Frequently Asked Questions
Disclaimer: Please note that the advice contained here is general advice only as we are not aware of your personal circumstances. We recommend that you seek professional advice relating to your circumstances before making any decisions.
Q: Which is the most tax effective entity: sole trader, partnership or company?
A: There is no set answer to this question. As each case should be looked at individually, please contact our office so that you can get the right advice for your situation.
Q: I am an employee can I claim $300 work related expenses even if I did not spend $300 as this does not have to be substantiated?
A: No you cannot just claim $300. You must actually incur any expense before it is claimed.
Q: What’s PAYG Withholding?
A: This system is called Pay As You Go (PAYG) Withholding or "PAYGW". Payers such as employers, are required to withhold tax from the payments they make to you and send those payments to the Tax Office regularly. When you lodge your income tax return at the end of the financial year, you will be entitled to a credit for the amount of tax which has been withheld from your pay. This amount is shown on your payment summary. Your employer works out how much tax to withhold based on information you provide in your Tax File Number Declaration and Withholding Declaration.
Q: Why don't I receive a refund?
A: Tax refunds are only generated from overpayment of tax on you taxable income. Your taxable income is based on the information provided on your tax return.
Q: What is a PAYG Instalment?
A: Pay As You Go (PAYG) Instalments or "PAYGI" is basically the prepayment of tax. It is a system for paying instalments towards your expected tax liability on your business and investment income for the current year.
Your actual tax liability is calculated when your annual tax return is assessed. Any PAYG Instalments that have been paid during the year are credited against any tax liability. So, if you have underpaid you will be required to pay more, if you have overpaid you will receive a refund.
If you wish to look at your options for PAYG Instalments, please contact your accountant for advice.
Q: What is the best way to finance my new motor vehicle?
A: Finance Lease: Leasing is appropriate if the Vehicle is used predominantly for business purposes. A Finance Lease gives you immediate use of the Vehicle without having to arrange a large deposit. Rentals are fixed for the term of the lease, providing security for your financial planning. For added flexibility at the end of the term you have the option to refinance, sell or purchase the Vehicle for the residual value.
Chattel Mortgage: Chattel Mortgage is a fixed loan that provides for the purchase of a Vehicle in exchange for a series of payments. The Vehicle is used for security.
Hire Purchase (HP): Hire Purchase is an appropriate approach for any business or individual that needs to either upgrade or acquire a new or used Vehicle. Regular payments are made over the term you choose. Full ownership of the Vehicle is transferred to you when all the payments have been made.
Disclaimer: This is general advice only .Please refer to your accountant before taking out finance.
Q: Can I pay my tax liability by instalments after I received the Assessment Notice for that financial year?
A: Yes. You may be able to pay the tax by installments. However, each case will be treated independently by the ATO and penalties and interest maybe incurred. You can call us to discuss your situation.
Q: When is the best time to bring in my tax work?
- We complete work on a first in first out basis so it is best to bring your work in as soon as possible after the 30th June
Q: What BAS/IAS?
The activity statement allows you to report your obligations for:
- goods and services tax (GST)
- luxury car tax
- wine equalisation tax (WET)
- pay as you go (PAYG) withholding and instalments
- fringe benefits tax (FBT) instalments, and
- deferred company instalments.
Q: When is my BAS/IAS due??
A: BAS if lodged electronically by us -
1 July 2008 to 30 September 2008 25/11/08
1 October 2008 to 31 December 2008 28/02/09
1 January 2009 to 31 March 2009 26/05/09
1 April 2009 to 30 June 2009 25/08/09
Earlier dates apply if paper lodged
IAS: 21st monthly
Q: What is BankLink and why is it good to work with?
A: BankLink is an easy-to-use web based book keeping package.
BankLink requires very little book keeping or computing knowledge to operate and is used in conjunction with your accountants so if there are any queries or problems your accountant can assist you immediately. BankLink saves you time, you receive a copy of your bank statement data electronically, so almost all data entry is eliminated.
It does not allow us to transact in any way on your account, but only to process the transactions efficiently into our system.
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