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Taxable Payments Annual Reporting

Since 2012 the government has required that all businesses in the building and construction industry report the payments they make to each contractor for building and construction services.

The ATO uses this information as a cross matching services to ensure all contractors have lodged a tax return and included all their income on these returns.

What does this mean for you?

It means that if you operate in the building industry, including plumbers and electricians, you need to report all contractor payments for any work completed in the 2013-14 year to the ATO by 21st July, 2014.  

You will need to provide your details and the contractors details including their ABN, name, address, gross amount paid (only include amounts actually paid not any amounts still owing) and the GST.

Some accounting programs have a function that will allow you to create a report that can be lodged electronically to the ATO.

If you are using an accounting program, like Reckon, Xero or MYOB, make sure you have all the supplier information filled out for your contractors.

The ATO has made a fact sheet for the reporting which may help you to understand your obligations. 

If you would like any further information or help completing the report please feel free to give as a call anytime on (03) 5032 9422

Employee V Contractor Demystified

Often an individual may believe they are a contractor due to their engagement with an organisation being through the use of their ABN.

Equally a manager may presume the use of invoices for the receipt of income by an individual classifies them as a contractor. Although forming a portion of the framework these two assumptions do not by any means rule out the possibility that the individual is an employee in disguise.

Some factors that characterise an individual as an employee include:

Control over work â€" Does the organisation control the way the work is performed?

Work unable to be subcontracted â€" does the individual have the ability to subcontract or delegate work?

Commercial risk â€" Is the individual exempt from commercial risk? ie. is not responsible to rectify any defect in work or pay to have any defect rectified.

 Independence â€" Does the individual work within the organisation or are they considered separate to it?

Equipment & tools â€" Is the individual supplied with the tools required to carry out their duties?

An organisation may choose to engage individuals as contractors to save on such things as payroll tax and work cover. Once deemed as an employee however these individuals may be eligible for all entitlements reserved for wage-earners. The organisation may be required to foot the bill for the individual's superannuation guarantee payments, PAYG tax and annual & sick leave (if applicable).

The good news is that the ATO has provided a calculator to help in determining the basis of an individual's engagement Click Here For Access


From the desk of Doug Balcam.

Do You Reckon?

Last week I attended a Reckon training course and conference in Melbourne.

We covered many features currently available and also learned about some new features and programs Reckon is planning to release in the near future.

Did you know you can process credit card payments through Reckon Accounts? 
If you don't have a credit card machine, the credit card payment can be processed through PayPal.  All you need is an internet merchant account to subscribe to this service.

You can also process superannuation payment for your employees using SuperLink.  SuperLink gives you the option of processing and paying superannuation contributions for all your employees, eliminating the need to process and pay to multiple funds.

Reckon Hosted (commonly known as Quickbooks Online) is receiving an update soon.  This should provide easier connection and faster processing time.  An option will also be provided if your internet connection is slow.

Two new products to be released soon are Reckon One and Reckon Pay.

Reckon One will be an simple online accounting program, where users are able to select which modules they need (eg  payroll and invoices) and at what level or choice a package with a preselected range of modules.   Live bank feeds are also available to cut down on processing times.

Reckon Pay is another way of receiving and processing payments, but this time whilst working out in the field.

You will be able to purchase hardware (similar to a small EFTPOS machine) which will connect to their mobile phone or tablet.  Once you have downloaded the app, you will be able to process credit card or EFTPOS payment instantly.  If using Reckon One, this information will then integrate into the software.

If you would like any further information or assistance with the Reckon product range available please contact us.

There have been many changes to the program, with each update, and you may find some features that will make the processing and reporting work better for your business.

Friday At Spoons May never be The Same

Spoons on a Friday afternoon may never be the same!


Andy Millar was celebrating the end of his role as a partner in GMG accounting, with fellow partners, on his last day of full time work , when he was flash mobbed


He has been in public practice for 41 years, 34 of them as a principal in Swan Hill. Not one for ceremony, he was enjoying a celebratory afternoon tea with his partners when he was flash mobbed , by staff ,with a version of an old favourite , rejigged as the "Andy Man" . Check it out


Andy said it was "one of the moments of my career "


The Andy man's career continues though, his new role is a senior consultant with the firm, on a part time basis, specialising in superannuation, retirement, succession, auditing and associated issues


"The Andy man can

Cause he mixes fun with work

And makes us all feel good "

From the 1st July 2012 the government requires that all business in the building and construction industry report the payments they make to each contractor for building and construction services.

The ATO will use this information as a cross matching services to ensure all contractors have lodged a tax return and included all their income on these returns.

What does this mean? It means than any one in the building industry, including plumbers and electricians, will need to report to the ATO payments made to any contractors for work completed.

The ATO has started sending business in this industry a letter outlining the reporting requirements and a form to be completed.

On the form you will need to provide your details and the contractors details including ABN, name, address, gross amount paid (only include amounts actually paid not any amounts still owing) and the GST. 

Some accounting programs will have a function that will allow you to create a report that we can lodge electronically to the ATO.

If you are using an accounting program, like QuickBooks or MYOB, make sure you have all the supplier information filled out for your contractors.

The report is due for lodgment by the 28th July 2013 and will be a yearly requirement.

If you would like any further information or help completing the report please contact us at GMG.

Nothing Beats First Hand Knowledge

One Friday 14 members of the Accounting team at GMG jumped in the utes and took off out into the Mallee to visit the White Family to learn more about what farmers actually do, to get an understanding off the challenges they face, about how updates to equipment and technology assist farmers today and a live demonstration of the sowing process.

After a short while in the car we reached our destination in the Manangatang region. What a lovely place, I couldn't understand why I had never actually visited the area before. At our first stop we became familiar with a Disc Seeder, CAT tractor on tracks and a Grouper.  Many including myself had no idea what a Grouper actually was, it was interesting to see how it worked and the efficiencies it created with the speed in filling the seed box with seed and fertiliser in the paddock.

Andy backing up the grouper to the seed box. RIGHT HAND DOWN ANDY!!

In the same paddock we were shown different soil types and it was explained to us what strategies are used to maximise yields in any given paddock as well as the pro's and con's of sandy soil versus more heavy clay type soil.

It was interesting to hear how heavy country in the past was something that farmers really wanted because it was able to grow better crops with lower rainfall and how sand was generally considered more difficult land to farm and hence worth less. What our client explained was with new technology, new and improved grain variety's and farming practices that preserve soil moisture this has resulted in a move towards some of the lighter soils which have now started performing well.

We got an insight into the different varieties of grain and why farmers rotate from one variety to the next. What Rust is, I thought rust was something usually found on a Holden or Ford. Rust is dispersed by wind or moisture it is actually a fungus type disease that attaches itself to the plant and can significantly reduce yields if left unattended.  

Sam's rig in action (above)

Direct Drill          

At our second stop we were shown a tine seeder, spray truck, header and various other pieces of equipment used over the years and still used today. A slightly different, larger and possibly more sophisticated seeder is the Tine Seeder, which offered other advantages over the disc seeder such as consistent seed depth and accuracy in hilly country, it also packed the dirt down better which helped trap the moisture in which encourages seed germination.  

It was explained to us the challenges that farmers are faced with this year due to the lack of any post harvest rains, moisture being a major issue but also the difficulties of weed control when it does rain and how seeds from previous harvests are usually eradicated with summer rain and summer sprays.

We were given an insight into how the GPS and Auto steer assist farmers to gain efficiency with driver accuracy. It is amazing how accurate GPS can be compared to driving freehand and over a large paddock how much land would either be missed or overlapped hence wasting time, fuel, chemical, seed etc. DVD players and TV's also play a part in farming! The idea being the help to keep the driver awake and allows the driver to spend more time behind the wheel, sure beats staring out into the paddock for 12 hours straight. 

CAT Tractor &Tine  Seeder

Overall it was a very informative and interesting trip, we all learnt so much from it. Thank you very much to the White family for taking the time to educate us on grain farming, I think it was an eye opener for us to see just how involved and sophisticated the industry has become.




In a country town like Swan Hill, footy and netball is an important feature in the community. Weekend sport plays a huge part in work life balance for a lot of us. Work life balance describes the relationship between your work and the commitments in the rest of your life, and how they impact on one another.

For me, mid week netball is where it is at! Playing mid week has been such a great way to meet some new people, have a run around and a laugh with friends. Being undefeated and on top of the ladder is just an added bonus!

I haven't played a game of netball in six years so I'm much more comfortable getting back into it in an environment that is not so serious. I am playing in the Women's competition so we play Wednesday nights at the Basketball Stadium. It is fun, flexible and friendly and a great way to get back into fitness. Plus, it's indoors so no risk of those horrible weather conditions like rain and being frozen.

