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Save money on business fuel costs
From 1 July this year more businesses will be able to claim fuel tax credits for the first time, and many others will be able to claim additional fuel tax credits.
Businesses can now claim for the fuel used in industries like construction, manufacturing, wholesale, retail and landscaping for items ranging from bulldozers and backh"s to compactors and chainsaws.
The only fuels that are not eligible are fuels used in cars (or other light weight vehicles travelling on public roads), alternative fuels, and aviation fuels.
For the new activities businesses can claim around $19 for every 100 litres of eligible fuel.
Businesses can register for fuel tax credits by phoning 13 72 26 anytime (24 hours a day, 7 days a week). Make sure your clients have their ABN and TFN available when they call.
For more information about fuel tax credits visit www.ato.gov.au/fuelschemes |
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Eligibility for GST and annual private apportionment
GST clients currently using annual private apportionment should reassess their eligibility to continue using this concession at 31 July. Clients can access annual private apportionment if they: - have an annual turnover (calculated at the time of election) of $2 million or less, or
- are carrying on an enterprise with a GST turnover of $2 million or less, and
- have not elected to pay GST by instalments or report GST annually.
Clients who use annual private apportionment will be able to claim a GST credit for the total amount of GST included in the price of a purchase. They will not need to estimate the portion of intended private use. After the end of the income year, they need to make a single adjustment to account for the private portion of all of their purchases.
This adjustment will increase the amount of GST your clients are liable to pay for the tax period in which they make the adjustment.
For more information about GST and annual private apportionment: |
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Some GST schemes are not what they seem
The Tax Office is aware of cases where compliant business operators have been duped by promoters of dodgy GST tax schemes.
These types of schemes are designed to obtain GST benefits not intended by the law. The arrangements are promoted as legitimate tax planning opportunities. They are sometimes accompanied by favourable opinions from legal professionals or represented as being sanctioned by a private ruling.
Both the promoters and taxpayers involved in dodgy schemes face significant penalties.
To make it easier for taxpayers to identify dodgy schemes, a section of our website is devoted to aggressive tax planning - www.ato.gov.au/atp There is a range of information for investors and taxpayers, including warnings about particular schemes.
The website also contains practice statements on the application of promoter penalty laws. Visit www.ato.gov.au/atp and select Promoter penalties - Practice Statements.
If you are aware of or concerned about a scheme or arrangement, or unsure about the legitimacy of a GST transaction, seek our advice.
Phone 13 28 69 and ask for the Director of GST Aggressive Tax Planning, Nick Athans. | |
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Benchmarks to help tradespeople comply with tax obligations
The Tax Office and various trade associations have been working together to develop benchmarks on the time and materials involved in an average job in certain industries.
Businesses can use the benchmarks to compare their performance to the rest of the industry and check that their tax records reflect their business practices.
For more information and to view benchmarks for the floor sanding, roof tiling and painting industries visit ato.gov.au/businesses and select ATO Industry Benchmarks. | |
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BSPs are not registered under current legislation
We have recently been alerted to instances where businesses are incorrectly implying they are a 'registered' BAS service provider (BSP) with the Tax Office.
As Assistant Commissioner Rob Walsh observed, under the current legislation, providers of BAS services are not registered by the Tax Agent Boards, the Tax Office or any other agency.
'Being eligible to access our BSP support products, for example the BSP Portal and ECI for BAS lodgment, d"s not confer any form of registration status for approved users' Rob said.
'While there is no BSP registration under current laws, it is noted that the proposed regulatory regime recently announced by the Assistant Treasurer d"s include registration as a BAS agent in the future.' |
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Common errors on business activity statements
We have identified a range of errors commonly made on business activity statements.
This month, we focus on G11 on the business activity statement where wages and superannuation contributions are often incorrectly included.
Wages paid should be reported at W1, and only non-capital purchases should be reported at G11.
Superannuation contributions do not need to be reported on the business activity statement.
Correctly completed business activity statements will ensure processing without delay. |
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Super change fairer for employers
Previously, employers who paid late super guarantee contributions to a fund could elect to offset these contributions, providing the payments were made within one month of the super guarantee charge due date.
If the payment was made more than one month late, employers were also liable to pay the super guarantee charge, effectively paying the same amount twice.
The changes, which take effect from 24 June 2008, will generally give relief to employers from this double payment situation. Contributions can then be offset against the super guarantee charge even if paid more than one month late.
The super guarantee charge and any late contributions used to offset the charge continue to be non-tax deductible. Penalties and interest will still apply to employers who don't pay super contributions for their employees on time.
For more information visit Superannuation guarantee late payment offset or phone 13 10 20. |
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Super publications for employers
We have recently developed new publications to help employers understand and meet their super obligations. These publications provide different levels of depth and detail, and are valuable resources for BAS service providers.
The new publications include: Coming soon: - Super publications and forms summary (NAT 72197)
Provides a summary of super publications, resources and forms provided as part of our role in administering the super system.
To order a copy of these publications visit our online ordering system or phone us on 1300 720 092 and quote the title of the publication. |
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Check that payroll systems are calculating super guarantee correctly
Changes to super from 1 July 2008 may affect the way employers calculate the super guarantee contributions they make on behalf of their employees.
The Tax Office is urging employers to make sure that they have the correct systems in place to handle this change in requirements and to plan for any additional costs.
