如果您的企业计划在新财年购买或租赁车辆，那么在签署任何购车或租赁协议之前，值得先了解澳大利亚税务局（ATO）最新公布的 2026–27 年度汽车税务门槛（car thresholds）。这些门槛会直接影响三个与企业最终成本密切相关的重要事项：折旧、GST 抵免，以及是否适用豪华汽车税（Luxury Car Tax，LCT）。

对于从 2026 年 7 月 1 日起首次投入使用或租赁的车辆，汽车限额（car limit）、GST 抵免上限以及 LCT 门槛均因指数化调整而提高。了解这些规定之间的相互关系，可以帮助企业合理安排购车时间，并避免在报税时出现意外的税务成本。

Car Limit：折旧上限

2026–27 年度的 ATO 汽车限额（car limit）为 $69,883。这是计算乘用车折旧扣除时所能采用的最高车辆价值，无论车辆的实际购买价格是多少。

如果车辆购买价格超过这一限额，超过部分通常不能用于计算折旧。购买价格更高的车辆可能具有商业上的合理性，但从税务角度来看，超过 car limit 的额外支出通常不会带来额外的折旧税务优惠。

以下几点值得注意：

• 混合用途：如果车辆同时用于商业和私人用途，通常只能申报与商业用途相对应的部分。如果 ATO 对您的申报进行审查，完整、有效的 logbook（行车记录簿）是支持商业使用比例的重要证据。Logbook 通常需要连续记录 12 周，并记录车辆的里程表读数。
• 折旧方法：符合条件的小型企业可能可以采用简化小企业折旧规则（simplified small business depreciation rules），从而获得加速折旧扣除。建议在购买车辆之前向您的税务代理确认企业是否符合资格。
• 时间点：适用的 car limit 取决于车辆在哪一个收入年度首次投入使用或已准备好投入使用（first used or held ready for use），而不是发票日期。如果车辆交付时间跨过 7 月 1 日，这一点尤其重要。

GST 抵免：同样存在上限

已注册 GST 的企业通常可以就用于商业用途的车辆购买申报 GST（进项 GST 抵免），但这一抵免同样受到 car limit 的限制。

当车辆价格超过 car limit 后，GST 抵免最高只能按照 car limit 的 1/11 计算，而不是按照车辆实际购买价格的 1/11 计算。

对于 2026–27 年度，符合条件的乘用车最高 GST 抵免为：

$6,353

即：

$69,883 ÷ 11 = $6,353

无论车辆实际购买价格是多少，该上限原则上同样适用于节能型车辆和非节能型车辆。

此外，还需要考虑以下影响：

• 以后出售车辆：当车辆出售时，即使企业在购买车辆时只能申报受限的 GST 抵免，出售时通常仍需要按照车辆的全部销售价格计算 GST。这种不对称的税务处理可能会让部分企业主感到意外。
• BAS 申报：通常只有 car limit 金额（或相应的商业使用比例）在 BAS 的 G10 进行申报，而受限的 GST 抵免则在 1B 申报。
• 时间限制：GST 抵免通常必须在四年的期限内申报，因此应及时核对和处理车辆购买相关的 GST。
• 现金流：GST 抵免通常可以带来一项较为明显的短期现金流利益，在比较融资购买和租赁方案时，也应将这一因素纳入考虑。

豪华汽车税（LCT）门槛自 2026 年 7 月 1 日起提高

豪华汽车税（Luxury Car Tax，LCT）是另一个需要单独考虑的税务因素，其门槛与 GST 和 car limit 不同，并且 2026–27 年度也进行了调整：

• 节能型车辆（fuel-efficient vehicles）：$91,661
• 其他车辆：$80,809

如果车辆的含 GST 价值（GST-inclusive value）超过相应门槛，通常需要就超过门槛的部分按照 33% 的税率缴纳 LCT。

与 GST 不同，LCT 不能作为 GST input tax credit 申报抵免，即使车辆 100% 用于商业用途也是如此。

两个 LCT 门槛之间的差距越来越值得关注。现在越来越多的混合动力（hybrid）、插电式混合动力（plug-in hybrid）以及电动车（electric vehicle）车型可能符合较高的节能型车辆门槛，从而相较于价格相当的汽油或柴油车型，可以降低 LCT。

对于企业车队或需要经常接待客户、商务使用的车辆而言，这一点尤其值得纳入购车决策。

不过，在认定某一车型是否符合节能型车辆的资格之前，应查看 ATO 当前的定义和要求，因为近年来相关资格测试已经有所收紧。

提前做好规划

由于这些门槛适用于 2026 年 7 月 1 日起首次投入使用或租赁的车辆，因此现在正是重新审视企业购车计划的好时机。

在作出购买决定之前，可以从以下几个方面进行分析：

• 税后总体持有成本：不要只比较车辆的提车价，还应综合考虑折旧、GST 抵免、LCT、融资成本、保险以及日常运营成本。
• 购买还是租赁：直接购买、chattel mortgage（动产抵押贷款）、novated lease（薪资包装租赁）以及 operating lease（经营租赁）在折旧、GST 和现金流方面可能产生不同的税务结果，具体取决于企业营业额、现金状况以及车辆的实际用途。
• 商业使用比例：应提前考虑需要哪些记录来支持商业使用比例，包括 logbook、里程表记录，以及在适当情况下的 行程记录。
• 现金流时间安排：应考虑是在 6 月 30 日之前提前购买，还是推迟到 7 月 1 日之后购买，以及不同时间点可能产生的税务和现金流影响。

主要结论

企业购买车辆可能是一项相当大的投资。虽然税务因素不应该成为购车决策的唯一依据，但它们可能会对车辆的实际税后持有成本产生重要影响。

在购买车辆之前，建议与您的会计师或税务代理沟通，根据企业自身情况评估潜在的税务影响。

提前做好规划，可以帮助企业：

• 更充分地利用可获得的税务优惠；
• 避免意外的税务成本；
• 合理安排现金流；
• 确保车辆购买决定与企业整体经营和财务策略相匹配。

如需进一步了解相关规定，可以参考 ATO Small Business Newsroom 中关于 “Car thresholds from 1 July” 的最新信息，或者联系我们的团队，进一步讨论这些变化将如何适用于您的企业。

