February has gone by so fast and now we’re back with a quick look at some of the most important Tax and accounting updates and news this month.
Here is a quick and easy-to-read summary of all you need to know about the latest financial topics and changes from February.
ATO app makes tax time easier for sole traders
If you’re a business owner, the ATO app gives you a quick and easy way to complete your tax-time tasks anytime, anywhere.
How does it work? It’s easy. Go to ATO Online services, log in to lodge your income tax return with myTax, then track your return progress.
This ATO app is handy all year round, with great tools:
- Tax withheld calculator: works out how much tax to withhold from a worker’s pay,
- Fuel tax credit calculator: lets you know how much you can claim,
- Key dates: helps you set important tax and super reminders and alerts,
- Business performance check tool: allows you to check the financial health of your business and compare yourself against others in your industry.
Want to get started? Download the ATO app today.
Check your Access Manager permissions
The ATO has detected criminal activity where identity thieves have fraudulently obtained AUSkeys linked to businesses. They have used these to access the portals, lodge activity statements and change account details for refunds.
To protect your practice from identity theft, there are a few simple steps you can take:
- Use Access Manager regularly to check people’s level of access to the portals is relevant to their roles
- Cancel AUSkeys (in AUSkey Manager) for people who no longer work for you,
- Immediately disable or remove a person’s account if you have any concerns about their activities
- Ensure that each person who deals with the ATO online on behalf of your practice has their own AUSkey
- Keep passwords secure, don’t share them
- Report any unknown or suspicious AUSkeys by phoning 1300 287 539 between 8.00am and 6.00pm, Monday to Friday
You might also be interested in: 5 Accounting Software That Are Probably Perfect For Your Business
Fuel tax credits rate increase
Fuel tax credit rates increased on the 1st of February 2017. What you can do is use the latest rates to make sure you claim the full amount you are entitled to.
How to check the rates and calculate your claim?
The ATO provides a fuel tax credit calculator that contains the latest rates. It’s simple, quick and easy to use. You can use it to determine the fuel tax credit amount to report on your business activity statement (BAS). The easy-to-read fuel tax credit rates table can also be a helpful resource.
You might also be interested in reading: How Much Do You Know About Tax Deduction?
Are your suppliers registered for GST?
Did you know you can’t claim GST credits on purchases if your suppliers aren’t registered for GST? This applies even if you received an invoice with an ABN and a GST amount on it.
[ctt template=”7″ link=”cZQ7f” via=”no” ]Did you know you can’t claim GST credits on purchases if your suppliers aren’t registered for GST?[/ctt]
Make sure to check your supplier’s GST registration on the ABN Lookup tool. You can access it on ATO’s website or ATO’s App.
Make sure you understand the rules for GST, it can help you avoid expensive mistakes. For example, there are some property transactions where you can’t claim any GST credits when buying a property via the margin scheme.
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If, however, you’re eligible to receive GST credits on a property transaction, you can claim them when you lodge your Business Activity Statement (monthly or quarterly) or an annual GST return.
Want to know more about how these updates affect you?
One of our dedicated specialists is ready to assist you with any questions you might have about the latest tax and accounting updates. Get in touch with us today: