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Business Activity Statements – How To Take The Sting Out Of The Quarterly Payment

Posted on January 24, 2022 by admin


Been hearing a lot about business activity statements, and feeling more than a little pressure? Kicking off the new year for your business shouldn’t be shrouded in the darkness that can be a looming BAS. But how can you be certain that your business is prepared? To start with, demystifying the BAS might alleviate some of that anxiety and pressure your business may have been facing. Essentially, a business activity statement (BAS) is a government form that all businesses must lodge to the Australian Tax Office (ATO). All businesses registered for GST need to lodge a business activity statement (BAS). This can be done with the assistance of a registered tax agent or BAS agent. A BAS is a summary of all the business taxes you have paid or will pay to the government during a specific period of time. You may lodge your BAS monthly, quarterly or annually (depending on the size of your business you may not have the annual or quarterly option) or may do so through your tax/BAS agent. When lodging your BAS, you need to include these payments within it: Goods and services tax (GST) Pay as you go (PAYG) income tax instalment Pay as […]


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SME Recovery Loan Scheme Rules Amended To Cope With Impact

Posted on December 20, 2021 by admin


Are you an SME who has been impacted economically by COVID-19, and who could use financial assistance to get back on their feet? The SME Recovery Loan Scheme has been extended to 30 June 2022 with a reduced Government guarantee of 50 per cent. This is known as the 2022 Scheme expansion, where loans will be available from 1 January 2022 at the new Government guarantee. Earlier this year (April 2021), the Government announced the SME Recovery Loan Scheme (also known as the Scheme), which was designed to support economic recovery and provide continued assistance to small and medium enterprises dealing with the economic impacts of the coronavirus pandemic. The Scheme was initially slated to be available from 1 April 2021 through to 31 December 2021 at a Government guarantee of 80 per cent of the loan amount. The scheme is open to small and medium-sized businesses with up to $250 million turnover including self-employed and non-profits. The Scheme has been open to (so far) eligible SMEs that were: The recipient of a JobKeeper payment between 4 January 2021 and 28 March 2021 (only approved under this eligibility prior to 1 October 2021) Affected by the floods in eligible LGAs […]


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Maximising Your Super Should Be Done 10 Years Before Retirement For Best Results…

Posted on December 13, 2021 by admin


There are plenty of ways to maximise your superannuation contributions prior to your retirement at any time of your life. As the means of funding your nomadic lifestyle, your seachange or your downtime after retiring, you want to make sure your superannuation is equipped to handle it. The Australian Taxation Office recommends that you should check how you can maximise your super at the bare minimum of 10-15 years before the age that you hope to retire so that you have the time you need to make a difference to your final super balance. So, if you were thinking of retiring at your preservation age (which is the age that you can access your super), your superannuation should reflect the amount that you want to be able to access to fund that retirement. While starting earlier does mean it may be easier to accumulate what you need to retire by the time of it occurring, it doesn’t mean that there’s a cutoff date or a deadline to have contributions in for maximised profits. Here are 3 simple ways that you can make a difference to your superannuation fund which could impact your balance for retirement in the long-term(and the sooner […]


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Can Christmas Parties Be Tax-Deductible?

Posted on December 6, 2021 by admin


While your business may not necessarily be planning an extravagant bash after the events of this year, a Christmas party may be on the menu for your hard-working employees. Planning out your Christmas party in a COVID-safe manner with a little knowledge of the tax deductions you might be able to claim back can make the giving a little sweeter this year. The Venue You can take advantage of the $300 (including GST) minor benefit and exemption rule to hold a Christmas function for your current employees and their spouses. To do so, the party would need to be held on the premises of the business, and during a business day. If your costs are below $300 per person, FBT will not be incurred but you will not be able to claim tax deductions or GST credits. However, if you provide benefits to your employees over $300, it will incur fringe benefits tax (FBT). This means if the Christmas party that you hold is priced at over $300 per person (for the cost of food and drink consumed by employees and spouses) at your in-house party, you will incur and need to pay FBT on the expenses of your employee’s […]


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Minimum Rate Increase To 21 Awards – Is Your Business Compliant?

