rss.livelink.threads-in-node

Invoice in another language

lapple0128 — Thu, 27 Feb 2020 09:59:09 GMT

Hi Everyone
I am a sole trader and not registered for GST. I recently purchased some goods from overseas and the invoices I received were not in English. Just checking if invoices in another language are acceptable to the tax office?
Thanks a lot!

payment summary issued for the wrong year by employee

toby — Thu, 27 Feb 2020 08:09:00 GMT

Hi,

I worked for a company that issued me with a second payment summary after changing their payment system and needing to reconcile it. eg they had misreported to the ATO and in fact, I had earnt a few thousand more, this is true the first payment summary was short of my full earnings. I am fine with this, mistakes happen. However, what the issue is, is that they put the second payment summary in the next tax year. I did not work in this tax year for them. In fact, my employment had finished months earlier. Details are as follows I finished work in February 2018 as I was made redundant issued with payment summary all ok. Then in 2019, they issue another payment summary as they had underreported in 2018. This has tax implications for me which I do not feel I should have to bear the costs for as it was not my mistake. Is there anything I can do, so my tax filed can be true to the income I earnt it in.

Wages paid to Individuals who are employees of another company

ijaz_aziz — Thu, 27 Feb 2020 04:32:23 GMT

This is a hypothetical question with these facts:

Company A would like to pay the wages/withholding tax/super etc to employees of company B.

The employees would be formally employed by Company B however, Company B is not set up for payroll, they require Company A to perform the payroll function of company B until such time that Company B is set up for payroll, e.g. single touch payroll, IT withholding, super etc.

During this time, Company A would charge Company B a fee for all costs associated with this arrangement.

Is there an issue with this arrangement? In particular, can company A pay and report the wages paid to employees of Company B in its payroll if the employees are not formally employed by Company A.

Thanks,

Jaz.

MYGOVID system error UNK000001

LS1 — Thu, 27 Feb 2020 04:28:44 GMT

Like many others, I am having trouble setting up the MYGOVID app.

I have tried EVERYTHING suggested (numerous times) to get it running.

I have uninstalled and reinstalled the app. I have cleared the cache and data. I have checked the dates and languages. I have double checked that the data I am entering is correct. I an STILL getting the UNK000001 error.

I have a Levono tab7 (Android 7)

Please help!!!

Newzealand dividends paid to Aust Trusts

Derek — Thu, 27 Feb 2020 02:48:13 GMT

Hi, I hold shares in Auckland Airport (ASX: AIA), within a family trust. I'm unable to find on the ATO website how to report my NZ dividends, what supplementry forms to use (if any), and what I need to show, not show or claim. An example of the dividend is (in A$)

Security, rate, shares,declared Div, Supplementary div, withhold tax, imputation credit, gross taxable Div, net payment

Full Ord , 0.10, 750, $79.08 , $13.69 , $13.69 , $16.79 , $93.04 , $ 79.08

For each item above where do I show it on the Trust Tax Form, what do I leave out and what can or can't I claim.

Much Appreciated

Tax deductions

Bush66 — Thu, 27 Feb 2020 01:56:45 GMT

Can a psychologist who works from home claim Gym Hire Equipment as a 'self care' deduction?

Exempt Scholorships

Lozza18 — Wed, 26 Feb 2020 21:48:53 GMT

Hello,

For a scholarship to be tax exempt to the recipient, I understand the following:

To be eligible for tax exemption, a scholarship, must be open to a wide range of candidates.

Scholarships are exempt from PAYG withholding and personal income tax where payment is:

made to a student receiving full time education, that is, undertaking a full-time course
not received ‘on the condition’ that they become, or continue to be, an employee
principally for educational purposes
does not have any requirement attached that amounts to the student having to render services.

My question is, does the scholarship have to come from a school, college or university or can any entity give a sponsorship that can be exempt to the recipient? What are the criteria for the entity giving the scholarship for it to be exempt to the tax payer?

Thanks

Small Business Capital Gains Tax Concessions - Passive assets - Business conducted by affiliate or c

Bannisterjbb — Wed, 26 Feb 2020 10:14:36 GMT

Hi,

To satisfy the basic conditions for SBCGT Concessions the asset must be an active asset.

The asset which is to be sold is owned by a company which does not carry on a business.

The asset is used exclusively in a business conducted by a discretionary trust which has a turnover of more than $2 million.

The 2 shareholders in the company control the trust and have received all distributions from the trust equally.

Net asset value of all connected entites and affiliates does not exceed $6 million.

Section 152.10 (1A) provides that if the taxpayer (the company) does not carry on a business the basic conditions are satisfied if an affiliate or connected entity of the company is a CGT small business entity.

Does this mean that because the trust is not a small business entity that the samll business CGT concession cannot be claimed even though the net assets or all connected entites and affiliates do not exceed $6 million?

GST Being Charged in USD

heleneanne65 — Wed, 26 Feb 2020 08:26:23 GMT

Hi guys! I am part of an MLM that is relatively new in this country and everything is charged in USD including the GST, Is this ok? How does an Australian tax get charged to us in USD? Thanks guys!

hobby income basketball referee

johndunneone — Wed, 26 Feb 2020 07:05:54 GMT

from a tax declaration iam a hobby

iam a basketball referee i do that for basketball sa in south australia

i like to now were i stand when i and going to earned $250 a week for this year which equates to $16,000 dollar per year

I must a some stage pay tax which i am at a loss try to get some sense out of ATO

i dont have a contract with basketball sa i dont have a ABN or tax file number

iam currently on a dissibility support pension iam aloud to earn $1240.00 per month without affecting my dsp

plz can someone point me in the right direction as i dont wont to get in trouble with the ato

i dont have a money to speak to a tax ccountant

Meals & Entertainment

Aphrodite — Wed, 26 Feb 2020 06:24:00 GMT

After reading information on different scenarios as follows, i am still unsure what the transactions should look like. While i feel confident in determining that these are not an FBT situation, I am still unsure as to whether GST can be claimed and allocated as a business expense.

1. Meetings with clients - food & drink paid for, (sometimes including alcohol)

2. Business owner goes on the road for business related activity, accompanied by her partner with food, drink & accommodation involved

Clarification is much appreciated on this.