需要协助？

与我们这样的专业税务会计师和贷款经纪人合作，您可以放心，我们的团队可以提供针对性建议，确保贷款结构既能保护您的税务最大化扣除，同时避免错误的风险，从而让您更加安心，并更好地规划财务。

皮特马丁会计师事务所 Pitt Martin Group 是一家提供税务，会计，生意咨询，自管养老金，审计及贷款等综合性服务的经澳洲特许会计师协会认证的注册会计师事务所。我们每年会花上几百个小时去研究新的税法，以保证我们的客户可以最大化合理避税。我们的中文联系方式是 Robert Liu +61292213345 或邮件 info@pittmartingroup.com.au。皮特马丁会计师事务所Pitt Martin Group坐落在交通便利的悉尼市市中心，是一家拥有可以说中文合伙人的会计师事务所。我们的荣誉包括2018年CPA新州首席优秀奖， 2020年澳大利亚小生意年度冠军入围奖, 2021年澳洲知名媒体《每日会计师》年度最佳会计师事务所冠军入围奖，2022年最佳会计师事务所新人入围奖和2023香港澳大利亚商业协会最佳积极生意入围奖。

皮特马丁会计师事务所 Pitt Martin Group资质包括超过十五年的从业经验，澳大利亚税务注册代理，澳大利亚与新西兰特许会计师协会（CAANZ）会员，新州、维州和西澳律师协会信托账户 (Trust Account) 认证审计师，澳大利亚金融贷款经纪人协会（FBAA）执业认证会员，澳大利亚证券及投资委员会注册代理，XERO, QUICKBOOKS, MYOB等会计软件授权单位及认证顾问。

本文内容仅供参考，不构成对任何个人或团体的具体情况而形成建议。任何个人或团体应该在征求专业人士的意见后方可采取行动。由于税法的时效性，我们在发布时已致力于提供及时、准确的信息，但不能保证所称述的内容在今后任然可以适用。转发该文内容请注明出处。

By Robert Liu @ Pitt Martin Tax

If your business is planning to buy or lease a vehicle in the new financial year, the updated 2026–27 car thresholds from the Australian Taxation Office (ATO) are worth a look before you sign anything. They shape three things that matter to your bottom line: depreciation, GST recovery, and whether Luxury Car Tax (LCT) applies.

For vehicles first used or leased from 1 July 2026, the car limit, GST credit cap, and LCT thresholds have all increased with indexation. Understanding how they interact can help you time a purchase and avoid surprises at tax time.

The Car Limit: The Depreciation Cap

For 2026–27, the ATO car limit is $69,883, the maximum value used to calculate depreciation deductions for a passenger vehicle, regardless of actual purchase price. Buy above this and the excess generally cannot be depreciated. There may be good commercial reasons to buy something pricier, but beyond the car limit, extra spend typically produces no additional tax benefit.

A few points worth noting:

• Mixed use: If a vehicle is used for both business and private purposes, you can only claim the business-use portion. A valid logbook, kept for a continuous 12-week period with odometer readings, is essential evidence if the ATO reviews your claim.
• Depreciation method: Businesses may be eligible for simplified small business depreciation rules, allowing accelerated deductions. Confirm eligibility with your tax agent before purchase.
• Timing: The applicable car limit is set by the income year the car is first used or held ready for use, not the invoice date. This matters if delivery slips past 1 July.

GST Credits: Also Capped

Businesses registered for GST can generally claim GST credits on vehicles bought for business use, but this is also capped by reference to the car limit. Once the price exceeds the limit, the credit is capped at one-eleventh of the limit, not one-eleventh of the actual price.

For 2026–27, the maximum GST credit on an eligible passenger vehicle is $6,353 (one-eleventh of $69,883), regardless of actual cost, and this applies to fuel-efficient and non-fuel-efficient vehicles alike.

Some flow-on consequences:

• Selling later: GST is generally payable on the full sale price when the vehicle is sold, even though the credit claimed at purchase was capped. This asymmetry can catch owners off guard.
• BAS reporting: Only the car-limit amount (or its business-use proportion) is reported at label G10, with the capped credit at label 1B.
• Time limits: GST credits must generally be claimed within four years, so reconcile purchases promptly.
• Cash flow: The credit is often a meaningful short-term benefit, worth weighing against financing or leasing.

Luxury Car Tax Thresholds Rise From 1 July 2026

Luxury car tax rate and thresholds (LCT) is a separate consideration, with its own thresholds, also increased for 2026–27:

• $91,661 for fuel-efficient vehicles
• $80,809 for all other vehicles

Where the GST-inclusive value exceeds the relevant threshold, LCT generally applies at 33% on the value above it. Unlike GST, LCT cannot be claimed back as a credit, even for vehicles used entirely for business.

The gap between the two thresholds is increasingly relevant: more hybrid, plug-in hybrid and electric models now qualify for the higher threshold, reducing LCT versus an equivalent petrol or diesel model. This is worth weighing for fleets or client-facing vehicles. Check the current ATO definition before assuming a model qualifies, as the eligibility test has tightened in recent years.

Planning Ahead

Since these thresholds apply to any vehicle first used or leased from 1 July 2026, now is a good time to review planned purchases. Before committing, work through:

• Total after-tax cost of ownership: depreciation, GST credits, LCT, financing, insurance and running costs, not just the drive-away price.
• Buy versus lease: Outright purchase, chattel mortgage, novated leasing and operating leases each carry different depreciation, GST and cash flow implications, depending on turnover, cash position and vehicle use.
• Business-use percentage: the records needed to support it, including a logbook, odometer readings, and trip diary where relevant.
• Cash flow timing: whether to bring a purchase forward before 30 June or defer until after 1 July.

Key Takeaways

A business vehicle can be a significant investment. While tax considerations should not be the sole factor in your decision, they can play an important role in determining the overall cost of ownership.

Before making a purchase, it is worth speaking with your accountant to assess the potential tax implications based on your individual circumstances. Planning ahead can help you make the most of available tax concessions, avoid unexpected costs and ensure the purchase supports your broader business strategy.

For more information, refer to the ATO’s Small Business Newsroom: Car thresholds from 1 July | Australian Taxation Office, or contact our team to discuss how these changes may apply to your business.

