The Bottom Line Of All Things Finance This Month

The RBA responds to “higher than expected” inflation with a rise of 50 basis points in the cash rate to 0.85 per cent, its highest level for two years.

ATO promises 12-day turnaround on error-free returns. But common mistakes will lead to longer processing times, it says. By waiting for prefill information to be available, tax agents and clients could avoid delays and help to get the returns right the first time as prefilled information from the ATO was cross-checked with third parties.

Tax time try-ons won’t wash with ATO, says CA ANZ
Tax Agents have been advised to be on the lookout when it comes to some of the dodgier client claims. “One tax agent had a client try to underwrite their pet expenses – arguing their pet pug was a ‘business mascot’ which ‘welcomed customers and staff’,” Mr Croker said.

The ATO has flagged a long checklist of rule changes for accountants handling this year’s tax returns that takes in everything from the offshore banking regime and film tax offsets to granny flats and COVID tests.

7 points they will be watching for:

1. Work-related rapid antigen tests (RATs)
2. Home office equipment
3. Self-education expenses
4. Work clothing and dry cleaning
5. Double-dipping
6. Donations
7. “Cost of living” claims

More about your Accounts Reports…

As mentioned in May’s newsletter, Your Accounting reports we send you after the end-of-month reconciliations every month let you keep track of business transactions, and help you maintain a budget, predict cashflow, and forecast revenue

  • Profit & Loss
  • The profit and loss statement (OR Income Statement) is a financial statement that summarizes the revenues, costs, and expenses incurred during a specified period.
  • The goal of a P&L report is to measure a company’s profits by subtracting expenses from income and provide an overview of the financial health of the business.
  • The P&L statement is one of the financial statements every public along with the balance sheet and the cash flow statement.
  • When used together, the P&LL statement, balance sheet, and cash flow statement provide an in-depth look at a company’s financial performance together.
  • Statements are prepared using the cash method and the accrual method of accounting.
  • It is important to compare P&L statements from different accounting periods, as any changes over time become more meaningful than the numbers themselves.

Reminder – 1 July Changes

$450 Super Guarantee Threshold Removal
Due to a super guarantee legislation change, the $450 threshold will be removed from 1 July 2022. If you use MYOB or XERO, the software will not apply the threshold to transactions after 30 June 2022.

Super Guarantee Rate to Increase to 10.5%
The minimum super guarantee rate will increase to 10.5% from 1 July 2022. Again this will be automatically calculated by XERO and MYOB.