Google Spreadsheet

Now days Google spreadsheet is extensively used by accountants for Working papers. Though Internet shows pros and cons of Google Vs Excel , we have used these sheets and feels it is as good as Excel (except the speed) and Google intends to update this on regular basis so all features of Excel can be incorporated in this.

Best part of the solution is "Free" unless one uses it extensively for commercial purpose (Fees is as low as $5 per month). There is no issue with import and export in Excel and as the solution is cloud based one can share this with ease.

From Working papers perspective one can easily use formulas and attach images (like bank statements) in Google Sheet. Google keeps updation history as well so one can track changes from last updation.

Outsourcing

Year end accounts outsourcing is easy compare to bookkeeping as logistics involves easy to transfer electronic documents. So be it last year PDF accounts or working papers in excel one can easily share with outsourcing partner. We at PE offers easy to plan Year end accounts process where in our clients provide.
1. Last year PDF copy of accounts
2. Last year working paper in excel
3. Current year bookkeeping backup
4. Closing bank statement and this is it.
We will produce year end accounts as per your working papers formats and deliver quality accepted by Chartered accountants in England and all this at fixed fees cost of £140. Do get in touch with us if you wish to try these services.

Outsourcing !! A choice or requirement

Yes we agree, practice wish to process their jobs in house but this is not always the best option.

The truth we must reluctantly swallow is that, sometimes, there are companies who can do things that we can as well. Whether it’s due to access to more resources or simply more time and experience to dedicate to a specific aspect of business, there are numerous companies who would be more than happy to take those tedious tasks off your hands. In fact, 57% of world business leaders sited improving efficiency as a driver in outsourcing processes and 40% of global accounting practices currently do or plan to outsource. You wouldn’t try and rewire the electrics in your house by yourself, so why not use an expert to maximize efficiency within practice.

Take for instance bookkeeping and year end jobs. When there are options available for fixed fees solution from outsourcing companies, practices are missing out on numerous savings opportunities as they do not have the capacity to dedicate the time nor enough resources. Whether they admit it or not, they could do with a hand.

So why would you not at least look into outsourcing your bookkeeping and year end to a specialist.

The biggest thing to remember is that outsourcing does not mean replacing and it certainly does not mean failure. If outsourcing to a specialist saves time, money and is more productive, surely it should be investigated as a legitimate option? Pride comes before the fall and for some businesses, refusing to accept that someone may be able to help them do things better can lead to loss as they fall behind their competitors.

Although companies should not be warned against taking on business processes in house – in some instances it can be more beneficial and cost-effective to internalize procedures – outsourcing is natural and normal within the corporate sphere. With the development of software as a service deals and subscription based packages, utilizing external specialists is easier than ever before. Practically every business relies on some form of outsourcing and it would be foolish to reject expertise when it is readily available and affordable.

GST concessions in ATO

A range of goods and services tax (GST) concessions are available to not-for-profit (NFP) organisations. You must be endorsed by us to access GST charity concessions.
There are additional GST concessions that are available to:

• ACNC registered charities that are endorsed to access GST charity concessions
• gift deductible entities
• government schools.

For GST purposes:

• an endorsed charity is a charity that is an ACNC registered charity, has an ABN and is endorsed by us as a charity
• a gift deductible entity is an entity that can receive tax-deductible gifts or contributions.

Check the notes to the table below carefully, as your organisation may need to meet requirements before it can access a concession.