Overseas Hosting Companies charging GST on USD amounts

daniel_rossi — Tue, 25 Feb 2020 14:16:29 GMT

I don't believe this has been thought through properly and needs investigation. I believe Ebay are also doing it. Overseas Cloud hosting companies are forced to charge GST. But months later I discovered they are skimping extra off the top by charging GST off the USD bill not the converted AUD amount. It's paid via Paypal so paypal could convert and add the GST. But they are doing it on their side as the subscription amount.

Not only are the USD bills becoming expensive due to the trashed dollar, I am being charged extra a month on top. When if you convert the amount to AUD then add 10%, the bill should be much less.

They get more when the dollar dives further.

What they are doing is criminal and illegal and need help trying to find answers. I complained but they are going to keep doing it.

Amazon Cloud charge in AUD therefore the GST is correct. It's my VPS hosting place, Vultr.

Is transferring money from business bank account to personal bank account taxable?

Opel135 — Tue, 25 Feb 2020 13:51:25 GMT

Hi,

If I run a business as a company with me as a Director where I do not pay myself an income (I already have a permanent fulltime job), am I allowed to use the income from the company for personal expenses?

Would transferring that money from my business bank account to my personal bank account be deemed as personal income, even if I've paid business tax?

Why won't the ATO provide an STP facility in the Business Porta"

jamie10 — Tue, 25 Feb 2020 09:47:08 GMT

Why does the ATO refuse to provide a simple STP lodgement facility in the Business Portal? Currently you provide Super Payments for micro businesses, but refuse to provide an STP facility. If STP is as simple as you claim, then it should take roughly 2 weeks for you to code and test it. We've been waiting 3 years now and the ATO still refuse to provide this simple facility. Small businesses must now trust 3rd party payroll and STP providers of unknown origin, storing personal details on their cloud somewhere. Its amazing how many overseas software providers have popped up as a result on STP being introduced.

Amongst all the other compliance requirements for small business, it seems the ATO and government are intent on driving small operators out of business, while creating more bookeeping jobs in larger business. This is a false economy, driven by artificial production just to meet some legislative compliance. The STP does NOT make things simple for business, it is a measure to punish 99% of businesses who do the right thing.

Are deductions allowable for fraud?

PeaceLilly — Tue, 25 Feb 2020 08:01:53 GMT

Hi ATO community,

I am finishing up my company's tax return and just have one question before I submit it.

I sent a somewhat small sum via bank transfer to be credited to an investment trading account to a U.K. limited company. This money was meant to be segregated from their operational expenses. Unfortunately, before the money arrived at them, their website went down and I was unable to contact them and I have been unable to retrieve the money back. The company the money was sent to is still registered and is solvent. I have reported this to Action Fraud U.K. (police) but still haven't received a response.

Would I be able to claim this amount as a deduction under theft or potentially an investment loss?

Thank you for your time and answers.

Buying stock from a non-GST registered business and selling as a GST registered business

Amy020 — Tue, 25 Feb 2020 06:27:53 GMT

I am a small business registered for GST. I purchase most of my stock (used vehicles) from a non-GST registered business. When I sell the vehicle the purchase price includes GST.

How would I represent this information in a BAS Statement?

Thank you.

mygov and RAM

Russellcorp — Tue, 25 Feb 2020 05:14:40 GMT

I am concerned with the removal of the auskey and the introduction of the use of your personal mygov account for business use. I work for a Liquidator and I do not want my clients linked to my mygov account. How does the RAM work? Is this the best thing for me to do. Does that work similarly to the auskey?

Work Related Injury - Working Director not covered by Workers Comp

TOMACCOUNT — Tue, 25 Feb 2020 03:29:12 GMT

I am looking for some further information about income tax/GST deductions on medical expenses incurred by a company. The situation was related to a single director company that does not have workers compensation insurance. The injury was sustained by the director who is a working director and performs all the work for this company (it is quite a physical role) and this injury occured during his normal work day. At this stage he doesn't take a wage and there are also no other employees within the business.

In WA it is optional to cover a working director for workers compensation so could these injury related expenses be deductible/ GST creditable (if applicable) to the company? Or does this become a personal expense of the director? Can you point me in the right direction to do some further research on this?

Family Member lead money to help business

JessicaSpring — Tue, 25 Feb 2020 02:25:06 GMT

Hello, my parents will borrow their personal saving with no interest to help me out with my business cash flow issue. I will return the money in a month time. may I know if there is any tax implication by doing this?

RAM Setup

Shagrad — Mon, 24 Feb 2020 21:00:39 GMT

I am trying to link my business in the RAM setup and all it does is direct me to a blank screen with the address https://poro.ato.gov.au/poro/ with nowhere to link my business. There are three options in the top bar ... Business Portal,Tax Agent portal and BAS Service provider Portal but going into these just takes me to the old method of login.

MyGov verification text

DChew — Mon, 24 Feb 2020 19:33:18 GMT

Good morning all. I woke up at 6am and checked my mobile phone. I received an myGov Security verification text (msg ref: SV001) at 4.50am while I was asleep. I did not request for any access code. Does this mean that someone is trying to access my ATO account? Would someone able to advice me on what to do next,,, change the password? Much appreciated, Cheers, D.

Business tax

Addy — Mon, 24 Feb 2020 13:38:19 GMT

Does ATO offer free tax help for people who run a business? I am currently selling skin care and just wanted to know if I can access help to do my own tax returns thank you

Tax Deduction for removal of Horticultural Plants

JE_72 — Mon, 24 Feb 2020 07:20:54 GMT

I have planted grapevines as an agricultural producer. As part of plantng the new vines I have removed some old olive trees to make way for new vine planting

What I need to know is how to claim a deduction for the removal of the old olive trees. Is the removal considered a capital deduction or immediate write off in its own right,or do I add the cost of the removal to the capital cost of the new vines and depreciate as part of the new vines?

GST - electronic distribution platform operators

LG123 — Mon, 24 Feb 2020 05:54:25 GMT

Does online sales facilitator need to charge GST on second hand personal goods sourced by other individual/business (the actual vendor) and then resale through the facilitator's online platform? The sales facilitaor will charge a commission including GST to the vendor, but should the faciliatator also charge GST on the goods itself on the resale and then pass it on to the vendor?

Thanks.

