Tax Facts - Activity Statement
Businesses use activity statements to report and pay a number of tax obligations, including GST, pay as you go (PAYG) instalments, PAYG withholding and fringe benefits tax. Non-business individuals who need to pay quarterly PAYG instalments also use activity statements.
Activity statements are personalised to each business or individual to support reporting against identified obligations.
Activity statements for businesses may be due either quarterly or monthly. Generally, businesses can lodge and pay quarterly if annual turnover is less than $20 million, and total annual PAYG withholding is $25,000 or less. Businesses that exceed one or both of those thresholds will have at least some monthly obligations. Non-business individuals are generally required to lodge and pay quarterly.
Businesses or individuals with small obligations may be able to lodge and pay annually. Some taxpayers may receive an instalment notice for GST and/or PAYG instalments, instead of an activity statement.
The Australian Taxation Office (ATO) web site provides instructions on lodging and paying activity statements. Detailed instructions are provided for each of the different tax obligations:
Tax Facts - General Value Shifting
The General Value Shifting Regime (GVSR) applies to arrangements that shift value between assets, causing discrepancies between the market values and tax values of the assets. Most value shifts happen when parties don't deal at the market value, causing one asset to decrease while the other increases.
Three scenarios are targeted under the GVSR. Exclusions apply to small values in each of the scenarios, as follows:
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Indirect value shifting (exclusion applies if total value shifts under a scheme are less than $150,000)
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Direct value shifts on interests (exclusion applies if total value shifted is equal to or less than $50,000)
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Direct value shifts by creating rights (exclusion applies if the market value of the right granted exceeds the proceeds for the grant by $50,000 or less).
Generally, the GVSR does not apply to normal commercial dealings conducted at market value, or dealings within consolidated groups. There are several other exclusions and safe harbours in the rules.
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CLOUD OR NOT?
THE CLOUD = YOUR BEST FRIEND IN BUSINESS
There is so much technology available to make your business life easier, but it can be daunting to know where to start or how to work out exactly what you need.
Xero is an online accounting software. This means as long as you're connected to the internet you can reconcile your account, send quotes, invoices and even pay your bills.
Why wait till your book-work day to send an invoice? Get paid quicker by sending your invoice as soon as you're finished the job using the app on your phone, tablet or computer.
If you're unsure of a transaction, we can login & sort it for you. There's also a suite of additional apps you can download for more time saving solutions. Give our office a call If you'd like more info a cloud based solutions, we're more than happy to help you get started.
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Tax Facts and Information
We thought the following information on various tax issues would be useful to you. Personal circumstances always vary, so please ensure you contact us for specific advice.
Frequently Asked Questions
Q. Is there a faster way you can process my tax return?
Customers who are short of time can try our drop off express tax. The new express tax not only saves you time but ensures you receive the maximum entitled refund. With the introduction of our express tax return system, you can now simply drop off your tax on your way to work and pick up your completed return on your way home from work that evening! The return is processed by our staff while you are at work or play and completed for your signing and review before the day is out.
For a copy of the Express Tax Form, click here.
Q. What expenses are classified as tax deductible?
There are many deductions that you can claim for expenses incurred while performing your job but, to support your claim, you need to make sure you have the receipts to prove the purchase or, if this is not possible, you will have to keep written records, such as log books or expense diaries. Work-related expenses you may be able to claim as tax deductions vary depending on your occupation, although guides can be found on ATO website.
Q. I have started a second job. How can I make sure I am paying the right amount of tax?
You cannot claim the tax free threshold of $6,000 from more than one employer at a time. It is better to claim it from your main employer. You will pay a little higher rate of tax on the second job but this should ensure that you have paid enough tax on all of your wages for the year.
Finance FAQs
Q. What are the advantages of using a broker instead of going to a bank or other lender?
A broker can give you access to a large range of lenders and their products. This means you are far more likely to get the home loan that's best for your needs. Brokers also fill in most of the paperwork – a big saving in time and hassle. Managing your home loan application is another big advantage. A broker will follow up with lenders and settlement agents to make sure that financing occurs at the right time. A broker can also advise you how to get any stamp duty relief or first home buyer grants for which you may be eligible.
Q. After the home loan is set up, who sends me mortgage statements – the broker or the lender?
The lender will send you all the documentation and statements directly. You can contact your lender about your home loan at any time, though you may find it more convenient to go through your broker.
Q. What sort of home loans are available from brokers?
Brokers provide access to home loans from all the main banks, building societies and other lenders. In total, they can offer a range of 800 products from more than 30 lenders.
Q. Do home loans cost more if you get them from a broker instead of direct from a bank?
No, the costs are the same. From the bank's perspective, whether it pays a broker or an employee, either way there is a cost associated with selling a home loan.
Q. Do I have to pay a mortgage broker to set up my home loan?
No, AFG accredited brokers are paid a commission by the lender that provides you with a home loan.
Q. If I buy a home loan from a broker, do I still need to go see the bank or other lender who provides the home loan?
No, this is all handled by the broker for you.