How your unused leave is taxed

How your unused leave is taxed

When your job ends, whether there has been a termination of employment or redundancy you will receive a payment for unused leave. This payment will be taxed differently from your normal income. The taxation will vary depending on the reason why you left the job and any unused entitlements that have been accrued over your…

What are fuel tax credits

What are fuel tax credits?

The government provides fuel tax credits for businesses with a credit for the fuel tax (excise or customs) that is included in the price of fuel used in machinery, plant, equipment, heavy vehicles, and light vehicles travelling off public roads or on private roads. Fuel tax credits a business receives depend on when the fuel…

What are business activity statements

What are business activity statements?

Businesses that are registered for GST are required to lodge a business activity statement (BAS). These assist in the reporting and payment of: Goods and services tax (GST) Pay as you go (PAYG) instalments PAYG withholding tax Other tax obligations ATO will automatically send businesses who are registered for an ABN and GST a BAS…

How the ATO conducts tax audits

How the ATO conducts tax audits

Tax audits are conducted when the ATO deems that a more extensive examination of an issue is necessary. These audits can be conducted on a fairly basic level or they can be much more in-depth and analytical. In most cases, there will be a review which then leads to an audit, but this isn’t always…

Reduce the tax you pay

Reduce the tax you pay

There are various potential ways you can reduce the tax you pay. You may be entitled to tax deductions, offsets or you may choose to opt for salary packaging. Tax deductions will reduce your taxable income amount. For example, potential tax deductions are work-related expenses, self-education expenses, charitable donations, the cost of managing your taxes.…

The ATOs record keeping requirements

The ATO’s record-keeping requirements

Record-keeping, if done well, can help running a business much easier. It gives you an overview of the business’ financial progress so that owners can assess their strengths and weaknesses and make decisions accordingly. Record keeping also enables owners to meet their tax and superannuation obligations easily – all the data and information required is…

Taxation process for your super contributions

Taxation process for your super contributions

How much tax you pay on your super contributions and withdrawals depends on a variety of factors. The process takes into account your total super amount, your age, and the type of contribution or withdrawal you make. How are super contributions taxed? The money that you contribute to your super account through your employer is…

CGT concessions available to small businesses

CGT concessions available to small businesses

Businesses receive four different types of concessions on top of CGT exemptions and rollovers which are available to everyone. These allow businesses to disregard or defer some or all of the capital gains from an active asset which is used in the business. The four additional concessions include: 15-year exemption: If the business has owned…

What you need to know about claiming tax deductions

What you need to know about claiming tax deductions

There are different types of deductions that individuals can claim to reduce their taxable income. Work-related expenses In order to claim work-related tax deductions, the expenses must have to meet three criteria. Firstly, all the expenses have to be paid by the individual, without being reimbursed by the employer. Secondly, they must be directly related…

Taxation of your investment income

Taxation of your investment income

Investment income needs to be included when conducting tax returns. This includes any income acquired through interest, dividends, rent, managed funds distributions, and capital gains. The income yielded from investments is taxed at a marginal tax rate. Individuals are able to claim deductions for the cost of buying, managing, and selling an investment. However, the…