Available GST concessions

GST concession	Eligible entity	Explanation of concession
Not-for-profit organisations
Gifts – a gift to n NFP organisation is not considered payment for a sale.	NFP organisation	see Gifts
School tuck shops – an NFP organisation may sell food through a tuck shop or canteen at a primary or secondary school and treat the sales as input taxed.	NFP organisation	see School tuck shops
GST registration threshold – the registration turnover threshold is higher for NFP organisations than for other organisations.	NFP organisation	GST registration threshold.
GST groups – the requirement to satisfy the 90% ownership test is waived where the entity is an NFP organisation and all the other members of the GST group or proposed GST group are not-for-profit organisations and members of the same NFP association.	NFP organisation	see GST branches, groups and non-profit sub-entities.
Charities, gift deductible entities and government schools
Raffles and bingo – tickets to raffles and bingo sold by an eligible entity are GST-free provided the holding of the raffle or bingo event does not contravene a state or territory law.	Endorsed charity (1) Gift deductible entity (2) Government school	see Raffles and bingo
Fundraising events – an eligible entity may choose to treat all sales it makes in connection with certain fundraising events as input taxed.	Endorsed charity (1) Gift deductible entity (2) Government school	see Fundraising events
Non-commercial activities – where an eligible entity makes sales and the payment it receives in return for the things it sold is less than a certain amount, the sales are GST-free.	Endorsed charity (1) Gift deductible entity (2) Government school	see Non-commercial activities
Accounting on a cash basis – an eligible entity may choose to account on a cash basis regardless of its GST turnover.	Endorsed charity (1) Gift deductible entity (3) Government school	see Accounting on a cash basis
Reimbursement of volunteer expenses – an eligible entity can claim GST credits for reimbursements made to volunteers for expenses the volunteer incurs that are directly related to their activities as a volunteer of the entity.	Endorsed charity (1) Gift deductible entity (2) Government school	see Reimbursement of volunteer expenses
Gifts and GST credit adjustments – adjustments of GST credits are not required when an item acquired by a business is subsequently gifted to an eligible NFP entity.	Endorsed charity (1) Gift deductible entity (4)	see Gifts and GST credit adjustments
Donated second-hand goods – sales of donated second-hand goods by an eligible entity are GST-free.	Endorsed charity (1) Gift deductible entity (2) Government school	see Donated second-hand goods
Non-profit sub-entities – an eligible entity may conduct some of its activities through a non-profit sub-entity, subject to certain exceptions.	Income tax exempt NFP organisation Endorsed charity (1) Gift deductible entity (5) Government school	see Non-profit sub-entities
GST religious groups – some charities can be approved as a GST religious group. Transactions between members of the group are excluded from GST.	Income tax exempt charity	see GST religious groups
Charitable retirement villages – an eligible not-for-profit entity may provide GST-free accommodation, accommodation-related services and meals to residents of such retirement villages.	Endorsed charity (1)	see Charitable retirement villages

Notes to table

Endorsement requirements for charities 

1. If a charity wants to access this concession, it must be endorsed by us to access GST charity concessions.

See also:
Endorsement requirements for charities

Gift deductible entities

2. A gift deductible entity that operates a fund, authority or institution which can receive tax-deductible gifts or contributions can only apply this concession to the activities of the endorsed fund, authority or institution, and not to any other activities of the gift deductible entity.
3. A gift deductible entity that operates a fund, authority or institution which can receive tax-deductible gifts or contributions is only entitled to account for GST on a cash basis if it meets one of the general eligibility criteria, either the:  
   1. entity's GST turnover does not exceed the cash accounting turnover threshold
   2. entity correctly accounts for income using the receipts method for income tax purposes.
    
4. If a donor makes a gift to a gift deductible entity that operates a fund, authority or institution which can receive tax-deductible gifts or contributions, the donor will not have to make an adjustment to their GST credit if the gift is made for the principal purpose of the endorsed fund, authority or institution.

Only a gift deductible entity that is a not-for-profit body can choose to treat separately identifiable branches as non-profit sub-entities.

Non-profit sub-entities

5. Most GST concessions in the table also apply to a non-profit sub-entity of an eligible entity listed under each concession. The only exceptions to this are:

For those GST concessions which require a choice be made, the non-profit sub-entity of an eligible entity can choose to access the concession even if the parent entity has chosen not to apply the concession to its own activities.

