Tax Compliance


Tax Compliance

BUSINESS ACTIVITY STATEMENTS (BAS)

If you are a business registered for GST you need to lodge a business activity statement (BAS).
Your BAS will help you report and pay your:
  • goods and services tax (GST)
  • pay as you go (PAYG) instalments
  • PAYG withholding tax
  • other taxes.

FRINGE BENEFITS TAX (FBT) ANNUAL RETURN

Fringe benefits tax (FBT) is a tax employers pay on certain benefits they provide to their employees – including their employees’ family or other associates.
The benefit may be in addition to, or part of, their salary or wages package.
If you are a director of a company or a beneficiary of a trust working in the business, benefits you receive in connection with your employment may be subject to FBT.
FBT is separate to income tax and is calculated on the taxable value of the fringe benefits provided.
The FBT year runs from 1 April to 31 March.

Types of fringe benefits

Fringe benefits tax (FBT) law includes various categories of fringe benefits and specific valuation rules for each category.
You will need to pay FBT even if the benefit is provided to an associate of your employee or by a third party under an arrangement with you.
Follow the links below for more information on:
Other

BUSINESS FINANCIALS & RETURNS

What you need to report and how you lodge your annual tax return for your business depends on your type of business entity.
Sole traders
If you operate your business as a sole trader, you must lodge a tax return even if your income is below the tax-free threshold.
Partnerships and partners
If you operate your business as a partnership, the partnership lodges a partnership tax return, reporting the partnership's net income (assessable income less allowable expenses and deductions).
As an individual partner, you report on your individual tax return:
  • your share of any partnership net income or loss
  • any other assessable income, such as salary and wages (shown on a payment summary), dividends and rental income.
The partnership doesn't pay income tax on the income it earns. Instead, you and each of the partners pay tax on the share of net partnership income you receive.
Trusts and beneficiaries
If you operate your business through a trust:
  • the trustee lodges a trust tax return
  • each trust beneficiary lodges their own tax return, such as a company or individual tax return.
The trust reports its net income or loss. This is the trust's assessable income less deductions.
If you are the beneficiary of a trust, you report on your tax return:
  • any income you receive from the trust
  • any other assessable income such as
    • dividends
    • rental income
    • salary and wages (on an individual's payment summary).
Companies
If you operate your business as a company, you need to lodge a company tax return.
The company reports its taxable income, tax offsets and credits, PAYG instalments and the amount of tax it is liable to pay on that income or the amount that is refundable.
The company's income is separate from your personal income.
Deregistered companies
You must lodge a final company tax return prior to being deregistered by the Australian Securities and Investments Commission (ASIC). Once a company has been deregistered, you can no longer lodge a company tax return – and we cannot process it.
To lodge a company tax return, you can consider reinstating the deregistered company with ASIC.

INDIVIDUAL TAX RETURNS

Tax returns cover the financial year from 1 July to 30 June. If you’re lodging your own tax return it is due by 31 October.
If you had tax taken from any income you received during the financial year, you need to lodge a tax return unless you fall within certain exceptions.

Apply for a TFN

How you apply for a TFN will depend on your circumstances.

1) Foreign passport holders, permanent migrants and temporary visitors

You can apply for a tax file number online if you meet these three conditions:
  1. You are a foreign passport holder, permanent migrant or temporary visitor.
  2. You are already in Australia.
  3. Your visa is one of the following:  
    • a permanent migrant visa
    • a visa with work rights
    • an overseas student visa
    • a visa allowing you to stay in Australian indefinitely (including New Zealanders automatically granted a visa on arrival).

Working visas

Valid working visas include:
  • Working holiday makers (subclass 417)
  • Entertainment (subclass 420)
  • Sport (subclass 421)
  • Work and holiday makers (subclass 462).

Asylum seekers

Asylum seekers may use a Bridging Visa and their passport or travel document number will be their IMMI Card number. However, for previous identification cards the passport or travel document number will be PLO56 or PL56.

2) Australian residents

If you're an Australian resident, you can apply for a tax file number (TFN) in various ways, depending on your circumstances.
You may apply for a TFN:

3) People living outside Australia 

If you are a foreign resident of Australia for tax purposes, you don't need a tax file number (TFN) if you receive only interest, dividends or royalty payments from an Australian source.

You do not need to declare this income in an Australian tax return. A final withholding tax will be deducted by the Australian financial institution (your payer) at the time of payment.

However, you will need a TFN if you want to lodge an Australian income tax return to claim a refund of tax that has been withheld from an Australian bank account or from dividends from Australian shares.
You can apply for a TFN if you:
  • receive income from an Australian source other than interest, dividends or royalty payments
  • have a spouse who is an Australian resident and is applying for Family Tax Benefit
  • are a member of an Australian superannuation fund and
    • you expect to receive benefits from it
    • you intend to make personal contributions into it, or
    • contributions are made into it on your behalf
  • need to lodge an Australian tax return or apply for an Australian business number (ABN).

SELF-MANAGED SUPER FUNDS

Self-managed super funds (SMSFs) are a way of saving for your retirement.

The difference between an SMSF and other types of funds is that the members of an SMSF are usually also the trustees. This means the members of the SMSF run it for their benefit and are responsible for complying with the super and tax laws.
Recent changes to super may affect SMSFs.

The priority of Madinah Star Financial Accounting Pty Ltd will be to bring up to date, all accounting, payroll, and tax filings.