MONTHLY NEWSLETTER – MAY 2023

Newsletter – May 2023

There’s always plenty going on during the year, but some months are pretty exciting for accountants – Federal budget 2023-24 is set to be handed down tomorrow, 9 May.

This is where we will get a first look at the current government’s plans to help ease cost of living pressures and what they will be doing to help businesses. What is usually a pretty boring document, is important to each of us and the way we all work in the coming year/s. Be sure to keep an eye out as we summarise the key points of the budget in the next few weeks.

Count Out Loud have just returned from the Screen Forever conference and enjoyed catching up with clients in attendance and meeting the full spectrum of attendees.

We would also like to congratulate all the nominees and winners at this years awards, particularly Silver Trak Digital for taking out Services & Facilities business of the year, jointly with CATO Location Services.

With that out of the way, time to dust off those jackets and coats. It’s feeling like the warmer days are behind us and those early mornings are getting colder.

A further reminder to book in your tax planning before it’s too late!

We are a business proudly built on referrals.  If you know a business owner that would benefit from a fresh take on their accounting, tax and advice needs, please send them our way!

Looking for someone to guide your entrepreneurial journey? Your accountant could be the mentor you didn’t know you needed.

The super guarantee rate will rise in July this year to 11%. Have you calculated the extra cost to your business? This rate increase may also affect salary packages. Talk to us now to start preparing for the changes, so you don’t get caught out.

Do you know your business breakeven point? Knowing how much income you must generate to cover all fixed and variable costs means you can make better business plans and financial decisions for long-term sustainability and profit.

Change To The Way you Claim Home Office Hours

The ATO has changed the way you can claim deductions for the costs you incur when you work from home. From 1 July 2022, you can choose either to use a new ‘fixed rate’ method or the existing ‘actual cost’ method depending on what works out best for you.

The new rate fixed rate method is a deduction calculated at 67 cents per hour worked from home and covers your electricity/gas, phone usage, internet, stationery and computer consumables. You can then also claim a deduction for the decline in value of assets such as computers and office equipment.

To use the fixed rate method, you will need a record of all the hours you worked from home for the entire year (eg: a timesheet, roster, diary or similar document).

The ATO will no longer accept estimates or a sample diary over a four-week period, however as an interim measure, they’ll allow taxpayers to keep a record which is representative of the total number of hours worked from home during the period from 1 July 2022 to 28 February 2023.

You also need to keep a copy of at least one document for each running cost you have incurred during the year which is covered by the fixed rate method (eg: invoices or credit card statements).

The end of the financial year is just around the corner so now is the time to get your records in place. Reach out to us at Count Out Loud if you have any questions.

Should Your Next Car Be An EV?

If your employer provides you with a car that is classified as a zero or low emissions vehicle there is an FBT exemption that can potentially apply from 1 July 2022.

This includes if you run your business through a company or trust and are thinking of purchasing the vehicle in either of these entities.

To be eligible, the car needs to be:

• A battery electric vehicle, a hydrogen fuel cell electric vehicle or a plug-in hybrid electric vehicle,
• Have a value below the luxury car tax threshold for fuel efficient vehicles ($84,916 for 2022-23) when it was first purchased,
• Purchased on or after 1 July 2022, and
• First delivered on or after 1 July 2022, so second hand vehicles may qualify if they meet this criteria.

The benefit to you is that there’ll be no Fringe Benefits Tax to be included in the salary packaging calculation. This will result in more money in your pocket when compared to a similar car that doesn’t qualify for this exemption.

There are a few things to note:

• The FBT exemption only applies where an employer provides a car to an employee and/or the employee’s associate/s (eg: husband, wife, child). You can access this exemption if you run your business through a company or trust, but sole traders are not employees and cannot access the exemption personally.
• The exemption also includes associated benefits such as registration, insurance, repairs and fuel (including electricity to charge and run the vehicle), however it does not cover the installation of a home charging station.
• The value of the fringe benefit is taken into account when working out your reportable fringe benefits. While you don’t pay income tax on reportable fringe benefits, it’s used to determine your adjusted taxable income for a range of areas such as the Medicare levy surcharge, private health insurance rebate and certain social security payments.

Reach out to a Count Out Loud team member if an electric vehicle is in your future and you have any questions as to the benefit in your particular situation.