Need Help?

By working with us as your professional tax accountant and mortgage broker, you can be confident that your loans are structured to protect your tax position, maximise deductions, and avoid costly mistakes, giving you greater peace of mind and more control over your financial future.

Pitt Martin Group is a firm of Chartered Accountants, providing services including taxation, accounting, business consulting, self-managed superannuation funds, auditing and mortgage & finance. We spend hundreds of hours each year on training and researching new tax laws to ensure our clients can maximize legitimate tax benefit. Our contact information are phone +61292213345 or email info@pittmartingroup.com.au. Pitt Martin Group is located in the convenient transportation hub of Sydney’s central business district. Our honours include the 2018 CPA NSW President’s Award for Excellence, the 2020 Australian Small Business Champion Award Finalist, the 2021 Australia’s well-known media ‘Accountants Daily’ the Accounting Firm of the Year Award Finalist and the 2022 Start-up Firm of the Year Award Finalist, and the 2023 Hong Kong-Australia Business Association Business Award Finalist.

Pitt Martin Group qualifications include over fifteen years of professional experience in accounting industry, Registered Australia Tax Agents, membership certification of the Chartered Accountants Australia and New Zealand (CA ANZ), certified External Examiner of the Law Societies of New South Wales, Victoria, and Western Australia Law Trust Accounts, membership certification of the Finance Brokers Association of Australia Limited (FBAA), Registered Agents of the Australian Securities and Investments Commission (ASIC), certified Advisor of accounting software such as XERO, QUICKBOOKS, MYOB, etc.

This content is for reference only and does not constitute advice on any individual or group’s specific situation. Any individual or group should take action only after consulting with professionals. Due to the timeliness of tax laws, we have endeavoured to provide timely and accurate information at the time of publication, but cannot guarantee that the content stated will remain applicable in the future. Please indicate the source when forwarding this content.

By Nora Pham @ Pitt Martin Tax

The Reserve Bank of Australia (RBA) has announced a significant reform that will reshape the way businesses process payments. From 1 October 2026, all surcharges on credit and debit card payments made through eftpos, Visa, and Mastercard will be prohibited across Australia.

For many businesses, card surcharges have become a common way to recover merchant payment costs. However, these new regulations aim to simplify pricing, improve transparency, and reduce payment costs across the economy.

If your business currently applies card surcharges, now is the time to start preparing.

Why Is the RBA Banning Card Surcharges?

According to the RBA, Australian consumers pay approximately $1.6 billion annually in card surcharges. At the same time, businesses incur even greater costs when accepting electronic payments.

The reform package is designed to:

• Eliminate unexpected checkout fees for consumers
• Reduce overall payment processing costs for businesses
• Improve transparency in the payments industry
• Encourage competition among payment providers
• Create a simpler and fairer pricing system

The RBA estimates that merchant payment costs could fall by approximately $910 million per year, with small businesses expected to benefit the most.

What Is Changing From 1 October 2026?

The new payment reforms consist of three key changes.

1. Card Surcharges Will Be Banned

From 1 October 2026, businesses will no longer be permitted to charge additional fees for payments made using:

• eftpos
• Visa
• Mastercard
• Related payment networks

This applies whether customers pay:

• In-store
• Online
• Through mobile wallets
• Via integrated payment systems

Customers must see a single final price without additional card payment charges being added at checkout.

2. Lower Interchange Fees

Interchange fees are wholesale charges exchanged between financial institutions when card payments are processed.

Under the new reforms:

• Existing fee caps will be reduced
• New limits will apply to foreign-issued cards
• Payment acceptance costs should decrease for merchants

Lower interchange fees are expected to reduce the overall cost of accepting card payments, helping businesses offset the loss of surcharge revenue.

3. Increased Fee Transparency

Banks, payment providers, and card schemes will be required to provide clearer information regarding:

• Merchant service fees
• Processing costs
• Fee structures
• Provider margins

Payment providers must also demonstrate how wholesale fee reductions are being passed on to businesses.

This increased transparency should make it easier for business owners to compare providers, negotiate better rates, and make informed decisions about their payment systems.

The reforms will be supported by oversight from the Australian Competition and Consumer Commission (ACCC) and guidance from the Australian Small Business and Family Enterprise Ombudsman.

How Businesses Should Prepare for the Card Surcharge Ban

Although the changes do not take effect until October 2026, businesses should begin reviewing their payment arrangements well in advance.

Review Your Merchant Fees

Start by examining your merchant statements and identifying:

• Current card acceptance costs
• Monthly processing fees
• Revenue generated from surcharges
• The overall impact on business margins

If surcharges currently help offset payment processing costs, you may need to review your pricing strategy to maintain profitability.

Speak With Your Payment Provider

The upcoming reforms create an opportunity to revisit your arrangements with your payment provider. As interchange fees are expected to decrease and fee transparency increases, businesses may be able to negotiate lower merchant service fees, more competitive pricing plans, or upgraded payment technology. Small businesses, which often pay higher effective processing rates, may stand to benefit the most from these discussions.

Update Your Pricing and POS Systems

Before the implementation date, businesses will need to remove:

• Card surcharge notices
• Checkout surcharge settings
• Automatic percentage-based fees
• Separate payment processing charges

All displayed prices must become fully inclusive.

Review both physical and online sales channels to ensure compliance with the new requirements.

Factor the Changes Into Cash Flow Planning

While lower merchant costs may not be immediate, many businesses are expected to experience savings during the 2026–27 financial year.

Industries that process large volumes of small transactions may see the greatest impact, including:

• Cafés
• Restaurants
• Retail stores
• Trade businesses
• Service-based businesses

Now is a good time to update budgets and financial forecasts to account for the expected changes.

Monitor Customer Payment Behaviour

The removal of surcharges may encourage more customers to choose card payments rather than cash. This could improve convenience, speed up transactions, and reduce the need for cash handling. However, businesses should continue monitoring their payment costs as customer behavior changes to ensure any increase in card usage does not offset the savings generated by lower merchant fees.

The Broader Impact on Australian Businesses

Ultimately, this reform creates a more level playing field across the Australian economy. 

For businesses that never charged a surcharge will immediately benefit from lower underlying merchant fees, boosting your profitability. 

