When your business is registered for GST, you know that you are able to claim a credit back on your next BAS for the GST you pay to your Supplier. But what happens when the Supplier is charging you GST when they aren’t actually registered to collect GST? You may pay them the extra 10% on their invoice but you are not entitled to claim that credit back from the ATO. If it has already been claimed, you may have to refund it to the ATO at a later date.
Usually we start our businesses up as we have a great idea in mind and would love to share it with the world. It would start in your back yard, garage or study. When it comes tax time you wonder if you need to declare it in your tax return or not.
The ATO recently have issued short informative videos on YouTube covering topics relating to self managed super funds.
The Government recently announced that they intend to give the Commissioner of Taxation up to sixty days to hold activity statement refunds – including GST and other indirect taxes such as luxury car tax, wine equalisation tax, etc. – while verifying the claims made. For many businesses, waiting for up to an extra 60 days for the refund will have a major cash flow impact.
***STOP PRESS – It may be too late to take advantage of these new depreciation rules if you haven’t installed your items, ready for use by 31 December 2013. Legislation from the new government that is waiting to go through the Senate will take away these general depreciation rules, effective 1 January 2014, if the Mining Tax Repeal Bill is passed. If it’s not passed then the new rules we explain below, may still apply. ***
