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A.S.A.P  Accounting & Taxation P/L 

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Tax & Business Services

ASAP Accounting & Taxation can help you navigate the accounting and tax responsibilities that come with running a business. We can advise you on the best structure to set up your business. We can also assist you in the setting up of a Company, Partnership, Trust or Self-Managed Super Fund.

Our team is experienced and dedicated to providing timely and proactive solutions for all your accounting, taxation and business needs. In fact our experience covers the whole realm of tax and associated accounting and business advisory, from compliance to growth and tax-effective strategies. 

Reducing Tax by Maximising Tax Deductions

The First thing to know is: What is a tax deduction?

The ATO criteria and definition of a tax deduction is:

  1. It must be spent
  2. It must be necessarily incurred in earning your income.

A definition we use is: A tax deduction is an expense that is related to your income.

No matter how complex the system becomes with new taxes and different laws, fundamentally the basic formula applies; whenever you spend money to make money that's a tax deduction, but only if you were making money first!

"Willingness to look outside the box is required by both you and us."

The size of your tax deductions is directly related to your ability to know and track all your expenses.

Using our definition of a tax deduction, you can easily determine if an expense is a tax deduction or not. If you're unsure, then by all means ask us. A proactive accountant is one who works with you to really maximise your deductions, but it is up to you to first make sure you've tracked and included all possible expenses. If you don't tell ASAP Accounting & Taxation that you spent $100 on tolls or include it in your bookkeeping, how will it ever be deducted?

The simple act of seeing how an expense could legitimately be related to your income producing activity is the key and it also, incidentally, gives you a great index as to the pro activeness of your accountant. ASAP Accounting & Taxation are willing to try and see how an expense can be related we don't just dismiss the "tricky" ones without regard.

For example, if your job entailed a considerable amount of time working outdoors then safety sunglasses could be a related expense. But you'd have a tough time relating sunglasses to an office job!

Therefore, willingness to look outside the box is required by both you and ASAP Accounting & Taxation.

The first step, however, is to record the sunglasses as an expense. If you're ever in doubt as to whether an item is an expense or not, include it in your bookkeeping and nut it out with ASAP Accounting & Taxation at tax time. If you fail to record it in the first place then you've lost the opportunity to claim it altogether.

So part of being an investor or business owner is making that extra effort to record and claim all that you legitimately can. After all, you've worked for the money and by organising your paperwork you'll be able to keep that little bit extra in your back pocket!

So don't forget to stop and ask yourself "How can this expense be legitimately related to my income?" 

 

Lodgement & Payment Due Dates

  1. Table 1: BAS agent concessions – monthly lodgment obligation

    Monthly lodgment obligation

    Due date

    BAS agent concession for lodgment and payment if lodging by Online services for agents or PLS

    Activity statement

    21st of the following month

    Not applicable

     

    The electronic lodgment and payment concession does not apply to standard monthly activity statements.

    December activity statement

    21 January

    21 February – December monthly business activity statements for business clients with up to $10 million turnover who report GST monthly and have elected to receive and lodge electronically using a registered agent.

    Table 2: BAS agent concessions – quarterly lodgment obligation

    Quarterly lodgment obligation

    Original due date

    BAS agent concession for lodgment and payment if lodging by Online services for agents or PLS

    Quarter 4, 2019–20

    28 July 2020

    25 August 2020

    Quarter 1, 2020–21

    28 October 2020

    25 November 2020

    Quarter 2, 2020–21

    28 February 2021

    Not applicable

    Quarter 3, 2020–21

    28 April 2021

    26 May 2021

    Quarter 4, 2020–21

    28 July 2021

    25 August 2021

     

    To be confirmed when the BAS agent lodgment program 2021–22 is developed

Single Touch Payroll is here! What is STP?

STP works by sending tax and super information from your STP-enabled payroll or accounting software to the ATO as you run your payroll.

You will:

  • run your payroll
  • pay your employees as normal
  • give them a payslip.

Your pay cycle does not need to change. You can continue to pay your employees weekly, fortnightly or monthly.

Your STP-enabled payroll software will send a report to the ATO which includes the information they need from you, such as:

  • salaries and wages
  • pay as you go (PAYG) withholding
  • super liability information.

The employer reporting guidelines from ATO contains a full list of payments that must be reported through STP.

Super funds will also be reporting to the ATO. They'll let them know when you make the super payment to your employees' chosen or default fund. This is an important step toward making sure employees are paid their correct entitlements.

ATO systems will match the STP information to our employer and employee records.

If your employees have a myGov account linked to ATO online services, they will be able to see their year-to-date tax and super information in their Income statement. Their data is updated every time you report. For most employers, this will be each pay day.

At the end of the financial year you'll need to finalise your STP data. This means you are making a declaration that you have completed your reporting for the financial year.

Once you finalise your data, your employees' Income statement in ATO online services will be marked as 'Tax ready'. They, or their registered agent, will use the Income statement to lodge their tax return.

You won't need to provide the ATO with a payment summary annual report for the payments you report through STP.

If you currently lodge an activity statement you will continue to do so.

Support for Business Investment - Instant Write-Off

Do You Need to register for GST?

You need to register for GST if you run a business or enterprise and your GST turnover is $75,000 or more ($150,000 or more for non-profit organisations).

If you're not registered for GST, check each month to see whether you've reached the threshold, or are likely to exceed it. If you're turnover exceeds the relevant threshold, then you must register within 21 days of reaching it.

ASAP Accounting & Taxation can help you register when you first register your business or at any later time.

2021 Hot Spots

So, what is on the ATO’s list this year? Well, essentially, they’re looking at two main areas; work-related expenses and claims made by investment property owners.

The ATO recently claimed that there was an $8.7 billion shortfall between the tax individuals are expected to pay and the tax they actually are paying. The ATO believes that Work-related expenses claims are the biggest element in that “tax gap” and have signaled that they’ll be looking closely at these deductions this year. In particular, they’ll be looking closely at:

  • Claims for work-related clothing, dry cleaning and laundry expenses (for instance the ATO has flagged that it will be checking taxpayers who take advantage of the exemption from keeping receipts for people who spend less than $150 on laundry expenses; the ATO believes that too many people are claiming this without actually incurring the expense)
  • Deductions for home office use, including claiming for “occupation” costs like rent, rates and mortgage interest, which are not allowable unless you’re actually running a business from home.
  • Crypto Trading
  • Copy/Pasting claims from previous year
  • Mobile phone and internet costs, with a particular focus on people who are claiming the whole (or a substantial part) of the bill for their personal mobile as work-related
  • Motor vehicle claims where taxpayers take advantage of the 68 cent per kilometre flat rate available for journeys up to 5,000kms (the ATO is concerned that too many taxpayers are automatically claiming the 5,000km limit regardless of the actual amount of travel)
  • Incorrectly claiming deductions under the rule that allows taxpayers who have incurred work-related expenses of $300 or less in total to make a claim without receipts (the ATO believes that some taxpayers are claiming this – or an amount just less than $300 – without actually incurring the expenses at all).

Checklist of Business Deductions

Weekley Tax Table 2020/21

Cash Flow Assistance for Businesses - Covid-19