For businesses that did charge a surcharge will enjoy far simpler daily operations, less administrative friction, and zero compliance risks. 

Over time, this regulatory shakeup is expected to drive intense competition among payment providers, paving the way for superior financial products and even lower fees across the market. While banks may adjust secondary features like credit card rewards programs to offset their losses, the combined effort of the RBA and ACCC ensures savings are distributed fairly to businesses and consumers alike.

Final Thoughts

The end of card surcharges represents one of the most significant payment reforms in Australia in recent years.

For consumers, it means simpler pricing and fewer surprises at checkout. For businesses, it presents an opportunity to reduce complexity, improve operational efficiency, and potentially lower payment costs.

The key is preparation. Reviewing your payment arrangements now can help ensure a smooth transition before the 1 October 2026 deadline.

If you are unsure how these changes may affect your business, professional advice can help you assess merchant fees, evaluate pricing strategies, and identify opportunities to reduce costs before the new rules take effect.

Need Help?

By working with us as your professional tax accountant and mortgage broker, you can be confident that your loans are structured to protect your tax position, maximise deductions, and avoid costly mistakes, giving you greater peace of mind and more control over your financial future.

Pitt Martin Group is a firm of Chartered Accountants, providing services including taxation, accounting, business consulting, self-managed superannuation funds, auditing and mortgage & finance. We spend hundreds of hours each year on training and researching new tax laws to ensure our clients can maximize legitimate tax benefit. Our contact information are phone +61292213345 or email info@pittmartingroup.com.au. Pitt Martin Group is located in the convenient transportation hub of Sydney’s central business district. Our honours include the 2018 CPA NSW President’s Award for Excellence, the 2020 Australian Small Business Champion Award Finalist, the 2021 Australia’s well-known media ‘Accountants Daily’ the Accounting Firm of the Year Award Finalist and the 2022 Start-up Firm of the Year Award Finalist, and the 2023 Hong Kong-Australia Business Association Business Award Finalist.

Pitt Martin Group qualifications include over fifteen years of professional experience in accounting industry, Registered Australia Tax Agents, membership certification of the Chartered Accountants Australia and New Zealand (CA ANZ), certified External Examiner of the Law Societies of New South Wales, Victoria, and Western Australia Law Trust Accounts, membership certification of the Finance Brokers Association of Australia Limited (FBAA), Registered Agents of the Australian Securities and Investments Commission (ASIC), certified Advisor of accounting software such as XERO, QUICKBOOKS, MYOB, etc.

This content is for reference only and does not constitute advice on any individual or group’s specific situation. Any individual or group should take action only after consulting with professionals. Due to the timeliness of tax laws, we have endeavoured to provide timely and accurate information at the time of publication, but cannot guarantee that the content stated will remain applicable in the future. Please indicate the source when forwarding this content.

By Nora Pham @ Pitt Martin Tax

From 1 July 2026, one of the biggest reforms to Australia’s superannuation system has officially taken effect. Under the new Payday Super rules, employers must ensure that superannuation contributions are received by employees’ super funds within seven business days of each payday.

This marks a significant shift from the previous quarterly payment system. While the reform aims to improve retirement outcomes for employees by ensuring super is paid sooner, it also introduces new payroll, cash flow and compliance obligations for businesses.

Whether you’re a small business owner or a larger employer, understanding the new requirements is essential to avoid penalties and maintain compliance.

What Is Payday Super?

Under the previous rules, employers generally had until 28 days after the end of each quarter to make super contributions. Under the new Payday Super system, the clock starts on each “Qualifying Earnings” (QE) day – which is essentially your payday for salary, wages, commissions, bonuses, and certain contractor payments.

Key Payday Super Requirements

• Strict 7-Day Window: Contributions must be received and allocated to the employee’s fund within 7 business days of payday (with very limited exceptions).
• Per-Payday Calculations: Shortfalls are now calculated per QE day rather than quarterly.
• Clearing House Updates: The ATO’s Small Business Superannuation Clearing House has officially closed. Businesses previously using this service must now transition to a SuperStream-compliant alternative.

Penalties for Non-Compliance

The Australian Taxation Office (ATO) has introduced stronger enforcement measures under Payday Super.

Employers who fail to meet their obligations may face:

• Superannuation Guarantee Charge (SGC) liabilities
• Administrative penalties of up to 60% of the super shortfall
• Additional interest and compliance costs

However, employers who voluntarily disclose mistakes early and take prompt corrective action may be eligible for reduced penalties.

During the first year of implementation, the ATO’s compliance approach under PCG 2026/1 focuses on businesses that make genuine efforts to comply. Employers who actively address issues are generally considered lower risk, although employee complaints will still be investigated.

The June – July 2026 Transition: A Common Compliance Trap

Many employers may overlook an important transitional issue when moving from the quarterly system to Payday Super.

If your business paid employees during the June 2026 quarter, the Super Guarantee deadline for that quarter remains 28 July 2026. However, any super contributions made after 1 July 2026 will first be allocated to outstanding June quarter obligations before being applied to Payday Super requirements for July payroll.

Without careful planning, businesses could unintentionally create Superannuation Guarantee Charge (SGC) liabilities despite making payments on time.

The appropriate strategy depends on your payroll schedule and the timing of July pay runs, making it worthwhile to review your payment timetable carefully.

Three Practical Steps to Prepare for Payday Super

1. Review Your Payroll Systems

Confirm that your payroll software, clearing house and internal processes are fully compatible with the new Payday Super requirements.

Check that:

• Qualifying Earnings are correctly identified
• Super calculations are accurate
• SuperStream integration is functioning correctly
• Payment workflows are automated where possible

2. Assess Cash Flow Impacts

Moving from quarterly to more frequent super payments will affect business cash flow.

Consider reviewing:

• Payroll funding processes
• Approval workflows
• Bonus and commission payment procedures
• Out-of-cycle payroll processes

Planning ahead can help minimise cash flow pressure while ensuring compliance.

3. Strengthen Internal Controls

Payroll and finance teams should clearly understand the new obligations.

Regular reviews of payroll reports, contribution records and payment confirmations can help identify issues early before they become costly compliance problems

Why Businesses Should Act Now

Payday Super isn’t simply a new payment deadline. It changes how payroll, superannuation, and compliance interact.

