Posted on November 26, 2014 by Ashley Dawson
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:
- 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;
- A new screen will appear where you will need to enter the relevant ABN;
- 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;
- 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;
- You will be asked if you will be the holder of the AUSkey or if someone else will be (i.e. bookkeeper);
- 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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Posted on December 10, 2013 by GSCPA Admin
Christmas is rapidly approaching and not only will business owners be preparing Christmas Parties, they will be considering what gifts, if any, they will provide to clients and employees. An important issue to consider is the possible Fringe Benefits Tax (FBT) and income tax deductibility that may be applicable when providing ‘entertainment’ to staff and clients.
Tax Deductibility of a Christmas Party
The cost of providing a Christmas Party is income tax deductible only to the extent that it is subject to FBT. Therefore, any costs that are exempt from FBT (refer below) cannot be claimed as an income tax deduction. The costs of entertaining clients are not subject to FBT and are not income tax deductible.
FBT on a Christmas Party
For FBT purposes Christmas parties fall into the category of “entertainment benefits” and as such will incur FBT unless specifically exempt or they fall under the “minor benefits” exemption. A minor benefit is one that is provided to an employee/client on an infrequent or irregular basis and the cost is less than $300 inclusive of GST per employee/client.
Additionally, the costs (such as food and drink) associated with Christmas parties are exempt from FBT if they are provided on a working day on your business premises and consumed by current employees. A taxable fringe benefit will arise in respect of an associate of an employee who attends the party if not otherwise exempt under the minor benefits exemption.
Christmas party held on the business premises
A Christmas party provided to current employees on your business premises or worksite on a working day may be an exempt benefit. The cost of associates attending the Christmas party is not exempt, unless it is a minor benefit.
Example
A business decides to have a party on its business premises on a working day before Christmas. The business provides food, beer and wine. The implications for the employer in this situation would be as follows. |
| If… |
Then… |
| current employees only attend |
there are no FBT implications as it is an exempt property benefit. No tax deduction or GST can be claimed. |
| current employees and their associates attend at a cost of $180 per head |
- for employees – there are no FBT implications as it is an exempt property benefit, and the minor benefit exemption could also apply* No tax deduction or GST can be claimed.
- for associates – there are no FBT implications as the minor benefit exemption applies.* No tax deduction or GST can be claimed.
|
| current employees, their associates and some clients attend at a cost of $365 per head |
- for employees – there are no FBT implications as it is an exempt property benefit. No tax deduction or GST can be claimed.
- for associates – a taxable fringe benefit will arise as the value is equal to or more than $300. A tax deduction and GST may be claimed.
- for clients – there is no FBT payable and no income tax deduction or GST can be claimed.
|
* Where the benefits are indicated as qualifying for the minor benefits exemption, it is on the basis that the necessary conditions have been satisfied.
Christmas party held off business premises
The costs associated with Christmas parties held off your business premises (for example, a restaurant) will give rise to a taxable fringe benefit for employees and their associates unless the benefits are exempt minor benefits.
Example
Another business decides to hold its Christmas function at a restaurant on a working day before Christmas and provides meals, drinks and entertainment. The implications for the employer in this situation would be as follows. |
| If… |
Then… |
| current employees only attend at a cost of $195 per head |
- there are no FBT implications as the minor benefits exemption applies.* No tax deduction or GST can be claimed.
|
| current employees and their associates attend at a cost of $180 per head |
- there are no FBT implications as the minor benefits exemption applies.* No tax deduction or GST can be claimed.
|
| current employees, their associates and clients attend at a cost of $365 per head |
- for employees – a taxable fringe benefit will arise A tax deduction and GST may be claimed.
- for associates – a taxable fringe benefit will arise. A tax deduction and GST may be claimed., and
- for clients – there is no FBT payable and the cost of providing the entertainment is not income tax deductible and no GST can be claimed.
|
* Where the benefits are indicated as qualifying for the minor benefits exemption, it is on the basis that the necessary conditions have been satisfied.
Gifts provided to employees at a Christmas party
The provision of a gift to an employee at Christmas time may be a minor benefit that is an exempt benefit where the value of the gift is less than $300.
Where a Christmas gift is provided to an employee at a Christmas party that is also provided by the employer, the benefits are associated benefits, but each benefit needs to be considered separately to determine if they are less than $300 in value. If both the Christmas party and the gift are less than $300 in value and the other conditions of a minor benefit are met, they will both be exempt benefits.
Christmas Gifts
Gifts are separated into two categories:
Non Entertainment Gifts – for example a hamper, a gift voucher, a bottle of wine, flowers, pens etc
Entertainment Gifts – forexample theatre tickets, sporting events, movies, holidays etc
Non-entertainment gifts provided to employees “separately” from the Christmas party, however, are exempt from FBT where the total value is less than $300 inclusive of GST. A tax deduction and GST credit can also be claimed. The ATO has indicated that if these type of gifts are given to employees two weeks before the actual Christmas party, then the gift and the Christmas function will be treated as separate benefits. This means that the $300 FBT exemption limit can be claimed twice.
Non-entertainment gifts given to clients and suppliers do not fall within the FBT regime, as they are not provided to employees. Generally a tax deduction and GST credit can be claimed for these gifts, provided they are not excessive or overly valuable.
Entertainment gifts have different tax implications. If they are given as gifts to employees and family members and are over the value of $300 FBT is payable and a tax deduction is allowed. Where the combined cost for employees/associates is less than $300 GST inclusive, there is no FBT, no tax deduction is allowed and no GST credit can be claimed.
Of course this all sounds quite complex, however the team of accountants at GeersSullivan can ensure that the taxman is kept as far away as possible from your Christmas party and provide you with the best tax outcome.
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