myGovID changing to myID

myGovID is changing its name to myID

myGovID will soon have a new name and look, but you’ll continue to use it in the same way.

Soon, myGovID will be changing its name to myID. While the name is changing, the way you login and the security of myID will not change.

If you’ve already set up your myGovID and use it to access government online services, you won’t need to do anything when the app changes to myID.

You’ll still have: 

  • your same details – there’s no need to set up a new myID. Your login details (including email address) and identity strength remain the same
  • continued use – once available your existing app should automatically update to myID or you can manually update it from the App Store or Google Play
  • access to services – you can still use the app to securely access government online services.

The new name aims to reduce the confusion between myGovID and myGov.

A reminder to watch out for scammers using fake websites or apps that look like myGovID or myID. To help protect yourself:

  • don’t click on suspicious links, open attachments or download any files from suspicious emails or SMS. The ATO will never send an unsolicited SMS that contains a hyperlink
  • only download the myGovID (soon to be known as myID) app from the official app stores (Google Play and the App Store) and ensure you turn on notifications, so you are notified when accessing online services
  • never enter your login code for anyone, or share with anyone.

Find out more by visiting myGovID is changing to myID.

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running a business

Running an SMSF publication now available

Managing Your SMSF: A Comprehensive Guide for Every Stage

From contributions to reporting, this guide offers essential insights for those running their SMSF.

If you are thinking of starting an SMSF or already have an SMSF you should refer to this publication. It provides guidance on:

  1. contributions and rollovers
  2. managing investments
  3. paying benefits
  4. administering and reporting.

This ATO publication completes the suite of lifecycle publications and complements two existing publications Starting a self-managed super fund and Winding up a self-managed super fund.

Looking for the latest news for SMSFs? 

You can stay up to date by visiting our SMSF News or by speaking with our specialist SMSF Team.

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crypto

Investing in crypto – record keeping requirements

Crypto asset records you should keep

You need to keep records of each of your crypto assets for each and every transaction (including coin swaps), to work out if you have made a capital gain or loss.

For your crypto assets, you should keep:

  1. receipts when you buy, transfer or dispose of crypto assets
  2. a record of the date of each transaction
  3. a record of what the transaction is for and who the other party is (this can just be their crypto asset address)
  4. exchange records
  5. a record of the value of the crypto asset in Australian dollars at the time of each transaction
  6. records of agent, accountant and legal costs
  7. digital wallet records and keys
  8. a record of software costs that relate to managing your tax affairs.

You need to keep details for each crypto asset as they are separate CGT assets. Keeping good records is essential for meeting your tax obligations, and saves us time when we prepare your tax return.

Tips for protecting crypto asset records

Keeping good records is important as crypto can be volatile. These record-keeping tips may help safeguard you against loss of information, which could happen at any time. Keep these records during the period you hold or transact using crypto:

  1. Export your transaction history regularly (eg every 3 months) to protect you in case of loss of access to your account
  2. Before closing an account, export your complete transaction history
  3. Find a reputable Australian crypto tax calculator – there are free and low-cost services you can use to sync your exchange and wallet accounts
  4. Use a blockchain explorer or contact the crypto exchange’s customer service if you need to recreate lost records.

How long to keep records

Keep records for 5 years from the latter of:

  1. when you prepare or obtain the records
  2. when transactions or acts are complete
  3. the year that the CGT event happens.

You should keep records long enough to cover your amendment period (usually 2 or 4 years) for an assessment that uses information from the record.

Your records must be in:

  1. English or be translatable to English
  2. in writing, however they can be electronic/digital or paper.

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2024 EMEA Conference Sofia

Alliott Global EMEA Conference in Sofia

Scott Jago recently returned from the Alliott Global Alliance’s EMEA Regional Conference held in Sofia, Bulgaria.

The event featured panel discussions and workshops on insightful topics in the legal and accounting industries, such as the impact of AI and cybersecurity, ESG compliance, the digital economy and leadership development. 

Representing Allan Hall, and as one of the 85 delegates from 54 firms across 30 countries, Scott attended in a dual role as both the APAC Chair and Alliott Global Board member. His participation aimed to gain deeper insights into international tax and business-related practices that would benefit Allan Hall’s clients operating on both a global scale and closer to home. 

The conference also marked the launch of AGAOne, Alliott Global Alliance’s digital collaborative platform. Tech partner LexRing demonstrated how it can enhance information and opportunities between member firms. It incorporates a full-scale directory of AGA firms globally and their specialist fields, amongst other items.    

The opportunity to connect with professionals from diverse backgrounds in such a historic city added a unique and enjoyable dimension to the conference. Allan Hall is now looking forward to the Alliott Global Alliance worldwide conference in Vietnam, scheduled for 13-17 November 2024.

For more information regarding our Alliott Global Alliance, please visit Global Alliance or contact us.

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cryptocurrency

GST and using or receiving digital currency

What to do when you receive and use digital currency as payment for goods and services

Digital currency as payment for goods and services

Receiving or using digital currency to pay for goods and services in your GST-registered enterprise is the same as using money, but it is different to trading digital currency.

