Archive for Tax – Business
Fringe Benefits Tax Rates and Thresholds for FBT year commencing 1 April 2011
Posted by: | CommentsThe tax office has released new Fringe Benefits determinations dealing with FBT rates and thresholds for the FBT year commencing 1 April 2011 to 31 March 2012:
1. Food component of a Living Away From Home Allowance for expatriate employees per week.
It has been determined the reasonable food component of a LAFHA for an expatriate employee per week is:
$233 for 1 adult, $373 for 2 adults, $419 for 3 adults, $301 for 1 adult and 1 child, $419 for 2 adults and 1 or 2 children, $488 for 2 adults and 3 children, $488 for 3 adults and 1 child, $558 for 3 adults and 2 children and $558 for 4 adults. For larger family groups add $140 for each additional adult and $68 for each additional child.
2. Private use of a motor vehicle other than a car:
The rates to be applied on a cents-per-km basis for calculating the taxable value of a fringe benefit that arises through the use of a vehicle other than a car are:
0-2500cc - 46 cents/km, over 2500cc – 55 cents/km and Motorcycles 14 cents/km
3. The benchmark interest rate is 7.8% pa
NSW payroll tax rate has been reduced
Posted by: | CommentsThe NSW Office of State Revenue has reminded taxpayers that the NSW payroll tax rate has been reduced to 5.45%, effective from1 January 2011.
Have you lodged your outstanding income tax returns?
Posted by: | CommentsThe Tax Office has warned that it will be sending default assessments warning letters to some taxpayers with outstanding income tax returns. These letters warn taxpayers to lodge their overdue returns by 13 January 2011, however the tax office has now provided an extension to 17 February 2011 due to the Christmas shutdown period.
End of Tax Year 2010 – Summary Of Tax Strategies For Business
Posted by: | CommentsFollowing are some suggested strategies for businesses to take PRIOR to the end of the current tax year at midnight on Wednesday 30 June 2010…
- Write off bad debts
- Attend to year end stock take, cash counts, etc
- Review asset register & consider a) scrapping obsolete or badly damaged stock and b) reassessing effective lives of assets on hand
- Consider bringing forward any necessary repairs
- Ensure superannuation guarantee obligations have been met and that contributions have been received by the fund;
- Pay donations, if any
- Where year end bonuses, directors fees etc are to be paid consider making appropriate resolutions committing to pay specific amounts to ensure deductibility in 2009/10, even where payment is made after year end
- Consider the timing of invoices for work in progress
- Consider pre-paying deductible expenses (small business taxpayers only)
- Consider bringing forward purchases of depreciable assets costing $1,000 or less for an outright deduction (small business taxpayers only)
- Consider transferring any unearned revenue from the profit and loss account to the balance sheet to highlight its non-taxable status. The unearned revenue must be refundable if the business does not provide the services paid for
- Ensure any shareholder loan repayments required under loan agreements are made
- In relation to loans by shareholders to companies with turnover of more than $20M, ensure that loan agreements are in place so that the loans are not treated as equity
Australian Federal Budget 2010 – Business Tax Changes
Posted by: | CommentsSummary of business tax changes in the Australian Federal Budget 2010…
- Tax rate for “small” business to be reduced to 28% from 1 July 2012 and the rate for all business also reduced to 28% from 1 July 2014
- New, more favourable, depreciation treatment for small business from 1 July 2012
- A number of capital gains tax reliefs for business have been broadened
Main details…