For more information on ordinary time earnings and the super guarantee, visit Using ordinary time earnings to calculate the super guarantee or phone 13 10 20. |
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Employer super funds must offer life insurance
The Tax Office is reminding bookkeepers that from 1 July 2008, employer-nominated super funds (also known as default funds) must offer minimum levels of life insurance death cover to members.
An employer-nominated super fund is the fund that an employer chooses to pay an employee's super guarantee contributions to if the employee d"s not choose a fund.
If an employer nominated super fund d"s not offer minimum life insurance for members, employers will need to arrange insurance either with another super fund or with an insurance provider.
For more information visit Choice of super fund - meeting your obligations or phone 13 10 20. |
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BSP Portal
Over 800 eligible bookkeepers have been approved for access to the BAS service provider (BSP) view of the portal since we introduced it in October 2007.
Their feedback suggests that the portal is a valuable business tool and helpful in dealing directly with us. For example: 'Now that the BSP View of the Tax Agent Portal has been created, my business has become much more efficient and streamlined and I would like to thank you for recognizing the important part that BAS Service Providers play in today's tax system.' Apply for access
For the application form including eligibility requirements, and more information about portal functionality, visit BAS service provider view of the portal.
When you apply for access you must provide evidence of your eligibility, in accordance with section 251L (6) of the Income Tax Assessment Act 1936.
To access the portal you need to apply for an ATO digital certificate, if you don't already have one.
Also, as an approved user of the BSP Portal, you will have access to a new BSP helpline which provides a tailored menu for BAS service providers. The BSP helpline features quick access to portal help and general BAS information. The BSP helpline number is 1300 650 129.
BSP Portal tip of the month
Use the portal to easily download payment slips for your clients. This is located under the tab 'Your Clients - select Payment Options'.
The payment slip file is available in PDF format. You will need Acrobat reader to print. |
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What to do if your client has a tax debt
For advice about your client's debt or to arrange payment by instalments phone 13 11 42 8.00am-6.00pm Monday to Friday.
We will work with you or your client to help them clear their debt and move on.
It's important that your client continues to lodge on time even if they are unable to pay. |
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New links and technical updates
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Bookkeeping Essentials
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Key dates for you and your clients
Note - Different lodgment dates may apply if your client uses a tax agent, or if you lodge online.
- If you lodge online your clients must sign a declaration for each BAS electronically lodged by you. For more information see ECI - frequently asked questions and scroll down to 'What records do I have to keep to show that I have authority to lodge a client's activity statement?'.
- This list is not comprehensive, it is a guide only. Events or timelines may change.
- 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 may be made on the first business day after the due date (indicated by * in the table).
14 July 08 | PAYG withholding payers must issue payment summaries to payees (ie employees and other workers). | 21 July 08 | June 2008 monthly activity statements: final date for lodgment and payment. | 21 July 08 | Quarter 4 (April - June 2008) activity statements containing a monthly GST obligation: final date for lodgment and payment. To ensure you receive the correct amount of credit in your income tax assessment, finalise all your PAYG instalments before you lodge your tax return. | 21 July 08 | Quarter 4 (April - June 2008) consolidated instalment activity statements: final date for lodgment and payment by a head company of a consolidated group. | 28 July 08 | Quarter 4 (April - June 2008) activity statements: final date for lodgment and payment. To ensure you receive the correct amount of credit in your income tax assessment, finalise all your PAYG instalments before you lodge your tax return. | 28 July 08 | Quarter 4 (April - June 2008) instalment notices - forms R, S and T. Final date for payment and, if varying instalment amount, lodgment (two-instalment payers are also required to pay 25% of their PAYG instalment liabilities). To ensure you receive the correct amount of credit in your income tax assessment, finalise all your PAYG instalments before you lodge your tax return. | 28 July 08 | Superannuation guarantee contributions for quarter 4 2007-08 (1 April - 30 June) are to be made to the fund by this date.
If an employer d"s not pay the minimum superannuation guarantee contributions for quarter 4 by this date, they must pay the superannuation guarantee charge (SGC) and lodge a Superannuation guarantee charge statement - quarterly with us by 28 August 2008. The superannuation guarantee charge is not tax deductible. | 11 Aug 08 | Quarter 4 (April - June 2008) activity statements: final date for electronic lodgment and payment. Refer to Lodge your activity statements for information on your eligibility for this later due date. | 14 Aug 08 | Final date for lodgment of the PAYG withholding payment summary - individual non-business - annual report. Use this to report amounts withheld from salary and wages and other payments. These amounts are reported at label W2 of the activity statement. | 14 Aug 08 | Departing Australia superannuation payment (DASP) data records for the 2007-08 year that form part of the PAYG withholding payment summary annual report. | 21 Aug 08 | July 2008 monthly activity statements: final date for lodgment and payment. | 21 Aug 08 | Final date for monthly GST reporters to elect to report GST annually. | 28 Aug 08 | Superannuation guarantee charge statement - quarterly (if required contributions were not made by the due date) for quarter 4 2007-08 (1 April - 30 June) to be lodged and paid to us. The superannuation guarantee charge is not tax deductible. | 21 Sep 08* | August 2008 monthly activity statement: final date for lodgment and payment. |
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Other important dates
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Subscription information
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We welcome your feedback
Your comments and suggestions will help us provide the information you need in this newsletter. Email your feedback to BSPsubscription@ato.gov.au
Note
Do not use this address for technical or procedural enquiries. To address these queries visit www.ato.gov.au or phone 13 28 66. |
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