Hobby ABN for a musician

Thestevenator — Mon, 24 Feb 2020 01:22:43 GMT

Hi, 5 of my friends and I (6 in total) are in a part time band. We have started playing gigs at pubs. We play about 6 per year, earning approximately $5000.
My inquiry is “would this fit the description for a hobby ABN?”
Most of the money is spent on purchasing / upgrading / maintaining musical equipment.
Thanks

RAM Setup Error Code

Lucia — Sun, 23 Feb 2020 23:58:43 GMT

Hi,

I have been trying to accept some authorisation request via the "authorisationmanager.gov.au" website as instruced in my RAM Austhorisation Code email from our managing director, but keep geting the following error code: The details you used to establish your digital identity do not match those provided in this authorisation request. Contact the person who authorised you. Error code: REB.BR.0047. But I am sure that my details are all correct. BTW, my identity strength is Basic. Is this is the reason why I got that error code? Also, I don't have any Australian Identity Document that meet requirements to set up my standard myGovID, any other documents that I can use? Such as my passport or my Photo ID?

Thanks for your help in advance.

Regards,

Lucia

NDIS for plan managers

melindasullivan — Sun, 23 Feb 2020 21:08:30 GMT

I am a Plan Manager for NDIS which means I manage the budgets of clients. When the client receives a service I claim the money (invoice) from NDIS and then forward it to the provider. Most sevices do not have GST applied but in the event that they do, do Ineed to account for GST or do I not need to because I am simply claiming the funds thay are entitled too and then passing them on.

I am not paying for services and then being reimbursed, just to be clear.

I use a seperate bank account specifically for client funds to go in and out of.

myGovID

Jackie — Sun, 23 Feb 2020 05:58:15 GMT

I have been able to successfully use the myGovID app on a Samsung A50 (v 9) and on an iPhone XR, but I cannot get the app to work on a Samsung S9 (v 10). When it comes to opening the app on the phone to enter the "linking code", the app on the phone immediately shuts down, without even giving an error message.

I have uninstalled and reinstalled the myGovID app 5 times on the S9 phone. It still does not work on the S9.

Can anyone offer any advice please?

Starting a new business

Bumpy — Sun, 23 Feb 2020 00:37:48 GMT

I’m thinking of kicking off a new business soon. My question is, if I register for an ABN and register the business, but NOT operating or trading right away, what needs to be done as far as tax???? Do I still need to lodge business statements etc???

STP lodging and editing

DB1 — Sat, 22 Feb 2020 00:15:22 GMT

STP

I have lodged, but on review, have found some errors.

How do I edit and relodge batches?

Australia Director

ProfitSee — Fri, 21 Feb 2020 18:22:53 GMT

We are a small software company and conducting internaltional business. Our Australia director left us unexpectly when we decide to liquidate our AU subsidiairy. Our Australia accountants told us we needed to find an Australia resident to templorarliy take on public officer role to able to lodge our final income return. However, we are winding up our AU business and have no employees in Australia that can represent us. So we wonder if the ATO can consider waiving the public officer requirement and allow 2 US directors to sign the final pre-liquidation tax return instead?

Thank you in advance for your answer,

Discretionary Trading Trust

Hedayat — Fri, 21 Feb 2020 09:59:19 GMT

My question is about beneficiaries of a trading trust who also work for the trust. In general, trust distributions don't attract super guarantee contribution requirements and the tax liability is upon the beneficiaries when they receive the distribution at the end of the year. Does the above scenario apply to a trading trust with beneficiaries working for the trust? and with drawings paid throughout the year to beneficiaries would be offset against the share of profit at the end of the financial year?

Reporting Airbnb Income as a business

traceymt — Fri, 21 Feb 2020 10:03:58 GMT

Hi, we have a business renovating residential properties to sell. We are running the business under a partnership. Our first project stayed on the market too long after completion, so we took off the market intending to 'refresh' the listing in 3 months. We listed through Airbnb (under my name only) during this time so that we could recoup some of the holding costs, but also retain full control over the property to show potential buyers through etc... Anyway, we earned Airbnb income for approx 3 months until we fortunately sold the property. Settlement of the sale was in the following financial year, therefore this will be the only income to report for the partnership for 2019.

My question is, even though we are in the business of property investment (we are using industry code 30110 House renovations), the intention of this business is to sell the properties, not rent them out. Therefore, is the airbnb income considered as 'Other business income' or 'Rent' on our partnership tax return?

Any advice would be greatly appreciated (currently completing our 2019 partnership tax return... so running a little late on lodgement!)

Super Liability Reporting - Does the amount requires to follow Maximum super contribution base?

Timothy — Fri, 21 Feb 2020 07:06:18 GMT

Hi there,

My employer had been going through some hard time on getting the guidance for the Super liability reporting. Based on ATO Website guide, it mention that company requires to report 9.5% or higher contribution if company does provide.

However, will this cause employee need to pay more tax if the amount report is higher than usual? My employer did provide benefit of paying superannuation with rates higher than 9.5%. For example, quarterly super contribution for FY2019 - 2020 is $5250.65 ($55,270*9.5%). If employer offer employee 12% for their superannuation and it reach capping, should i report the capping 5250.65 or report higher amount?

Im afraid of giving employee hard time that they getting warning to need pay more tax if my employer wish report the higher amount in super liability section of report.

Thanks
Timothy

Directors Loan

Joe2019 — Fri, 21 Feb 2020 02:08:26 GMT

My friend puts private expenses (house rent etc) through his private company's books and then repays the company in the following month. At any given time, the account will have a debit balance. Is this considered a director's loan? [I am helping my friend with his taxes this year. In the previous year, the person helping him did not report the debit balance as a director's loan, and to the best of my friend's knowledge, he has not signed a formal loan agreement with the company]. Thank you

wages due on public holiday

1Christine1 — Fri, 21 Feb 2020 00:54:44 GMT

Hello, is there any sort of legislation that states when payment for wages fall on a public holiday, that payment should be made the day before? Is it ok to pay the day after?

Joint Operations & Significant Global Entity Status for Tax Purposes

GregoryC — Fri, 21 Feb 2020 00:32:28 GMT

Hi,

When operating in a Joint Operation, does the Joint Operation become a Significant Global Entity if one of the members is an SGE?