Receiving digital currency

If you make a taxable supply and you receive digital currency as payment, the GST amount for that payment included in your business activity statement must be in Australian dollars.

Your tax invoice must meet the normal tax invoice requirements and include either:

  • the GST payable in Australian dollars
  • sufficient information to work out the GST payable in Australian dollars.

Examples of sufficient information includes the:

  • price expressed in Australian dollars
  • value expressed in Australian dollars, or
  • conversion rate used by the supplier, or a statement, to work out the GST payable if it is not in Australian dollars.

Using digital currency

If you use digital currency to make a purchase for your GST-registered enterprise and claim a GST credit, the GST amount of the credit in your business activity statement must be in Australian dollars.

To work out your GST credits, your tax invoice will include either:

  • the GST amount in Australian dollars
  • sufficient information to determine the GST amount in Australian dollars.

How to convert digital currency

To work out the value of your digital currency for your business activity statement, you must use the exchange rate on the conversion day that applies to you.

Exchange rate

If the exchange rate is in Australian dollars, you may choose to use the exchange rate:

  • from a digital currency exchange or website, or
  • agreed on between the supplier and the recipient.

If the exchange rate is in a foreign currency, you must convert the amount expressed in foreign currency to Australian dollars.

Conversion day

The conversion day is the date you use to convert your digital currency into Australian dollars.

If you account for GST on a non-cash basis, your conversion day is determined by whichever happens first of either the:

  • day you receive any of the payment
  • transaction date or invoice date.

If you account for GST on a cash basis, your conversion day can be the transaction date, invoice date or the day you receive any of the payment.

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keyboard

The 120% technology and skills ‘boost’ deduction

The legislation granting small and medium businesses (SMBs) the opportunity to claim a 120% tax deduction for technology expenses, skills training and training costs has finally passed Parliament, nearly a year after the announcement in the 2022-23 Federal Budget.

However, there are a few timing complexities involved. To benefit from the technology investment boost, you needed to have purchased and installed the technology by 30 June 2023, which was just seven days after the legislation was passed.

Key points

  • Under both the technology and Skills and Training Boost, eligible expenses will be available for the 120% deduction if they were incurred between 29 March 2022 and 30 June 2024
  • The bonus deduction for the technology boost is capped at 20% of the eligible expenditure, up to a limit of $20,000 ($100,000 of eligible expenditure)
  • There is no limit for the skills and training boost.

Who is eligible for the boosts?

Small business entities (including individual sole traders, partnerships, companies or trading trusts) with an aggregated annual turnover of less than $50 million can access the 120% skills and training boost, as well as the technology boost. Aggregated turnover includes the turnover of your business, affiliates and connected entities.

The technology investment Boost

Expenses that may qualify for the technology boost include:

  • Digital enabling items like computer hardware, telecommunications equipment, software, internet costs, computer network systems and services that facilitate their usage.
  • Digital media and marketing expenses including audio and visual content that can be accessed, stored or viewed on digital devices, as well as web page design.
  • E-commerce goods or services that support digitally ordered or platform-enabled online transactions, portable payment devices, digital inventory management, subscriptions to cloud-based services and advice on digital operations or digitisation such as guidance on digital tools for business continuity and growth.
  • Cybersecurity systems, backup management and monitoring services.

The technology must be primarily or substantially used for a business’s digital operations or digitisation. There must be a direct connection to how the business generates income, particularly through its digital operations.

There are several costs that the technology boost does not cover, such as expenses related to staff employment, capital raising, construction of business premises and the cost of goods and services sold by the business. The boost does not apply to:

  • Assets purchased and sold within the relevant period (on or before 30 June 2023)
  • Capital works costs, including improvements to business premises
  • Financing costs like interest expenses
  • Salary or wage costs
  • Training or education costs, meaning that training staff on software or technology does not qualify (refer to Skills and Training Boost below)
  • Trading stock or the cost of trading stock.

The Skills and Training Boost

The Skills and Training Boost is a program that provides SMBs with a 120% tax deduction for external training courses offered to their employees. The primary objective of this boost is to facilitate the growth of SMBs’ workforce by enabling them to hire and upskill less-experienced employees through external training. This initiative aims to enhance their skills and increase overall productivity.

Please note that sole traders, partners in a partnership, independent contractors and other non-employees are not eligible for the boost as it is specifically designed for employees. Similarly, associates such as spouses or partners, as well as trustees of a trust, are not qualified to participate.

To ensure compliance, there are a few rules to be aware of:

  • Registration for the training course must have occurred between 7:30 PM (AEST) on 29 March 2022 and 30 June 2024. If an employee is already enrolled in an eligible training course, enrolments in subsequent courses or classes after 29 March 2022 are considered eligible.
  • The training must be deductible to your business according to ordinary rules, meaning it should be directly related to how your business generates income.
  • The training needs to be provided by a registered training provider who charges your business (either directly or indirectly) for the training. (Please refer to the section on “What organisations can provide training for the boost?” below)
  • The training must be intended for employees of your business and should be delivered either in-person within Australia or through online platforms.
  • The training provider cannot be your business or an associate of your business.