Posted on November 29, 2021 by admin


From 1 November 2021, minimum wages in 21 awards were increased. If you are not paying your employees this new rate of pay, you may find yourself facing significant penalties for failure to comply with the Fair Work Ombudsman. This increase is to be applied to anyone who is paid the minimum award wages or the national minimum wages. As an employer of workers, you must pay them a fair wage according to the award that their profession exists under. That wage must meet the minimum wage expectations for the award, which is the minimum amount an employee can be paid for the work that they’re doing. Employees may be paid more than that wage, but the bare minimum that they can be paid is set out in the awards and as a part of the national minimum wage base rate. The national minimum wage was increased from $19.84 per hour to $20.33 per hour, or 772.60 per week (increased from $753.80). This increase should have applied from the first full pay period starting on or after 1 July 2021. In addition, employees who are covered by awards should also have had their base rates increased by 2.5 per cent, […]


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How Do You Make Sure Your Super Goes To The Right Person When You Die?

Posted on November 22, 2021 by admin


What happens to your super when you die? It might not be a question that has cropped up in many people’s minds, but it is something that you should be concerned about. Upon the untimely death of someone, their superannuation may be one of the elements of the estate that can be bequeathed and divided between their loved ones (trustees of the estate and beneficiaries.  This is not done through your will though, as it isn’t automatically included unless specific instructions have been given to your super fund. Often this is done through a binding death benefit nomination. These payments are usually paid out in lump sum payments and split between beneficiaries as dictated by the deceased. However, like any property or asset that can be challenged, the death benefits from superannuation and SMSF can be a legal quandary if the appropriate succession planning measures have not been put into place. Death benefits are one of the most commonly occurring legal issues that plague the superannuation and SMSF sector for individuals. Many court cases involving death benefits are the result of poor succession planning, as individuals who were not stated to be recipients of the payments miss out on what […]


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What Happens To My Tax If I Have More Than One Job?

Posted on November 18, 2021 by admin


Are you in the process of getting a second job to supplement your income? Or have you already received one, and are now simply confused about what you are being taxed on? Gaining employment in a second position or job means that you may have a higher amount of tax withheld from your pay. Though this might sound daunting, it is simply because you are already claiming the tax-free threshold from another paying job. The tax-free threshold in Australia is $18,200. If you are claiming your tax-free threshold, you are not paying tax on the first $18,200 earned in each income year. The tax-free threshold is equivalent to earning: $350 a week $700 a fortnight $1,517 a month Withholding tax at a higher rate means that you are less likely to have a tax debt at the end of the income year You may be receiving pay from two or more payers at the same time if you: have two or more jobs have a regular part-time job and receive a taxable pension or government allowance. In these instances, your new employer will give you a Tax file number declaration to complete. Centrelink is also a payer who will give […]


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Are You Suffering From Unpaid Super?

Posted on November 8, 2021 by admin


Australia’s superannuation laws are designed with the intent to ensure that your nest egg for retirement is protected and able to continue to grow throughout your career. Your employer is expected to make contributions to your superannuation by law, known as the Superannuation Guarantee, as a part of your wages and salary package. The current rate for the SG is 10% in 2021-22. Up to a quarter of Australian workers may have been underpaid or unpaid when it comes to parts of their super. During these turbulent times of financial insecurity or instability, many employers may have found it difficult to prioritise making SG contributions on your behalf. The reporting obligations and quarterly payment schedules could result in them not meeting their SG obligations in a timely fashion. There is a rising issue occurring from superannuation laws that employers may possibly be exploiting, which could significantly affect their employees’ retirement outcomes. The Government recently offered an amnesty to employers to catch up in their superannuation guarantee obligations but it appears that there are many that are still not complying with the rules. According to Industry Super Australia (ISA), underpaid and unpaid superannuation costs almost 3 million Australian workers an average […]


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Rent Concessions, Property & Commercial Enterprises – What Do You Need To Know Tax-Wise?

