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Tuesday 31 July 2012

2012-13 PAYG Withholding tax tables released

From July 1, 2012, the Government has adjusted tax thresholds and tax rates to assist low and middle income households to meet the increasing costs resulting from the introduction of the clean energy legislation.
Further, the temporary flood and cyclone reconstruction levy (flood levy) will cease from July 1, 2012.
To assist employers in withholding the correct amount of tax, the Tax Office has now released the 2012-13 financial year tax tables
The tax tables on the Tax Office website cover the following:
  • Regular payments, including weekly, fortnightly, monthly and quarterly tax tables;
  • Statement of formulas that assist employers in calculating amounts to be withheld and the HELP component;
  • Other weekly tax tables, including tax tables with no and half the Medicare levy and tax tables for senior Australians;
  • Tax tables for exempt employees; and
  • Tax tables for Superannuation payments, Medicare levy adjustments, and a wide variety of other tax tables
To access the tax tables, click here.

Reasonable Travel and Meal Allowances for 2013

Generally, allowances you receive are assessable income in the year they are received, with certain expenses being able to be claimed against it.
Each year, the Tax Office revises the amounts they consider reasonable in relation to claims for.
  • Overtime meal allowances;
  • Domestic travel allowances; 
  • Travel allowance expenses for employee truck drivers; and
  • Overseas travel allowance expenses.
Expense claims made in relation to such allowances receive concessional substantiation treatment. Where the claim for such expenses is less than the reasonable amount prescribed, substantiation of the claim is generally not required.
Overtime meal allowance claims up to an amount of $27.10 per meal are considered reasonable for the 2013 financial year where the meal allowance is paid under a law of the Commonwealth, State or Territory or under an award, order, determination or industrial agreement.
The reasonable amount of a domestic or overseas travel allowance expense claim is dependent on the destination and employees annual salary.
Employee truck drivers who receive a travel allowance and sleep away from home can claim $89.60 or $97.75 per day depending on their annual salary.
Click here to obtain all of the reasonable allowances for the 2013 financial year.

Backdating a GST registration

Can you back date a GST registration?
Should you backdate a GST registration?
When MUST you backdate a registration?

A business making taxable supplies must register for GST when they pass the $75,000 turnover threshold.

This can and does get missed from time to time.

The system does allow a registration to be backdated for up to 4 years. (It can go further if fraud is proved).

If your client has crossed the threshold and should register then you must. If they passed this threshold a year ago you should backdate the registration and change the accounting to include the GST impact.

Backdated registrations mean 1/11th of the taxable supplies is treated as GST collected so you have a payment to make.

Saturday 28 July 2012

You may have to use Government Superannuation Clearing House

As part of the government keeping track of whether super has been paid or not we note this statement from the ATO.

Employers with 20 or more employees must use the new data and e-commerce standard from 1 July 2014.

Employers with fewer than 20 employees need to start using the standard from 1 July 2015.

“A data and e-commerce standard is being introduced that will make it possible for you to send contributions to all funds in one standard electronic form, removing the need to submit this information to separate funds in different formats.

The standard will make processing easier and result in:
  • fewer data quality issues
  • a simpler, more consistent contribution process
  • fewer lost accounts and unclaimed monies
  • faster processing of employees’ money into their super account
  • lower overall processing costs
For more information, employers should visit Employers superannuation – home

Employers with 20 or more employees must use the new data and e-commerce standard from 1 July 2014.

Employers with fewer than 20 employees need to start using the standard from 1 July 2015. This is currently subject to further consultation and may change.

What you need to do
If you prefer to process your super contributions for staff yourself, you can work with your payroll supplier to meet the new data and e-commerce standard. Other partners, including accountants and clearing houses, will be able to help as well.

If you are a small business with fewer than 20 employees the Small Business Superannuation Clearing House is available to help you meet your super guarantee obligations”

Saturday 21 July 2012

PAYG Instalment increases

The system uses GDP to increase the instalments from year to year. What this means is they expect that each business tax bill will go up by 6%. The ATO will put the instalment up automatically. Business should review their actual likely tax bill for the next tax year i.e. for the year 30June13. In conjunction with the tax agent check out just how much tax should be paid by instalment during the year, in advance. The Instalment method is NOT the tax rate method i.e. using T1 & T2 on the BAS. Using the instalment method you are allowed to vary the rate based on change in circumstances etc. You are permitted to vary the instalment along as you can justify it. If you vary either T2 or the instalment down and are wrong, in theory, you will be charged interest on the difference.

Friday 20 July 2012

Hire Purchase – GST Claiming has changed 1July12

  1. Previously with a HP the amount of interest in each payment needed to be taken into account in working out the GST component of a payment or a contract. ie: there was no GST on the interest portion. From 1 July the whole HP contract amount & all payments are treated as ‘taxable supply’ & therefore all has GST on it. No more dissection for HPs. Ie the interest will now have GST on it. 

  2. Also a taxpayer who reported on a cash basis for GST, could not claim back the GST on the whole contract upfront, they had to claim back the GST on the capital portion of each payment. From 1 July cash based reporters can now claim back all the GST on the contract upfront, the same as an accrual based reporter. Only on NEW HP contracts taken out after 1/7/12

  3. Together this means GST applies to the entire contract amount of a HP & all the GST can be claimed back from the outset. ie: no GST on each payment.

Saturday 7 July 2012

BAS Lodgment program 2012-13

The Lodgment program 2012-13 includes the following lodgment concessions for registered BAS agents:
  • lodgment and payment concessions when you lodge eligible quarterly business activity statements (BAS) electronically
  • a lodgment concession for pay as you go (PAYG) withholding payment summary annual reports (not the closely held concession)

What's changed in 2012-13?

December monthly activity statement
The due date for lodgment and payment of the December 2012 monthly business activity statement will be extended from 21 January 2013 to 21 February 2013 for small business clients (that is businesses with up to $10 million turnover) who report goods and services tax (GST) monthly and lodge electronically using a registered agent.

Monthly lodgment obligation
Due date
BAS agent concession for lodgment and payment if lodging via the BAS Agent Portal, Standard Business Reporting (SBR) or electronic commerce interface (ECI)
Activity statement
the 21st of the following month
The electronic lodgment and payment concession does not apply to standard monthly activity statements
December activity statement
the 21st of January
21st of February - December monthly business activity statements for small business clients (that is up to $10 million turnover) who report GST monthly and lodge electronically using a registered agent.
Quarterly lodgment obligation
Original due date
BAS agent concession for lodgment and payment if lodging via the BAS Agent Portal, SBR or ECI
Quarter 4, 2011-12
28 July 2012
25 August 2012
Quarter 1, 2012-13
28 October 2012
25 November 2012
Quarter 2, 2012-13
28 February 2013
The quarter 2 lodgment due date is more than eight weeks after the end of the quarter, which is similar to the electronic lodgment concession available for the other three quarters. Therefore, lodgment concessions are not available for quarter 2.
Quarter 3, 2012-13
28 April 2013
26 May 2013
Quarter 4, 2012-13
28 July 2013
25 August 2013
To be confirmed when the Lodgment program 2013-14 is developed.
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