The ATO has recently stepped up its cash economy letters program to small businesses. The ATO have indicated that around 100,000 letters will be issued to businesses over a 12 month period that are operating outside the small business benchmarks for their particular industry. Part of this program involves identifying businesses reporting net income that appears to [...]
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The ATO is currently conducting a compliance project on certain “high risk” industries (e.g. road freight transport, electrical and automotive repair and maintenance) to identify employers who are not meeting their superannuation guarantee obligations. Given this increased compliance focus, it is timely to provide an overview of these super obligations. Employers are required to provide [...]
The Australian Taxation Office continues to release a range of small business benchmarks to help businesses in meeting their tax obligations. More than 100 benchmarks have now been released. The benchmarks have been developed based on information reported by small businesses on income tax returns and business activity statements and from other sources. Small businesses [...]
Starting a small business may be relatively simple but as your operations improve and incomes start to grow, getting your financial records in order for tax purposes can be a daunting task. Reporting assessable income, business expenses and other declarations is essential in lodging tax returns. You can simplify this by using the services of [...]
When operating your business as a company, it is your duty to lodge an annual company tax return showing your taxable income and the amount of tax due on that income. Limitations of deductions Taxable income is computed by deducting certain expenses (also referred to as allowed deductions) from your assessable income. For these expenses [...]
Depending on the business structure you operate, you may be required to lodge different tax returns. Australian tax laws lay down specific rules and guidelines for reporting and computing amounts subject to various taxes which every business person must be familiar with or risk the assessment of penalties. Income tax return Sole trader If you [...]
Annual fringe benefit tax returns are required to be lodged by all employers who provide “fringe benefits” to employees. The fringe benefits year runs from 1 April – 31 March Fringe benefits tax is payable by the employer Popular fringe benefits are: Car benefits Entertainment Loan benefits Specific exemptions include: Relocation costs Minor benefits Living [...]
Payroll tax is imposed by each State and Territory on wages and benefits paid or payable to employees. The tax rate varies as does the amount of the threshold entitlement available to business operators. Payments made to independent contractors can be subject to payroll tax. In New South Wales payroll tax is payable on gross [...]
There are two types of Activity Statements: Business Activity Statement (BAS) which are required to be completed by those taxpayers registered for GST, and Instalment Activity Statement (IAS) applies to those not required to be registered for GST. Important considerations when completing these returns are: Returns need to be lodged by due date – to [...]