Extensions for registered BAS agents

Karin Josefsson ATO, Blog, GST/BAS Leave a comment  

BAS extensionIf you use a registered BAS agent you can get an extension on your BAS lodgement

Did you know that if you use a registered BAS agent to lodge your quarterly BAS returns you can get up to an extra 4 weeks to lodge your BAS?

The legislation recognises that it is important to have a competent and experienced registered BAS agent (or Tax agent) submit their BAS’s due to the incidence or errors and omissions in BAS’s, therefore they have introduced legislation requiring bookkeepers to have prescribed qualifications and experience as well as adherence to a code of professional conduct.

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What motor vehicle expenses can I claim?

Karin Josefsson ATO, Blog, Productivity Leave a comment  

How much you can claim for your motor vehicle will depend on your business situation.  If your business is a company or trust then you can claim deductions for expenses relating to the motor vehicle that the business owns.  However, if the motor vehicle is used for private purposes then you may be subject to fringe benefits tax (FBT).

There are various methods of claiming work related car expenses that the tax office allows for a car that you own, lease or hire.  You are able to use the method that gives you the biggest deduction provided you have the evidence that is required.  Each motor vehicle must be calculated separately.

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Claiming Entertainment expenses as a deduction

Karin Josefsson ATO, Blog, Productivity 1

Expenses are usually fully deductible provided that they are incurred in producing taxable income or that is required to carry on in business.  I thought this blog is quite important as I have quite a few clients that don’t understand that not only is entertainment not deductible, but it is subject to FBT if put through the business, so you are better off paying for entertainment personally.

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Taxing employees on Bonuses and Commissions

Karin Josefsson ATO, Blog, Payroll Leave a comment  

Often employers will pay their employees Commissions which are on top of their salary.  Some employers don’t realise that they need to manually calculate and deduct the taxes outside a computerised payroll system, depending on the circumstances of the payment.

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When to register for GST

Karin Josefsson ATO, Blog Leave a comment  

If you have business income of $75,000 or more ($150,000 for non profit organisations) you must register for GST.  Failure to register for GST can result in you being liable for 1/11th of your income plus penalties.

If your income is lower than this than registering is optional, and if you do register for GST then you must stay registered for 12 months and you will need to include GST in the price of most goods and services you sell and you can claim the credits for the GST included in the price of the business purchases.

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Paying the Superannuation Guarantee

Karin Josefsson ATO, Blog, Payroll Leave a comment  

Employers must pay a minimum 9% superannuation contributions to their employees based on their ‘ordinary time earnings’ and this must be paid into a complying super fund at least four times a year.  The superannuation guarantee contributions for the April to June quarter of 2010 must be paid by the 28th July.

To claim the superannuation guarantee payment as a tax deduction for the current financial year ending 30 June 2011 the payments must be made to the complying super funds by the 30th June 2011.  Any payment that is received after this date can not be claimed as a tax deduction until the end of the following financial year.  However, no tax deduction is available where an employer is required to pay the Superannuation Guarantee Charge.

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New Tax Tables 2011 Flood Levy

Karin Josefsson ATO, Blog, Payroll Leave a comment  

Flood levy exemption available

The  Australian Government has introduced a temporary flood and cyclone levy for the 2011-2012 financial year only.  This levy is only for employees earning $50,000 or more.

Some employees  will be exempt from the flood levy if they have been affected by a natural disaster.  To claim the exemption from the levy they will need to lodge a flood levy exemption declaration (NAT 73797).  Please visit the ATO flood levy website for more information and forms.

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