Sub contractor

Kat1981 — Thu, 20 Feb 2020 10:53:34 GMT

Hi All
My husband became a sub contractor this month. He uses his abn that he registered for a business for doing little jobs in the community I.e mowing lawns a couple of years ago. He is using this abn number now working in construction. We checked it was still valid before putting on his invoice.
His boss showed him how to write out his invoices. It included GST. Boss emailed today to say that the abn is not registered for tax so just means he can’t charge it in his invoices moving forward. He doesn’t earn over $75000 per year so he doesn’t need to register for GST or should he register?
Does hubby call ato to get an account number to put his weekly tax into. Not sure how this sub contracting stuff works. Where do we put his tax money??
Thanks

Register bank details?

Drumma81 — Thu, 20 Feb 2020 05:40:07 GMT

Buyers Identity

Rishi1706 — Thu, 20 Feb 2020 04:02:10 GMT

Buyers Identity - On a valid tax invoice do we need to have buyers address? or buyers name is enough?

There is no clear answer on Identity

Going away

holidaymode — Thu, 20 Feb 2020 03:24:33 GMT

Our business will be unatended for 5 weeks whilst we have a break. We will not have acces to a computer to report our STP. Can i backdate the dates and send them off to the ATO when we return from our vacation ? I shall be setting up auto weekly wages whilst we are gone.

Client dinner's

MBannister — Thu, 20 Feb 2020 01:21:53 GMT

Hi,

I am just after information regarding if taking clients out to dinner as a thank you for referrals can be claimed as tax deduction. I am trying to determine if this falls under entertainment and would not be deducatible.

Am i able to claim everything as an expenses or only the clients portion and not my own meal?

Thank you

GST and/or FBT on retirement gift to employee

TCarrington — Thu, 20 Feb 2020 00:11:05 GMT

Retirement gift to former employee over $9k including GST. We have paid for gift using company funds.

Can we claim GST on gift?

Do we need to pay FBT for retirement gift to employee?

Are retirement gifts considered as ETP?

What are the implications to the company for ETP

How does GST work on STRIPE fees and STRIPE Taxes

Kavitha — Wed, 19 Feb 2020 16:04:57 GMT

Dear team,

I want to know how GST works on STRIPE fees and STRIPE taxes.

Eg:

I have $ 83 received to my bank account from sales where there is a Stripe fee of $2.46 and a Stripe tax of $0.25 applicable to it.

Further, I have sales inside australia and outside australia as well. Hence please let me know how the above figures work with GST;

1.when it comes to Australian sales and

2.when it comes to Non Australian sales

Highly appreciate your prompt response.

Thank you.

TFN Declarations not made to ATO

Joachim — Wed, 19 Feb 2020 03:22:49 GMT

Hi, I have another issue on which I would like to receive community's support .

Per ATO , when an employee joins a business , the employee needs to provide a signed TFN declaration to employer and employer in turn

need to lodge this with ATO within 14 days.

I may have come across a scenario where the employee has properly provide the declaration and the employer has processed pay based on the declaration's details, but have not lodged the declaration with ATO.

In this kind of a situation is the employer liable for any penalties. Can the employer now lodge all declarations that were not lodged before without any penalties ? . Thank you

Actors & Artist PAYG Tax

NaseemK — Wed, 19 Feb 2020 02:44:52 GMT

1) Can you please help us to understand the difference between Artists and Actor and their withholding tax on income

Is Reimbursement of Cancelled Holiday Cost Taxable Income for an ABN?

cedric42 — Wed, 19 Feb 2020 11:49:22 GMT

Please advise on the following scenario where:

* Ltd company A (major company) has subcontracted the services of Pty Ltd B (SME with multiple employees, registered for GST and subject to payroll tax)

* Pty Ltd B has subcontracted the services of Pty Ltd C (registered for GST, does not pay payroll tax)

* Pty Ltd C has a single Employee D.

* Employee D pays tax at top marginal tax rate of 45%.

* Employee D has prepaid a holiday valued at $5000.

* Ltd A has requested that Employee D cancel their holiday and will pay for reimbursement of all costs.

* Pty Ltd C will have recover Employee D holiday cancellation costs of $5000 from Pty Ltd B as Pty Ltd C is not a supplier to Ltd A.

* Pty Ltd B will have recover cancellation costs of $5000 from Ltd A.

Assuming that

1. Pty Ltd C invoices Pty Ltd B for $5000 reimbursement

2. Pty Ltd B invoices Ltd A for $5000 reimbursement

3. Ltd A pays Pty Ltd B $5000.

4. Pty Ltd B pays Pty Ltd C $5000.

5. Pty Ltd C pays Employee D $5000.

My questions are:

i) Will Pty Ltd C income of $5000 be treated as Taxable? If so, in order for Employee D not to be out of pocket - should Pty Ltd C invoice Pty Ltd B for $9434 + GST? (i.e 5000/0.53 as Employee D is on the top marginal rate of 45% and subject to 2% medicare levy?)

ii) Can Employee D of Pty Ltd C claim the cancelled holiday as a business expense?

iii) Should Pty Ltd C add GST to invoice to Pty Ltd B?

iv) Should Pty Ltd B add GST to invoice to Ltd A?

v) Should Pty Ltd B (that pays payroll tax) include the reimbursed costs paid by Pty Ltd C to Employee D in its payroll tax calculations?

vi) Are the reimbursed costs of cancelled vacation paid by Pty Ltd C to Employee D subject to FBT?

Thank you in advance

Reimbursing a vendor for work completed.

Naomi_J — Tue, 18 Feb 2020 23:35:33 GMT

Hi -

I work for an organisation. One our our clients damaged a residence of the Non-Govt Organisation they were staying at. The NGO paid a contractor to fix the damage, the contractor invoiced the NGO and charged GST which they paid. They have invoiced us for the amount the contractor invoiced them plus GST so the contractors invoice was $774.00 ($70.36 GST) and the NGO's invoice is $851.40 ($77.40 GST). This doesn't seem right - should they be charging GST on top of an amount that already had GST charged?