Even small process gaps between payroll systems, clearing houses and super funds can quickly become compliance issues if left unchecked.

Businesses that proactively review their payroll processes, improve internal controls and monitor compliance regularly will be better positioned to meet their ongoing obligations while reducing administrative risk.

Need Help?

By working with us as your professional tax accountant and mortgage broker, you can be confident that your loans are structured to protect your tax position, maximise deductions, and avoid costly mistakes, giving you greater peace of mind and more control over your financial future.

Pitt Martin Group is a firm of Chartered Accountants, providing services including taxation, accounting, business consulting, self-managed superannuation funds, auditing and mortgage & finance. We spend hundreds of hours each year on training and researching new tax laws to ensure our clients can maximize legitimate tax benefit. Our contact information are phone +61292213345 or email info@pittmartingroup.com.au. Pitt Martin Group is located in the convenient transportation hub of Sydney’s central business district. Our honours include the 2018 CPA NSW President’s Award for Excellence, the 2020 Australian Small Business Champion Award Finalist, the 2021 Australia’s well-known media ‘Accountants Daily’ the Accounting Firm of the Year Award Finalist and the 2022 Start-up Firm of the Year Award Finalist, and the 2023 Hong Kong-Australia Business Association Business Award Finalist.

Pitt Martin Group qualifications include over fifteen years of professional experience in accounting industry, Registered Australia Tax Agents, membership certification of the Chartered Accountants Australia and New Zealand (CA ANZ), certified External Examiner of the Law Societies of New South Wales, Victoria, and Western Australia Law Trust Accounts, membership certification of the Finance Brokers Association of Australia Limited (FBAA), Registered Agents of the Australian Securities and Investments Commission (ASIC), certified Advisor of accounting software such as XERO, QUICKBOOKS, MYOB, etc.

This content is for reference only and does not constitute advice on any individual or group’s specific situation. Any individual or group should take action only after consulting with professionals. Due to the timeliness of tax laws, we have endeavoured to provide timely and accurate information at the time of publication, but cannot guarantee that the content stated will remain applicable in the future. Please indicate the source when forwarding this content.

By Nora Pham @ Pitt Martin Tax

A new financial year is an important time for all kinds of businesses, from sole traders to big corporate. It is not only to meet your tax obligations with the Australian Taxation Office, but also the perfect time to plan for the next 12 months of your business.

There is certainly lots to do as a small business owner as you focus on year-end accounting and bookkeeping tasks besides some planning for the new financial year. To help you organise your financial records, Pitt Martin has put together a handy EOFY checklist for businesses.

• You need to ensure your BAS lodgements are up-to-date and accurate. This is not only making it easier for you to finalise your financial statements but also avoid penalty from the ATO
• You need to ensure your superannuation guarantee (SG) contributions are accurate and up to date. Please note that your March SG is due 28 April 2020 and if you have previous quarters outstanding, you need to act as soon as possible or contact your accountant and bookkeeper for guidance.
• If you are reporting to the ATO via Single Touch Payroll (STP), you are exempt from lodging a PAYG payment summary (Group Certificate) annual report for the amount you’ve reported through STP and from providing payment summaries to your employees so long as you undertake the finalisation declaration by the appropriate date. Please note that you can finalise your employees’ EOFY payroll information through your STP enabled software as soon as you have reconciled the information. Otherwise, you have up until 31 July to do so. Your employees will be able to access their income statements via myGov under the employment tab. If they do not have a myGov account and cannot create one, or do not have a registered agent, you can direct them to contact ATO on 13 28 61.
• You need to ensure that you keep records for at least 5 years, and they are compliant with the ATO requirements
• If you prepared your bookkeeping during the year, please make sure you have your accountant to review the transactions and GST codes assigned to the Profit and Loss and Balance Sheet items to ensure you are lodging a correct BAS.
• The stocktake of your inventory should be done by 30 June 2020, if your business carries stock. Any adjustment on stock quantities and wastage should be reflected in the 2020 accounts.
• If you maintain an asset register for your business, you need to review with your accountant or bookkeeper and remove any assets that had been disposed of or write off. Speak to your accountant about the instant asset write-off that the government introduced as part of the Australian Government’s economic response to coronavirus.
• You need to ensure the following have been completed and reflected in your Profit and Loss and Balance Sheet,
  • Bank accounts, petty cash, prepayments, credit cards, borrowing cost, loans, Chattel Mortgages, and Division 7A Loans are reconciled
  • Depreciation has been properly accounted up to 30 June 2020 in the Profit and Loss and Balance Sheet
  • Review your Debtors and Creditors balance to ensure the accuracy
  • GST and PAYG withholding accounts are reconciled to the June quarter BAS
  • Wages and Superannuation in the Profit and Loss are reconciled to the Payment Summaries.
  • Superannuation Payable in the Balance Sheet is reconciled to the June quarter superannuation guarantee contributions
  • Review the suspense account and ensure all amounts are allocated to the appropriate account
  • Ensure there have been no personal expenses claimed as business expenses

With many businesses facing unprecedented challenges from COVID-19, there is no better time for small business owners to start afresh and thinking about improving their current business performance.

We have included additional checklist which hopefully can help you improve your business performance and financial health going forward,

• You need to revisit your business plan and adjust accordingly to provide a better and clearer direction for your business amid the pandemic. You need to think about what areas of your business do you want to improve? Your accountant can be an important resource to help you put in place a plan to get where you want your business to be.
• You need to update your cash flow budgets for the next 12 months by comparing it to the actual performance. Cash flow is the lifeblood of your small business and needs to be looked at closely for your business to sustain. Review your pricing structure and if you need to raise your price, now is the best time to do. Again, your accountant will be able to assist in the pricing and cash flow budgets.
• You need to review your business insurances or public liability to ensure you have a sufficient level of coverage
• You need to review your financing arrangements to ensure that you have a better deal
• You need to review your own personal insurances including life insurance and income protection insurance to ensure you have adequate coverage should your circumstances have changed
• You need to review your health and safety policies and procedures to ensure your workplace is COVID Safe by following the guidance from the government for the safety plan.
• If you are still using a spreadsheet or other manual accounting system, you might want to consider switching to cloud-based accounting software. Your accountant will be able to assist you with the transition.

