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Edition 3

The BAS agent

3

 

In this edition

Annual pay as you go (PAYG) instalment
Increase to the adjustment note threshold
No change to the GDP adjustment for 2010-2011

Changes to the goods and services tax law
New GST and property information on our website
Fuel tax credit claims
Fuel tax credit and wine equalisation tax credit overpayments
Latest fuel tax credits information online
Help your clients avoid prosecution for non-lodgment
Key dates for you and your clients

 

Annual pay as you go (PAYG) instalment

We will be sending annual PAYG instalment notices to taxpayers in early July 2010. Payment is due by 21 October 2010. 

Even if your client has lodged an income tax return before this date, they must still pay their annual instalment by 21 October 2010.

For more information, refer to PAYG instalment essentials.

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Increase to the adjustment note threshold

The adjustment note threshold has been increased from $50 to $75. This means there is no need to issue or hold an adjustment note where the change in the amount of GST (or input tax credit) is $75 or less. The change applies from 1 July 2010.

For more information, refer to A New Tax System (Goods and Services Tax) Amendment Regulations 2009 (No. 2).

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No change to the GDP adjustment for 2010-2011

Each year we adjust the PAYG instalment amounts using a formula that takes into account expected economic growth. This is known as the gross domestic product (GDP) adjustment and is based on data published by the Australian Bureau of Statistics.

For the 2010-2011 income year, the GDP adjustment will remain at 2%.

The GDP adjustment applies to taxpayers who pay their PAYG instalment amounts on the basis of GDP-adjusted notional tax.

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Changes to the goods and services tax law

On 24 March 2010, the following new goods and services tax (GST) legislation was enacted:

§  Tax Laws Amendment (2009 GST Administration Measures) Act 2010

§  Tax Laws Amendment (2010 GST Administration Measures No. 1) Act 2010

These new acts contain eight new measures in total, arising from the Board of Taxation review into the administration of GST. Some of these new measures apply to fuel tax credits and wine equalisation tax.

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New GST and property information on our website

A new publication - Valuations for the margin scheme - is now available on our website. You can use this publication to check that property valuations your clients receive from professional valuers are approved valuations for GST margin scheme purposes.

 You can find this product alongside:

§  common errors on property transactions

§  residential premises (new and existing)

§  commercial premises

§  margin scheme

§  going concerns

§  adjustments for changes in creditable purpose.

For more information and to access these publications, refer to GST essentials.

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Fuel tax credit claims

Due to the GST law changes, from 1 July 2010 your clients should claim any outstanding fuel tax credits within four years from the end of the tax period to which it would generally be attributed to. Your clients can do this using their current business activity statement instead of revising an earlier activity statement that relates to the date of their tax invoice.

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Fuel tax credit and wine equalisation tax credit overpayments

Due to the GST law changes, from 1 April 2010, if your clients receive an overpayment on a fuel tax credit or wine equalisation tax (WET) credit, the overpaid amount should be treated as tax that is due. This means your clients must repay the overpayment plus any general interest charge owing from the date of the overpayment.

For more information, refer to:

§  Fuel tax credits for business

§  About penalties and interest charges.

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Latest fuel tax credits information online

Information products on our website are regularly updated due to legislative changes or new ATO rulings.

To ensure you have the latest version of a fuel tax credit product, you need to regularly check Fuel schemes essentials.

When checking our website for the latest news, remember to bookmark your frequently visited sites and save them to your 'favorites'.

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Help your clients avoid prosecution for non-lodgment

We prosecuted 3,181 taxpayers during 2008-09 for failing to lodge documents when required.

Any conviction recorded is a criminal conviction. For an individual, the maximum fine is $5,500 and/or 12 months imprisonment. For a company, the maximum fine is $27,500.

A criminal conviction can impact a taxpayer's employment as well as their ability to travel.

To help your clients avoid prosecution:

§  encourage them to lodge on-time

§  let us know if you have an uncooperative client so we can contact them directly.

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Key dates for you and your clients


Different lodgment dates may apply if your client uses a tax agent or if you lodge online.

For business lodgment dates for May refer to 
Key lodgment dates for businesses

Where a due date falls on a day that is not a business day (that is, a Saturday, Sunday or public holiday), lodgment or payment can be made on the first business day after the due date without incurring a failure to lodge on time (FTL) penalty or GIC. A public holiday is a day that is a public holiday for the whole of any state or territory in Australia. 

If your clients use a tax agent, it may be helpful to refer to 
Keydates for tax agents - May.

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