FBT Updates & Reminder – Exempt Vehicle

The following article applies to those who use motor vehicles in the course of running their businesses.

FBT Motor Vehicle Exemption – Updated Guidelines

For many years, many entities have enjoyed a FBT exemption where:

  • the vehicle is a panel van, utility (ute) or other commercial vehicle (that is, one not designed principally to carry passengers)
  • the employee’s private use of such a vehicle is limited to
    • travel between home and work
    • travel that is incidental to travel in the course of duties of employment
    • non-work related use that is minor, infrequent and irregular (eg: occasional use of the vehicle to remove domestic rubbish).

These have been a grey area and have caused confusion to business owners when attempting to work out whether their vehicles are exempt or not.

The ATO has recently released new guidelines to reduce confusion and provide more certainty for employers when applying the FBT exemptions. The guidance notes relate to the clarification on the definition of an employee’s (and/or their associate’s) private use where it is ‘minor, infrequent and irregular’ for FBT purposes.

If you believe you fall under this category and would like more clarity, contact us for more information and we can talk you through this over the phone, or via email.

2018 FBT Return Lodgement

The FBT year has ended 31 March 2018. For those who require a return lodgement, your FBT Return is due by 21 May 2018. Please contact us for instructions on the lodgement of the return.

Motor Vehicle Odometer Readings

For those who provide motor vehicle benefits to employees and/or associates, it is important that you keep records of your vehicle’s odometer reading as at 31 March 2018.

in News / Running A Business / Tax Advice and Planning  by Emily Yip

2017 tax return lodgement

If not now, then when?

For clients who have not lodged their 2017 tax returns – please get in touch with us as soon as possible to commence preparation of your tax return before it is too late. The general tax return due date is mid May 2018 – individual due dates may vary – we suggest clients contact us for your exact due dates.

Please be aware that late lodgements may attract fines and penalties from the ATO, so avoidance is not a wise move.

in News / Personal Tax Returns  by Emily Yip

Upcoming lodgements & payments – April & May 2018

Find out what payments and lodgements are due in April and May 2018 for you and your business!

Individuals

If you are required to pay PAYG Instalments quarterly, you should either have received a paper form, or have access to the form online via your MyGov account. Your due date for payment of Instalment is 28 April 2018.

Businesses

Quarterly Business Activity Statements (BAS)

You should have received a paper form by now, or have access to the form online via the Portal.

The due date for lodging and paying BAS is 28 April 2018, unless you are lodging through an agent like ourselves, then you enjoy an extension for lodgment and payment by 26 May 2018.

Monthly Activity Statement for April

If you are required to report GST or PAYG Withholding on a monthly basis, your April Activity Statement will be due by the 21st May 2018.

Quarterly Super Guarantee Contributions

For businesses that have employees, please ensure that you make your super guarantee contributions before 28 April 2018. Previously you would lodge the contributions via the Small Business Superannuation Clearing House (SBSCH). From 26 February 2018 onwards the Clearing House is accessed via the ATO’s online services (Business Portal). If you need a hand with setting up a Business Portal, or would like us to handle this whole lodgement process on your behalf, please contact us.

Businesses that have access to Xero’s Auto Super need to ensure their payment is authorised a few business days before the due day, for the payment to be debited in time.

2018 FBT Return Lodgement

The FBT year has ended 31 March 2018. For those who require a return lodgement, your FBT Return is due by 21 May 2018. Please contact us for instructions on the lodgement of the return.

Need more information?  Contact Us

in News / Personal Tax Returns / Running A Business / Xero Cloud Accounting  by Emily Yip

ATO & Director Penalty Notices

With the recent collapse of some high profile businesses, it is a good time to review the personal obligations that can fall on a company director to pay certain tax debts of the business.

Director Penalty Notices:

When a company fails to pay the superannuation contributions for its employees or the PAYG withheld from its employees’ wages, the ATO can recover those debts from the company directors personally.   They do this by issuing a Director Penalty Notice (DPN).  A DPN outlines the unpaid amounts and if there are any options to have the penalty remitted.

 

Directors receiving a DPN have only 21 days to pay the debt or to apply for remission by putting the business into the hands of an Administrator or by commencing to wind up the company.

 

If the PAYG withholding tax or super contributions have not been reported to the ATO within 3 months of the original due date, then there is no option for remission and the Director must either pay the debt or the ATO will initiate legal proceeding to recover the debt.

Directors take note:

When a business is experiencing financial trouble, it is often seen as a better option to ignore lodging BAS returns as the amount of ATO debt will just become larger.   However, by doing this, a Director can put their own personal assets at greater risk if they become no longer eligible for remission by acting to put the business into Administration.

 

If you feel that this may apply to you or to your business, it is best to seek help before the ATO act.  We can assist you with your lodgements to keep you up to date and help you manage your cashflow.

 

Contact Us

 

More information can be found on the ATO website

 

in News / Running A Business / Starting a New Business / Tax Advice and Planning  by Melissa de Largie

Mandatory Data Breach Reporting

Do you keep a database of personal information of your clients?

If so, the new Mandatory Data Breach Reporting rules may apply to you.  These new rules became effective on 22 February 2018.

What does this mean?

Entities who are covered by the Privacy Act 1988 will now need to report details of any breaches to their data security that are likely to result in serious harm to any individuals whose personal information is involved in the breach.

 

Organisations that are covered by the new rules include businesses and not-for-profit organisations with a turnover of $3 million or more as well as all businesses and organisations with lower turnovers which are operating in key areas such as credit reporting bodies and health service providers.

 

Businesses which fit the above criteria are advised to review their data security and to have a plan in place to cover the steps to be taken should a data breach be discovered.

 

It’s easy to think that data breaches will only happen to big organisations whose computer systems are hacked, but they can occur to any organisation at any time.

 

Some examples of data breaches are when mail containing client personal information is posted to an incorrect address or when a USB containing client information is lost or stolen.  Laptop theft is very common too.   So it is a good idea to review your business security systems, including passwords, to minimise the risk.

 

More information:

More information, including the Form to advise of a Notifiable Data Breach, can be found on the Australian Government website here or on the Australian Government Business website here

in News / Running A Business  by Melissa de Largie