Important information about Business Activity Statements and registrering of an AUS Key

From the 1 July 2014, when an activity statement is lodged through an electronic channel, the ATO will discontinue sending paper activity statements as the system will default to  ‘electronic’ lodgement as opposed to ‘paper lodgement’.

The following types of activity statements will still be issued in paper form as the ATO cannot despatch these electronically:

• Annual GST Report
• Quarterly PAYG Instalment Notice
• Quarterly GST Instalment Notice
• Quarterly GST and PAYG Instalment Notice

No action needs to be taken if we prepare and lodge your Activity Statement. However if you lodge your BAS yourself and you haven’t received a paper copy, please contact our office for assistance.

If you already have access to the Business portal, we recommend that you confirm your email address to ensure you receive future ATO emails advising when the next activity statement is available online.

Please be aware the ATO will eventually move towards a complete paperless system. If you would like to start lodging your activity statements online, you can register for an AUSkey. Please refer to the information below on how to register:

1. Go to the website https://abr.gov.au/AUSkey/Registering-for-AUSkey/Register-for-an-AUSkey/ and scroll down to the bottom of the page and click the button Register for an AUSkey;
2. A new screen will appear where you will need to enter the relevant ABN;
3. Once you have correctly entered the ABN, you will be asked if you would like a standard AUSkey or an Administrator AUSKey.  These different types give different rights and access. We suggest the standard AUSKey is used for bookkeepers and admin staff;
4. The next screen will ask you if you are recorded as the Public Officer or Director of that business. You will only be able to proceed if you are an the Public Officer or Director;
5. You will be asked if you will be the holder of the AUSkey or if someone else will be (i.e. bookkeeper);
6. The next screen requires you to enter your details; your  name; date of birth; tax file number; and the email for the registration.

Once the registration is complete and verified, an email will be sent to the email address that you supplied for the registration. You will need to follow additional steps to install the software using the information provided in the confirmation email.

Once you have registered with an AUSKey you will be able to lodge your Business Activity Statements online, you will also have access to other government services including Austrade, ASIC, APRA and Centrelink services just to name a few. For more information on AUSkey please visit:  https://abr.gov.au/AUSkey/AUSkey-explained/.

If you require any assistance, please don’t hesitate to contact our office for assistance.

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Implication of receiving shares under an Employee Share Scheme

Employee share schemes (also known as employee share purchase plans or employee equity schemes) give employees shares in the company they work for, or the opportunity to buy to shares in the company. Companies encourage employees to participate in employee shares schemes by offering them discounted shares or rights to acquire shares. The amount of the discount is treated as assessable income for tax purposes.

The discount you receive is worked out as the market value of the shares or rights less any money or other consideration you provided to acquire them. It is calculated at the date you acquired the shares or rights.

The key tax issues to be aware of are:

• You generally need to include the amount of the discount in your assessable income for the income year you acquire or receive the shares or rights (in some circumstances you can defer this until a later income year);
• Capital gains tax may apply when you dispose of the shares or rights. If you held the shares or rights for longer than 12 months you may be able to access the 50% general discount.

What can you expect from your employer?

Your employer will tell you if you are eligible to participate in an employee share scheme. They will also tell you whether the scheme meets the criteria for taxed-upfront scheme or tax-deferred scheme.

Your employer will give you an Employee Share Scheme Statement at the end of the financial year. The statement will detail all the shares or rights you acquired throughout the financial year. You will need to provide this statement to your accountant to assist in the preparation of your taxation return.

The government is currently reviewing the legislation on employee share schemes. There is speculation that they are close to finalising new legislation which aims to reduce the tax burden that employees are currently experiencing with the upfront taxing method.

We recommend contacting our office if you would like to discuss your specific circumstances or the new legislative changes.

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