Blog

STP Phase 2 is here BUT still coming too

Written by Felicity Magnussen

Just a reminder to all employers that the second phase of STP reporting (Single Touch Payroll) commenced on 1 January 2022, BUT the ATO kindly made provision for software providers (that needed more time) to become compliant by 31 December 2022 (PHEW) – and that date is approaching FAST (ARGH)!

The two big players (XERO & MYOB) have been using this ATO deferral to work on behind-the-scenes updates to their software (along with a number of the other service providers) and since earlier this year they have been rolling out numerous updates, tweaks and changes progressively that will see them fully STP2 compliant by 31 December 2022 .

If you haven’t had any communication from your provider on STP2 or unsure where your provider is up to with meeting the STP2 deferral due date expiry, start investigating it now so that you’re not spending New Year’s eve trying to get it finalised!

MYOB have an official pause on the current capability of their STP2 transition process and Xero have been providing teasers of what’s going to require change – so if you use either of these just sit tight until further notice.

Via webinars, training and ongoing communication from the big players, we are continuing to receive updates on the rollout, and we will be sure to communicate this as necessary to our clients. If, however you are unsure of what STP2 means for you or your software we’d love to hear from you – together we can sort it out!

Tick-tock on the Instant asset write-off clock

Written by Felicity Magnussen

Just a reminder to all businesses that the instant asset write-off deduction you have been enjoying since October 2020 is proposed to come to an end on 30 JUNE 2023. Although this is still some time away, given how fast the year disappears and with the ongoing delays in asset supplies and deliveries across the world, if you want to enjoy the benefit of this immediate deduction, start planning NOW.  Remember, the criteria for the asset to be deductible is that it MUST be installed ready for use (or in use) on or before 30 June 2023. Putting an order in is not sufficient.  Beyond this date (subject of course to any further extensions and none are currently planned) there will be a return to the ‘olden’ days where assets exceeding $1,000 have to be depreciated over a number of years.

NSW introduces stamp duty or land tax option – First Home Buyer Choice

Written by Felicity Magnussen

The latest NSW Government Budget included a ground breaking new policy to offer first home buyers the choice to pay a one-off lump sum tax (‘stamp duty’) or an annual land tax when purchasing homes under a certain value.

What do the changes to stamp duty mean for first home buyers?

From Monday 16 January 2023, many looking to buy their first home will have the choice of paying stamp duty (an up-front, one-off lump sum) or an annual land tax.

The land tax would be at the rate of $400 per year, plus 0.3 per cent of the land value, annually. This choice will be available to first-home-owners purchasing a property under $1.5 million with the aim of assisting buyers to access the property market quicker.

From 16 January 2023, eligible first home buyers who opt into the First Home Buyer Choice will not pay stamp duty on their purchase. The property will not be locked into the scheme if it is sold.

First home buyers will continue to be eligible to apply for full stamp duty exemption for properties up to $650,000. Stamp duty concessions remain in place for properties between $650,000 and $800,000.

Will other states follow suit?

It is possible other states may follow a similar trend of replacing stamp duty with land tax, partly due to stamp duty being an extraordinarily bad tax which goes against basic taxation principles.

The Australian Capital Territory has already implemented similar changes. Land tax is being phased in over 20 years, so homeowners are not caught paying two lots of tax.

Remember, you can reach out to your Halletts adviser anytime if you have questions in relation to your or your family members who are looking to purchase their first home.

For More information :- https://www.planning.nsw.gov.au/News/2022/Opening-doors-for-more-first-home-buyers

Credit: https://news.csu.edu.au/opinion/nsw-introduces-stamp-duty-or-land-tax-option-what-does-this-mean-for-home-buyers#:~:text=The%20land%20tax%20would%20be,access%20the%20property%20market%20quicker