Gifts

A gift made to an NFP organisation is not considered payment for a sale and is not subject to GST. The value of a gift is also excluded when calculating the NFP organisation's GST turnover.
For a payment to be considered a gift it must be made voluntarily and the payer cannot receive a material benefit in return:

• A payment is not voluntary when there is an obligation to make the payment or the NFP organisation is contractually obliged to use the payment in a specific way.
• A benefit is not a material benefit if it is an item of insubstantial value that cannot be put to a use or is not marketable, such as a pin or a ribbon. An item of greater value, such as a ticket to a dinner, or an item that has a use or function, such as a pen or a book, is a material benefit.

The GST treatment of transactions discussed in this section may vary if an organisation chooses to apply other GST concessions available to it.

Example 1 – Gift not subject to GST
Chamith purchases a magazine at the local newsagency and notices a box of badges placed next to the cash register. The sign on the box explains that a not-for-profit organisation is seeking public support to fund medical research. Chamith places $2 into the box and takes a badge as recognition for his gift. Chamith made the payment voluntarily. The badge is not suitable as a piece of jewellery nor can it serve any useful purpose. The badge does not give Chamith any material benefit.
Chamith's payment is a gift. The gift made to the NFP organisation is not consideration for a sale and it is not subject to GST.
Example 2 – Consideration for a sale
Matt pays $2 to a not-for-profit organisation and in return for his payment receives a chocolate bar. As the chocolate bar can be eaten as a sweet it has a use or function and therefore provides Matt with a material benefit in return for his payment.
Matt's payment is not a gift. The payment received by the not-for-profit organisation is consideration for a sale. If the organisation is registered for GST, or is required to be registered, the price of the chocolate includes GST and the organisation needs to remit the GST to us.
End of example

If an NFP organisation is registered for GST, or is required to be registered, GST is payable on the full amount of a ticket price to a dinner or similar function conducted by the NFP organisation, even though part of the ticket price may be intended to be a gift to the organisation. When a person attends the dinner they are receiving a material benefit (the dinner) in exchange for the purchase price of the ticket. No part of the payment is a gift when the full purchase price must be paid in order to receive the dinner. This is so even when the ticket price is much more than the value of the meal.

Example 1 – Fundraising event tickets
Mel attends a '$1,000 a plate' dinner for an NFP organisation. The value of the meal is $150. Mel has received a material benefit.
The purchase of the ticket is not a gift. The money received by the NFP organisation for the ticket is consideration for a sale. If the organisation is registered for GST, or is required to be registered, the price of the ticket includes GST and the organisation needs to remit the GST to us. This is the case, even though part of the ticket price is intended to be a gift.
Example 2 – Purchase at charity auction
Tracey buys a clock at a charity auction. The clock has a market value of $500, but Tracey pays $1,000.
The amount paid to the charity cannot be split between the market value of the clock and a 'gift'. The money received by the charity for the clock is consideration for a sale. If the charity is registered for GST, or is required to be registered, the price of the clock includes GST and the charity needs to remit the GST to us.
End of example

When a payment is made in addition to the purchase price of a ticket to a dinner or some other item and is truly voluntary, with no material benefit passing to the donor or their associate, the payment is a gift and is not subject to GST. This may occur if a NFP organisation charges an entrance fee to attend a dinner or function and separately seeks gifts at the event.

Example – Ticket purchase and donation
Troy attends a fundraising trivia night in aid of a not-for-profit organisation and pays $20 for admission. Later in the evening he donates $10 to the organisation.
The $20 cost of admission is not a gift. However, the $10 donation is a gift. The $20 paid for admission to the trivia night is consideration for a sale. If the not-for-profit organisation is registered for GST, or is required to be registered, the price of the ticket includes GST and the organisation needs to remit the GST to the ATO.
End of example

School tuck shops

If an NFP organisation (for example, a parents and citizens association) operates a school tuck shop on the grounds of a primary or secondary school, it can choose to treat all sales of food through the tuck shop as input taxed.
If an organisation chooses to treat all sales of food through a school tuck shop as input taxed, they:

• must keep records containing details about its choice (for example, in accounts or meeting minutes)
• do not need to notify us of their choice.

