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Director Penalty Regime for GST

Legislation has been passed by parliament on 17 February 2020 that enable the ATO to seek recovery of unpaid GST of a company from its directors. This new law applies from 1 April 2020.

For un-lodged Activity Statements, the ATO can now estimate the entity’s GST and require the amount to be paid within 21 days otherwise the director will become personally liable for the debt.

Recommended Action

Directors should ensure now that they:

Are aware of the GST affairs of their company
Identify any potential risks or exposure
Ensure that the company has adequate controls around its GST accounting and BAS preparation processes
Are aware of any un-lodged Activity Statements
Assess who is the most appropriate person to be the director

Health Insurance And Your Tax Uncovered

If you don’t hold private hospital cover – or are thinking about dropping it – make sure you understand the financial consequences. You could be hit with an extra tax surcharge of up to 1.5% or cost yourself extra premiums in future.

Levies, surcharges and loadings – the terminology around health insurance and tax can be bewildering! But if you don’t hold private hospital cover, you need to understand how this may affect your tax.

The Medicare levy surcharge (MLS) is a tax penalty you must pay if you earn above a certain amount and don’t take out a sufficient level of private hospital cover for you and all of your dependants. It’s designed to give you a financial incentive to insure privately. The MLS is applied by the ATO at tax time and included in your assessment.

AUSkey Is Retiring Soon

After 27 March 2020, AUSKey will be replaced by myGovID and Relationship Authorisation Manager (RAM), giving you a secure, simple and flexible way to access government online services.

Until its retirement, you can continue to use your existing AUSKey to securely access the ATO online services. We recommend that you set up your myGovID and RAM as soon as possible to continue accessing the ATO online services after AUSkey is retired.

Click here to know more about myGovID and Relationship Authorisation Manager.

End Of Agreed Value Income Protection

By Eric Bohl | Newleaf Tailored Financial Solutions

Last year, APRA released sustainability measures to address the Life Insurance industry’s poor performance within the income protection area. APRA is seeking to move to a more sustainable model therefore the industry is required to cease offering Agreed Value cover.

What’s changing?

APRA requires Life Companies to cease offering Agreed Value (and endorsed agreed value) income protection by 1 April 2020. This applies to all policies (including direct) where the sum assured is based on earnings at policy application and does not consider earnings at time of claim, therefore this means Agreed Value, Guaranteed or Flexi-Guaranteed will no longer be available.
Please note, that as a result of these changes, Guaranteed Business Expenses will also be removed.

From 1 April 2020, new contracts will be issued only for Indemnity income protection. Indemnity income protection requires the insured to prove their level of income at time of claim.

How does this affect existing customers with agreed value?

Existing customers with Agreed Value income protection as at 1 April 2020 can continue to maintain and increase their cover as before. There are no new restrictions on CPI increases, increasing level of income protected or underwritten increases.

Act now before 1st April 2020 before it’s too late

If you have a current income protection policy in place and it is not an Agreed Value or Guaranteed contract, please call Eric Bohl at Newleaf on 303 202 70 immediately to have this reviewed to see if you are eligible to have your policy upgraded.

It’s a wrap

With Christmas 2019 but a weekend away and 2020 just around the corner, it’s a perfect time to stop and reflect on the ‘year that was’ at Harris Black before we close for Christmas Break…

Work as Usual… Helping Our Clients Achieve!

2019 was another busy year and the entire Harris Black team should be commended for their commitment and dedication, always working hard to ensure our clients receive the highest level of service possible. To reward their efforts Directors recently introduced a Harris Black “Help.Achieve Award” which goes to a nominated staff member monthly awarding them not only the trophy for a month but an evening out at a restaurant of their choice also! Well done team!

Additionally, this year Directors, Brendan, Paul, Renee and Nathan introduced several great strategies and diagnostic tools to help clients identify areas of their business where improvement might be warranted. As a result, we’ve had some cracker conversations and impressive advisory outcomes with many of our valued clients, assisting them to develop exciting new business strategies and ultimately helping them to achieve their long-term goals.

Qualifications Attained and Ongoing…

The strength in our value to clients is determined by our collective knowledge. As such, commitment to continuing education is important and ongoing in our chosen field. Study is often commenced and completed by those in the HB team whilst working full-time which can be pretty stressful at times!

