Tax deductible expenses

Not all purchases made by a business will be tax deductible. Those that are must be related to the earning of income, but even then there are some exceptions.

Some costs have a private component, such as motor vehicle expenses, that must be apportioned between business and private use. Other costs may be totally related to a business, such as the registering of a patent or trademark, but are classed as a capital and therefore not tax deductible.

Some examples of expenses that could be claimed however, include employee salaries and super contributions, advertising, rent or leases, bank fees, interest on loans, freight and insurance, repairs, promotions and giveaways, depreciation of assests and the costs of a registered tax agent.

For more information on what expenses are tax deductible for your business and what records you should be keeping for these, please feel free to contact our office.

GST fraudsters caught out

Goods and service tax (GST) fraudsters are more than likely than ever to be caught out this year, as the ATO plans to increase its audits on GST refund claims by small businesses and investigate cases of serious evasion. As a result of government funding, an extra 11,500 cases will be completed in the 2011-12 financial year. Last year, 28 people were prosecuted for more than $17 million worth of GST-related fraud offences.

Super contributions due

This tax year the ATO will be targeting employers who fail to pay super for contract workers. Many employers fail to realise that some contractors are considered employees under super guarantee law.

If employers fail to pay their super obligations, they will have to lodge a Super Guarantee Charge Statement. This will pay the super guarantee charge to the ATO.

Employers should seek advice in order to determine whether their contractors are eligible for super contributions.

Paid parental leave obligations

As of 1 July 2011, businesses which fail to fulfill the Federal Government’s new ‘paid parental leave’ obligations will receive penalties imposed by the Fair Work Ombudsmen.

Businesses should update their payroll systems to make sure they are fulfilling all relevant obligations. These include:

• Withholding tax from Parental Leave Pay under the usual PAYG withholding arrangements.
• Include Parental Leave Pay in the total amounts on their employee
  
  General News

• Understanding employment contracts

  Posted on September 7th, 2011 admin No comments

  A recent decision in the New South Wales Court of Appeal is a reminder for businesses throughout the country to ensure that bonus provisions in contracts of employment properly reflect the intent of both parties.

  • It may now be considered breach of contract to not set performance criteria and not assess employee performance, when a contract states that you will do so.
  • Making a bonus
    
    General News

  • Changes to unfair dismissal

    Posted on September 7th, 2011 admin No comments

    On 1 January 2011, the definition of what constitutes a small business changed. Businesses must now have fifteen or less employees – including full time, part time and regular casual employees – to be considered a small business.

    Companies no longer regarded as ’small business’ will not be able to rely on the small business unfair dismissal exemption. this means that employees will now qualify for such coverage after six months of employment, as opposed to the previous twelve.

    General News
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