Accounting Directions is looking to expand!
Be a part of our referral rewards program
by sending a new client our way!
Posted on Nov 19, 2018 by Accounting Directions
Small business owners suffering from mental health issues can seek the ATO’s help in meeting their taxation and super commitments. If you are going through tough times take advantage of ATO services that will help keep your finances in check. Get in contact with the ATOGet in touch with the ATO as soon as you realise your mental health is impacting your ability to keep track of your tax. An ATO official can assess your circumstances, advise you on your options and help come up with a solution. The ATO offers an after-hours web chat and an after-hours call back […]
Posted on Nov 7, 2018 by Accounting Directions
Businesses that fail to keep accurate records may struggle to remain compliant at tax time and incur financial penalties from the ATO. Follow the ATO’s record keeping guidelines to stay organised. Basic organisation tips: Keep records electronically (if possible) Keep evidence of all transactions Take photos of paper receipts to avoid faded records Keep all business records including income, expenses and bank records- you generally need to keep them for five years Keep your business records separate from your personal records Financial tips: Make sure business records include cash, online, EFTPOS, bank statements, credit and debit card transactions Records should […]
Posted on Oct 30, 2018 by Accounting Directions
Tax exemptions may apply to small businesses going through a restructure provided they meet certain criteria. Typically when a business is sold, you would have to pay income tax due to transferring assets. However, when a business is restructuring, the ownership of assets remains unchanged, and there is instead a rollover. This allows you to transfer assets as a part of the restructure without having to pay income tax on that transfer. Your business may be eligible for the small business restructure rollover provided that: The change is a genuine restructure as opposed to an artificial or inappropriately tax-driven scheme […]
Posted on Oct 26, 2018 by Accounting Directions
A default assessment is an assessment of taxable income for overdue tax returns or the net amount or assessable amount-for late activity statements. Although the ATO’s preferred approach is to work with taxpayers to help them meet their lodgement obligations, a default assessment will be issued if this collaborative approach fails. PenaltyThe administrative penalty of 75% of the tax-related liability will be applied for each default assessment issued by the ATO. The penalty increases by 20% for taxpayers who have a pattern of non-compliance and the ATO may also apply for another penalty for failing to lodge on time. Assessment […]
Posted on Oct 18, 2018 by Accounting Directions
Fuel tax credit rates have increased on 1 August. The ATO reminds you to use the new rates to calculate claims on your next business activity statement (BAS). How to simplify fuel tax credit claimsIf you claim less than $10,000 in fuel tax credits each year, you can use the ATO’s simplified methods to keep records and calculate your claims. Keep in mind the following tips: Keep accurate business records to help you claim all fuel tax credits you are entitled to Use the ATO tax fuel credit calculator to work out your claim Registered tax agents and BAS agents […]
Posted on Oct 11, 2018 by Accounting Directions
The ATO has extended the $20,000 threshold to 30 June 2019. If you buy an asset and it costs less than $20,000, you may write off the business portion in your tax return. To be eligible to use the simplified depreciation rules and claim an immediate deduction for the business portion of each asset costing less than $20,000, you must: Have a business turnover less than $10 million (increased $2 million on 1 July 2016) The asset was first used or installed ready for use in the income year you are claiming it in. If your asset costs more than […]
Posted on Oct 5, 2018 by Accounting Directions
The ATO is seeking to increase their attention on home office expenses due to the high level of questionable claims made by taxpayers. There has been an increase in the number of Australians claiming deductions for costs incurred from working from home. The ATO reports that in the last tax year 6.7 million taxpayers claimed a record $7.9 billion in deductions for ‘other work-related expenses’, including expenses relating to working from home. The main mistakes stem from individuals claiming the whole instead of the work-related portion of expenses for bills related to phone, internet, printing and stationery. The ATO has […]
Posted on Sep 26, 2018 by Accounting Directions
The ATO is in the midst of developing advanced data programs to find individuals who are leaving a source of income out of their tax return. Analytical tools have been developed to utilise the amount of data the ATO receives to identify instances where income has gone unreported. This is to address the annual $1.4 billion tax shortfall caused by individuals who leave income out of their return. The ATO has identified that the most common mistakes are made by taxpayers leaving out cash wages. There are also issues with the non-disclosure of income from second jobs, capital gains on […]
Posted on Sep 23, 2018 by Accounting Directions
On the 1 July 2018, the Australian Government introduced Single Touch Payroll (STP) for employers with 20 or more employees. The new scheme requires employers to report payment activities each time employees were paid. Authorisations for an agent to act on behalf of an employer to streamline the process of STP are provided below. STP Engagement AuthorityIf a registered agent reports through STP for an employer, they can get written authorisation to make this declaration through an annual agreement. This authorisation will allow the registered agent to make the relevant declaration to the Commissioner when they lodge an STP at […]
Posted on Sep 14, 2018 by Accounting Directions
The Australian Tax Office (ATO) has released draft guidelines changing its previous stance on Fringe Benefits Tax (FBT) for utes. Amendments originated from reports that dodgy tax returns were responsible for a loss of $8.7 billion in income tax due to wrongful claims. Failure to comply with new requirements listed below may result in a 20 percent FBT imposed on the cost of the vehicle. The requirement of a logbookNew rules require employers to ensure their workers using these vehicles keep detailed logbooks. Whether the logbooks are electronic or hard copy, it is vital that the process be effective for […]
Sign up to be the first to receive our E-news mailings.