New working from home tax rate.

New working from home tax rate.

On 7th April 2020, the Australian Taxation Office (ATO) announced special arrangements this year, due to COVID-19, to make it easier for people to claim deductions for working from home. The new arrangement will allow people to claim an increased rate of 80 cents per hour for all their running expenses incurred during the period 1 March 2020 to 30 June 2020, including;

  • Electricity expenses associated with heating, cooling and lighting the area at home which is being used for work.
  • Cleaning costs for a dedicated work area.
  • Phone and internet expenses.
  • Computer consumables (e.g., printer paper and ink) and stationery.
  • Depreciation of home office furniture and furnishings (e.g., an office desk and a chair).
  • Depreciation of home office equipment (e.g., a computer and a printer).

Multiple people living in the same house can claim this new rate. For example, a couple living together could each individually claim the 80 cents per hour rate. The requirement to have a dedicated work from home area has also been removed and now you will only be required to keep a record of the number of hours worked from home. The new rate does not prohibit people from making a working from home claim under existing arrangements, where you calculate all or part of your running expenses. Claims for working from home expenses prior to 1 March 2020 cannot be calculated using the new rate, and must use the pre-existing working from home approach and requirements. For more please click here.

As always, please don’t hesitate to contact the team 02 9415 1511 or email us reception@primeadvisory.com.au to see how this may apply to you.

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Newfound success in retirement.

Newfound success in retirement.

This month we introduce Lynne Pressley to our On Track for Life Wall. Next time you are in the office make sure you check out the photos.  Lynne has been a client of Mark Greenwood’s for about 30 years and has recently retired and loving it!

During her working life Lynne was a highly respected Interventional Cardiologist who worked very long hours while also raising a family and so had very little time to devote to her personal financial affairs. Over the years Mark has worked alongside Lynne to ensure that she was making smart financial decisions and positioning herself for financial independence, when she eventually decided to stop working.

Now that Lynne has decided to retire, she is enjoying the freedom that she never had whilst working. She now spends time in the garden at their property in the Blue Mountains and pursuing her other goals. Lynne has taken up golf and now plays of a handicap of 18, which is no mean feat and something Mark is very envious about. She has recently moved house and is enjoying having time to furnish and decorate it.

Lynne’s family is growing, and she is now a grandmother, with a little more time on her hands to spend with the children and grandchildren. The relationship with Mark has worked very well over the years and now moves into another phase of her life. The structure of accountability throughout her busy working life has allowed for a happy and successful transition into retirement.

The staff at Prime Advisory would like to congratulate Lynne on her recent achievements and welcome her, very deservingly, to the On Track for Life Wall!

Want your photo up there too? Get in touch with your Advisor and share your wins and you could be next! Contact us on 02 9415 1511.

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A message from MBS insurance regarding the impact of COVID-19.

A message from MBS insurance regarding the impact of COVID-19.

“We have received some enquiries from our clients around the impact of Coronavirus. There are no exclusions to Life Insurance, TPD, Trauma or Income Protection that would prevent payment of a claim related to a Coronavirus for existing retail insurance policy holders.

We have seen and received announcements confirming this for policy holders of AMP, MLC, BT, AIA, CommInsure, OnePath, Zurich, Clearview, TAL and Asteron. Nick Kirwan, Senior Policy Manager at the Financial Services Council stated on the FSC website that no-one should be concerned about their existing life insurance policies.

We are aware of some Industry or Corporate Super Fund policies that do exclude pandemics and/or epidemics. If you or a family member have one of these policies, please reach out to your Adviser.

As is always the case, we are driven to provide protection at a time of need and deliver better outcomes for our clients. If you experience any downtime, it may be the ideal opportunity to have your insurance portfolio reviewed.  If you wish to speak with your Adviser, it will be more efficient to email them directly or at enquiries@mbsinsurance.com.au.

Our team has been set up to work from home, so the business will continue as usual however limited staff members will be answering phones.”

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COVID-19 Government Stimulus Packages & PrimeAdvisory Team Update.

COVID-19 Government Stimulus Packages & PrimeAdvisory Team Update.

Firstly, we want you to know we are here to support you every step of the way in what we are sure is an incredibly challenging time for you, your family, your income, your business interests and investments.

Below we detail the second stimulus package and will keep updating as more are released.  We have also made the decision for all team members to work from home and have outlined specific measures taken.

Stimulus Packages
On the 22nd March, the Federal Government announced a second stimulus package to address the economic fallout from the Coronavirus (COVID-19).

Seeking to provide timely support to those affected, the package targets three areas:
Individuals and Households, support for business and supporting the flow of credit.  This legislation is quite complicated and is moving very fast. Click here to view the latest blog for full details.

Our team is here to help you with this legislation, here to listen and here to see how it can benefit you and your business. If you would like to clarify anything with us, please call or email your advisor or the office.

Working remotely and efficiently
We would like to take this opportunity to share what we are doing to manage the impact of COVID-19 on our clients, our team and the community.  As of the 24th March we all left the office at Level 11 in Chatswood and are now fully functional and operating from home.

It is a different world working from home, however utilising technology our team is working remotely and efficiently and looking forward to upholding current service standards and delivering the same customer experience, hopefully even better!

Accordingly, some of the specific measures that we are implementing during the period of disruption are:

  • Our firm will operate effectively even if our physical offices are closed with staff exercising social distancing and working from home
  • Meetings will be conducted electronically using Zoom/Teams and if outages occur as have happened due to the strain on networks, we will revert to phone calls.
  • Mail will be collected twice per week and where possible we ask if you could kindly scan and email documents to the respective team member or reception@primeadvisory.com.au
  • Phones have been diverted and will be answered by a team member who will take messages and have your call returned.

Want to Talk?
If you have any questions or wish to discuss what measures we are taking to support you and your business through this period, please feel free to reach out to your PrimeAdvisory team member, they are looking forward to helping.  To get in touch with the office please call 02 9415 1511 or email reception@primeadvisory.com.au

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Superannuation guarantee amnesty September deadline

Superannuation guarantee amnesty September deadline

The long-awaited superannuation guarantee amnesty bill has now passed both houses and received royal assent. Employers will have until 7 September to disclose historical non-compliance before tougher penalties apply.

  • One-off opportunity to fix historical SG problems
  • What to do and when to do it
  • Avoid higher penalties that apply if you don’t use the amnesty

As previously spoken of in a blog on 29th of October the Superannuation Guarantee (SG) Amnesty has now officially passed legislation in Parliament and received royal assent. This SG amnesty provides for a one-off amnesty to encourage employers to self-correct historical SG non-compliance dating from 1 July 1992 to 31 March 2018.

The amnesty period will begin from 24 May 2018 to 7 September 2020, giving employers six months to get their SG affairs in order before a 100 percent minimum penalty applies. The new legislation will also impose minimum penalties on employers who fail to come forward during the amnesty period by limiting the commissioner’s ability to remit penalties below 100 per cent of the amount of SG charge payable.

Around 7,000 employers have since come forward to voluntarily disclose historical unpaid super since the amnesty was first announced on 24 May 2018. Treasury estimates an additional 7,000 employers will come forward during the six-month amnesty period, returning $230 million of superannuation to employees who may have otherwise completely missed out.

Given the complexity of the SG system and how difficult it can be to determine whether a worker is an employee, we expect many businesses are likely to have SG problems but don’t know it yet. As the amnesty period will end six months after receiving Royal Assent we urge you to get in touch with your accountant to begin taking advantage of the amnesty before harsher penalties apply.

Please contact us on 02 9415 1511 or email reception@primeadvisory.com.au.

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