It covers how crypto transactions are calculated, calculation programs to save you money and the tax implications of crypto trading.
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​If you are time-poor, we will skip to the article's key point. If you want to save money, you seriously need to use a crypto tax calculation program like Crypto Tax Calculator. It does the time-consuming data crunching and gives you the tax reports we need.

If you choose not to use something like this and make lots of trades (even just lots of $1 transactions), please be kind to us when your personal tax return costs you $1000 this year for us to complete.

Okay, so here’s more details for those with more time.​
​

Some quick background on why crypto trading might cost you in accounting fees. Every time you buy and sell a cryptocurrency or crypto portions, that transaction’s loss or gain must be calculated. Individually. Every time.

​Bought twenty portions in Bitcoin when the value was low and sold them when the value rose later that day? That’s twenty transactions to be calculated.

The calculations are easy, but they add up, especially if you’re regularly trading and following the trends.

They can take hours and hours for our team, which means higher fees for you. We don’t want you to be shocked if you get a larger bill than expected.

​We look forward to assisting you this tax year. If you have any questions, please do not hesitate to contact the Preston Corporate team. ​

The Government of Western Australia has recently announced the next phase of COVID-19 Small Business Hardship Grants (Level 2).

Eligibility
To be eligible for the Small Business Hardship Grants, businesses must:

• Have a valid and active Australian Business Number (ABN)
• Have an Australia-wide payroll of less than $4 million
• Have an annual turnover of more than $50,000, excluding GST
• Be able to demonstrate a 50 per cent reduction in revenue for any two-week consecutive period between 1 January 2022 and 30 April 2022, compared to the equivalent period in 2021.

An alternative period in 2021 may be used if the business did not operate at that time or it provides an inaccurate representation of the business' financial situation.

How Much Do You Receive?
Eligible applicants will receive a tiered grant payment, dependant on the number of Full Time Equivalent (FTE) employees of the business. For the purpose of this calculation, the business owner is excluded from the FTE calculation. The following grant tiers are available:

• Non-employing businesses (business owner - no additional employees) - $3,000
• Micro businesses (business owner, plus one to five employees) - $7,500
• Small Businesses (business owner, plus six to 19 employees) - $20,000
• Medium Businesses (business owner, plus 20 or more employees) - $50,000

This program is open to all eligible businesses that meet the criteria and further information is available at the following government website 
https://www.smallbusiness.wa.gov.au/coronavirus/grants/hardship-grant. 

Applications close at 4pm AWST on Thursday 30 June 2022.
If you have any questions or need any assistance or support with this, please contact our office on 9367 4199.

Is your business Cyber Secure?
You can check now with the Cyber Security Assessment Tool.

​The Department of Industry, Science, Energy and Resources developed the assessment tool to help improve cyber security skills among Australian small and medium businesses.
With the assessment tool, you can:

• identify the cyber security strengths of your business
• understand areas where your business can improve
• know how to improve your cyber security and where to find help

The assessment tool asks you questions about how you manage cyber security for your business. Based on your answers, it will determine your current cyber security maturity level.  It will then provide you with guidance on how to improve. You can download this guidance as a PDF, so you can track your progress.
Read more about the tool at business.gov.au.

​

Adopting effective cyber security processes is more important than ever.
Three cyber threats to watch out for:
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1. Destructive malware
The Australian Cyber Security Centre (ACSC) has identified an increase in destructive malware targeting businesses.
To protect your business from malware:

• Keep your devices updated with effective security and anti-virus software.
• Use a non-administrator account whenever possible and be extra cautious about opening email attachments or images.
• Never click on links or pop-up windows or download anything you’re not familiar with.
• Limit file-sharing where possible.

2. Ransomware
Cybercriminals are increasingly using ransomware to lock files so the owner of the device can no longer access them.  
Signs that you’ve been affected by ransomware include: pop-up messages requesting funds or payment to unlock files; you cannot access your devices, or your login doesn’t work for unknown reasons; files request a password or a code to open or access them.

Alternatively, files being moved to different locations on a device, or files suddenly having their names or icons changed. This all indicates possible ransomware intrusion.

To protect your business from ransomware:

• Do not visit unsafe or suspicious websites.
• Do not open emails or files from unknown sources.
• Do not click on malicious links in email or on social media.
  

3. Targeting of network devices

The ACSC has identified an increase in targeting of Cisco devices using the Smart Install feature worldwide, including in Australia.
To protect your business from being a target:

• Secure Cisco features to mitigate against this activity.
• Protect your information by using a screen lock, encryption and regularly backing up files.