In the face of uncertainty caused by the global pandemic, actions taken now can have an immediate impact on how quickly your business rebounds from the global downturn.

Pitt Martin Accountants and Tax Advisers are Xero qualified and Award-winning accountants and bookkeepers who can assist you and your business to improve your business performance and financial health moving forward.

If you know any small business owners who require an assistance in managing their bookkeeping and accounting, please do not hesitate to pass on our details or get in touch with our team on 02 9221 3345 or email connect@pittmartingroup.com.au

The last few months have shown a constant display of obscure challenges related to maintaining business during the COVID-19 pandemic for business owners and leaders everywhere. The latest obscure challenge is possibly the trickiest yet: how to cautiously recommence businesses after the government announced the major easing of coronavirus restrictions.

Businesses will be faced with many logistical details including how to maintain social distance, limit crowd size, and ensure spaces are cleaned thoroughly and regularly. It will take some time to lift the level of confidence in people to start visiting shops, restaurants, and other public venues. In such an uncertain and diverging environment, how can small businesses move forward and back to “business as usual”? There are many opportunities for us as business owners and leaders to unify and build this together amid the uncertainty.

Patience

Patience is not the ability to wait, but the ability to keep a good attitude while waiting. In today’s world, where technology has created the expectation that everything should move more quickly, patience becomes one of the rarest virtues. No one has the patience to wait for anything anymore. However, we need to be careful to not rush everything. We should be careful not to move faster than governments allow.

We should be patient with a timeline that might be slower than we anticipated; patient with a reopening process that might be awkward; patient with the line-up that we have to face when entering the shops; patient with our leaders feeling the pressure of this difficult situation; patient with one another as we are getting used to with the new normal. As hard as it will be to practice patience, we must be determined as it is unquestionable the second wave of Covid-19 cases, or a local outbreak would detrimentally impact businesses.

Humility

Humility is to have a student mindset and always be willing to learn new things. With so many changes in the world amid the pandemic, we need to quick to hear, slow to speak, and slow to anger. When you listen, it may slow down the process of consideration and planning, but it is worth it. We need to be humble to learn to adapt and to accept that things might not be the same as they used to be.

We need humility in how we react to the plans by the government leaders, even if we do not agree with every aspect of it. There is no definitive answer on how to do this well and everyone is just trying to do the best they can to get through this crisis. If we are willing to learn and adapt with all humility, we will be able to survive.

Service

This pandemic is affecting us individually, societally, and organisationally. During this pandemic, we all need to step up and be a leader to do what we can for the greater good. If you are fortunate enough to have cash in your pockets, you can use it to support other businesses. We need to think of ways we can serve our friends, family, neighbours, and community as a whole. We need to encourage “we” before “me” and show gratitude and compassion for others.

If you can make your business about helping others during this crisis, you will always have plenty of work because no one has ever become poor by giving. There is no better time than now to put the needs of others ahead of our own. Remember, success has nothing to do with what you gain in life or accomplish for yourself; it is what you do for others.

There is no need to panic. Tough times never last but tough people do. If we can all continue to show up as servant leaders with patience and humility to serve others, we can get through this uncertainty and crisis stronger than ever.

Don’t let this uncertainty sink your business, reach out for help not because you are weak, but because you want to remain strong.

Pitt Martin Accountants & Tax Advisers are Xero qualified and Award-winning accountants and bookkeepers for small businesses which can be reached on 02 9221 3345 or connect@pittmartingroup.com.au.

Tax time is fast approaching and for some of you this might be the last thing on your mind. There might be other things that are more important for you to get through this uncertainty. However, now is the best time to get your tax affair in order and avoid last minute planning that can cost you.

As you have spent more time working from home during the lockdown period, it might be a good idea to put together all the information you need to prepare your returns as it will take some time especially if you have not organised them as you go. You can collect all your receipts or invoices for work related expenses and any credit card statements for invoices that you no longer had and discuss with your tax agent to ensure you are maximising your claims.

If you have been working from home as a result of COVID-19, the Australian Taxation Office has introduced special arrangements which will allow people to claim 80 cents per hour for all their running expenses, rather than needing to calculate costs for specific running expenses. You will need to keep a record of the number of hours you have worked from home. This will apply from March 1 to June 30, after which the ATO will review the arrangement for the next financial year.

If you choose to use the 80 cents per hour for all your running expenses, you can’t make other claims in relation to working from home because items such as mobile phone and internet are included in the 80 cent rate.

You still had the option to use the old claiming method which is known as the 52 cents per work hour method for claiming items such as heating, cooling, lighting, cleaning and the decline in value of office furniture. You need to keep a diary of when your start and finish work each day. This old method also allowed you to calculate the work-related portion of phone and internet expenses, computer consumables, stationery and the decline in value of a computer, laptop or similar device. Nevertheless, you would still require to work out what private use and work use is on ‘a reasonable basis”

You can claim tools or equipment as a deduction in your tax return if you have to use them as part of your job and your employer didn’t reimburse you. You can claim a deduction straight away if the tools or equipment are $300 or less otherwise you will need to depreciate over the life of the item. On the other hand, if you run your own business and acquired all your capital items from 12 March 2020 and the cost of all of them less than $150,000, you can claim a deduction straight away. The capital items included work related IT equipment, cars and tools. Please note that you will still require to apportion the cost if you use them for private use.

As we are approaching the end of financial year, we still have plenty of time to generate some extra common tax deductions if you made the payment by 30 June:

• Donation to a charity registered as a deductible gift recipient over $2 with a receipt are tax deductible
• A personal contribution into your super fund including the contribution made on your behalf by your employer which are less than $25,000 can be claim as a tax deduction providing the payment made by 30 June. You need to advise your super fund by completing the relevant form or speak to your accountant for guidance.
• You need to pay by 30 June your professional membership or subscriptions and union fees to claim the deduction this year

Remember that good record keeping including invoices and receipts will ensure the finalisation of your tax return easier and you can claim for everything you’re eligible to.

If you know anyone in your circle who need any assistance during tax time, please reach out to them because “We can’t help everyone, but everyone can help someone” and “Together We Can Make A Difference”

Pitt Martin Accountants & Tax Advisers is here to assist you and your business in time of crisis by contacting 02 9221 3345 or connect@pittmartingroup.com.au.