Posted on November 1, 2021 by admin


Over the last 12 months, there have been many notable schemes promoted by state and federal governments to assist businesses and individuals with much-needed tax relief. Numerous relief schemes have been put into place to assist those with rent relief for their businesses. Rent is a major business expense. It is one that many businesses across the country have often had to face in one way or another. To address the issues that many businesses faced with lockdowns and cashflow issues as a result, some businesses were eligible to apply for rent concessions as a result of the impact of COVID-19, which could be as either a waiver or as a deferral. Waiver In the event that a waiver is the available rent concession, the tenant no longer needs to pay the amount of rent that has been waived. Deferral The tenant is still required to pay the amount of rent deferred, but the amount can be paid at a later stage (in the event that the ruling of the rent concession is as a deferral on payment). Tenants who receive rent concessions from their landlords and landlords who give rent concessions to commercial tenants need to be aware of […]


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Director Identification Numbers And What Companies Might Need To Do To Get Prepared

Posted on October 25, 2021 by admin


Did you know that there are 31 different business registers that a business or company may need to be registered with that are a part of ASIC? Some of these registers are being brought together, in what will be known as the Australian Business Registry Services (ABRS). The Commissioner of Taxation was appointed in April 2021  as the Commonwealth Registrar of the ABRS. In the near future, registering a company will be done through the ABRS instead of ASIC. This is a part of the government’s move towards a more efficient digital economy. Previously, a company or business was registered through ASIC, where a Tax File Number and an Australian Business Number would be required. These are obtained through the Australian Taxation Office (ATO) and are a critical part of setting up a business or company. Beginning from November 2021, there will be an additional step introduced in the registering of a company, involving a Director Identification Number (DIN). This director identification number is a unique identifier that a director will apply for once and keep forever. Every company director will need to have a DIN prior to 30 November 2022, with Indigenous directors having an additional year (till 30 […]


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Business Activity Statements – How To Take The Sting Out Of The Quarterly Payment

January 24, 2022

Been hearing a lot about business activity statements, and feeling more than a little pressure?

Kicking off the new year for your business shouldn’t be shrouded in the darkness that can be a looming BAS. But how can you be certain that your business is prepared?

To start with, demystifying the BAS might alleviate some of that anxiety and pressure your business may have been facing. Essentially, a business activity statement (BAS) is a government form that all businesses must lodge to the Australian Tax Office (ATO). All businesses registered for GST need to lodge a business activity statement (BAS). This can be done with the assistance of a registered tax agent or BAS agent.

A BAS is a summary of all the business taxes you have paid or will pay to the government during a specific period of time. You may lodge your BAS monthly, quarterly or annually (depending on the size of your business you may not have the annual or quarterly option) or may do so through your tax/BAS agent.

When lodging your BAS, you need to include these payments within it:

A BAS is issued by the ATO either monthly or quarterly. A form needs to be lodged with the ATO and payment made to the ATO by the due dates as follows:

(as registered tax agents we are given an extension to most of these deadlines)

You may instead be eligible to submit an Instalment Activity Statement (IAS). In the IAS, the ATO tells you every quarter what your GST instalment amount is and where applicable your PAYG instalment amount is.  Essentially, the IAS is a form that is similar to the BAS, but simpler in that you do not have to be concerned about GST and some other nominated taxes.

Businesses that are not registered for GST and individuals who are required to pay PAYG instalments or PAYG withholding (such as self-funded retirees) use this form to pay PAYG.

IAS provides a little more flexibility in the arrangement as the instalments are advised by the ATO on what you need to pay to cover your liabilities.

You may be able to vary those amounts if you feel that the advised instalments are too much or not enough to cover your liabilities. You may also be able to pay the amount in one lump sum at the end of the year. Before changing the amount due, or the timing of the payment, it’s best to consult with us (or your registered BAS agent) for additional advice to suit your circumstances.

Preparing For Your BAS

Your IAS and BAS can be used to assist in monitoring your business finances. Though you only need to lodge these every quarter, waiting until the due date to get all of the information you require for the statements may cause you to miss out on critical observations (such as how much you may actually owe the ATO).

Daily tracking of your income and expenses can assist in calculating your GST and other liabilities on your BAS, and allows you to ensure that there won’t be any nasty surprises waiting for you.

Here are some tips on how you can prepare for your BAS or IAS this quarter