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ATO requires all taxpayers who own a business to keep records of all financial transactions entered into during the year. Wherever a taxpayer is required to make a choice, an estimate or a calculation, documented details must be kept. This also includes documentation explaining how your income and expenditure figures were determined. All taxation records must be kept for a minimum period of five years and penalties and interest may apply if you fail to do so.
As the end of the financial year is fast approaching, we’ve put together a checklist of what you’ll need to provide to your accountant:
Courtesy of SBDC
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Many business transactions and reporting are done with online services such as PLS (Practitioner Lodgment Service), ELS (Electronic Lodgment Service), ABR( Australian Business Register) and Tax Agent portal. The working nature of these services is explained in details: Practitioner Lodgment Service: PLS can be made by using standard business reporting enabled software. If anybody uses desktop software they can place reports through the PLS. Electronic Lodgment service: ELS can be used for income tax returns to work with clients in terms of electronics. Tax agent portal: This can be utilized to communicate in online with client to update and view clients registration details, to view account information of clients, and to prepare, view, print, lodge activity statements of the clients Australia Business Register: A person can access their client’s ABN details in online by using the ABR external link for this person have to use AUSkey to login to apply for TFN, to change safe ABN information  A salary sacrifice commonly known as total remuneration packaging or salary packaging. It will be an arrangement between an employee and an employer, in which the employee accepts to sacrifice their future rights to wages or salary in the back for the employer giving them with welfare of a similar amount. The salary sacrifice for not for profit organization are similar as for business and a successful salary sacrifice will explain the amount of wage or salary to be sacrificed. But this amount should be entered before the employee to be paid and prior to any work is done. An effective arrangement is as follows: • The employee providing income tax on decreased wages or salary • The employer may be legally answerable to pay FBT (Fringe Benefits Tax) on the fringe welfare given. • The employer may have to provide the payment summary reports of certain benefits of employees.  Startupbootcamp is a large idea categories which comes first global accelerator in Australia in 2017. Startupbootcamp receive first year (2016) is $600,000 with potentially followed in subsequent years. The opening of funds in hardware and provide core fund for launch accelerator program in 2017. Startupbootcamp The funds provide startupbootcamp accelerator in Melbourne and confidence the State Government program will encourage local sponsors such as Google, Cisco, AWS, Salesforce and Intel. The engaged corporate, service and university will enhance a start-up community and build practice in IoT and DataTech Industry. On 3rd October, fast track conducts a one day event as recruitment period with high potential. After opening in November, to inspire the next generation of creative solutions. The vision is to create a thriving ecosystem. Objective of launchvic LaunchVic was created by a Labor Government to drive a new ideas and create jobs. The project is to help young companies, creative idea jobs and industries support Victoria which explains Minister for Innovation, Small business and Trade, Dalidakis, Philip. Startupbootcamp was selected in the Melbourne start-up ecosystem: • Accelerator focus on both software and hardware • Bring an international practice in Melbourne • Connect outside word specifically Europe, Asia and the US • Ecosystem grows by recruits from APAC region.  What are the major industries turning to the non-credit bank? The construction, trade and retail industry are turning to the non-credit bank. The trade industry have high demand follow by construction, accommodation and food. Retail trade and transport held on fourth and fifth place. Motor and brick bring online competitors, to pay longer suppliers which demand the cash of flow. What is the survey finding? The survey found a great demand for non-credit bank from the construction industry. The report indicates an entire supply of units in Melbourne and the Australian market cannot longer. This sector gone very cold and strong indicator. Now turning to non-credit, many businesses can get the period of transition. The bank sign for construction that are pulling back and bank loss in areas. Non-bank business lender survey was found the loan size and term of 20 months. Totally, 75 percent of 29 lenders participated the demand of credit product were increasing or decreasing. 2000 + applications were received 15percent lenders. This result indicates thriving and demand products such as forestry, health care, fishing, agriculture, gas, electricity and water services.  Small businesses like companies, sole traders, partnerships and/ or trusts with turnover of under $2 million, they are eligible for a range of tax benefits. Broadly, the small business must carry on a business and its turnover cannot exceed $2 million per year. The important to note for small business CGT concessions is that additional tests apply to claim the deductions. From 1st July 2016, the government has proposed hike the annual small business threshold to a turnover of $10 million. Small businesses can get an immediate tax deduction for assets and which is purchased by 30th June 2016 and that cost may be less than $20,000. If the business is registered for GST, then $20,000 threshold is calculated on a GST exclusive. And, if the business is not registered for GST, then its threshold calculated on a GST inclusive basis. If the business turnover is between $2million to $10 million and they may wish to delay the purchase or until the financial year, the assets costing less than $20,000 as such expenditure may qualify for an immediate deduction.  