With the announcement from Federal Governments Economic Response to the COVIC-19 Coronavirus, the cash flow grant for employers measure is designed to support employing small and medium sized businesses and to improve business confidence. The measures also supports the activities of not-for-profits (including charities) at a time where they are facing increased demand for services.

On 12 March 2020, the Government announced the cash flow grant for employers measure and initially provided up to $25,000 with a minimum payment of $2,000 for eligible businesses. Small and medium sized business entities that employ workers with aggregated annual turnover less than $50 million are eligible.

The Government has then improved this measure as part of the second economic stimulus package. Not-for-profit entities (NFPs), including charities that employ workers, with aggregated annual turnover less than $50 million will now also be eligible. This will support employment activities at a time where NFPs are facing increasing demand for services.

Under the improved scheme, employers will receive a payment equal to 100 per cent of their salary and wages withheld (increase from 50 per cent), with the maximum payment being increased from $25,000 to $50,000. Furthermore, the minimum payment is being increased from $2,000 to $10,000.

An additional payment is also being introduced in the July to October 2020 period. Eligible entities will receive an additional payment equal to the total of all of the cash flow grant for employers payments they have received. This means that eligible entities will receive at least $20,000 up to a total of $100,000 under both payments. The cash flow grant for employers is tax-free payment with no new forms required and automatically calculated by the ATO

This additional payment continues to support businesses over a longer period to help them maintain staff, improve confidence, continue operating and at the same time stimulating the economy. It’s crucial for the government to help small businesses because they are the backbone of the economy.

Who is eligible and what is the timing?

SME business entities and NFPs that employ workers, with aggregated annual turnover less than $50 million will be eligible with the eligibility generally be based on prior year turnover.

• The payment will be an automatic credit in the activity statement system from 28 April 2020 upon employers lodging eligible upcoming activity statements.
• Eligible employers that withhold tax on their employees’ salary and wages will receive a payment equal to 100 per cent of the amount withheld, up to a maximum payment of $50,000.
• Eligible employers that pay salary and wages will receive a minimum payment of $10,000, even if they are not required to withhold tax.
• The payments will only be available to active eligible employers established prior to 12 March 2020 except charities which are registered with the Australian Charities and Not-for-profits Commission will be eligible regardless of when they were registered, subject to meeting other eligibility requirements.

The cash flow grant for employers payment will be applied to a limited number of activity statement lodgements. The ATO will send the payment as a credit to the entity upon lodgement of their activity statements. The ATO will send the refund within 14 days if the entity is entitled to a refund.

Type of lodger	Eligible period	Lodgement due date
Quarterly	Quarter 3 (January, February and March 2020) Quarter 4 (April, May and June 2020)	28 April 2020 28 July 2020
Monthly	March 2020 April 2020 May 2020 June 2020	21 April 2020 21 May 2020 22 June 2020 21 July 2020

If you lodged quarterly, you will be eligible to receive the payment for the quarters ending March and June 2020.

If you lodged monthly, you will be eligible to receive the payment for the March, April, May and June 2020 lodgements. To provide a similar treatment to quarterly lodgers, the payment for monthly lodgers will be calculated at three times the rate (which is 300 per cent) in the March 2020 activity statement with the minimum payment will be applied to the entities’ first lodgement.

Additional payment eligibility and timing

Your entity must remain active in order to qualify for the additional payment from the Government.

If you lodged activity statements monthly, the additional payments will be delivered as an automatic credit in the activity statement system. This will be equal to a quarter of their total initial cash flow grant for employers payment following the lodgement of their June, July, August and September 2020 activity statements up to a total of $50,000.

If you lodged activity statements quarterly, the additional payments will be sent as an automatic credit in the activity statement system. This will be equal to half of their total initial cash flow grant for employers payment following the lodgement of their June and September 2020 activity statements up to a total of $50,000.

The additional payment will be applied to a limited number of activity statement lodgements. The ATO will send the payment as a credit to the entity upon lodgement of their activity statements. The ATO will send the refund within 14 days if the entity is entitled to a refund.

Type of lodger	Eligible period	Lodgement due date
Quarterly	Quarter 4 (April, May and June 2020) Quarter 1 (July, August and September 2020)	28 July 2020 28 October 2020
Monthly	June 2020 July 2020 August 2020 September 2020	21 July 2020 21 August 2020 22 September 2020 21 October 2020

If you lodged quarterly, you will be eligible to receive the additional payment for the quarters ending June 2020 and September 2020. Each additional payment will be equal to half of their total initial cash flow grant for employers payment with up to a total of $50,000.

If you lodged monthly, you will be eligible to receive the additional payment for the June, July, August and September 2020 lodgements. Each additional payment will be equal to a quarter of their total initial cash flow grant for Employers payment with up to a total of $50,000.

Examples of Tax-Free Payment to Employers

Example 1 – John’s Removalist Business

John owns and runs a removalist business in Western Australia and employs 10 workers on average full-time weekly earnings, who each earn $90,750 per year. John reports withholding of $15,600 for his employees on each of his monthly Business Activity Statements (BAS).

Under the Government’s measure, John will be eligible to obtain the payment on lodgement of his BAS. John’s business receives:

• A credit of $46,800 for the March period
• A credit of $3,200 for the April period, before he reaches the $50,000 cap.
• No payment for the May period, as he has now reached the $50,000 cap.
• An additional payment of $12,500 for the June, July, August and September period, respectively

Under the Government’s enhanced cash flow grant for employers measure, John’s business will receive $100,000.

Example 2 – Tony’s Barber Shop

Tony owns a barber shop on the Surfers Paradise. He employs 10 employees, with average salary of $45,000 per year. Tony reports withholding of $8,601 for his employees in each of his monthly BAS. Under the measure, Tony will be eligible to receive the payments on lodgement of his relevant BAS.

Tony’s business will receive:

• A credit of $25,803 for the March period
• A credit of $8,601 for the April and May period, respectively
• A credit of $6,995 for the June period, before he reaches the $50,000 cap. Tony will also receive an additional payment of $12,500 for the June, July, August and September period, respectively

Under the Government’s enhanced cash flow grant for employers measure, Tony’s business will receive $100,000.

