Low and Middle Income Earners – Tax Offsets

The Australian Government’s Personal Income Tax Plan changes are now law. As announced in the Federal Budget this year, from 1 July 2019 a new tax offset was created to enable low and middle income-earning Australian residents to receive tax offsets after lodging their tax returns, thereby reducing the tax payable on their taxable income.

What you need to know about Tax Offsets

You are eligible for a tax offset if you are an Australian resident and you receive an income. The tax offset amount you receive is dependent upon your taxable income amount.

A tax offset is non-refundable, meaning if a tax offset reduces your tax payable to zero, you will not receive any unused portion of the tax offset amount.

The Australian Taxation Office will assess your taxable income and determine your tax offset amount. You are not required to make a claim yourself. Furthermore, any tax refund resulting from the application of a tax offset will be deposited in your bank account.

What might your tax offset entitlement be?

Low and Middle Tax Offset

The Low and Middle Tax Offset is used for those individuals whose annual taxable income is less than $126,000. The maximum tax offset amount is $1080 on income up to $126,000. Whether you receive the full $1080 will be determined by the ATO and will be based on your individual taxation circumstances.

During financial years 2019, 2020, 2021 and 2022, the Low and Middle Income Tax Offset will be applied to eligible Australian earners. The Low and Middle Income Tax Offset is NEW this year and is in addition to the Low Income Tax Offset.

Low Income Tax Offset

The Low Income Tax Offset is used for those individuals whose annual taxable income is less than $66,667. The maximum tax offset amount is $445 on income up to $37,000 per annum. This tax offset amount is reduced by 1.5 cents for each dollar over $37,000, up to $66,667. The Low Income Tax Offset is not new and is now complemented by the Low and Middle Income Tax Offset.

How can YML help?

Talk to our Accountants today to see how YML Chartered Accountants can assist you with your personal tax return. Contact us on (02) 8383 4400 or by visiting the Contact Us page on our website.

Small Business Cyber Security

Did you know that 43% of cyber-attacks target small businesses? A study* across 86 countries and over 41,000 cyber-attacks determined this to be true. So what can you do about protecting your small business, your customers and your reputation from a hacker determined to steal your business data?

First, it’s important to remember that cyber security risks exist but you also want your business to benefit from the online world to broaden your reach, expand your clientele and utilise distant third-party suppliers, so make sure you draft – and put in to action – a responsible cyber security plan.

Next, let’s look at these tools and processes to help you in safeguarding your business data and then make them part of your cyber security plan:

   1. Security Software
    There is a myriad of software available that can be uploaded on to your server to help prevent infection from malware (software sent to you that may infiltrate or damage your data) and from viruses, as well as provide filters for spam and spyware. A reputable software provider can assist you with finding the best-for-your-business software tool to install.

   2. Online Transactions
    When your customers use your website to order products and/or services online, your business is responsible for detecting fraudulent transactions and for paying any costs related to fraud. In order to protect your customers and your business, consider using machine learning, whereby fraud prevention is automated. In addition, relying on your payment gateway provider is worth considering as artificial intelligence used by them will likely help your business too.

   3. In-House Security
              a. Educating employees is key to internal security measures. Start by collating a record of all device information (hardware and software), passwords and access codes. Train your employees to use computer equipment correctly and to navigate online safely. Remind them that the use of an external hard drive, even a personal USB, is a risk to cyber security as malware can inadvertently upload on to your business server.
              b. Change passwords frequently, ideally marking a regular day or date in your cyber security plan.

   4. Data Storage / Encryption
   Data back-up is a process that is essential for anyone using a computer. This is one of the easiest ways to make certain that your business data is safely stored elsewhere, enabling you to still access stolen data if it is illegally accessed. Regular decluttering of data will help to ensure that only data necessary for the day-to-day is kept on your server and devices. Consider external cloud storage and external hard drives held off-site. In addition, encryption of data is a tool that will convert data in to secret code before it travels online, making it near impossible to be accessed by hackers.

   5. Stay Up-to-Date
   Small business management and their IT department should remain vigilant to cyber threats by keeping up-to-date with the latest online scams and security risks. You can subscribe to service providers whose job it is to alert you to cyber security concerns.

A single attack successfully executed by an unwarranted perpetrator, either internally or externally, can wreak havoc on your business, potentially disrupting your customers, your employees and the business itself. The financial ramifications of not protecting your online transactions and your business data could be disastrous.

Avoid being one of the many small businesses attacked from cyberspace by formulating and implementing your own business cyber security plan today.

*Verizon 2019 Data Breach Investigations Report (DBIR)

How can YML help?

Talk to our YML Innovation Team today to see how YML Group can assist you with your cyber security. Contact us on (02) 8383 4400 or by visiting the Contact Us page on our website.