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Small Business Newsroom

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Give or receive a COVID-19 rent concession?

 

12 July 2021

Do you rent your business premises? Or are you a landlord who rents out commercial property?

If your landlord gave you a rent concession, or if you’re a landlord who has given a rent concession to a tenant because of COVID-19, you need to consider this in your tax returns.

There may be changes to the income you declare, deductions you can claim and your GST and capital gains tax (CGT) obligations.

The changes will depend on:

  • the type of rent concession (such as a waiver or deferral) you’ve received or given
  • if an existing agreement has changed, or a new or additional agreement has been created.

For landlords, the changes will also depend on whether you use cash or accruals accounting.

For example, if you are a tenant that had already paid your rent for August 2020 but your landlord waived and refunded the amount to you, you’ll still be entitled to claim a deduction for the rent in your 2020–21 tax return. However, you should also include the refunded amount in your assessable income.

Remember, registered tax and BAS agents can help you with your tax.

Find out about:

GST tips this tax time

8 July 2021

When doing your tax this year, take the opportunity to check:

  • for missed GST credits from purchases you claimed an income tax deduction for – a four-year time limit applies for claiming GST credits
  • that you’re using the most suitable accounting method to meet your business needs
  • if GST applies to any transactions from fundraising you helped with this year
  • that stimulus vouchers have been accounted for correctly, where you participated in a government stimulus voucher program.

It’s important to lodge all outstanding activity statements before you lodge your tax return, so your tax assessment includes the instalments you’ve paid throughout the year.

Remember, registered tax agents and BAS agents can help you with tax.

Reporting income or claiming a deduction?

 

12 July 2021

When you’re lodging your business tax return each year, it’s important to include all income you make through your business.

This includes income you earn from:

  • personal services you provide
  • investments
  • the sharing economy, such as ride-sourcing
  • assessable government grants and payments, such as JobKeeper and JobMaker Hiring Credits.

You might receive payment in the form of:

  • cash and digital payments
  • vouchers or coupons, such as state government stimulus vouchers.

You can claim a deduction for most of the costs of running your business.

If you’re in an industry that requires physical contact with customers, such as healthcare, retail or hospitality, you can claim deductions for expenses related to COVID-19 safety. This includes hand sanitiser, sneeze or cough guards, other personal protective equipment and cleaning supplies.

Keep in mind the three golden rules for deductions:

  • The expense must have been incurred for your business.
  • If the expense is for a mix of business and private use, only claim the portion used for your business.
  • You must have records to substantiate the expense and show how you worked out the business portion.

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Made a mistake on your BAS?

 

14 July 2021

Made a ‘mistake’ on your business activity statement (BAS)? Don’t worry, most mistakes (like the one in the title of this article!) are easy to fix.

A mistake is an amount that was incorrect when you lodged. For example:

  • clerical or transposition errors
  • classifying a GST-free sale or purchase as taxable
  • classifying a taxable sale or purchase as GST-free
  • double-counting some of your purchases.

If you’ve made a mistake, you can fix it on your next BAS or revise the original.

Sometimes, a sale or purchase that was reported correctly at the time of lodgment may change later. For example:

  • the price changes
  • the goods are returned and the sale is cancelled.

  • Do you need mistakes fixed give us a call and we will assist you?

 

Learn about what STP Phase 2 means for you

 

  • 12 July 2021

    Single Touch Payroll (STP) Phase 2 reporting starts 1 January 2022. If you employ staff, you’ll need to be ready for this change. New guidelines that explain the changes are now available to help.

    STP Phase 2 reporting means changes to the way you report:

    • amounts paid to staff – instead of reporting a single gross amount, you’ll separately show items such as overtime, paid leave, and bonuses and commissions
    • income types – you’ll include information such as whether a payment is regular salary and wages or income for working holiday makers
    • employment conditions – you’ll provide some additional information such as whether your employee is fulltime, part-time or casual and if they leave, the reason they stop working with you.

    The way you lodge and the due date of your STP reports don’t change.

    Your STP-enabled software will be updated by your software provider. When it is updated the software provider will let you know the next steps you should take.

    Check our guidelines to help you understand the changes and what they mean for you.

    Pay contractors?

     

    • 8 July 2021

      You may need to lodge a Taxable payments annual report (TPAR) by 28 August if your business pays contractors to provide the following services:

      • building and construction
      • cleaning
      • courier services
      • road freight
      • IT and security
      • investigation or surveillance.

      Doing your TPAR involves three steps:

      • Prepare – work out if you need to report. Due to COVID-19, you may have contracted out more services in the past year, for example cleaning or delivery, so you may need to lodge a TPAR for the first time.
      • Record – check you’re keeping the right records, such as total payments you make to each contractor for services. This includes cash payments.
      • Report – lodge your TPAR online by 28 August. Lodging on time allows us to prefill the information in sole traders’ tax returns. It also lets us check for contractors not meeting their tax obligations, as we work to keep it fair for those who do the right thing.

      Remember, registered tax agents and BAS agents can help you with your tax.

      Find out more: