GST TERMS

1
(No Transcript)
2
GST TERMS

• BAS (Business Activity Statement)
• Using this form, the entity will advise the ATO
  of its GST liability or refund claim
• This form will also be used for all tax payments
  in addition to GST
• The GST section of this form will be completed
  every month, or every three months, depending on
  the basis of GST registration

3
GOODS SERVICES TAX

• Extract from the BAS

Credit for goods and services tax paid 1B
Goods and services tax payable 1A
Wine equalisation tax refundable 1D
Wine equalisation tax payable 1C
Luxury car tax payable 1E
Luxury car tax refundable 1F
Credit for wholesale sales tax 1G
Add 1A 1C 1E 2A
Add 1B1D1F1G 2B
2A minus 2B GST net amount 3
4
THE NEW TAX SYSTEM

• PAYG Withholding System
• Started on July 1 2000
• Whats new?
• - Voluntary Agreements
• - Labour Hire
• - No ABN
• Nine systems replaced by PAYG withholding

5
THE NEW TAX SYSTEM

• Registration for PAYG
• Currently registered for withholding taxes
• Registering for the first time
• What is required to withhold tax
• BAS - monthly or quarterly only if registered for
  GST
• IAS - monthly or quarterly if not registered for
  GST

6
THE NEW TAX SYSTEM

• Classification for PAYG
• Small - up to 25,000
• Medium - 25,001 - 1,000,000
• Large - over 1,000, 000
• Change of status

7
THE NEW TAX SYSTEM

• Payers Obligations
• Register for GST?
• Withhold where required
• Notify and remit Annual Report to ATO
• Issue Payment Summary to Payee
• No TFN report to ATO by 31 October

8
THE NEW TAX SYSTEM

• Contractor or Employee?
• ATO ruling - control is a significant factor
• If an employee - PAYG withholding
• If a contractor - ABN required but no withholding

9
THE NEW TAX SYSTEM

• Voluntary Agreements
• Written contract
• ABN required
• GST chargeable?
• Not included in instalment income of payee

10
THE NEW TAX SYSTEM

• Withholding when no ABN supplied
• Withholding rate 48.5 unless specified
  circumstances exist
• Payees obligations
• Penalties for not withholding

11
THE NEW TAX SYSTEM

• Cashflow Effect
• Small Company - 14 months earlier
• Medium Company - 7 months earlier
• Large Company - 4 months earlier
• Quarterly Provisional Payer - 6 week delay
• Annual Provisional Payer - No change for 2 years

12
THE NEW TAX SYSTEM

• Varying Instalment Rates
• Why consider?
• Risks of variation
• General Interest Charge
• Possible penalties
• Cashflow if large washup
• BEWARE - Even if gross income falls, a variation
  of rate may not be appropriate

13
THE NEW TAX SYSTEM

• New Taxpayers
• Tax Planning Always required
• No PAYG instalments due until instalment rate
  issued by Commissioner
• Instalment rate unable to be issued until tax
  return filed

14
THE NEW TAX SYSTEM

• Variation Credits
• May arise on variation of instalment rate
• Need to calculate current instalment regardless
  of credit
• Variation offset against all tax liabilities in
  RBA

15
INSTALMENT DATES

• New rules for small quarterly instalment payers

30 June 01
30 June 00
21 Apr
21 Oct
21 Jan
21 July
2nd Inst
1st Inst
3rd Inst
4th Inst
16
INSTALMENT DATES

• New rules for medium instalment payers

30 June 00
30 June 01
21 Apr
21 Oct
21 Jan
21 July
2nd Inst
3rd Inst
1st Inst
4th Inst
17
INSTALMENT DATES

• New rules for large instalment payers

30 June 00
30 June 01
21 Apr
21 Oct
21 Jan
21 July
2nd Inst
3rd Inst
1st Inst
4th Inst
18
INSTALMENT DATES

• New rules for quarterly payers

30 June 00
30 June 01
21 Oct
21 Apr
21 Jan
21 July
2nd Inst
3rd Inst
1st Inst
4th Inst
19
THE NEW TAX SYSTEM

TAX INVOICE Invoice No.
25688 ABN 99 123 456 789 1587 Sat Way VIC
3250 Date 31 July 2000 To Peter Pots Cafe
Charges Due 176.00 123 City Road
Sugarloaf St Date Due
20/08/00 Summary of charges Telephone
account July 176.00 Total Due
Including GST 176.00
51
20
THE NEW TAX SYSTEM

TAX INVOICE Invoice No.
98652 ABN 99 123 456 789 P O Box 5680 VIC
3250 Date 31 July 2000 To Peter Pots Cafe
Charges Due 2021.00 123 City Road
Sugarloaf St ABN 58 158 156 189 Date Due
20/08/00 Summary of charges Qty 1220
Bread 1658.00 150 Pies 220.00 25
Crates Vegetables 143.00 GST included in
supplies 20.00 Total Due Including
GST 2021.00
52
21
THE NEW TAX SYSTEM

TAX INVOICE Invoice No.
58648/1 ABN 99 123 456 789 P O Box 356 NSW
2054 Date 31 July 2000 To Revive Cafe
Charges Due 77.00 123 City Road
Sugarloaf St Date Due
1/08/00 Summary of charges Chocolate Gift
boxes 77.00 Total due including GST
77.00
53
22
THE NEW TAX SYSTEM

TAX INVOICE 2613 Veevee
Rd Invoice No. 851 ABN 99 123 456
789 Date 31 July 2000 To Peter Pots
Cafe Charges Due 280.00 123 City Road
Sugarloaf St Date Due
1/08/00 Summary of charges Repairs and
Maintenance July 254.55 GST 25.45
Total due including GST 280.00
54