Example 3 – Todd’s Courier Run

Todd owns and runs a small paper delivery business in South Australia and employs two casual employees who each earn $10,000 per year. In his quarterly BAS, Todd reports $0 withholding tax for his employees as they are under the tax-free threshold.

Under the Government’s measure, Todd will be eligible to receive the payment on lodgement of his BAS.

Todd’s business will receive:

• A credit of $10,000 for the March quarter, as he pays salary and wages but is not required to withhold tax.
• An additional payment of $5,000 for the June and September quarter, respectively

If Todd begins withholding tax for the June quarter, he would need to withhold more than $10,000 before he receives any additional payment.

Under the Government’s enhanced cash flow grant for employers measure, Todd’s business will receive $20,000.

If you know anyone in your circle who need any assistance during these times, please reach out to them because “We can’t help everyone, but everyone can help someone”and “Together We Can Make A Difference”

Pitt Martin Accountants & Tax Advisers is here to assist you and your business in time of crisis by contacting 02 9221 3345 or connect@pittmartingroup.com.au.

The COVID-19 situation is bigger than any of us have ever faced. Our clients, professionals, mum’s and dad’s don’t understand how badly they need accountants and advisors’ help.  They are scared and don’t know what to do, and most probably haven’t really thought through what the consequences will be for them.

As a business owner, there’s one key thing you need to focus on now which is keeping your business alive during these tough times. Downturn can be scary usually because there is no plan in place for your business and the world around you appear to be panicking. There is no reason to be panicking. In times of difficulty lies an opportunity. If your cash flow is under control then so is your business.

You need to take actionable appropriate steps to create a Continuity Plan, then in reality a downturn is just a stop gap to the next upturn, where your business will be cash flow fit and ready to take full advantage.

To maintain your cash, you may need to consider options that you haven’t consider before. You need to work with your accountant to identify which key parts your business is eligible for Australian Government stimulus package and get the process started to obtain these cash flow bonuses. When you meet with your accountant, it’s important to update your business cash flow plan over the coming months.

As an employer, you need to openly discuss reduced working hours with your employees to save cash (if this does save cash) and working from home arrangements. Employees will be scared. They will need to be assured, so they need to be given an understanding of the plan to keep the business alive.

Constant communication and a payment plan with the ATO could be an option especially if you need to delay making payments of GST and PAYG Withholding Tax. However it’s vital that you keep lodging you Business Activity Statements (BAS) and Instalment Activity Statements (IAS) by their due dates. The Australian Taxation Office (ATO) is implementing a series of relief options to assist those impacted by the coronavirus. The relief will not be automatically applied. You can contact your accountant to contact the ATO to make any requests for assistance.

In addition, you can contact your Bank Manager as soon as possible and arrange for additional bank funding or lines of credit that can be approved now for use in an emergency. Making these arrangements early before things have gone bad is the key. Bank approvals may take up to one month or longer. Consider also using alternative funders to set up a short term line of credit now to pay for inventory and operating costs. You should consider doing this as a backup now to any other bank lending arrangements you may have.

If you have to self-quarantine or if you incapacitated in any way, you need to have an Enduring Power of Attorney (EPOA) in place so your business can continue to operate. Ensure your EPOA and Will are up to date now and ensure your family and your Accountant know where the original signed documents are.

Now is the time to contact your insurance agent to review your policy to understand precisely what you are and are not covered for in the event of an extended incident. Review your general insurance policies for any Business Interruption Insurance inclusions.

We need to stay calm and rely on reliable sources of information from State and Australian Government. In the meantime, below is the link directly to the Government Media release of the second Economic Stimulus Plan, https://www.pm.gov.au/media/supporting-australian-workers-and-business

If you have any questions or would like to seek assistance, please do not hesitate to contact Pitt Martin Accountants & Tax Advisers on 02 9221 3345 or connect@pittmartingroup.com.au

With the development of COVID-19 from epidemic to pandemic status, businesses across Australia are facing the possibility of harmful effect. We are all aware of the impact and potential expansion of Coronavirus on the world, but what are the potential impacts on the Australian economy over 2020 and how the impact can be managed and mitigated.

It is unknown if Covid-19 will be long forgotten in 12 months or something that we all have to accept as part of our lives. The truth is Australian businesses are likely to face many challenges including cash flow issues, loss of trades, supply shortages and changes to working arrangement for staffs which resulting in operational disruption.

As the situation develops there is more uncertainty than assurance that the issue will be resolves at this time. It is important to keep yourself constantly updated with Government advice releases.

What to do?

There is no need to be panic. Remember that tough times don’t last, tough people do. Businesses should consider taking an immediate action to develop strategic plan to mitigate the disruption and financial loss for immediate and future threats. It is vital for businesses to identify all significant risks and potential opportunities it may be exposed to during this time and develop an action plan to ensure business continuity throughout.

Businesses can assess and evaluate their trading performance, financial position and current cash flow position via review of the relevant aspects. This process will enable assessment of the business financially, the business challenges in the short to medium term and thoroughly test financial forecast assumptions.

Constant communication with clients, suppliers, employees, financiers and all other key stakeholders regarding the development of this situation is important.

Government

The Australian Government is acting decisively in the national interest to address the potentially significant economic consequences of the virus, without a permanent or structural impact on the budget balance.

The government has now announced an economic response totalling $17.6 billion across the forward estimates, representing 0.9 percent of annual GDP to strengthen the economy during this tough period.

The package is intended to support confidence, employment and business continuity. It is designed to support business investment, help small businesses manage short-term cash flow challenges, provide targeted support to individuals and assistance to the most severely affected communities and regions. It includes cash grant of up to $25,000 for small businesses, $750 one-off payments for potential consumers, and a significant temporary extension to the instant asset write-off scheme (from $30,000 to $150,000)

The Australian Taxation Office (ATO) is also providing administrative relief for some tax obligations for people affected by the Coronavirus outbreak, on a case-by-case basis including potential deferrals of lodgements.

For more details on the stimulus package, please visit the link below
https://www.pm.gov.au/media/economic-stimulus-package

If you have any questions or would like to seek assistance, please do not hesitate to contact Pitt Martin Accountants & Tax Advisers on 02 9221 3345 or connect@pittmartingroup.com.au