Hats off to the following staff for their achievements and ongoing dedication to study in 2019:

Matthew Mok – Graduated University with a Bachelor of Commerce in June and immediately commenced studies for his CA qualification.
Daniel Wattimena – also studying for his CA qualification.
Jacinta Murray – Just finished her last module for CA qualification (Results aren’t in but we’re pretty sure it’s a done deal!)
Grace Wong and Lucy Moore – currently studying to become Chartered Tax Advisors with the Tax Institute of Australia.
Bjorn Kirberg – currently completing his Masters of Tax.
HB Directors – who all attended ongoing Mindshop training with Paul Whimp attaining the level of Accredited Mindshop Facilitator (AMSF) status!

Celebrations…

2019 has been a big year for milestones and causes for celebration!

Harris Black celebrated our 25th anniversary since commencement in 1994 in July, hosting a gala event attended by all staff, family and friends of Directors and a few of our long-standing clients at the beautifully developed Howard Smith Wharves. At the same event we celebrated, Director Brendan Power clocking up 20 years with the firm. A great night was had by all!
Congratulations this year to Nikki White who became a Principal of the firm in September and also to Grace Wong, Lucy Moore, Natalie Macinic and recently Keziah Sedgwick for their promotions in 2019 also.

Personal celebrations within the HB family haven’t been in short supply over 2019 either…

Practice Manager, Kim Schluter married partner James Ward in June and are now expecting their first child early in the New Year!
Baby Kei Kawamoto was born to Manager Tomoka Kawamoto and her husband Anthony in November; and
Melbourne Cup day saw two more exciting announcements… Bjorn Kirberg and wife Michelle are expecting their second child in May 2020 whilst PA Alana Reckin and her partner Shanan Wood are now engaged to be married!

Out and About…

March saw a small contingency of HB staff members manning a booth in support of the Institute of Chartered Accountants (CAANZ) Employment Evening in Brisbane. A busy event with hundreds of university students attending which we recognise as a great opportunity to connect with some very impressive upcoming graduates.

May and November saw Directors and Managers alike attending Brentnalls conferences in Melbourne and Sydney respectively. The conferences are a valuable opportunity to share information and ideas with our affiliate firms. The core focus of the affiliation being how best to improve our services and ultimately provide exceptional outcomes for our clients. Proudly Brentnalls ranked 28th in the Australian Financial Review’s Top 100 Accounting Firms in 2019.

Giving Back…

As we do each year, 2019 saw the HB team holding numerous fundraising events both internally and externally in aid of charities supporting Motor Neurone Disease and Guide Dogs Queensland. A swimming carnival, dog walking challenge and a Christmas Pod Decoration competition were just a few of the events that helped us raise close to $3,000 for these deserving charities.

Staff Events…

In true Harris Black style, 2019 has seen us share some very special and fun firm events. Our annual HB Staff Day (as always promoting our culture, team environment and our constant focus on improvement), the ever exceptional EOFY dinner and our Melbourne Cup Day event (this year celebrated at the Regatta Hotel) were all memorable and team building get-togethers. HB Directors put an enormous amount of effort into the organisation of these events for which the entire team are exceedingly grateful!

Finally, as we head out the door for a Christmas celebration including barefoot bowling at Merthyr Bowls Club, (sunscreen slapped on and team attire sparkling), we look back proudly on the year that was… but we look forward also to further great achievements, more reasons for celebration and the continued provision of great service to you, our valued clients in 2020.

Christmas wishes to all!
Stay safe and enjoy your time with family and friends!

Important Tax Dates

15 January 2020

Lodge tax return for taxable large/medium entities as per the latest year lodged (all entities other than individuals), unless required earlier.
Lodge tax return for the taxable head company of a consolidated group (including a new registrant) that has a member who has been deemed a large/medium entity in the latest year lodged, unless the return was required earlier. Payment was due 1 December 2019.

21 January 2020

Lodge and pay quarter 2, 2019–20 PAYG instalment activity statement for head companies of consolidated groups.
Lodge and pay December 2019 monthly business activity statement except for business clients with up to $10 million turnover who report GST monthly and lodge electronically.

28 January 2020

Make quarter 2, 2019–20 super guarantee contributions to funds by this date.

How can we help you?

Today’s financial environment demands a regular review of strategy and a focus on execution.