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  Business Support Fund – Tax Consequences   A government payment to assist a business to continue operating is included in assessable income. This will include assistance provided as a one-off lump sum or a series of payments. For businesses operating on:   an accruals accounting method – the income will be derived when the right to the government payment arises a cash accounting method – the income will be derived when the government payment is received.   Generally, you do not have to pay GST on grant funding unless you provide something of value in return for the payment. Providing something of value for the payment can include entering into a binding legal obligation to do something or refrain from doing something in order to receive the payment.   Example – Cash payment for running business   Bharat operates a local café which employs five full time and 10 casual workers. As a result of COVID-19 the café is closed for two months ...

Very often we are asked if meal expenses incurred while driving Uber, Ola, DIDI or using any other ride sourcing platform are deductible. We’ve noticed a spike in inquiries relating to deduction for meal expenses. In most cases, clients tell us that other accountants are claiming meal expenses on GST returns for ride sourcing and have been told by other accountants that these expenses are deductible. There are some expenses that can’t be claimed because they’re personal expenses or not allowed under the law. This includes personal or private expenses, such as meals you purchase while on a break. Next time, if an accountant tells you that meal expenses incurred while ride sourcing are claimable, ask them to show an ATO weblink confirming the same. Contact Expert Tax  on 0449 952 855 or 1300 869 829 for assistance on tax related matters.

Rental and other rental-related income is the full amount of rent and associated payments that you receive, or become entitled to, when you rent out your property, whether it is paid to you or your agent. You must include your share of the full amount of rent you earn in your tax return. What happens if Rental Bond is retained in case of tenant default or damage caused to property by the tenant? You must include rental bond money as income if you become entitled to retain it, for instance, because a tenant defaulted on the rent, or because of damage to your rental property requiring repairs or maintenance. In case of commercial rent, if the landlord becomes entitled to rental bond then the amount will be inclusive of GST (if landlord is registered for GST) and GST liability will arise as a result. What if you received an insurance payout? If you received an insurance payout, there may be situations where the payout needs to be included as income, for example,...

Every company has an annual review date, usually the same date it was registered. Shortly after this date, Australian Securities & Investments Commission (ASIC) will issue an annual statement and an invoice. Companies must pay annual review fee to keep the entity registered. Business owners can check the review date for a company on ASIC’s Organisation and Business Names search. You will need to provide an Australian Company Number (ACN) to do the search.   If you don’t pay the annual review fee in time, you may need to pay additional fees. ASIC fees are not subject to GST. Note – ASIC annual review fees are deductible on tax return. Expert Tax are registered ASIC agents. We offer range of services to manage your ASIC accounts including submitting forms for making changes. Expert Tax also offers services to manage your ASIC correspondence at a small annual fee to ensure you don’t miss any correspondence from ASIC. Contact Expert Tax...

Check your supplier’s ABN Attention – Business Owners It is important that every business making a payment should check the validity of their suppliers ABN to ensure: 1. Suppliers have provided a valid ABN that belongs to them. 2. That the supplier is registered for GST and allowed to charge GST. 3. A valid tax invoice has been received from suppliers. If your supplier provided an invalid ABN on the tax invoice, or is not registered for GST but they have charged it, and you pay it to that supplier, then the ATO position is that you are not allowed to claim back that GST from the ATO. You will be considered to not have received a Valid Tax Invoice. In case ABN mentioned on the tax invoice is invalid and supplier is not registered for GST, you must not pay GST and deduct ABN Withholding Tax @49% of the Ex GST invoice amount and remit this on the next BAS report and complete an Annual Payment Summary for the payee. There are increasing reports of the ATO condu...

GST – In Simple Terms Goods and services tax (GST) is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia. Generally, businesses and other organizations registered for GST will: • include GST in the price they charge for their goods and services • claim credits for the GST included in the price of goods and services they buy for their business. Do you need to be registered for GST? If you run a business or other enterprise and have a GST turnover of $75,000 or more ($150,000 or more for non-profit organizations) or you provide taxi travel – you need to register for GST. GST registration is voluntary if your annual turnover is less than $75,000 in case of a business or less than $150,000 in case of non-profit organization. You can register ABN (Australian Business Number) and GST via the Australian Business Register (ABR) website – www.abr.gov.au or please contact us to assist you in registering your ABN. How GST...

Fuel Tax Credits Businesses can claim credits for the fuel tax, which is excise or customs duty, included in the price of fuel they acquire and use in business activities in machinery, plant, equipment and heavy vehicles. Some eligible activities include road transport, construction, manufacturing, agriculture, fishing, forestry, electricity generation, landscaping, panel beating, cement kilns, quarrying, and industrial furnaces. In fact, most businesses can claim fuel tax credits. The rate that varies depending on the fuel used and business activity. Examples of fuels eligible for fuel tax credits include petrol, diesel, kerosene and LPG. Some fuels aren’t eligible such as fuel you use in light vehicles of 4.5 tons gross vehicle mass or less, traveling on public roads. A business must be registered for both GST and fuel tax credits before claiming fuel tax credits. Contact Expert Tax on 0449 952 855 or 1300 8 MY TAX (1300 869 829) for further assistance. ...