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Business Start-up

Business Start-up

A business in start-up should be an exciting time, not one of stress of the unknown.

Business Start-up
Grow your Business

Grow your Business

Do you want to grow your business? Are you looking to expand, increase revenue and grow your profits?

Grow your Business
Expand your Business

Expand your Business

Do you plan to expand your business into new locations? Perhaps you'd like to franchise, or take on licensees?

Expand your Business
Protect your Assets

Protect your Assets

As important as acquiring assets is the need to protect them.

Protect your Assets
Exit your Business

Exit your Business

Have you considered all the possible reasons why you might exit your business, and have you put a contingency plan in place for it?

Exit your Business

November 2012 Newsletter - Business

In this issue:

To download a full copy of our newsletter, click here.

Individual Income Tax Rates - Withholding Obligations

Tax rates that apply to resident individuals have changed. Employers should take care to ensure that they are withholding the right amount of tax for each of their employees. Read more

Living Away from Home Allowance

The new Living Away From Home (LAFH) allowance provisions began to apply from 1 October 2012. The new LAFH provisions ensure that recipients of the LAFH allowances that meet the requirements will be tax-free and not included in the recipient's assessable income. Read more

Company Loss Carry-Back Measure

The measure will apply to companies (and entities taxed like companies) who will be able to carry back up to $1 million of tax losses incurred in the 2012-13 year to offset against tax paid in the 2011-12 income year. From the 2013-14 income year, tax losses will be able to be carried back and offset against tax paid up to two years earlier. Read more

Refunding Excess GST

The Government also recently released Exposure Draft legislation to clarify the operation of a provision in the tax legislation that inhibits a taxpayer from getting a refund of GST already paid to the Commissioner if it turns out GST was overpaid because a supply was treated as a taxable supply and it is later determined that the supply was incorrectly treated that way. The measure applies to all net amounts of GST worked out in GST periods commencing on or after 17 August 2012. Read more

Tax and GST Compliance for SMEs

Income Tax

The ATO has issued a specific information publication in relation to the broader compliance obligations of SMEs. The publication is called "Tax compliance for small-to -medium enterprises and wealthy individuals". 

GST

The ATO has also issued a guide specifically catering for the GST compliance obligations of SMEs. The guide is entitled the "GST governance and risk management guide for small-to-medium enterprises". The guide contains two checklists, a simple version (for businesses with a turnover between $2 million and $10 million) and a more comprehensive version (for businesses with a turnover above $10 million). The purpose of the checklists is to assist SMEs to understand and meet their GST obligations and identify any areas that might need improvement (such as systems used to record GST obligations). Read more

Small Business benchmarks

Inspector-General of Taxation released his report on the "Review into the ATO's use of benchmarking to target the cash economy" in early October. The Inspector-General made 11 recommendations to the ATO for the purpose of improving the way the ATO utilises benchmarks to determine whether certain businesses in particular industries have declared all their income that they are likely to have derived. The ATO has agreed to 9 of the recommendations in full and two in part. Read more

Planning to sell your business?

If you are planning to sell, or have been thinking about selling, your business, the ATO has put together a factsheet for business owners. The factsheet alerts business owners to various issues that should be considered prior to selling a business, such as:

  • Considering restructuring your business for the purposes of sale;
  • How to deal with the purchaser;
  • Potential tax considerations. Read more

Proof of ID for non-resident businesses

If you have a non-resident business and need to apply for a tax file number and/or Australian Business Number for the business, the ATO requires new "proof of identity" standards to be met. These are outlined in a new document they have published. Read more

Goods taken from stock for private use

In September 2012, the Commissioner issued a Taxation Determination TD 2012/20 which sets out the value of estimates of goods taken out of trading stock for private use from certain types of businesses. The Taxation Determination is entitled "TD 2012/20: Income tax: value of goods taken from stock for private use for the 2011-12 income year."

The specific industries TD 2012/20 applies to are:

• Bakery;
• Butcher;
• Restaurant/café (licensed or unlicensed);
• Caterer;
• Delicatessen;
• Fruiterer/greengrocer;
• Takeaway food shop; and
• Mixed business (eg milk bar, general store, convenience store). Read more

Common mistakes with reporting trust income

The ATO has issued a factsheet to assist trustees to manage the tax affairs for the trust (or trusts) for which they are responsible. The factsheet provides guidance to preparing the tax return for the trust as well as some key points to preparing the statement of distribution. Read more

New PAYG Instalment Options

If your business pays PAYG Instalments, there may be an opportunity for you to change this so your business can account for PAYG Instalment obligations on an annual basis rather than the report and pay on a quarterly basis. Read more

GST - claiming input tax credits

Recently, the ATO updated the ruling it has issued on adjustments a taxpayer, who is able to claim input tax credits for GST paid on inputs for taxable supplies it makes, is required to make where there are changes to the creditable purpose for which certain acquisitions are made. Read more

ATO's Guide for Employers

In October 2012, the ATO published a guide for employers which covers all types of tax issues that an employer may come across, including preparing to hire employees, registrations the business will need when it hires employees, reports an employer needs to complete for tax payments withheld from amounts paid to employees (including Payment Summaries for employees) and what happens when an employee stops working for you such as final withholding payments an employer may have to make. Read more

New super data and e-commerce standard 

The ATO held in September 2012 information sessions to help super funds and employers get ready to adopt the new data and e-commerce standard, which is being introduced as part of the Government's super reform agenda. 

Read more


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