• Use secure software and make sure it is up-to-date
• Be careful in using public Wi-Fi networks, especially when doing tasks that require credit card information, such as online banking.

ASIC now requires all company directors to apply for Director ID numbers. Existing directors prior to 30th November 2021 have until 30th November 2022, new directors until 4th April 2022 have 28 days from their appointment to apply for their number. New directors from 5th April 2022 onward will need to apply for the ID number prior to their appointment.
Whether your application deadline is coming up or not, it is certainly worth obtaining this one-off ID number and getting the process out of the way.

To make things easier for you we have provided some instructions below:

There are two parts to the process, the myGovID app set-up, and the Australian Business Registry Services (ABRS) application process.
 
Step 1. MyGovID app (If you already have the app, please skip ahead to Step 2)
 
If you don’t have the app you will need to download it and set it up as you need it to login to the government website to apply for the DIN.
​The app icon looks like this. 

​If you don’t have the app, here are the instructions: A.      Download the myGovID app from the App store (iPhones) or Google Play         (Samsungs)

A.      Enter your detailsOpen the myGovID app and follow the prompts. You will need to give your full name, date of birth and email address This must not be a shared email address.
 
B.      Add your identity documentsA Standard or Strong identity strength is required to apply for the Director’s ID Number (DIN). Follow the prompts to add your Australian identity documents:

• driver’s licence or learner’s permit
• passport (not more than three years expired)
• birth certificate
• visa (using your foreign passport)
• citizenship certificate
• ImmiCard
• Medicare card.

A Basic identity strength will not allow application for the director’s ID number.
 
Step 2. ABRS Website (the actual application process)
When you have the myGovID app set up, you will need to go to the following website (Australian Business Registry Services or ABRS) and follow the instructions on the page. When you login using the myGovID app, you will be provided with a code on the PC screen which you will need to input into the app.
 
The ABRS website link is https://www.abrs.gov.au/director-identification-number/apply-director-identification-number
 
You will need to have some information the ATO knows about you when you apply for your director ID:

• your tax file number (TFN)
• your residential address as held by the ATO
• information from two documents to verify your identity.

Examples of the documents you can use to verify your identity include:

• bank account details
• an ATO notice of assessment
• super account details
• a dividend statement
• a Centrelink payment summary
• a PAYG payment summary (this is different to your income statement, and/or your PAYG instalment activity statement).

​Go to the bottom of the page and click the button that looks like this

If you are successful in obtaining the number, could you please provide me with it, as I need to update our system.
 
Should you have any issues with the application process, please contact our office on 9367 4199 or at support@prestoncorporate.com.au.

The ATO has release additional requirements when it comes to nominating an employee's super fund. You will have an extra step to take if you have new employees who start from 1 November 2021 and they don’t provide you with the details of their chosen super fund.
You may need to request their ‘stapled super fund’ details from the Australian Taxation Office. A stapled super fund is an existing super account of an employee that follows them as they change jobs.

This change aims to stop your new employees paying extra account fees for unintended super accounts set up when they start a new job.

What you need to know
You may need to request stapled super fund details when:
• your new employee starts on or after 1 November 2021
• you need to make super guarantee payments for that employee, 
• your employee is eligible to choose a super fund but doesn’t
You and your representatives can request stapled super fund details for your employees if you have full access to Online services for business. You need to review and update these accesses to protect the privacy and safety of your employees’ personal information.
You must meet your choice of super fund requirements and any stapled super fund obligations by the quarterly due date or you may face penalties.

What you need to do from 1 November 2021
Step 1: Offer your eligible employees a choice of super fund
If an employee joins you, you must give them a super choice form, this is critical so you get the super details of the employee so you can pay them, as non payment and late payment are one of the priority audit areas for the tax office and not having the employees super details is not a valid excuse.
Step 2: Request stapled super fund details
If the employee doesn’t give you their fund details, you can look up on the ATO to see if the employee has a fund listed with them and then make payment to that super fund. This is what has changed, you can now see if the ATO has fund details on record. If you need to do that step, our admin and bookkeeping team can support you. 
The criteria thing is after 28 days, if you don’t have the employees fund details from them then look them up with the ATO. The employee will get an SMS and/or email if you look up their info if they are registered with a MyGov account.
Step 3: Pay super into a default fund
You can pay into a default fund, or another fund that meets the choice of fund obligations if:
• your employee doesn’t choose a super fund, and
• The ATO has advised you that they don’t have a stapled super fund.

