Construction cost table

4  September 2019

The BMT Construction Cost Table is a useful guide to the cost of building a house as well as a variety of building types including townhouses, residential apartments, office blocks, industrial warehouses, supermarkets, shopping centres, hotels and motels. Choose your finish then multiply by the regional variations table below to find out the approximate cost per construction type per square metre in your area.

https://www.bmtqs.com.au/construction-cost-table

Single Touch Payroll is mandatory

26 July 2019

Single Touch Payroll (STP) is a new way of reporting tax and superannuation information to us.

You will report your employees' payroll information, such as salaries and wages, pay as you go (PAYG) withholding and super information to us each time you pay them.

No-cost and low-cost STP solutions currently available

A range of no-cost and low-cost Single Touch Payroll (STP) solutions are being made available from early 2019 in addition to existing commercial STP solutions.

https://www.ato.gov.au/business/single-touch-payroll/in-detail/low-cost-single-touch-payroll-solutions/

Government boosts your super with co-contribution

 16, Mar 2019

If you earn less than $52,697 in the current financial year and make one or more post-tax contributions to your super, you may be entitled to receive a co-contribution of up to $500 from the government. Eligible members earning $37,697 or less per year will receive a maximum entitlement of $500 applied to your account. For those on incomes over $37,697 pa the benefit works on a sliding scale, phasing out at an income of $52,697.

https://www.ato.gov.au/Individuals/Super/In-detail/Growing-your-super/Super-co-contribution/?anchor=Eligibilityforthesupercocontribution#Eligibilityforthesupercocontribution

Catch-up concessional contributions

 18 Jan 2019

The 2018/19 financial year was the first year where the unused amount of an individual’s concessional contribution cap can be carried forward for a maximum period of five years. Next financial year, 2019/20, will be the first year that the carried-forward unused concessional contribution cap can be utilised, provided the individual’s total super balance (TSB) at 30 June 2019 is less than $500,000

 

 

 

 

Don't fall short, Aussies underestimate the cost of retirement

11 Oct 2018

定年後の生活費 皆さん確保されてますか?

Australians expect to spend an average of 39% of their retirement income on basic living expenses but the reality is they require 58%. Australian retirees currently live off 52% of their final salary as an income. This is compared to 74% of final salary which working Australian feel they will need in retirement.

今現在の給料の74%が退職後の収入として必要だと 考えているようです。 でも 実際には 52%の収入で生活しているされているみたいです。

Not comfortable but Just making it - $25,000 /person/year
Modest retirement style - $27,368
Comfortable - $ 42,764 or $60, 286 per couple

https://www.schroders.com/…/globa…/2018-findings/retirement/

30 Aug 2018

The government will ban superannuation funds from charging exit fees when customers wish to switch funds. Currently, super funds are charging fees of $68 on average when a customer wishes to close the fund and move to another.

The government will also ban super funds from charging excessive fees on super accounts with balances lower than $6,000. Instead, it will allocate a 3% annual cap on fees for funds with balances lower than this.

Superannuation funds will also be required to switch the default insurance from an opt-out to an opt-in basis for funds with balances lower than $6,000, if the member is under the age of 25 or when the account holder hasn't made a contribution or transaction in more than 13 months. This is to prevent the fund's balance being eaten up by insurance fees, when the member may have forgotten about the fund or have several funds in their name.

The ATO will be able to identify when an Australian has several inactive funds in their name, and will be given the power to proactively consolidate those funds into the member's current active fund. This way, if someone has numerous accounts opened that they have forgotten about, the ATO can bring them all together to prevent that person paying multiple unnecessary fees across the several accounts.

Change in payroll tax threshold in 2018-2019 financial year

18 July 2018

For the 2018-2019 financial year the threshold of payroll tax has increased to $850,000.  The tax rate of 5.45 per cent stays the same.   All business registered for payroll tax must lodge an annual reconciliation by Monday, 23 July 2018.  In addition, if a business is monthly lodger, they need to ensure they lodge a monthly return by the following 7th of each month.


