Frequently Asked Questions for Business Accounting
When do I need an ABN?
It is not mandatory to have an ABN. A business can trade without an ABN but the businesses it deals with are required by law to withhold (and pay to the Tax Office) an amount equal to 46.5% of the gross payment if the ABN is not cost estimated.
Do I need to register for the GST (Goods & Services Tax)?
If your business has a GST Turnover of $75,000 or more ($150,000 or more for a non-profit organisation) or provide taxi travel, then you must register for GST. GST registration is optional for businesses with a turnover of less than $75,000.
What are my obligations as a GST Registered Business?
The obligations of a GST registered business include :
• Determining whether your sales are Taxable, GST Free, or Input Taxed sales
• Include GST in the price of taxable sales
• Issue tax invoices for taxable sales
• Obtain tax invoices for purchases that have GST included in the price
• Report your sales and purchases by lodging Business Activity Statements (even if the amount to be reported is zero) and pay GST to the ATO.
Is GST payable on the purchase/sale of my business?
The purchase/sale of a business as a going concern can be made GST Free in the following circumstances:
• Everything for the businesses continued operation is supplied to the buyer
• The seller carries on the business until the day it is sold
• The buyer is registered or required to be registered for GST
• Before the sale, the buyer and seller agree in writing that the sale is of a going concern.
What is a small business entity?
If you operate a business as a sole trader, partnership, company or trust and the turnover is less than $2 million, then it is a small business entity and may be entitled to the small business concessions.
Are there any tax concessions for small businesses?
Yes. There are a range of tax concessions available for small business. The concessions available to small businesses include:
• Small business tax break (2009 to 2011 income years)
• Entrepreneurs tax offset
• Simpler depreciation rules
• Simpler trading stock rules
• Choice to account for GST on a cash basis
• Capital Gains Tax exemption and rollover provisions
• Capital Gains Tax 50% active asset reduction
• Capital Gains Tax retirement exemptions
• Immediate deductions for certain prepaid business expenses
• Two year period for amending assessments (exceptions may apply)
• FBT car parking exemption (applies from April 2007).
Frequently Asked Questions for Individuals Accounting
What are your accounting fees for preparing personal tax returns?
As a guide, the upfront fee for a basic wages return is from $100.00 plus GST. The fee depends on the complexity of the tax return and whether payment is made at time of preparation or deducted from the tax refund.
For an obligation free cost estimate phone 02 4328 3644 or email info@branderaccounting.com.au
Can the accounting fee be deducted from my tax refund?
Yes. An additional fee of $20.00 is payable for this service to cover the negotiation of the tax refund cheque and our processing costs.
Do you prepare previous year tax returns?
Yes. We prepare and electronically lodge previous years and overdue tax returns. The ATO processes most current year tax returns within 10 working days, but there can be slight delays with previous year tax returns.
Do I need to lodge a personal tax return?
This will depend on the individuals specific. Please phone our office for specific advice concerning your situation.
I am missing a Payment Summary. What do I do?
All your Payment Summaries should be included in your tax return. You should contact the employer for a copy of the missing Payment summary. If unable to get it from the employer, then phone the ATO on 132 861.
Can I claim my work clothes/uniform as a tax deduction?
Deductions can be claimed for specific work uniforms and protective clothing. The costs of a plain uniform (e.g. black pants and white shirt) or conventional clothing (e.g. jeans, sox and shorts) cannot be claimed.
How do I apply for a Tax File Number (TFN)?
You need a copy of the Tax file number – application or enquiry for individuals ( Form NAT 1432). To do this visit ATO online ordering or phone the ATO on 1300 720 092 or obtain one from an ATO shopfront or a selected newsagent. The application form must be accompanied by original documents which prove your identity. As a result, you cannot apply for a TFN online. A list of acceptable documents is provided in the instructions to the form.