With the tax season combing over the tax returns is looking for potential income tax deductions. Many small business owners can neglect the income tax deduction of the RRSP. Benefits: 1. An RRSP shelter income from tax: You put into RRSP will not be taxed as income. Take it out and goes for interest can make on the investment in which hold within an RRSP. 2. An RRSP contribution is directly deducted from income: Speak means reduced a taxable income. The amount of an RRSP deduction drops in a tax bracket can provide with considerable tax savings. The taxable income is the fund withdrawn from an RRSP. For the tax planning purpose is to contribute an RRSP in working years, when high tax bracket and withdrawn funds at retirement in a lower tax bracket. 3. You can carry forward for contribution room: The best thing is about an RRSP tax deduction for small business and give some control over pay the income tax. The benefits of high is to contribute the making of an RRSP.  1. Maximize capital cost allowance claim The purchase equipment and technology rather than wait for new tax can start. Normally 50% percent claim will allow capital cost allowance, still increase a new asset and setting up yourself. 2. Delay disposes of depreciable assets The manufacturing equipment or computer does not dispose them until the new year. Otherwise reduce the capital cost allowance. 3. Delay income The income receives in January rather than December will reduce the tax on income. When the business income is higher than usual or lower tax rates in the upcoming year. 4. Increase business expenses The upcoming needs for services or products can review the category of potential business and see the low expenses in an area. Never too late for some instances or promotion for business. 5. Make maximum RRSP or TFSA contribution The excellent way is to reduce a tax and save retirement. The contribution up to 18 percent will earn from income and RRSP is directly deducted from income. The lowest tax bracket of the TFSA will be preferable to an RRSP.  1. Maximize capital cost allowance claim The purchase equipment and technology rather than wait for new tax can start. Normally 50% percent claim will allow capital cost allowance, still increase a new asset and setting up yourself. 2. Delay disposes of depreciable assets The manufacturing equipment or computer does not dispose them until the new year. Otherwise reduce the capital cost allowance. 3. Delay income The income receives in January rather than December will reduce the tax on income. When the business income is higher than usual or lower tax rates in the upcoming year. 4. Increase business expenses The upcoming needs for services or products can review the category of potential business and see the low expenses in an area. Never too late for some instances or promotion for business. 5. Make maximum RRSP or TFSA contribution The excellent way is to reduce a tax and save retirement. The contribution up to 18 percent will earn from income and RRSP is directly deducted from income. The lowest tax bracket of the TFSA will be preferable to an RRSP.  The small businesses are a choice about to value of their trading stock and choice can help in minimizing the business tax bill. This field to explain on sakell, where are you holding on trading stock, you choose the value of trading stock at year end in cost,selling value of market, replacement value or stock value. It can have the effect of the either bring forward deduction or shift the amount to following year. It is important for business owners to know the method by your valuable stock can change the year to year and different items is field says. Sakill says are you don’t have to have the same method for a everything. If says in stock is old, sure you write it off in full is says the field.  First superannuation is regular made into a fund by an employee towards a future pension. The tax time is saying in an oldie is super but a goodie. Field says business owners should be aware that there has been a “slight increase” in the superannuation concessional contribution limit this year from Rs25, 000 to Rs30, 000. The limit remains at Rs 35,000 for those aged 49 and over. There still significant saving the maximizing your super contributions to limits to say in the field. And then another says that individuals can contribute up to Rs 180000 a year into superannuation as then on-deductible contributions and it’s possible to bring forward up to 3 years, worth of the contributions, which would give a total of Rs.540000. And toss them with a self- managed super funds by transferring surplus wealth into super can be an excellent tax strategy.  It’s also important for an employee makes sure super contributions to their employees are in order at this time of the year. Your business cash flow allows it the forward June quarter superannuation guarantee change payments the one month could be strategy says. The other field says are you paying this could by 28July anywhere, so consider bringing it forward and paying in the end of June. The business is 20 or many employees previously had until 30 June with a new system. After the time, businesses can expect to be contacted by the Australia Tex Office if they are not streaming compliant. And the small business with the 20 or low employees have until 2016,30 June., to become super stream compliant, but the super stream national program manager told on smart companies that these businesses should not leave their business until June next year to get organized.  The $20,000 asset writer off scheme, aside from taking advantage of the small businesses its use of all other deductions at their disposal. This could involve bringing forward deductible expenses such as repairs and maintenance into the current year or prepaying monthly cost such as rent, electivity, wages and utilities. Other deductible expensive may be include running, occupancy costs are associated with this operating a home office. Sakell also recommends business owners is seeking to claim work related car expenses should make the sure they record their meter readings for 30 June, consider using a logbook to document all car expansive occurred during their trips are deductible and meet the relevant requirements. The small business should also view the end of the financial year as an opportunity to write off any bad debts they have not been able to recoup in the current financial year. But as is the case with many measures to minimize your tax bill, make sure to documents what the debts are and the efforts you have made to recover them.  