THE PAYROLL TAX THRESHOLD FOR THE NEXT FOUR YEARS;

$850,000 for 2018-2019

$900,000 for 2019-2020

$950,000 for 2020-2021

$1000,000 for 2021-2022  

Depreciation deductions you can flip for:

28 Aug 2018

According to CoreLogic, almost 7% of transactions in Sydney, Melbourne and Brisbane were sold shortly after purchase following a renovation. It is also said that 90% of properties flipped during 2017 were sold for a profit.  Property flipping occurs when investor buys, renovatess and resells a property within a relatively short space of time aiming for making a profit.  Legislation passed on the 15 November 2017 has changed the way depreciation for pre-existing plant and equipment found in second-hand properties will be treated.  The new legislation states that investors who purchase second-hand residential properties after 7:30pm on the 9th of May 2017 can't claim depreciation on pre-existing plant and equipment unless the property is deemed to have been substantially renovated or is brand new. 

 

https://www.bmtqs.com.au/maverick/mav-44-depreciation-deductions-youll-flip-for

Financial support to help you hire new employees. There are financial incentives up to $10,000 to employ eligible staff

23 June 2018

You could get help with the costs of hiring, with access to a wage subsidy of up to $10,000 if you hire an eligible Indigenous job seeker, a mature-age person (over the age of 50) or young person (15 to 24 years of age).

You could also receive a wage subsidy of up to $6500 if you hire an eligible young person (25 to 29 years of age), a parent, or someone who has been out of work for a while. Or financial support for your business for hiring someone with disability.

Australians are under insurance

3  September 2019

As revealed in the research commission by TAL, the 52% of Australians who do hold life insurance, many are underinsured. 

summary by Vanguard Investments of the key points covered in Rice Warner’s Underinsurance in Australia 2017 report shows that if Australian families had to call on their life insurance policy, half of them would find only 47% of their family’s basic needs, or 28% of the amount required to maintain their family’s standard of living, was covered.

Even more concerning: the median level of income protection would only meet 21% of needs. That figure drops to 14% for the average total permanent disability cover.  

$30,000 instant asset write-off

29. May 2019

The instant asset write-off threshold has been increased to $30,000 and extended to 30 June 2020.

If you purchase an asset (new or second hand) costing less than $30,000 and it is used or installed ready for use from 7:30pm AEDT on 2 April 2019, you can claim a deduction for the business portion.

Different thresholds apply for assets purchased before that date:

  • from 29 January 2019 until before 7.30pm AEDT on 2 April 2019, the threshold is $25,000

  • before 29 January 2019, the threshold is $20,000.

You may purchase and claim a deduction for multiple assets provided each asset is under the relevant threshold.

Assets that cost $30,000 each or more can't be immediately deducted. You can continue to deduct them over time using the small business pool.

From 2 April 2019, the instant asset write-off has also been expanded to include businesses with a turnover from $10 million to less than $50 million.

Private health Reform. What's in it?

 4, Mar 2019

The Australian Government has introduced reforms that will make private health insurance simpler and will help people choose the cover that best suits their needs. For the first time, private health insurers will be required to classify their private hospital cover into four easy to understand tiers: Gold, Silver, Bronze or Basic.

Private health insurers will place all policies into one of these tiers – Gold, Silver, Bronze or Basic, and will tell people where their policy has been placed. People can then check if the cover is right for their needs.

https://beta.health.gov.au/health-topics/private-health-insurance/private-health-insurance-reforms?utm_source=health.gov.au&utm_medium=redirect&utm_campaign=digital_transformation&utm_content=private-health-reforms

Depreciation you can't claim against your investment property

19 Nov 2018

1. Capital works in a home built prior to the qualifying date 

As a rule, “any residential properties” in which construction commenced prior to the 15th of September 1987 will not qualify for the capital works allowance.

 

2. Plant and equipment assets in a second hand property purchased after 9th of May 2017 

Investors who exchange contracts on a second-hand residential property after 7:30pm on 9th May 2017 will no longer be able to claim depreciation on previously used plant and equipment assets.

If you have purchased a commercial investment property, or have fit-out some rented commercial premises. The changes do not affect your ability to claim depreciation on this property.

 

3. The property’s land 

 

4. Demolition 

 

5. Soft landscaping expenses  

Soft landscaping refers to landscape work that does not involve construction, for example you cannot claim depreciation for grass, shrubs or trees.

 

6. Repairs and maintenance 

While you cannot claim depreciation for repairs or maintenance, any costs incurred to repair or maintain a rental property can be claimed as an immediate 100 per cent deduction in the year of the expense.