ASIC has launched a new number by which a company director will be identified. This ID number has been created to help prevent the use of false or fraudulent director identities, and as a precursor to the amalgamation of ASIC and ATO into a new system called the Modernising Business Register or MBR, arriving in 2023. 

The 15-digit number will be known as the Director Identification Number (DIN or Director ID)  and is a unique identifier that a director will only need to apply for once as it will always be linked to them.
A director will keep their DIN even if they stop being a company director, change their name or move interstate or overseas. 

When to apply
The dates for when you need to apply, depend on when you become a director. 
1. Existing directors (appointed prior to 1 Nov 2021) have until 30th November 2022 to apply.
2. If you become a director between 1 November 2021 and 4 April 2022, you will need to apply within 28 days of your appointment. 

How to apply for a DIN
Although all existing directors only need to apply by 30 November 2022, we strongly recommend you do this one-time set up now to avoid any future penalties.
Please follow this link to apply. (The link will take you to the official Australian Business Registry Services (ABRS) website).
In order to login to the ABRS website and apply for the DIN, you will need to Setup a MyGovID app on your phone if you don’t already have one. 
Note: MyGovID is different to MyGov, which is your personal government portal.

Should you need assistance with applying for the myGovID or the DIN, please let us know at support@prestoncorporate.com.au. 

Late Superannuation Contributions are a Bad Deal for You 
We would like to save you the pain and expense of making late superannuation contributions for your employees, or not paying them at all.  There have been recent changes to the way the ATO applies penalties when superannuation contributions are paid late, and we would like you to be aware of the significant expense that can result. 
 
When must superannuation contributions be paid? 
Superannuation contributions must be received by the superannuation fund within 28 days of the end of a quarter.  There is a common misconception that superannuation contributions must be paid by the employer by the 28th day after the end of the quarter.  This is not correct.  It is the date of receipt by the superannuation fund that is important.  However, if you are using the ATO Small Business Clearing House and if the contributions are received by that clearing house by the 28th day following the end of the quarter, you will be treated as having made the contributions to the superannuation fund on time.
 
Why it is a bad deal to pay late or not at all? 
The Australian Superannuation Guarantee system is designed to penalise severely employers who pay superannuation contributions late or who don’t pay the contributions.  This is because the employer must pay, at least, the Superannuation Guarantee Charge (“SGC”).  For a quarter the penalty would be at least:

1. The late superannuation contributions; plus
2. Extra contributions due to a higher earnings base being used; plus
3. 10% interest calculated from the beginning of the quarter to the time of lodgement of the Superannuation Guarantee Statement or assessment; plus
4. A $20 charge per employee.

 
In addition to the SGC, penalties can be levied if you have not lodged with the ATO a Superannuation Guarantee Statement.  These penalties can be up to 200% of the SGC. 

Both the SGC and the penalties are not tax deductible. In other words, you are unable to claim a tax deduction in your 30 June tax return for any late paid superannuation contributions made through the year.  It will often be the case that the combined after-tax amount of the SGC and penalties is many multiples of the superannuation contributions paid late.

EXAMPLE:
During one quarter of a year, you have 10 employees. Your total wages are  $150,000 of which $100,000 is subject to superannuation, so you owe $9,500 in super as well as the balance of $50,000 for overtime (which does not attract superannuation). The following is the result of late payment of your superannuation:

1.) Shortfall amount of $9,500 (this is the original superannuation you didn't pay or paid late)
2.) Extra contribution for the overtime - late payment means this is now subject to superannuation ($50,000 x 9.50%) $4,750
3.) Interest - A minimum of $1,425 (this assumes that the SGC Form is lodged 1 year late) 
4.) Administration Charge (10 employees x $20) = $200
***Therefore, you have now increased the original amount owing $9,500 to $15,875 (an avoidable increase of $6,375).
5.) Assuming the ATO contacted you about and applied the Part 7 penalty, this additional amount would then be $28,500 ($9,500 + $4,750 multiplied by 2)

The total is now $44,375

How do the items above affect your tax? Items 1, 2, 4 and 5 are not tax deductible, so this means you pay an extra $2,850-$13,312 in tax depending on your tax rate (assumes a 30% tax rate).

Should you have any queries in relation to the above information please don’t hesitate to contact our office on 9367 4199 or at support@prestoncorporate.com.au.