The company tax rate is a house of representatives and the senate has also passed legislation for the 1.5% company tax cut for incorporated small businesses and the 5% tax discount for small businesses that are not incorporated. Sakell told smart company this represents the opportunity for businesses have flexibility as when they can a record income. If you derive business is sales income and you may be defer sales invoicing ,bring forward sales invoicing a appropriate circumstances, “sakell explains. If you are a small business entity, such income could be taxable at the lowest tax rate 28.5 percentage for company and 5 percentage discount for an individual capped at $1000- in the 2016 june 30 year. They accelerated depreciation measure applies to all asset the purchases up to the a value of Rs.20, 000 for business that have annual revenue of up to Rs.2 million.  It was one of the key parts of the $5.5 billion small business package included in this year’s budget and according to Theo Sakell, tax partner at pitcher partners, the $20,000 asset write off scheme is “the big one ” when it comes to minimizing your tax bill before June 30. The schemes, which allows businesses to immediately write-off the full value of the asset, can be used multiple times and effectively reduces the amount of tax a business will pay for an asset faster. Sakell reminds small business owners the scheme applies to all asset acquired after May 21, so it’s worth checking if anything you have purchased since budget night will fall under the scheme. The legislation for this budget measure has been voted on and approved by both houses of the federal parliament and so small businesses can proceed well assured with this scheme.  Small business is faced with expensive costs because unnecessarily complex division 7A tax regulations for small business tax expects. Changes to the regulations and broader operation of business trusts could be result a of the way a board of taxation`s review. The government tax board is now saying public submissions on its anti-regulation is reforming the second discussion paper, their associations for personal use and enjoyment in the which are designed to discourage businesses. Division 7A is introduced in 1990s, this regulation is more and more complex, increasing the similarly costs for businesses. It is the biggest tax headaches, but the division 7A tax regulations not something you can avoid the tax time. The anti- avoidance is measures are designed to the discourage the businesses from distributing loans to shareholders. Its safe to say the division 7A is responsible for the highest compliance costs are faced by small business market tax payers.  For charity, it is important to know that it will be excluded from the income tax or not. If the organization is not charity, they can self-assess their status of income tax. Self asses means, firm can determine their status that it will come under income tax or income tax exempt. They don’t need to get these status by dealing with the government, they can find by theirself by using income tax policy made by government. If any organization is a charity, this must be sanctioned by ATO to come under the income tax exempt and if an organization not a charity means they have to self asses to find the income tax status. Charity involves public benevolent institutions, religious institutions, health promotion charities which should be registered with ACNC prior to they can sanction them to get charity tax concessions.  Small businesses like companies, sole traders, partnerships and/ or trusts with turnover of under $2 million, they are eligible for a range of tax benefits. Broadly, the small business must carry on a business and its turnover cannot exceed $2 million per year. The important to note for small business CGT concessions is that additional tests apply to claim the deductions. From 1st July 2016, the government has proposed hike the annual small business threshold to a turnover of $10 million. Small businesses can get an immediate tax deduction for assets and which is purchased by 30th June 2016 and that cost may be less than $20,000. If the business is registered for GST, then $20,000 threshold is calculated on a GST exclusive. And, if the business is not registered for GST, then its threshold calculated on a GST inclusive basis. If the business turnover is between $2million to $10 million and they may wish to delay the purchase or until the financial year, the assets costing less than $20,000 as such expenditure may qualify for an immediate deduction  For all success depends on managers, staff and franchise all being able to communicate and aim to work towards one key goal in your business. The stories of failure are, which is why it’s worthwhile asking those who do it well for the secrets to success. Smartline Personal Mortgage Advisors has received no shortage of pats on the back for its franchise system and is today collecting its eighth consecutive Top Franchise award from Seek Business and Ten Thousand Feet. The awards rank businesses based on their expansion opportunities, meeting, workplace culture and systems. There are a few tips from Acret for expanding and hanging on to good franchise talent. They are following terms, * Looking for Happy Staff: Happiness is the best thing for attracting the people. So, Acret ensures that they are sacrificed day to day. It makes a Successful Company. * Share Knowledge: By sharing information, all the problems can be resolved easily. And then speak with their mind and encouraged to share information. And also it is best practice about the business.  • Try to Pay Early: For your staff, superannuation guarantee payments aren’t due until July but if you are paying these in June they will give you a deduction for them in this financial year as against to next financial year. • Having any companies and trusts? For minimize tax payments, the trusts and companies have to distribute funds to recipients on less tax. • Structure: If you operate as a partnership, sole trader, in a company or trust, it’s always a good idea to analysis your current business structure. • Immediate write offs: For eligible businesses, assets cost is below $6,500 can be reduced immediately and then applied to the purchase of assets. • Bad Debts: If you are not paying money, for claim the tax deduction by good to write these off as a poor debt prior to 30th June. • Trading Stock: By using stock rate to write off any lost, obsolete stock or damaged and it decrease your taxable income. • Stationery: Before 30th June, stocking up on stationery and consumables can help for offset profits.  Advertising and sponsorship: TO promote the brand and to get the publicity for business is very important and it is deductible, but which can be claimed. The claim process which includes advertising, hire staff, sponsorship in order to sell trading stock. While doing publicity people have to in careful because these processes should come under the word entertainment which cannot be deducted. Borrowed Money: Expenses obtain in order to have the borrowed funds which can be claimed. These expenses, which include registration fees, legal costs, valuation costs, any commission paid and overdraft fees guarantee. These deductions are separate from the charge of interest which is obtained from the borrowed funds. Business travel: A person has to keep every document and record to be produced, travel for the purposes of business can be claimed so that a person has to keep every receipt, where they gone, how long it takes and the record includes airline tickets is more important.  Person superannuation obligations and NFP firm tax may be depending on the level of each worker and worker will either an independent contractor or volunteer or employee. For example, if an organization has an employee they need to register for PAYG withholding and, if not register already have to pay the withheld money to the ATO or donate to their employees super. Independent contractors also be fit for super contributions and organization give fringe benefits for their employees, which are subject to FBT (Fringe Benefits Tax), but some fringe advantages are excepted from FBT. Benefits or payments made bestowed to the organization volunteers will not consider for tax, but it will be considered in certain circumstances.The Checklist can be useful for not for profit organization to prepare at the first time and to know what have to do for employees, volunteers and for independent contractors.  Australia enable a fast grow small business can participate in international trade. The World Trade Organization (WTO) estimate by 2035 in developed markets can boost GDP at 9%. Australia economy can take fast growing new markets are transformed into a medium size business. The leading international trade, FinTech, regulators and payments in the benefits of trade and supply chain your clients. The Export Council of Australia (ECA) is the CEO of Lisa McAuley. The event in July can emerge a digital future in trade client. The signal change in Australia and globally developed have discussed three keys. 1. Single-window portal 2. Non-tariff barriers 3. Disrupt freight market place Importance of SME Australia needs an export base and build from small and medium enterprises (SME) expand to internationally. The SME growth is the importance of increasing driver of economic. McAuley said that small business are encouraged to become a medium size business and to take new markets where future growth.  The SME credit score was recently launched a first kind of its scoring tool. The platform makes it easy for SME to need possible rate of education on their credit score and connect to the appropriate lender. James Watson and Jonathan Raymond can believe good access will support finance SME to invest in innovation in competing both local and global scales. A remaining lending business can grow concern for lending decline. SME bring right finance at the right rate is borrow a lack of knowledge about their business. Exact SME credit scores Credit scores are sourced from Veda while lenders are selected from a growing panel more than 60 lenders, including Scottish, Pacific, Prospa etc. The service is designed to educational tool and looking for a business loan. They provide valuable information about loan application is made directly or rejectly by the lenders. Vision behind SME credit score Secure credit wants to make the fund process easier. The large number of SME credit was unaware of business credit score. Even the score can exist or damage by applying unsuitable loans. Without knowledge, The SME can access unrealistic expectations, unsuccessful applications and damage their score are also considered. The new technology offer simple and fast SME.  Small business was launched to know your score for funding option which can access a new credit score by OnDeck Australia. The service is 100% free and available through online and can give a small business owner in accessing clear picture of the situation and eligible for a loan. The OnDeck will help to make a small business informed of financial decision. Small businesses Australia told that thousands of small businesses were launched in this year. Many businesses have credit score using lenders such as OnDeck. They knew the information about the business owner and have a clear picture of finance to help in growing the business. The important step of the planning process is to look grow and knew your score. To make it faster, easier for accessing business owners. Faster, easier lending To get a loan is a too hard basket, not sure their chances and process of time consumes with bank lending. One day can use a technology access loan application much easily. To apply small business can enter the details and free credit score is received.  |
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