 

7. Costs associated with acquiring the property 

This may include legal fees, conveyancing, building and pest inspections fees and stamp duty. You cannot claim depreciation for any of these costs.

 

More and related information in below.

http://blog.capitalclaims.com.au/can-i-still-claim-depreciation-on-my-investment-property-since-the-new-legislation-passed

 

 

 

 

The Commonwealth's Department of Human Services (DHS) 's little know government support programs

13 Sep 2018

​Maybe you didn't know that the NSW government will pay for half of your new TV and 40% of a new fridge if you're eligible (through the state's "appliance replacement offer").

The average duration of Sickness Allowance was 56 weeks (at $545.80 per fortnight, and $590.40 if you have dependent children).

$719.35 per week (before tax) for 18 weeks paid by the Parental Leave Scheme

Starting in 2019, every school-age child in NSW will be eligible for $100 to help pay for "creative and cultural activities", including language classes, visual and performing arts, and coding and digital training.

Family Energy Rebate: Up to $180 for families receiving the Family Tax Benefit

CTP Greenslip refunds: Partial refunds on your compulsory third party car insurance

 

Find a full list of NSW rebates here:

https://www.service.nsw.gov.au/transaction/cost-living?gclid=EAIaIQobChMI2qLAi8_X3AIViqqWCh2WSgdOEAAYASAAEgJ1EfD_BwE

Tax deductions on personal super contributions

2 Aug 2018

From 1 July 2017, the eligibility rules for claiming a deduction for personal super contributions have changed. Previously, this was only available to members who earn less than 10% of their income from salary or wages.

For contributions made on or after 1 July 2017, this restriction has been removed. This means that all individuals under 75 (including people aged 65 to 74 years who meet the work test) will be eligible to claim a deduction for personal super contributions made to an eligible super fund. This means you can make a post-tax contribution into your super account and claim a deduction for it. The contribution will be classified as a pre-tax contribution which will count towards your pre-tax contribution limit.

 

You need to submit a notice of claim form.  For more information, go to ATO site below. 

 

https://www.ato.gov.au/Forms/Notice-of-intent-to-claim-or-vary-a-deduction-for-personal-super-contributions/

who can receive a superannuation death benefit?

20 July 2018

They generally are:

The spouse or de-facto spouse of the deceased (include same sex couples)

A child of the deceased, regardless of the age of the child

A person who was financially dependent on the deceased at the date of death

A person who was in an independent relationship with the deceased as nominated via the will of the deceased or by obtaining letter of administrations.

It is important to note that parents of the deceased cannot normally received a superannuation benefit simply because they're parents unless valid benefit nomination is present, the trustee ultimately determines how the death benefits is to be distributed. 

Pls refer to more insurance guide:

https://guildsuper.com.au/docs/default-source/guildsuper-fund-documents/guildsuper-insurance-guide.pdf?sfvrsn=9

From 1 July 2018 for all employers with 20 or more employees is required to use Single Touch Payrol reporting solution. 

28 June 2018

About Single Touch Payroll

Single Touch Payroll (STP) aligns your reporting obligations to your payroll processes.

You will report to us each time you pay your employees. Your pay cycle does not need to change. You can continue to pay your employees weekly, fortnightly or monthly.

The information you send us will include your employees' salaries and wages, allowances, deductions (for example, workplace giving) and other payments, pay as you go (PAYG) withholding and superannuation information. More info click below URL.

https://www.ato.gov.au/Business/Single-Touch-Payroll/About-Single-Touch-Payroll/

Change to the work bonus from July 2019

29 July 2019

From 1 July 2019, the Work Bonus will increase to $300 per fortnight. And the most you can accrue will change to $7,800. This means you’ll be able to earn more from work before your pension reduces.

If you’re an eligible pensioner with self-employment income.

We will send you a letter. You may need to tell us about your income.

You can tell us using your Centrelink online account through myGov. Select Work Bonus update – self-employment income from the Tasks section. Make sure you do this before 1 July 2019 so we can apply the Work Bonus as soon as possible.

