March is fringe benefit tax season. “Yippee!” we hear you shout! The FBT year is 1 April – 31 March, so it’s around this time we get asked about FBT. Particularly, one of the most common forms of fringe benefit: cars. What is a car fringe benefit? A common car fringe benefit is where you (the employer) make available a … Read More
Can you have yourself a tax-free Christmas?
Coming into the silly season we often get asked about entertainment expenses. What’s reasonable? What’s deductible? In short Entertainment expenses are generally not deductible. This includes the cost of business lunches… even if you’re doing ‘business’, attendance at sporting events… even if your client signed on the dotted line at the event, as well as gala or social nights, concerts … Read More
You’ve got mail: Receiving an audit notification from the ATO
As the dust settles on the last financial year and businesses look to start fresh, some business owners fear a looming audit. No doubt the folks at the ATO are clever and thanks to technology they’re getting even cleverer. Last year the ATO gathered almost 600 million pieces of information from banks, health companies and third party sources to feed … Read More
Tax time: the most wonderful time of the year.
June 30 is looming and it’s the most wonderful time of the year! Tax time is great. 542 clients are relaxed and know exactly what to expect while their colleagues, partners, friends and family wonder what the end of financial year will bring. Is your accountant a one-time-only show? We like to call these accountants the one-time-only June show. They’re … Read More
542 Top 5: Simple tax saving strategies
Planning on giving to charity? Make a donation now and claim the deduction this year. If you donate monthly to charities, think about paying the full year’s worth of donations upfront and take the deduction now. Operate through a company? If you operate through a company structure and the company has advanced you money during the year or paid expenses … Read More
BAS Backlog? Here’s what to do next
In 2013 the ATO started a program intended to enforce timely lodgement, where taxpayers who haven’t lodged their tax returns and activity statements by their due dates could be referred to an external collection agency for follow up. This extended their current program where taxpayers with overdue tax debts are referred to such agencies. The ATO targets those taxpayers who, … Read More
The low down on GST for small business
Last week, treasury boss Martin Parkinson reignited the GST debate by insisting that the GST must rise to 12% as a deficit decade looms for budget. While the debate has been bubbling along since the introduction of the GST, it did remind us of the debate around GST small for business. Most start-ups wonder: to register for GST or not? … Read More
Spotlight on Fringe Benefits Tax: Pay to be nice
Are you a nice employer? Do you shower your staff with benefits when they make their targets? Sometimes YOU need to pay to be nice. Enter > Fringe Benefits Tax. Fringe Benefits Tax (FBT) is a tax levied on benefits provided by an employer to their employees. It is worth noting that if you are a director and conduct your … Read More
Payroll tax thresholds: know your limits.
It’s calculated on the amount of wages you pay per month. You need to pay payroll tax if your total Australian wages exceed the exemption threshold in your state or territory – this varies between states but for this blog we’ll look at NSW. In NSW it’s the friendly folk at the NSW Office of State Revenue that look after … Read More
The 542 Partners Top Tax Tips
Make your superannuation contributions before 30 June For businesses, your June quarterly superannuation contributions are not due until July. However, by paying the contribution before 30 June you can bring forward the deduction into the current financial year. For individuals, you can contribute concessional contributions up the contribution cap for the 2012/13 financial year is $25,000. For individual employees, this … Read More