Thanks

STP submission is taking too long

ControlD — Tue, 18 Feb 2020 06:38:15 GMT

Hi All,

Since the introduction of Single Touch Payroll the time spent on meeting the compliance requirements is significant for me on SAASU. This is just in running the submission, especially in waiting for submissions to process which appear to take at times hours. The system will not easily allow batching of employees either, especially if they are on different pay times, rates and methods (e.g. staff versus casual versus hourly trades etc). This leads to multiple submissions needed. It appears to me the STP would be helpful for large business to save time in compliance but is the opposite for small business. For us it is a time drain and a big step backwards - a big kick for small business. Are there any solutions to speed up the submission process? Also the rules say submission needs to be in advance or on the payment date. This is near impossible to achieve. When is the system going to be fit for purpose, faster and offer time savings on complance?

Thank you - Michael.

Employer pays for 457 visa

gossss80 — Tue, 18 Feb 2020 04:24:16 GMT

Hi there,

I am sponsoring an employee and I (employer) was required to pay part of his visa application costs.

Is this visa fee a business expense and tax deductible?

Thank you!

GST

laurap08 — Tue, 18 Feb 2020 03:42:17 GMT

Hi All,

Hoping someone can assit with my question below:

I have a subcontractor that is regisered for GST, however does not include GST amounts on the invoices that he sends to me (note services are not GST exempt).

When asked why the subcontrator does not collect GST, the response was beacuse "they wont meet the threshold".

Is this going to lead to reporting issues for me? If you are registered for GST you need to collect the GST irrevalent of the threshold? Or do you not start collecting it until after the threshold is reached?

Thanks.

Double Tax Agreement - Withholding Tax - Sale of Business to Malaysian Company

BradPh — Tue, 18 Feb 2020 03:41:44 GMT

I have a client who is selling his business to a Malaysian Company. The sale will be a CGT free due to 15 yr exemption. However, the buyer is saying th purchase is subject to 10% withholding tax on the purchase as intelletual property is considered a 'royalty' and thus subject to withholding. Does anyone know how to access an exemption here considering the sale is a tax free capital gain?

Incorrect Buyer Details on Invoice over $1000

MBAChristine — Tue, 18 Feb 2020 02:44:42 GMT

Hi,

A client has received an invoice for over $1,000 which isn't made out to them directly, however states their name in a reference field. (The invoice is made out to another non-related entity).

I'm under the understanding that the supplier needs to supply a valid tax invoice addressed to their entity directly to be able to claim the GST. Can you please confirm? I have been unable to find anything specific to this situation in my research which I can demostrate to my client.

Thanks in advance for your assistance in this matter.

MyGovID

JackieColes — Tue, 18 Feb 2020 01:19:10 GMT

I work for a small charity and we currently lodge our BAS return monthly using the ATO portal and AUSkey. I understand we need to migrate to the new system using MyGovID. I have tried to download this on my personal phone but the operating system appears out of date and I'm unable to download the app. Our charity does not provide business mobiles we can't afford that expense. I have a laptop at work. I have spoken to someone at the ATO about what we do but no solution was forthcoming I just kept being told I needed to register for MyGovID and that my phone needed to be compatible with Andriod 7 or above. My phone currently uses Android 6.0.1.

For April 2020 onwards how do you suggest I complete our company BAS return? Please provide a workable solution and do not merely tell me I need to install MyGovID on a mobile that has compatible operating system.

GST

BDD — Mon, 17 Feb 2020 22:49:04 GMT

i am going through an opportunity with an overseas company where they would like to engage me for a 2 year period, and pay a fixed amount of money direct into my account. I will be working at their direction. I will have to pay the local PAYG and Super. The overseas company does not have a local base and are looking to expand in Australia. i am now in the final stage of negotiation. i would like to know if this arrangement will attract GST or it can be deemed as an employer/employee relationship where i meet all the statutory obligations.

Kind regards

Working for a Company without an Australian Office

daniloong — Mon, 17 Feb 2020 12:10:57 GMT

What are the requirements if one intends to work for an international company that doesn't have any presence in Australia yet? Do you need an ABN for this? Also, how will the tax be deducted/calculated? Likewise, the super will be paid voluntarily as well?

i would like to lodge my GST online

Abdullah123 — Mon, 17 Feb 2020 10:27:32 GMT

Hi everyone,

i would like to lodge my bussiniss GST online please help i can do it.

thand all

Partnership distribution

GippyCath — Mon, 17 Feb 2020 09:05:33 GMT

Are partnerships required to distribute their profit? Can profit not be distributed, and kept in the business? Our business is young and I'd like to hang on to the surplus for business purposes, not distribute it to the partners. Is that allowed? Otherwise we have to start at square one each financial year.

Business building employee residence

Alluc123 — Mon, 17 Feb 2020 03:21:29 GMT

Hello

I work for an NTER company.

We are currently building a residence at one of our rural locations to house an employee.

We are not in the business of building residential or commercial properties.

Can we claim the GST on the decommissioning of the old residence and the building of the new residence.

The residence will only have an employee resdie there and will never be commercially rented out.

Thank you

Alluc

ABN Sole Trader - how to invoice, tax obligations, GST, super

Iphis — Mon, 17 Feb 2020 02:46:02 GMT

Hi there,

New to Australia, on a bridging visa pending Partner Visa (Subclass 820) so have full work rights and believe this makes me a resident for tax purposes. All help much appreciated!

I've been offered some freelance/casual work with a couple of different companies, but one of the companies wants me to register an ABN and invoice them, so am trying to figure out:

a). How to invoice them - is there a standard format? What information needs to be included on an invoice to make it 'official'?

b). If I am invoicing one company in this way, would it make more sense for me to invoice all companies in the same way and process all my casual work through my ABN? Would this help simplify my tax return/help me avoid overpaying tax (pretty sure I won't earn beyond the non-taxable threshold this year, but may in future)?

c). Do I need to include GST and if so, how does this work? If I make less than $75,000 is it in my interests to register for GST, and how is this paid (i.e. do I need to pay it out of the amount I earn, or do I add it to the amount I charge the client?)

d). If I process all my work through an ABN, am I right in thinking that I then have to make my own super contributions? Is this a legal requirement, and is there a minimum amount that I have to put aside for super? Is it possible to charge employers for super contributions on top of my hourly rate, and if so what is the standard rate to charge?

Many thanks for your help.