If you don’t get a letter, there’s nothing you need to do.

https://www.humanservices.gov.au/individuals/services/centrelink/work-bonus

Spouse Contributions

 16, Apr 2019

Spouse contributions allow a taxpayer (the contributing spouse) to contribute directly into a superannuation account for the benefit of their spouse (the receiving spouse). Age restrictions apply to the receiving spouse. Where the spouse is a low income earner, the taxpayer may be entitled to a non-refundable tax offset of up to $540 when making a minimum spouse contribution of $3,000. To be eligible for the maximum spouse contribution tax offset the receiving spouse’s assessable income, reportable fringe benefits and reportable employer superannuation contributions must be less than $37,000 ($10,800 for 2016/17 & earlier years).

http://www.onepath.com.au/public/adviser_advantage_pdfs/tb11.pdf

Claiming tax deductions for structural work

 18 Feb 2019

The Australian Taxation Office (ATO) allows investors to claim capital works deductions in any residential building where construction commenced after the 15th of September 1987.  Many investors think that due to these date restrictions, if a property pre-dates 1987 they won’t be eligible to claim capital works deductions. However, this is often not the case, as many investment properties built prior to 1987 have undergone some form of renovation.  

The ATO allows property investors to claim capital works deductions for structures added by a previous owner so long as the work is completed within the qualifying dates.

The good news for investors is that the Federal Government has not changed the way capital works deductions are applied within the legislation changes. Investors can continue to claim depreciation capital works improvements made by prior owners as before.

https://www.bmtqs.com.au/bmt-insider/can-you-claim-tax-deductions-when-renovating-an-investment-property-2/?utm_source=bmtinsider-newsletter&utm_medium=email&utm_campaign=summer-2019&utm_content=claim-renovations

 

 

 

 

What is positive comprehensive credit report (CCR)?

12 Nov 2018

Comprehensive Credit Reporting (CCR), positive credit reporting is Australia’s new credit reporting system aimed at making it easier for lenders to form comprehensive and balanced assessments of applicants’ credit histories. The credit report includes information about current accounts held, what accounts have been opened and closed, the date default notices were paid and whether repayments were met.

Your credit rating is important because it directly influences the amount of credit that a lender will make available to you as a borrower (your credit limit) and the interest rate and other terms the lender may offer. Lenders use this information to decide if lending you money is worth the risk.

Want to check your credit record? 

https://www.canstar.com.au/credit-cards/how-do-you-check-your-credit-rating/

The First Home Super Saver Scheme was introduced to help some first home buyers save a deposit faster

3 Sep 2018

The First Home Super Saver Scheme was introduced to help some first home buyers save a deposit faster. It lets you contribute extra money to your superannuation, and then access that money as part of a down payment for your first home.

The pros? Your contributions are taxed at a much lower rate than your income is, so you get to keep more of your money.

The cons, it is complicated system so if you don't understand the process it's hard to get your money when you need it.

If you're saving for your first home, our guide should help you decide if the First Home Super Saver Scheme, or FHSSS, is right for you.

https://www.ato.gov.au/Individuals/Super/Super-housing-measures/First-Home-Super-Saver-Scheme/

Private health insurance buying tips

23 July 2018

Australians who earn more than $90,000 (single) or $180,000 (couple/family) aren't eligible for the full 25.4% private health insurance rebate.

you choose wisely, and don't buy any extra items you don't need. If you are a young single male, do you need pregnancy cover now ? )

1. You don't need to get extras from the same health fund as your hospital cover. Shop around.

2. You don't need to have hospital cover in order to buy extras. The vast majority of private health customers have a combined policy, but that doesn't mean you have to.

3. There are no tax implications for having or not having extras cover. Penalties for not getting health insurance only refer to hospital cover, not extras.

From 1 July 2018, all individuals are allowed to make additional concessional super-annuation contributions.

16 July 2018

The new catch-up concessional contributions allow individuals with total super balance of less than $500,000 to carry forward unused concessional contribution cap from 2018-2019 financial year for the next five years. 

For example, if in the 2018-2019 FY the concessional contributions cap is $25000 and individual contributes $15000, they will be able to carry-forward and utilize the remaining$10000 for the next five years. 

https://www.ato.gov.au/individuals/super/in-detail/withdrawing-and-paying-tax/super-contributions---too-much-can-mean-extra-tax/?page=2

Uni Student Loan threshold changes

Prepare to pay back your student loans sooner

26 June 2018

The Federal Government announced it was lowering the HELP repayment threshold from $55,874 to $44,999.

https://www.abc.net.au/triplej/programs/hack/changes-to-student-loan-repayments-to-pass-senate/9912174