Training expenditure can include costs associated with the training, such as resources or equipment necessary for the course, provided that the training provider charges your business for these expenses.

What organisations can provide training for the boost?

Please note that not all courses offered by training companies will qualify for the boost. Only courses offered by registered training providers within their registration will be eligible. Typically, these providers offer vocational training to acquire a trade or courses that contribute to a formal qualification, rather than purely professional development.

Qualifying training providers will be registered by:

While some desired training may not be delivered by registered training organisations, there is still a wide range of options available. Short courses offered by universities or flexible courses designed for upskilling, rather than obtaining a degree qualification, can still be explored, especially if they align with the development pathway identified through recent performance reviews for your staff.

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Moving to new Xero Reports

Moving to new Xero Reports

Xero is retiring older versions of their reports on 31 July 2023

In coming weeks, Xero will be transitioning some favourite ‘starred’ reports from the old version to the new version.

When users click on these reports in their favourites list, they will be automatically redirected to the new version of that report. This change is being made because Xero is retiring older versions of their reports on 31 July 2023 and they want to ensure that Xero users are prepared.

The new versions offer more flexibility and customisation, quicker access to insights and deeper analysis of business performance. Xero is aware that this change may take some time to get used to and is giving users plenty of time to make the switch.

Using new Xero Reports

Xero is urging users who haven’t yet switched to new reports to start moving their work across now. This way, there is time to adjust before older versions are retired:

  • Users can take a product tour of some of Xero’s most popular reports, such as the new Profit & Loss or Balance Sheet reports, and find a tips and tricks panel on the right-hand side showing links to support articles and how-to videos
  • Check out Xero’s reporting playlist on YouTube for help on tailoring reports in Xero
  • Start using Xero’s layout importer tool in the Profit & Loss, Balance Sheet and Budget Variance reports to bring saved layouts across to new versions
  • If needed, users can return to the older versions via the overflow menu in the Report Centre until 31 July 2023.

At Allan Hall, we have extensive experience using a wide variety of accounting software packages and can provide advice on which software is right for you.

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keyboard

Support to help businesses go digital

Digital Solutions — Australian Small Business Advisory Services

Round 1 of the Digital Solutions program will end on 31 March 2023.

What do you get?

The Digital Solutions – Australian Small Business Advisory Services program works with small businesses to make the most of digital tools and offers broader advice specific to your business needs such as:

  • how digital tools can help your small business
  • websites and selling online
  • social media and digital marketing
  • using small business software
  • online security and data privacy.

Digital Solutions is a 7-hour packaged service that offers 3 hours of one-on-one tailored support as well as group workshops or webinars.

Who is this for?

Small businesses with fewer than 20 full-time (or equivalent) employees, as well as sole traders, can access services at the subsidised rate. The service is available across all metropolitan and regional areas in Australia. 

How much does it cost?

The Digital Solutions program is $44 for 7 hours of support and your first interaction with the service is free. 

About the Digital Solutions advisers

Digital Solutions advisers hold formal qualifications in business or information technology-related disciplines and have at least 2 years’ experience providing digital advice to small or medium-sized businesses.

Contact your local Digital Solutions provider

There are Digital Solutions providers in each state and territory across Australia. Complete a short form to connect with your local provider.


Support for businesses affected by COVID-19

Digital Solutions providers are also offering general business advice to support you through this difficult time, including: 

  • business crisis management and business continuity planning
  • finance management and boosting cashflow
  • staff management and creating a safe work environment
  • retaining and staying connected to customers
  • resilience and wellbeing
  • COVID-19 stimulus packages for small business.

Find more at coronavirus information and support for businesses.

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invoice

Understanding eInvoicing

Change can be hard, particularly when things seem to be working and the need to do things differently isn’t obvious.

Perhaps you’ve found this when it comes to invoicing for your business.

You may be used to sending PDF invoices via email and manually entering the invoices you receive into your accounting software. You may even be used to dealing with regular problems with invoicing, like late, lost or compromised invoices or mistakes.

If you think this is all the normal cost of running a business — it doesn’t have to be!

Switching to eInvoicing will help you reduce manual data entry, because eInvoices automatically appear in your business software, ready to be checked and paid.

While getting started with eInvoicing can seem daunting, it’s probably much easier than you think.

Deputy Commissioner for Small Business Deb Jenkins presents a new series of short videos about eInvoicing to help you out. They help explain how eInvoicing can benefit your business by helping you save time and money.

eInvoicing doesn’t give the ATO access to your invoice data. It’s not a compliance measure; it aims to reduce your admin, boost your cash flow and give you more time to focus on what matters most.

eInvoicing products and services are becoming more available over time. More than 16,500 Australian businesses are adopting it, including well-known and large Australian companies and federal and state governments.

There has never been a better time to get started. Talk to your adviser or business software provider today to find out about making the change.

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