Issue 123 - June 2018
From 2 July 2018, Child Care Subsidy will replace Child Care Rebate and Child Care Benefits. The new subsidy is income tested and may result in more or less of your child care costs being paid, depending on if you meet the set requirements as outlined below.
The Child Care Subsidy is aimed at providing families with a simpler process. Eligibility for the Child Care Subsidy is based on the following:
- The age of your child (must be 13 or under and not attending secondary school),
- Must meet immunisation requirements for your child,
- The parents or other eligible individual must meet the residency requirements listed in the legislation.
Please also note that the parents or caregivers must be liable to pay for care provided and delivered here in Australia by an approved child care provider and not a compulsory education program. Once it's been concluded that you meet the above eligibility, you will then be tested on three factors that identify a family's level of subsidy. The three factors are:
- Activity Test-the activity level of both parents (eg work, study or volunteering),
- Service Test– type of child care service (different hourly rate caps apply to different types of cover).
The percentage of subsidy a family will be entitled to is determined on your combined annual income as shown in the table below.
|Combined Family Income
||Subsidy Rate ^
|Up to $66,958
|Over$66,958 to under $171,958
||Gradually reducing to 50%
| $171,958 to under $251,248
|$251,248 to under $341,248
||Gradually reducing to 20%
| $341,248 to under $351,248
| $351,248 or more
^ Note: subsidy rate of actual fee charged or the maximum hourly rate cap (whichever is lower).
From 2 July 2018, families earning less than $186,958 per year will not be subject to a cap on the amount of Child Care Subsidy they can access. Families earning between $186,958 and $351,248 will still have an annual cap which will increase to $10,190 per year per child.
As we close out the financial year, we reflect on 2018 and look forward to 2019.
It is during this time that we can draw breath from the "busyness" of life and slow down. For many of us this time will be used to engage in one of the key characteristics of successful individuals - reflection.
Remember the maxim "doing the same thing over and over and expecting a different result is the definition of insanity". Reflection is the chance to break out of your insanity.
Too often during the year, we are too busy being busy and don't stop and reflect on what we are doing and whether it is goal achieving or just tension relieving. Spend some time reflecting on your 2018 year and ask yourself what worked, what did not, what should you stop doing and what should you start doing?
If that is too much, then just ask yourself - if you could repeat 2018 what would you do differently?
The answers to these questions will be the formation of your new plan for 2019 - whether that is a business, wealth or lifestyle plan. From here it's an identification of the monthly, weekly and daily disciplines to bring about the changes required.
Remember - you can't change your destination overnight but you can change your direction.
What will be your new direction in 2019?
Recently, the federal government introduced legislation that will provide a 12-month amnesty on unpaid superannuation guarantee (SG) amounts. The amnesty will apply from 24 May 2018 for employers to self-correct historical SG compliance.
Since 1 July 1992, when the Superannuation Guarantee Assessment Act was enacted, employers generally needed to provide a minimum level of superannuation support for employees. Failure to make these payments results in the ATO levying the employer with the Superannuation Guarantee charge made up as follows:
- total of the individual Super Guarantee shortfalls for each employee for the quarter;
- a nominal interest component calculated by regulations, and
- an administrative charge of $20 per employee per quarter.
Unlike regular employer superannuation contributions, Superannuation Guarantee charge payments are not tax deductible for the employer.
The Bill introduced will allow an amnesty for employers to make good on previous superannuation guarantee non-compliance. SG charged under the amnesty will not have an administrative penalty applied to the liability. The employer will, however, have to pay the nominal interest charge. However, these payments will be tax deductible. To qualify for the amnesty:
- you must disclose to the ATO that there is a shortfall in super guarantee for a particular quarter for an employee
- the quarter in which there is a shortfall must have ended at least 28 days before the start of the amnesty period (i.e. quarters ending up to 31 March 2018), and the ATO must not have declared an investigation into SG compliance for that particular quarter.
The Bill also introduces an exception for the Commissioner to disregard a concessional contribution to ensure that individual account holders will not breach their concessional contributions cap as a result of an SG payment made under the amnesty provision.
As this legislation is not yet passed, please contact our office to discuss if this may apply to your business.
Currently trading name details are shown on the ABN Lookup website (abr.business.gov.au). Many of the names shown on this are not registered business names. These will be removed from the site from November 2018 and only registered names will be shown. All trading names should therefore be registered with ASIC to ensure you can trade under than name. If you are unsure whether your business name is registered or would like assistance with this process, please contact our office.
Your Passwords: Best Practice
We live in a modern world of online shopping and cloud services and we're becoming more susceptible to cyber-attacks. It's never been more important to protect yourself and your organisation online.
