This depends entirely on the task. We’re a big believer in no bill shock, so every job is priced upfront after a discussion with you about what you want to achieve. So it’s not about what we charge, but the value we deliver.
The ATO’s service standard is 4 working weeks. So once your tax return has been lodged, it can take as long as this period, however we find that most are back within 10 days.
Everyone’s circumstances are different, with some jobs being bigger or smaller than others. If you ask us for an update, we would give you one within 24 hours of asking us and we would keep you informed of any delays.
Everyone’s circumstances are different, with some jobs being bigger or smaller than others. If you ask us for an update, we would give you one within 24 hours of asking us and we would keep you informed of any delays.
There’s no one size fits all answer, but rather it’s about taking all your circumstances into account in order to get to a solution that best suits you. There are various factors to consider, such as whether you have a business or you earn salaries or wages, as this goes towards establishing whether or not your vehicle costs are even deductible.
If you had cash, the consideration here would be what else you could do with the money. If you need cash for running the business, it would likely be more advisable to preserve cash and pay for the vehicle over the period that you’re using it.
Many people think spending money to reduce tax is a viable strategy. However, even on the highest tax rate of 47%, you would only save 47 cents for every dollar spent; meaning you pay more than what the ATO would pay you back. Rather than thinking of additional expenses, focus rather on the timing of expenses.
Truth of the matter is, you’re not. GST is not actually your money, it’s the extra that you put on your invoice when you bill your customers. Your customers then pay you inclusive of GST, which you then collect on behalf of the ATO and then pay over to them when you lodge your BAS.
This depends on various factors, such as your personal circumstances, what’s important to you and the outcomes you’re looking to achieve. Each person is unique and would vary according to your needs.
This misnomer arises when people who earn non-employment income (ie, business income, investment income, etc.) have tax payable for the previous financial year. When this happens, they automatically enter into the PAYG instalment system, where the ATO then charge provisional tax in respect of the current financial year. This means that tax for two different years are being paid for concurrently.
We recommend using Xero for your bookkeeping needs as it easy to use and has an array of features that make running a business that much easier. However, this does depend on what functions you’re looking for (if any) and your budget.
If you want to claim your vehicle costs, you will need to maintain a logbook for a period of 12 consecutive weeks so that you can establish your work-related percentage. As an alternative, if your business kilometres are under 5000, you’re also entitled to claim on a cents per kilometre basis.
When you run a business, it’s important to know how well you’re doing. It depicts your business’s performance and provides a foundation from which you can improve on. It’s also usually required by the banks if you’re looking for finance.
Administering a business is a time-consuming but necessary exercise. Your time is best spent on doing what you do best and that is what puts money in your bank account. You need accurate record-keeping without wasting your precious time that could be better utilised elsewhere. Also, the more accurate your information, the better business decisions you can make.
Most business professionals are extremely good at what they do, but not necessarily as good at the financial aspects, such as profitability, cash flow management and business planning. This, however, is an accountant’s area of expertise. So combining your technical ability with the accountant’s business acumen will unlock the potential in your business.
Saving tax should not be the priority when making this decision. Depending on your income, the amount spent can exceed the tax savings achieved. However, if you do take out private health insurance then you do have access to medical benefits that you otherwise wouldn’t.
All Australian residents (for tax purposes) are liable to pay the Medicare Levy. If you earn over a certain amount and you don’t have adequate private health cover, you will be charged a percentage surcharge in addition to the levy.
This is driven by how much profit you’ve made, which is why it’s important to have accurate data to work out your income. Once you’ve established this, you can calculate the approximate tax liability and set aside accordingly. Depending on your structure, you may need to speak to your accountant for assistance.
