Tax Advice – Wave Flux

3 Benefits Of Using An Accountant To Do Your Tax Return

Although a lot of people choose to do their tax returns at home or in the office, a lot also choose to use an experienced accountant. Obviously, the option that you choose will depend on how much experience you have when it comes to accounting and tax returns.

According to Accountants Australia, your need for an accountant will also depend on the complexity of your tax reporting obligations. For some people, all that a tax return entails is filling out a short form at the end of the financial year and submitting it to the Australia Tax Office (ATO). However, for others – such as business owners – tax time is a lot more stressful. In some cases, you will be required to report certain aspects of your business’s finances as often as monthly (through a BAS). In this case, an accountant could come in very handy.

How should I choose an accountant?

When it comes to choosing an accountant to look after your finances, you should choose carefully – after all, they are the person who largely controls how much tax you pay each year. Look for an accountant who is reliable and experienced. If you own a complex business or need help on a specific tax matter, look for an accountant who specialises in this field. Always go for someone who has a decent reputation in the community, even if they charge more. It will be worth it in the long run.

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Employment and Tax Law Changes for Financial Year 2014/2015

The financial year beginning in 2014, and ending in 2015, brings some relatively major changes. These relate to minimum wages, tax rates, and thresholds laws around Australia. Below is a summary of the more significant changes, which all employers should pay particular attention to. For some people, action might need to be taken immediately. Others will want to keep an eye on their compliance in the future. Please note that this is not an exhaustive report about all the new changes.

Minimum Wage Changes

The Fair Work Commission’s decision in the annual review in 2014, means that these changes will now take effect. It is a good time for workers to request an annual review for their pay, to make sure that their employers are following the laws regarding minimum wages.

Minimum wages in Australian states and territories will go from $622.20 per week, to $640.90. This is the amount for a full time employee, above the age of 18, working 38 hours each week.
Modern award rates have gone up by three percent, and this will flow through to annual salaries, as well as minimum hourly wages.
The minimum hourly wage in Australia has gone from $16.37 to $16.87 an hour. This equates to 50 cents more an hour.
For people employed on a casual basis, the loading on their pay has gone from 24 percent to 25 percent. Casual employees with a modern award rate will still receive a 25 percent loading rate.

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Tax Issues You Need To Watch Out For

Have you set up a business and want to know about the tax liabilities you will be responsible for? To assess the exact tax liability you will be held accountable for, you need to know what factor affects your tax the most. The answer is the business structure of your company.

The business structure you choose will make you liable for a set of taxes, which you will need to pay in order to avoid a legal action in court. The tax liabilities for each business structure is different, therefore it is important that you decide very carefully about your business, and know about all the taxes that will be charged to your company as they will need to be paid in time.

You need to have sufficient knowledge about your tax liabilities under the heads of the business structure, and payoff taxes if you want to avoid any tax issues in the future.

Take a look at how some of the business structures are taxed as per the legal statutes of Australian law;

Business Structures and Tax Liabilities

The tax liabilities differ from one business structure to another as per the law

A sole trader business structure uses an individual TFN tax file number. All the income of the business is included in the account, along with all other incomes like salary, investment income and wages, and an individual tax return is filed and paid by the sole owner.

In a partnership structure, there is a separate tax file number and a partnership tax return is lodged. But the partnership does not pay the tax. The partnership tax just details which partner is entitled to which share of the business income or loss. Every partner is liable to declare their partnership loss or profit in their individual tax returns.

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