This means that the organisation does not charge GST on its sales, and does not claim GST credits for its purchases.
As input taxed sales are not included when calculating the GST turnover for GST registration purposes, choosing to treat all sales of food as input taxed may mean that the organisation does not have to register for GST.
If the organisation is registered for GST, treating all sales of food as input taxed makes managing GST easier. Without this concession, some sales of food would be GST-free and others taxable. For example, the sale of fresh fruit is GST-free and the sale of a meat pie is taxable.
Once the organisation chooses to treat all sales of food as input taxed, it cannot revoke that choice for 12 months. The organisation cannot make another choice to treat all sales of food as input taxed within 12 months after the previous choice was revoked.

GST registration threshold

The GST registration threshold for an NFP organisation is $150,000. This means your NFP organisation is not required to be registered for GST unless the GST turnover of your organisation is $150,000 or more.
You may still choose to register your organisation for GST if its GST turnover is less than $150,000. The decision to voluntarily register for GST is one that should be based on the administrative needs of your organisation. Some organisations may choose not to register for GST because they consider the GST reporting requirements to be a greater burden than the benefit they would receive, for example, access to GST credits.
All non-profit sub-entities are entitled to the $150,000 GST registration turnover threshold regardless of whether their parent entity is a non-profit entity or not.
See also:
Non-profit sub-entities

Raffles and bingo

A raffle is a game of chance where the prizes are either goods or cash, or a combination of the two.
The sale of tickets in a raffle and the acceptance of a person's participation in a game of bingo by a registered charity, gift deductible entity (see note 2) or government school are GST-free provided they do not contravene state or territory law.

Fundraising events

A registered charity, gift deductible entity (see note 2) or government school may choose to treat certain fundraising events as input taxed.
If an organisation chooses to treat a fundraising event as an input taxed fundraising event, it will have to treat all sales it makes in connection with the event as input taxed. The choice must be made before any sales take place.
The organisation will not be entitled to claim GST credits for any purchases for the event and it will not be required to charge GST on the sales it makes. The organisation will not be entitled to claim GST credits regardless of whether the supply would have been GST-free had it not made the election.
Proceeds from input taxed fundraising events do not form part of an organisation's GST turnover. Therefore, if an organisation chooses to treat all sales in connection with certain fundraising events as input taxed, it does not need to register for GST provided its GST turnover is less than $150,000.

Example – Annual turnover
XYZ Charity has total annual sales of $150,000, which includes $80,000 from sales made at five input-taxed fundraising dinners. As input-taxed sales are not included in annual turnover for GST purposes, XYZ Charity has an annual turnover below $150,000 for GST purposes and therefore does not need to register for GST.
End of example

A sale will be input taxed if all of the following criteria are met:

• the organisation conducting the event is a charity, gift deductible entity or government school
• the sale is made in connection with the fundraising event
• the organisation chooses to treat all sales in connection with the fundraising event as input taxed before any transactions take place
• the event is referred to in the organisation's records as an event that is treated as input taxed.

If your organisation chooses to treat a fundraising event as input taxed you:

• must keep records containing details of its choice (for example, in accounts or meeting minutes)
• do not need to notify us of this choice.

The following fundraising events may be treated as input taxed:

• a fete, ball, gala show, dinner, performance or similar event – a similar event may include a charity auction, a cake stall, wine tasting or fashion parade
• an event where all goods are sold for $20 or less, but
  • the event cannot involve the sale of alcohol or tobacco
  • the selling of the goods must not be a normal part of the supplier's business, for example, a charity holds an annual flower day where it sells flowers for $2 each and the charity is not in the business of selling flowers
   
• an event that has been approved by us as a fundraising event. If a fundraising event is not one of the types listed above (for example, a golf day, car rally or an art show), the organisation can write to us and ask for approval to treat the event as an input taxed fundraising event. We will grant approval only if:
  • the event is held for the purpose of fundraising
  • the organisation is not in the business of conducting such events, and
  • the proceeds from the event are for the direct benefit of the organisation's charitable or NFP purposes.
   