Held Refund

Shane87 — Mon, 17 Feb 2020 01:07:32 GMT

Recently had a refund held due to a few Activity Statements Overdue. So early last week i completed those as NIL as i never traded. Once they were to be completed the refund would be released but no update on myGov and i dont have the time to hold to ring ATO. Just wondering if anyone has any information that could guce me a rough eta or something??
Thank you

Company Tax Return - Home Rent as a Deduction

Prab — Sun, 16 Feb 2020 13:36:54 GMT

Hi, Could someone kindly help me to know folowig thing?

I am completing tax return for my small business which is a company.

This business engaged in commercial cleaning work and I had a separate room for all document, legal and bookkeeping work. I didn't use this room for any personnal thing and the room was locked as there were cleaning chemicals and equipment stored in the same room. This room was 12% of the total house area. The monthly rental I paid was 1200 per month.

My question is, Am I able to claim 12% of my rent as a deduction.

Thank you

Prab

GST is it claimable on Google Adwords in Australia

GaryJones — Sun, 16 Feb 2020 03:11:44 GMT

Am I allowed to claim the GST charged by Google Adwords as I am a buisness registered for GST and have an ABN, I am of the understanding that as Google is an overseas supplier, that if I am a buisness registered for GST and have an ABN, I can't claim the GST on my activity statement, I need to contact Google Adwords and advise them of my business is registered for GST and I have an ABN, then I wont be charged the GST. Could anyone enlighten me on this subject

sales commission payable on gst component of item sold

bloggs — Sat, 15 Feb 2020 01:08:47 GMT

Am I entitled to be paid a sales commission on an item I sell for my employer which includes a GST component. EG I sell an item for say $19,800 which includes GST of $1800

I am being told that I dont get paid my 10% commission on the entire $19.8K only the

$18K before GST is added.

My workplace agreement simply states I get 10% on all sales.

There is no mention of the GST rubbish outlined.

Another salesman told me he thought they paid the commission on the GST component

into our Super fund.

This was not authorised by me.

These figures are not the exact price of the item sold, merely a simple mathematical example.

Employer not paid tax

Mcginty1 — Sat, 15 Feb 2020 00:07:17 GMT

I am on a WHM visa 417. I was employed by a small business in January 2019 that qualified as regional work to complete my 88 days for the 2nd year visa. I worked there from January 2019-July 2019, before having to return home to the UK to apply for the 2nd year visa. My visa was accepted and I returned to the same employer in September 2019. I worked there until February 2020. During my time I received no payslips. I have asked for them and been in touch with the fair work ombudsman in relation to this. Upon further investigation using MyGov which I have linked to the ATO. I have not had any tax lodged for the duration of my employment. I was employed as a full time employee on an award rate. How do I solve this matter.

GST on purchase and sale of truck

Trudy — Fri, 14 Feb 2020 13:25:58 GMT

We purchased an old truck from a non registered seller and was told by accountant we couldn’t claim GST on that purchase. Do we have to pay GST on sale of it? We are registered for GST

GST

AnitaJoseph — Fri, 14 Feb 2020 05:36:03 GMT

Can I claim GST on an expense claim by an employee for $110? - there is a restaurant receipt provided, however the receipt doesn't say the words "tax invoice".

GST on per diem

JoeBloggs — Fri, 14 Feb 2020 05:28:36 GMT

Say a person works for company X, they provide services to company Y via subcontracting through company Z.

Company X invoices company Z for the work + GST, company Z then pays the invoice and on-charges the same fee + GST to the end customer company Y.

Those services include GST obviously but however, some work involves travel.

The customer company Y pays for travel/accomodation in-house for the employee of company X and allows a per diem within ATO guidelines to be paid to the employee of company X.

However company Z is instructing company X to only pay the employee the approved per diem MINUS GST so that the employee is only getting 10/11 of the approved amount by the customer company Y.

IAW with GST regulations, is this a correct direction from company Z given per diems within ATO guidelines are not meant to be taxable?

Treating a Building Improvement Correctly

Justine_Ellis — Fri, 14 Feb 2020 02:23:44 GMT

I would like to ensure that I am treating an asset correctly for our business.

We are in a leased building and we would like to have some works on the building completed to improve it as we will be here long term.

Our landlord has agreed to the changes and we have agreed to split the cost of the upgrade ($30K).

I have paid the total bill and our landlord will reimburse their 50% at some point this month or next.

Our auditors have advised me to account for the whole 30K in our building assets and then when the landlord pays us the $15K, to receive it as income.

Is this correct?

I would be receiving and depreciating a 30K asset that we essentially only own 50% of.

I would then be receiving 15K income that relates to this. (unless the auditor means I should offset this against the original asset requisition, but that is not the way it was communicated).

Also, I am sure the building owner will be accounting for the 15K in their assets also.

I want to ensure I treat this correctly from the start or it could get pretty messy come FYE.

Superannuation

1Christine1 — Fri, 14 Feb 2020 02:20:24 GMT

If staff are rostered on for 4 x 12 hour night shifts per week and it is considered their regular night shift work (their "normal" shifts), does SGC then apply to those hours or merely 38 hours?

Thanks

Christine

Water on-charges

BernieC — Thu, 13 Feb 2020 23:49:51 GMT

We are a Local Goverment Council and supply water to some of our residents. Each resident has their own water metre. We receive a GST free invoice from our water supplier for water. We then charge our customers for the amount of water they have used. Should we be adding GST to their invoice

ABN number for invoicing working overseas

Macemarine — Thu, 13 Feb 2020 13:13:33 GMT

I have started a new job in the middle east as an Australian citizen can I use an Australian ABN number to invoice the company.

I enquired before I came to do the work but was told I cannot use an Australian ABN number outside of Australia as a sole service provider

Please advise what I need to do as they will pay me upon presentation of an invoice but I have to register on their portal before I can be paid then it will be sent to my account in Australia

myGov ID application

Conmichaliadis — Thu, 13 Feb 2020 06:58:10 GMT

I have already installed this app on my Android phone twice and still having continuous problems. Opening app to login to ATO online. And don't direct me. To your help page provide me with an answer as to why I continue to have this problem.

myGovID

Phil3 — Thu, 13 Feb 2020 06:14:58 GMT

Question is

I have a contractor BAS Agent working for me who needs access to my tax practice - tax agent portal files - of all my clients. The contractor, being a registered BAS agent has her own myGovID already on her mobile phone and uses that to access her own clients tax records held under her own practice. I as the tax agent "employer" of the BAS agent do not have access to any of the BAS agents client details or tax records - they are not my clients. I have no knowlege of her client names, tax file numbers or ABN's.

