If your turnover is expected to reach $75,000 ($150,000 or more for non-profit organisations) for the financial year then you are required to be GST registered. You can elect to be GST registered under this threshold if you so choose.
Employers have to pay 9.5% superannuation when an employee is paid $450 or more before tax in a month and is:
1. Over 18 yeas of age, or
2. Under 18 years and works over 30 hours a week
If you run a business from home, or use your home for work purposes, then you can claim a portion of the running expenses as a tax deduction.
These expenses include: power, depreciation on office equipment, and office consumables.
The 2 methods that can be used are:
1. Actual Expenses – You will need to keep a diary to calculate how much of your running expenses relate to the business. You will need to keep the diary for 4 weeks to show an average working month. We will then need your expenses to multiply by the business use percentage calculated from the log book / diary.
2. Cents Per Hour – The ATO allows 45c per hour as a tax deduction for your time spent working from home. You just need to keep track of the number of hours spent working from home.
The current tax free threshold for residents is $18,200.
If you don’t need to lodge a tax return for any number of reasons, you will still need to notify the ATO. This can be done through us by lodging a ‘Not Required’ Form.
If this applies to you please contact our office so we can keep you up to date with the ATO.
The ATO are conducting a review / audit of my accounts. Are your accounting fees covered by accounting insurance?
The ATO are conducting more reviews and audits every year.
Each year we offer all clients audit insurance. This insurance covers the accounting fees (up to certain limits) that are incurred in liaising with the ATO and preparing all the necessary information for the audit.
The audit process can be a simple process or it can be very complicated and lengthy.
By taking up the audit insurance, you will have the peace of mind of knowing that your accounting fees are covered for the audit process.
Please note: This fee doesn’t cover any penalties or amendments resulting in tax payable to the ATO.