From 1 July 2015 a new two-tier company tax system took effect and applies to all companies. This system sees the whole of a company’s taxable income subject to the following rates:
28.5% if the company’s aggregated turnover is below a $2 million threshold (i.e. a small business entity)
Clients don’t need to do anything now. The new rate will be automatically applied to your PAYG instalments rate or on your next activity statement.
5% tax discount for other businesses If your business is not a company, you’ll get a 5% tax discount from 1 July 2015. This means the amount of tax you need to pay on your business income will be reduced by 5%, capped at $1,000 each year.
Tis the season for entertainment fringe benefits
Business clients – Don’t forget with staff Christmas celebrations – if its tax deductable, its FBT-able
Gifts for staff less than $300 each is non- tax deductable and non FBT-able, if the gift is over $300 it is tax deductable and FBT-able
Meals Entertainment –
Restaurants or other venue – I recommend the 50/50 actual method, where employees contribute 50 % of the cost of the entertainment/meal and the other 50% paid by the employer then becomes tax deductable and FBTable.
If you are still unsure contact bennetts tax & bas service for clarification – 0421 074 952 OR firstname.lastname@example.org
ATO Christmas closedown –
Be aware the ATO will cease processing returns for the Christmas shut down. Clients need to have their information and instructions to bennetts tax & bas serviceprior to 6 December 2015
To increase the likelihood of receiving your notice of assessment and any associated refund before the holiday period, we recommend you lodge your return or other forms electronically by 6 December 2012.
Lastly, a little bit of housekeeping.
I am contactable 7 days a week for all clients however would appreciate that weekend contact be for emergencies or time critical advice only. If your query or message is not urgent, please send an email on the weekend and it will be waiting for me first thing Monday morning.
Social calls are of course excluded from above!
Until next month – remember, in the words of Sam Walton-