I intend to use the RAM system to join her identity to my own ABN so that she can use a myGovID to access my client files. As mentioned she needs access to my clients possibly every time she works for me and naturally when I get new clients who must be entered under my access in the tax agent portal (Online Access).

The question is if she has only one version of myGovID on her mobile how will the system determine whether to access clients of Phil3

or clients of the BAS agent that she has for herself. Naturally I don't want to have access to her client tax records

MyGov Email received by a client

Rozziekaye — Thu, 13 Feb 2020 05:37:31 GMT

Hi there,

We are a Tax Agent and look after quite few businesses for our clients. One of our clients received an email from the ATO about registering for MyGov, but we do all of their work for them. What scenarios would clients of a tax agent need a MyGov login (aside from personal ones).

Smiles Roz Kaye

Adding BAS Clients to new RAM

KSTURM — Thu, 13 Feb 2020 05:11:10 GMT

Hello,

I have myGovID logged into new RAM system but can only add my own business to my profile but I am a registered BAS Agent who has an AUSKEY with access to my clients lodgements. How do I add my clients to my profile.

thank you

Payroll

OnBalance — Thu, 13 Feb 2020 04:03:35 GMT

I have a client who runs payroll he does not have an ABN he has a WPN after many attempts I have not been able to set him up with single touch payroll will this ever be fixed?

GST on Uber Receipts

neuendorf — Thu, 13 Feb 2020 03:39:30 GMT

Can anyone advise if you can claim gst on an uber receipt under $82.50 for work purposes, no tax invoice just a receipt. As all Uber Drivers are to registered for gst purposes I would assume yes you can.

OT meal allowance and super

Kendz28 — Thu, 13 Feb 2020 01:27:13 GMT

Hi,

I’m questioning OT meal allowance and super. I am a casual nightshift worker but it seems my super is calculated on day shift rates and only for Monday - Friday, however the business I work in operates 7 days a week. Is this legal to calculate super on a day shift rate even though my evening rate is time and a half, therefore I’m realistically not getting the right amount of super?

Also can some one please clarify OT and meal allowances, I always generally get meal allowance now I’m working on a different site and did over 60 hours this week and my company has said no you don’t get meal allowance because the site you’re on. Can someone please explain this or show me a legal document stating the rules of OT meal allowances?

Thank you!

Superannuation

1Christine1 — Thu, 13 Feb 2020 00:35:38 GMT

If staff are rostered on for 4 x 12 hour night shifts per week and it is considered their regular night shift work (their "normal" shifts), does SGC then apply to those hours or merely 38 hours?

Thanks

Christine

Full payment required before stock despatch.Can we raise Proforma invoice

AnneN — Wed, 12 Feb 2020 20:31:40 GMT

Hi,

We have customers under CASH term which requires full payment before stock despatch. Customer request an invoice copy as proof of sales (quantity and unit price).

Technically we cannot raise TAX INVOICE before stock despatch so can we raise proforma invoice and request customer to add extra GST on top when making payment to us?

Thank you

Bed Debit

Andrew5 — Wed, 12 Feb 2020 06:54:59 GMT

Dear Mr/Mrs

May I ask a question about how to deal with bed debt?

We assume that A and B company had the same director. A was the new company. Then A borrow $100,000.00 from B to start the business. After two year, A was bankrupt and didn’t refund the $100,000.00 to B. How B Company could deal with this $100,000.00 bed debt?

Thank you so much for your help!

Delays in STP Submissions due to System outages & Ugrades

Ruth_ — Wed, 12 Feb 2020 06:41:34 GMT

We are currently upgrading from SQL2008 to SQL2016 on a cloud based system but we have experienced a number of outages that have delayed our upgrade.

However, we have just been notified that as Microsoft are no longer supporting SQL2008 our Sage Micropay STP will not work and they do not have a work around. We do not have a tax agent or BAS agent to do this for us.

Q. Are we able to upload the file using the ATO Business portal or to submit any delayed STP once our Server is upgraded and the automated STP is woulding again?

Motor Vehicle expenses in family trust

RhondaT — Wed, 12 Feb 2020 05:50:06 GMT

I'm confused!

A business is run through a family trust. The trust does not own a motor vehicle. The vehicle is owned in individual name. A log book has been completed showing the business use percentage of the motor vehicle. Can the business use portion of the motor vehicle expenses be claimed as an expense to the trust (even though the trust does not own the motor vehicle)? Or, is it claimed in the individual tax return against the trust distribution of profits (though I believe this is not possible anymore)? Or, should it be treated as a reimbursement to the individual (who is not an employee)?

Using overseas contractors

georgiebell — Wed, 12 Feb 2020 04:34:12 GMT

Hi there,

I work for a business that hires independant contractors overseas. Per Australian law they are contractors, most of them run their own businesses or freelance for us. They are located in South America, New Zealand and the Philippines. As they are contractors we don't pay their tax or Super but as they are working for an Australian company are they obligated to pay Australian tax or are they only bound by the laws of their country? Do we, as a company have any obligation to make sure they are complying with Australian or local law? None of these contractors are Australian citizens.

Thanks.

Salary Sacrificing - Local Council

juliakendall32 — Wed, 12 Feb 2020 02:47:29 GMT

Hi,

I work for a Regional Council and have been tasked with setting up the Salary Packaging Policies and Procedures on behalf of the Council, and I was wondering if you could provide me with some information?

Who does salary Sacrificing extend to in a council setting, is it only full time, permanent employees, or can casuals access salary sacrificing as well?
What percentage of an employee’s wage, or amount can be salary sacrificed by an employee?
Are there any Fringe Benefit Tax implications on Council or Council staff?

Thanks.

