Fringe Benefit Tax (FBT) is something the ATO has been cracking down on in recent years, so it’s important to know what transactions are affected by FBT.
If you offer employees benefits that involve cars, loans, travel or entertainment, it’s essential you know if FBT applies. Read More
The first quarter of the new financial year is almost over already! But before you get too preoccupied with the upcoming silly season, tick your Q1 BAS off the list first.
TO help you out, here are a few useful tips, courtesy of the ATO*
BAS record keeping:
- Keep records of all sales, fees, expenses, wages and other business costs
- Only claim GST credits from suppliers who are registered for GST
- Don’t claim credits for purchases that don’t include GST, such as bank fees or water bills
- Only claim business expenses – don’t claim GST on private expenses, such as food or entertainment
- Claim the business portion of things you purchase that are also used for personal use
- Set aside your GST in a separate account
- Lodge on time to avoid penalties
- Keep all your tax invoices and other GST records for five years
Implications of your Christmas Party from a FBT perspective
With the festive season fast approaching, employers may begin planning their Christmas party and should be aware of the tax implications of such events.
When an employer provides a non-cash benefit to an employee or an associate of an employee, it may give rise to what is known as ‘Fringe Benefit’ with which Fringe Benefit Tax (FBT) may be payable by the employer. Read More
19 September 2018
The Senate has delivered some good news for 3.3 million eligible Australian small businesses by passing the extension of $20,000 instant asset write-off scheme.
Treasurer Josh Frydenberg recently announced the extension passed through the Senate, giving small business owners until 30 June 2019 to take advantage of the scheme.
The extension was initially announced back in May by then Treasurer Scott Morrison as part of the 2018-2019 federal budget.
What it means for Australian small businesses
A fresh warning from the ATO has been released regarding a reported spike in scammer activity.
Posing as tax agents, scammers have been tricking victims into paying large amounts of money, under the guise of ATO imposed fines.
This particular scam involves a three way phone conversation where one scammer impersonates a victim’s tax agent, while another impersonates an ATO staff member.
ATO Assistant Commissioner Kath Anderson has described a recent example of the magnitude of this scam. Read More
The ATO has released a statement calling for accuracy when calculating work-related tax deductions.
The statement revealed a record $7.9 billion worth of ‘other work-related expenses’ were claimed by 6.7 million individuals last year. This figure averages at $1179 per claim.
The maximum amount an individual can claim without the need to provide evidence is $50. If you intend on claiming above this amount, you will need to ensure your calculations accurately represent your usage.
The correct calculation and timely lodgement of superannuation payments is crucial, not only to uphold your obligations as an employer, but also to ensure you don’t fall foul of the ATO.
We came across a scenario recently where an employee lodged a complaint with the ATO regarding what they believed to be a situation of superannuation underpayment by their employer.
The complaint resulted in an audit of all employee superannuation contributions from the previous three years, and consequently the ATO found that there was a minor shortfall in payments (totalling approx. $1,000 over the 3 year period). Additionally, the employer had also been late in making payments on a few occasions.
These sorts of errors can often be the result of a miscalculation or an administrative oversight in regard to missing deadlines. The penalty that was applied by the ATO however highlights the importance of ensuring the accuracy and timeliness of your payments.
The employer was fined $10,000, which largely comprised of interest due to late payment of the superannuation contributions. In most cases, quarterly super was paid within a month of the due date however as the employer had not reported these late payments to the ATO at the time of paying, interest accrued until lodgement of the Super Guarantee Charge forms. This interest is then passed onto the employees’ super funds to compensate for loss of earnings on their underpaid super.
Here are a few tips to help avoid this situation:
- Know your obligations
If you pay an employee $450 or more before tax in a calendar month, you have to pay super of 9.5% of their ordinary time earnings.
If you hire contractors, they may be considered employees for superannuation guarantee purposes – use the ATOs superannuation guarantee eligibility decision tool to work out if they’re entitled.
- Pay quarterly superannuation on time
Q1 (1 July – 30 September) – due by 28 October
Q2 (1 October – 31 December) – due by 28 January
Q3 (1 January – 31 March) – due by 28 April
Q4 (1 April – 30 June) due by 28 July
Remember, if you don’t pay on time, you have to pay the super guarantee charge
- Contact the friendly team at Shakespeare on 9321 2111 if you would like some personalised advise in relation to superannuation compliance and your business.
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