The sale of alcohol and tobacco at a fete, ball, gala show, dinner, performance or similar event will not prevent the event from being treated as an input taxed fundraising event.

Example 1 – Input taxed event
The Homes for Homeless Teens charity is organising a fundraising dinner. It chooses to treat the dinner as an input taxed fundraising event. The dinner will be held at a prominent function centre. A well-known television personality will make cocktails during the evening.
Although the charity is selling alcohol, these sales are part of the activities of the fundraising dinner and are input taxed sales.
Example 2 – Input taxed event
The Assisting with Education charity is organising a fundraising ball. It chooses to treat the ball as an input taxed fundraising event. A car dealership has donated a car as a prize for a raffle. The raffle tickets will only be sold at the fundraising ball, and the raffle will be drawn on the night.
The sale of the raffle tickets is part of the fundraising dinner. The proceeds from the sale of the raffle tickets are treated as input taxed sales.
Example 3 – Lottery tickets
At the fundraising dinner held by The Homes for Homeless Teens charity, the charity intends to sell tickets for its home lottery at the door and draw the winning ticket at the dinner. The home lottery has been conducted throughout the year, and tickets have been sold throughout the year.
The home lottery is a separate event from the dinner. As such, the lottery tickets sold at the door are not treated as input taxed sales.
The sale of lottery tickets may, however, be GST-free. See Raffles and bingo
End of example

An organisation cannot choose to treat an event as input taxed unless the event is held for the purpose of fundraising. For example, if an organisation holds a dinner for its next AGM, the dinner is not being held for the purpose of fundraising and therefore the sale of tickets to the dinner and other sales it makes cannot be treated as input taxed.
A charity, gift deductible entity or government school can conduct a particular fundraising event up to 15 times in a financial year and choose to treat each event as input taxed.
If an organisation holds more than 15 of the same type of event in a financial year, none of the events can be treated as input taxed fundraising events. For example, if an organisation holds 16 fundraising dinners in a financial year, none of the dinners can be treated as input taxed and the organisation must account for GST for each of the earlier 15 dinners by revising the related BAS. However, the organisation may be able to exclude the sales it makes at the sixteenth and subsequent dinners by forming a non-profit sub-entity for these dinners.
See also:
GST and fundraising dinners or similar functions

Non-commercial activities

The commercial activities of a registered charity, gift deductible entity (see note 2) or government school are taxable but the non-commercial activities of these organisations can be GST-free.
This means that, if it is registered for GST, the registered charity, gift deductible entity or government school does not pay GST on the payment it receives for its non-commercial sales, and it can claim GST credits for the GST included in the price of purchases it uses to make these sales.
The term 'non-commercial activities' refers to sales made when the payment received for the sale is less than a specified amount. The sale is GST-free if the amount charged is either of the following:

• less than 50% of the GST-inclusive market value
• less than 75% of the amount the registered charity, gift deductible entity or government school paid to purchase the item that is subsequently sold.

When the sale is a supply of accommodation by a registered charity, gift deductible entity or government school, the sale is GST-free if the amount charged is either of the following:

• less than 75% of the GST-inclusive market value of the accommodation
• less than 75% of the cost of providing the accommodation.