PAYG Summary submitted twice to ATO for same financial year

Nybor — Wed, 12 Feb 2020 02:22:25 GMT

An employee who is getting his tax done through an accountant has told us that his PAYG Summary has been reported twice for the same financial year. We did originally report the PAYG Summary on 30/6/19 the same way we have in previous years and then must have later reported the PAYG summary through single touch payroll. His accountant says the ATO will count his salary twice but we haven't had that trouble with any other of our employees. Is there a way to delete one of the PAYG summaries?

Employees referral vouchers - FBT

JL5 — Tue, 11 Feb 2020 21:35:23 GMT

Hi,

We have an employee referral program where if an employee successfully referred someone to the company they will receive a $500 gift voucher. Does all amount over $300 attract FBT regardless of the frequency /regularity of the event?

Thanks

Ex-gratia payments

sylviaelter — Mon, 10 Feb 2020 05:06:58 GMT

Hi I have received an ex-gratia payment from the NSW goverment during 2018/19 and wanted to know whether this is taxable or non-taxable. The payment was for small business who experienced disruption during the Sydney light rail project. It was a payment in the form of "ex-gratia" to help with the financial assitance during the time of disruption. I have spoken to the advisers linked to this project from PKF who have informed that the payment is to be treated as a normal ex-gratia payment- can you please confirm this will be non-taxable. Thank you

Training and GST

Cam2 — Sun, 09 Feb 2020 21:45:45 GMT

My client is giving some training as part of her business. Should she charge GST on this training?

GST Registration

KeithM — Fri, 07 Feb 2020 22:08:54 GMT

I have a small retail/online business. Although i have have always had an ABN, i havent been registered for GST due to my turnover being below the $75k threshold. This year the business has picked up well and quickly and will exceed the threshold. Will i need to backdate my GST registration to the start of the fiscal year or can i just start from halfway through such as the 1st of january when it became evident we would exceed the threshold due to recieving some large orders?

Cheers

Over Payment and Payment Summary

TaxQuestion1 — Fri, 07 Feb 2020 11:14:04 GMT

If I discover an employee over payment in September 2019, for payments received in August 2019, I correct the over payment and establish a Loan for the NET figure. After the correction, the YTD figures would not include the over payment. If in March 2020 I choose to waive the employee's obligation to repay (repaying is an EBA obligation), do I either:

Reverse the original correction, so that the empoyee's YTD figures and Payment Summary includes the actual payments received (i.e. these figures would include the original over payment)?

Let the original correction remain, so that the employee's YTD figures and Payment Summary includes the correct payments received (i.e. these figure would not include the original over payment)? The unrepaid loan is potentially liable for debt waiver FBT.

Overpayments and Payment Summary Advice

TaxQuestion1 — Fri, 07 Feb 2020 07:32:43 GMT

If I discovered an overpayment in Sept 2019 for incorrect wages in Aug 2019, I would reverse/correct the overpayment in the Sept 2019 payrun. I would then establish a loan for the NET amount and send the employee a letter to request to recover the overpayment via an after tax deduction .If in early June 2020, I decide to waive the employees existing obligation to repay the overpayment, do I either:

Remove the reversal/correction made in Sept 19. So the payment summary reflects the actual salary received (i.e. the payment summary will now include the ovepayment amount)?

Or...

Leave the Sept 2019 reversal/correction in place (i.e. the payment summary will not include the overpaid amount), and calculate any FBT liabilty on the loan amount?

Regarding to Foreign Tax Residency status

detectiveT — Fri, 07 Feb 2020 03:51:46 GMT

Hello,

Recently my company received an email from Foreign Tax Operations/Westpac asking me to provide a tax residency status confirmation to CRS@westpac.com.au, which we haven't receive the form that they claim to send via post, is this form available somewhere online? Thank you!

Here is the email I received: http://i2.tiimg.com/635215/5e52b76ad1bd2208.png

Sale of Business and Capital Gains Implications

Arman — Fri, 07 Feb 2020 03:05:04 GMT

Dear ATO Community

Two items have been sold under separate contracts:

1. Land; and

2. Business that is on the land being sold.

Question 1: Is the business a CGT Asset for CGT Event purposes? I am familiar with section 108-5(1) of the ITAA97.

Question 2: If the business a CGT Asset, what is the CGT Event? Is the sale of the business a CGT Event A1?

Thank you in advance for your assistance.

Kind regards

Registering for GST part way through financial year

bstuartcarberry — Fri, 07 Feb 2020 02:58:39 GMT

Hi there,

I am not currently registered for GST. If I register for GST now will I need to pay GST on all previous income earnt this financial year or just the period between registration and EOFY?

Hope that makes sense, let me know if it doesn't!

Ben

MyGovID -- No pin sent

PeterAccess — Fri, 07 Feb 2020 02:46:27 GMT

I am Having trouble getting the "Authorisation PIN" for APP

have installed app on Galaxy S6 - Android 7

have installed app on Galaxy S7 - Android 8

Launch APP -- Put in Emaill Address

Waiting for Pin -- never arrives

Have tried multiple email address's on my Domain

have also tried GMAIL Email address's

Any Suggestions Welcome

FBT - Gift Card

SGatTF — Thu, 06 Feb 2020 23:46:16 GMT

Hi There,

My question is, if a company gave an employee a gift card of $500 in September, then gave him/her (same employee) another $100 gift card in December, when caculating FBT payable, is the $100 one exempt or should be included as $600 in total since it's the same employee?

Thank you for your time.

Regards,

Working Holiday Makers

kmebek — Thu, 06 Feb 2020 23:20:47 GMT

Hi,

What are the STP categories for WORKING HOLIDAY MAKERS, gross payments and tax please.

Cheers

Consulting and asked to take on part-time role

Normal_person — Thu, 06 Feb 2020 04:20:58 GMT

I have been running my own consultancy (Pty Ltd company, with ABN) for the past six years. I and my partner are the only two consultants. Over the past couple of years I have been providing consistent consulting services, billed on an agreed hourly rate for specific projects for a single company. The amount of work is around 60% of my total consulting annual income, and not subject to personal services income.

The company has recently asked me to join as a part-time employee for 1 or 2 days per week to provide supervision of other employees, with the balance of time (say 8-12 hours/week) to be charged on an hourly consulting rate for the technical aspects of the role (providing consulting advice to the company's clients. The part-time role would be as an employee, with accrued leave & super entitlements.

My question is whether this legal/allowed to have a 'split' role as I have described? What are the tax implications?