The Australian Competition and Consumer Commission (ACCC) said "we're urging people to stop and check 'Is this for real?' when they're contacted by scammers who pretend to be from well-known government organisations or businesses."
We strongly encourage that access to your system and online services have strong authentication practices using a passphrase without complexity. While user authentication guidance may vary from organisation to organisation, the following examples of a strong passphrase password can help protect yourself and your system from cyber-attacks and is also encouraged by the Australian Cyber Security Centre (ACSC):
We also encourage you to setup multi-factor or 2 factor (2FA) authentication as used by popular accounting cloud software like MYOB, Xero, Quick books.
Having Difficult Conversations At Work
Difficult conversations are inevitable in the workplace. Whether it's dealing with an employee grievance or addressing issues with underperformance - difficult conversations are necessary.
Although it seems easier to delay or avoid challenging conversations, taking a proactive approach to dealing with problems helps to maintain staff morale and productivity.
Here are three things to keep in mind when having difficult conversations at work:
When confronting an employee about an issue, be direct and avoid unnecessary small talk. Be sure to alert the employee with the details of the issue right away. Explain why you are having the discussion, the impact of the issue at hand and what you would like to achieve by having the discussion.
Focus on the issue rather than the person. Not only does this approach ensure you stay on track but it also removes blame and is less threatening for the employee. Make sure the discussion is a two-way conversation; listen to the employee, mirror what they say to confirm your understanding of their opinion and keep an open mind.
It is critical to approach the discussion with a positive attitude which focuses on resolving the issue. Reaching a successful outcome will eventuate a lot quicker if you focus on the benefits of the discussion, open up the communication channels and consider the employee's point of view through the process.
What is it?
Tanda is cloud software designed to provide all businesses with exceptional payroll and workforce management. It can assist businesses with managing employee leave, attendance, award interpretation, rostering and payroll integration.
Who can it help?
Businesses with employees particularly casual or shift workers or complex payroll needs.
- Award interpretation to ensure correct pay rates for each staff member;
- Rostering can be simplified by using roster templates, providing a costed roster and sending shifts to staff;
- The elimination of manual data entry and paper timesheets by having employees enter information directly into Tanda;
- Giving employees the ability to 'clock in' to work electronically with Tanda's 'clock in selfie' and unique passcode eliminating staff clocking in for each other and incomplete timesheets;
- Helping managers and business owners approve/deny leave requests electronically;
- New staff can enter their own personal and bank details meaning no data entry for managers; and
- The ability to Import timesheets into your payroll software.
Flexible pricing that works for your business. You are able to request pricing based on your scenario.
There is a free 14 day trial available, no credit card required. Please contact our office for more information.
Karen Nyberg, Partner, will be retiring from Brentnalls SA from 1 July 2018.
Karen has been with us for 29 years, when she joined straight from high school to begin her accounting career at what was then Hincks & Smith.
Karen progressed to become an Associate in 2000, and then a Partner in 2003.
Karen has decided to retire to spend time pursuing her other passion of travelling the world.
We thank Karen for her many years of fantastic service both to her clients as well as the support and expertise she provided to Brentnalls SA.
Congratulations to Amy Orange of Harvest Fair and Callan Cox of Mykra Pty Ltd being listed as two of 2018's forty young leaders contributing to the future of South Australia at the inaugural InDaily 40 under 40 awards SA.
We farewell Kate Butterworth and wish her well with all her future endeavours.
We welcome Zena Georges who has joined us as a team administrator.
We recently had the pleasure of meeting Nadia Dametto from Nazareth Catholic College-Flinders Park Campus. Nadia is a Year 12 Accounting teacher and is researching what a career in Accounting looks like today, so that she can reflect on these findings with her students.
The Manolev family participated in the walk to D-feet MND on Sunday 6th August. This is the 10th time the walk has been held in South Australia and the 5th time the family have participated, raising money and awareness for MND SA.
Brentnalls SA supported The Mother's Day Classic in May, an annual fun run and walk raising funds and awareness for breast cancer research.
Last month we raised $581.40 to help beat cancer by hosting Brentnalls SA's Biggest Morning Tea.
Saving the lives of babies and children during pregnancy, birth, infancy and childhood and supporting bereaved families.
I started working here at Brentnalls SA in July 2016 as a junior accountant, while studying my Bachelor of Commerce (Accounting) at the University of Adelaide. I am hoping to complete my studies in the near future and go on to become a Chartered Accountant.
Working at Brentnalls SA has been a great experience. There are many likeminded people helping my professional growth, all while providing such a great working environment. I enjoy the diverse range of clients at Brentnalls SA and gaining knowledge across many different areas of accounting and taxation.
Outside of work and study you can either find me spending time with family and friends, at the gym or planning my next holiday. I love travelling and am lucky enough to be heading to Europe soon to enjoy the European Summer.