GST REGISTRATION

 

When you commenced your business, you may have fallen well below the income threshholds required to necessitate GST registration. This is however a matter that needs to be considered on an ongoing basis.

 

You must register for GST if:

 

• your business or enterprise has a turnover of $75 000 or more
• your non-profit organisation has a turnover of $150 000 per year or more 
• you provide taxi or limousine travel for passengers in exchange for a fare as part of your business, regardless of your turnover – this applies to both owner drivers and if you lease or rent a taxi
• you want to claim fuel tax credits for your business or enterprise.

 

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 your turnover exceeds the relevant threshold, you must register within 21 days of reaching it.

 

If you don't register for GST and are required to do so, you may have to pay GST on the sales you have made since the date you became required to register. This could happen even if you did not include GST in the price of those sales. You may also have to pay penalties and interest. 

 

For further information see the Australian Taxation Office website at:

https://www.ato.gov.au/Business/GST/Registering-for-GST/  

 Please contact Andrew Marshall or Janine Orpwood at Langley McKimmie Chartered Accountants on (03) 5427 8100 to discuss further.

We provide accounting and wealth management services to clients in Woodend, Gisborne and Macedon Ranges areas within Victoria Australia.  

HEADING OVERSEAS WITH A HELP (OR TSL) DEBT?

 

The Government has made changes to the rules around repayments of HELP debts for those planning to go overseas.

From 1 January 2016 those with HELP debts have been required to update their contact details via myGov.

From 1 July 2017 you will be required to report your ‘worldwide’ income to the ATO. If you are above the repayment thresholds the ATO will send you an assessment detailing the amount of your debt that you need to repay. 

For more information please see the following from the ATO:

 

https://www.ato.gov.au/Individuals/Study-and-training-support-loans/Overseas-repayments/

 Please contact Andrew Marshall or Janine Orpwood at Langley McKimmie Chartered Accountants on (03) 5427 8100 to discuss further.

We provide accounting and wealth management services to clients in Woodend, Gisborne and Macedon Ranges areas within Victoria Australia.  

HOLIDAY HOME RENTAL: DON'T GET BURNT THIS SUMMER

If you own a holiday home and rent it out for any period then you must declare the rental income in your income tax return and can only claim tax deductions for expenses based on the proportion of the year the property was available to be rented out. 

Please see the link to the ATO website for further information:

https://www.ato.gov.au/General/Property/In-detail/Holiday-homes/

  

Please contact Andrew Marshall or Janine Orpwood at Langley McKimmie Chartered Accountants on (03) 5427 8100 to discuss further.

We provide accounting and wealth management services to clients in Woodend, Gisborne and Macedon Ranges areas within Victoria Australia.  

 

AN EMPLOYEE MAY BE ABLE TO CLAIM TRANSPORT OF BULKY TOOLS AND EQUIPMENT

As per the Australian Taxation Office website:

  

"You can claim the cost of using your car or vehicle to travel between home and work if: 

• you have to carry bulky tools and equipment you need to use for work
• it is essential to transport them to and from work and it is not done as a matter of convenience or personal choice
• there is no secure area for storing them at your workplace"

 

The link below outlines the substantiation requirements and the new rules from 1 July 2015 for claiming car expenses with the only two methods allowed; cents per kilometre and log book method. The one third actual cost and 12% of original value method are no longer available.

https://www.ato.gov.au/Individuals/Income-and-deductions/In-detail/Deductions-for-specific-industries-and-occupations/Real-estate-employees---claiming-work-related-expenses/?page=2

 
Please contact Andrew Marshall or Janine Orpwood at Langley McKimmie Chartered Accountants on (03) 5427 8100 to discuss further.

We provide accounting and wealth management services to clients in Woodend, Gisborne and Macedon Ranges areas within Victoria Australia.  

SMALL BUSINESS TAX CONCESSIONS

Consider Rachel’s Case  Rachel, 54, has been operating a primary production small business in the Macedon Ranges for 12 years. Rachel has decided to downsize and sell her farm. The real estate agent has estimated it will be able to be sold for $1,000,000. She is wondering what the Capital Gains Tax (CGT) implications will be in her case.  As Rachel qualifies as a Small Business Entity (SBE), she is able to take advantage of the small business CGT concessions. Based on the purchase and estimated sale price the gross gain is $500,000. As Rachel has held the property for greater than 12 months she is eligible for the general 50% discount prior to the application of the small business concessions. Rachel may elect to use the Replacement Asset Rollover giving her the option in the next two years to roll over the gain into another small business asset. As Rachel will subsequently turn 55 she may then elect to use the Retirement Concession under which she is not required to contribute the amount into superannuation and there will be no tax payable on the gain.   The example can be demonstrated as below:   Sale price                            $1,000,000 Purchase price                    $   500,000 Gross Gain                          $   500,000 50% General Discount       ($   250,000) Sub-total                              $   250,000 Retirement Concession      ($   250,000) Net Capital Gain                      Nil Please contact Andrew Marshall or Janine Orpwood at Langley McKimmie Chartered Accountants on (03) 5427 8100 to discuss further. We provide accounting and wealth management services to clients in Woodend, Gisborne and Macedon Ranges areas within Victoria Australia.