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GST TERMS

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

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GST TERMS

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  1. 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

  2. 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 payable1C$ Luxury car tax payable 1E$ Luxury car tax refundable 1F$ Credit for wholesale sales tax 1G$ Add 1B+1D+1F+1G= 2B$ Add 1A + 1C + 1E = 2A$ 2A minus 2B GST net amount 3$

  3. THE NEW TAX SYSTEM • PAYG Withholding System • Started on July 1 2000 • What’s new? - Voluntary Agreements - Labour Hire - No ABN • Nine systems replaced by PAYG withholding

  4. 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

  5. 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

  6. THE NEW TAX SYSTEM • Payer’s 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

  7. 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

  8. THE NEW TAX SYSTEM • Voluntary Agreements • Written contract • ABN required • GST chargeable? • Not included in instalment income of payee

  9. THE NEW TAX SYSTEM • Withholding when no ABN supplied • Withholding rate 48.5% unless specified circumstances exist • Payee’s obligations • Penalties for not withholding

  10. 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

  11. 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

  12. 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

  13. 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

  14. 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 3rd Inst 1st Inst 4th Inst

  15. INSTALMENT DATES • New rules for medium instalment payers 30 June 01 30 June 00 21 Apr 21 Oct 21 Jan 21 July 2nd Inst 3rd Inst 1st Inst 4th Inst

  16. 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

  17. 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

  18. 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

  19. 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

  20. 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

  21. 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

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