Go Tiges!

Mother's Day Challenge

Mothers Day – a chance to spend time with and appreciate our lovely mums and thank them for everything they do for us.
For some people over the last 15 years, it has also been an opportunity to raise money for breast cancer research by running in the Mothers Day Classic. This year, I was one of those people.

I arrived at Beischer Park in Bendigo around 8:30am on Sunday. It was quite fresh and there was already a large amount of people gathered.
The 8km run was underway, and had been completed by some people already. I was running the 4km option and had roped my younger sister into joining me.
Neither of us have been runners in the past and it was the first time anyone in our family had decided to do a fun run. We set ourselves a goal of 30 minutes for completing the 4km circuit around Beischer Park and the Kennington Reservoir, and we finished in a time of 34:28 minutes.
There were times when I felt the need to slow to a walk, but still kept the pace up as much as possible. I'm proud of completing the run (my sister and I have differing views on how much of it I ran. She thinks three quarters, I think two thirds) and am also proud to have contributed $495 to breast cancer research.
Crossing the finish line and seeing my mum, dad, older sister and boyfriend waiting for me was a great feeling. They were all so proud of us for completing it – and mum suggested making it even more of a family event next year.

I chose to participate in the run because it is a cancer that affects so many people. As I get older and get to know more people, I'm realising that more and more people in my life have been affected by it.

Knowing now that I have what it takes to physically complete a fun run, I'm keen to do more - even though two days after, my legs are still really sore! 

Entertaining Clients

We, Rosalie, Jacqueline and Kathleen AKA 'The Three Wise Monkeys' were given a task to organise the SMSF seminar which was held at the Swan Hill Club on the 22nd of last month. The three of us really got our teeth into it as we wanted to make this an enjoyable evening for our Clients, rather than something boring put on by Accountants. 

During the preparation our competitive sides really kicked in. It became a competition of who could get the most acceptances on their list with the winner not having to clean up at the end of the night. Now without saying who, one of us took the initiative of asking all staff members if they were attending the seminar which made them the overall winner with a total of 44 attendees.

On the night we decided to have dinner before the seminar. As it turned out a number of Clients had the same idea. Some tried investing their money in those noisy flashing machines, but with not much luck. Good thing Hamish shared his wisdom and had some alternatives for us all. 

Following the seminar, most stayed on to enjoy a cuppa, a bite to eat and a good catch up. We really enjoyed putting names to faces and can't wait for the next seminar. We think the only thing that could have made it more enjoyable for us is if we won Tatts Lotto and had money to invest!     

The Admin Team: (The Three Wise Monkeys)

Kathleen, Jacqueline and Rosalie

The Wonderful World of Winter Sports

    Trent Collins, Reece Collins, Shaun Lawry

Around these parts, sport, in particular, football is an institution. Not in a Texas High School, Friday Night Lights kind of way, but we love our footy and netball here, and a few of us in the GMG office are no exception to the rule. Now I'm not going to bang on about arguably what many of us consider to be the best club on the planet - COLLINGWOOD, but I will tell you a little bit about my new club, Charlton.

The Charlton Football club is actually made up of the Charlton Football, Hockey & Netball Club and brings together a range of great characters from around the town and district. The club have been fantastic in welcoming myself, my wife Teagan & our 2 children into their community. My future brother in-law, Reece Collins is the coach of the senior football team, Leanne Gretgrix is the senior coach of the hockey team & Tessa Burton is the coach of the A grade netball team.

The first 2 rounds have seen this old boy kick a few goals before running out of steam, but that's just due to what I thought was a massive pre-season, but turns out the work rate might not be at where it used to be! The senior football , A grade netball & the senior hockey teams are all 2 wins from 2 games. All teams have had an even contribution right across the board but there's still a few areas that need improvement.


Have you ever been to Charlton?  Have you ever seen a hockey game played at the same place as football and netball? If you answered NO to any, or all of these, I have the solution for you…….. COME TO CHARLTON FOOTY!!!!!!!!!!!!!!!!!!!!

Charlton Football Club (inc Netball & Hockey Clubs) are holding a sponsorship and family day on the 4th of May, it is a home game VS Boort.  Come along & enjoy a great day out!

Dont forget to drop into GMG Accountings new office located in the main street of Charlton! Myself & Jess Round visit the office every Thursday!

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