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Preparing for the second half of the financial year

Businesses should start reviewing whether their accounting systems are keeping track of all revenue and expenses, together with any private use of business assets.

Planning ahead can save significant tax penalties, which start at 25 per cent of the unpaid tax to as high as 75 per cent.

There are a few key areas business owners should focus on.

–       Go through each employee and check whether contractors are actually employees, as the ATO has flagged this as an issue they will be cracking down on.

–       Look at whether any new business equipment needs to be bought in order to take advantage of the new $6,500 instant write off.

–       Review quarterly PAYG instalments. If profit is down considerably from last year businesses may wish to reduce their instalments.

–       Businesses may also wish to review personal loan agreements and trust deeds to make sure they comply with the law and that company distributions to owners are properly treated for tax purposes.

Posted on 16 January '13 by , under General News.

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Amnesty means that 24,000 businesses own up to underpaying Aussies superannuation

An amnesty scheme which ended earlier this month has caused around 24,000 businesses to admit to underpayment of their worker's super. A total of 588 million dollars will be distributed to almost 400,00 individuals.

The scheme, which covered payments from the introduction of super in 1992, gave employers the opportunity to come clean without any consequences as long as they paid the unpaid super as well as 10% interest for every year the money was overdue.

The ATO will be directing its attention at any businesses that did not admit fault and these businesses will face severe penalties.

Many individuals are looking to access their superannuation early in order to have support during these times. Although there is criticism of early access to super, this facility has been helpful to many families to keep afloat.

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