billion. While many of these claims will be legitimate, we don't think that half of all taxpayers would have been required to wear uniforms, protective clothing, or occupation-specific clothing," Assistant Commissioner Kath Anderson said.

Clothing claims are up nearly 20% over the last five years and the ATO believes taxpayers are making common mistakes and errors like claiming ineligible clothing, claiming for something without having spent the money, and not being able to explain the basis for how the claim was calculated. In some cases, the ATO will ask employers if they require their employees to wear a uniform to check the validity of claims made.

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Reviewing your loans

Why now is a great time to review your loans

With the drop in interest rates, it's a great time to review your loan arrangements with Collins Hume's local lending specialist, David Seymour.

contractGiven the ever-changing landscape and regulatory changes for Owner Occupied, Interest Only and Investment lending, David can assist you to navigate through the jargon and provide you with several options that suit your personal needs.

Review and save
David will provide a complimentary service by reviewing your existing loan facilities and looking for ways to save you potentially thousands of dollars over the term of your loan. 

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Collins Hume
is a CPA Business