Example – GST-free sales
The Children in Need charity sells banana and carrot cakes at a fete for $3.00 each. Similar cakes would sell at a cake shop for $6.50 each.
As the consideration received for each cake is less than 50% of the GST-inclusive market value, the sale of the cakes is GST-free.
End of example

Accounting on a cash basis

Organisations that account for GST use either a cash or non-cash (accruals) method of accounting.
Organisations may choose to account for GST on a cash basis if their GST turnover does not exceed the cash accounting turnover threshold.
A registered charity, gift deductible entity or government school is entitled to use the cash basis of accounting regardless of turnover (except where the gift deductible entity operates a fund, authority or institution which can receive tax-deductible gifts or contributions – see note 3).
See also:
Choosing an accounting method

Reimbursing volunteer expenses

Where a registered charity, gift deductible entity (see note 2) or government school reimburses an individual person for an expense they have incurred that is directly related to their activities as a volunteer of that organisation, the organisation can claim a GST credit for the GST included in the price of the item purchased if the organisation is registered for GST.
A payment is a reimbursement where the recipient is compensated exactly (meaning precisely, not approximately), whether wholly or partly, for an expense already incurred although not necessarily disbursed.
To enable the charity, gift deductible entity or government school to claim the GST credit, the volunteer must provide the organisation with the tax invoice for the purchase they have made.

Example – GST credits
Sam is a volunteer for a small charitable organisation. He works as a computer programmer and is knowledgeable about different accounting software applications. Sam purchases a software program that would be suitable to record the charity's financial and membership records. The committee reimburses Sam for the expense of purchasing the software program.
Sam gives the charity the tax invoice relating to the purchase. The charity can claim a GST credit for the GST included in the price of the software package.
End of example

See also:
Claiming GST credits on reimbursements to volunteers

Gifts and GST credit adjustments

Generally, an organisation can claim GST credits on purchases made for its business activities. However, if the organisation has claimed a GST credit and does not use that purchase as part of its business activities, it must repay the GST credit previously claimed.
If an organisation donates to an endorsed charity or gift deductible entity (see note 4) a purchase for which it has previously claimed a GST credit, it is not required to repay to us the GST credit previously claimed in respect of that purchase.

Example – Donation of trading stock
An organisation that sells desktop computers donates two computers from its trading stock to the Assisting with Education charity. The organisation has previously claimed GST credits for the computers.
Although the computers are no longer trading stock, the organisation is not required to repay to the ATO the GST credits it has claimed in relation to the computers.
End of example

Donated second-hand goods

A sale of donated second-hand goods by an endorsed charity, gift deductible entity or government school is generally GST-free provided there is no change in the original character of the goods.

Example – Donated clothing
A charity receives donations of damaged second-hand clothes. If the donated clothing is cleaned and/or repaired prior to sale it will be GST-free. If the second-hand clothes are cut up and sold as rags, the sale of the rags will not be GST-free as they are no longer the same as the goods that were donated, but have been manufactured by the charity into a new product, that is, rags.
End of example

Goods donated by a business that were trading stock of the business are not second-hand goods and therefore cannot be sold GST-free.

Example – Trading stock
The Learning Independence charity holds a fundraising fete where it sells items donated by individuals and local businesses. The Gifts and Novelties local business donates some floor-damaged novelty cups to the charity for sale at the fete. The sale of the donated floor-damaged goods is not GST-free because the novelty cups were trading stock of the business.
End of example

Charitable retirement villages

Certain supplies made by a registered charity that operates a retirement village may be GST-free. Those supplies must be made by the charity to a resident of the retirement village. Accordingly, supplies made by the charity to visitors or staff of the retirement village would not qualify for GST-free treatment unless they are non-commercial activities of the charity.
The range of supplies to a resident of a charitable retirement village, which GST-free treatment applies to, includes the supply of accommodation in the retirement village, and services related to the supply of accommodation and meals. This would include, for example, the supply of accommodation in an independent living unit or serviced apartment, property maintenance fees, gardening services and meals and beverages.

• Registering for GST

  On this page:
  

  • How to register
  • Do you need to register?
  • When do you need to register?
  • Working out your GST turnover
  • GST groups and branches

  How to register

  When you register for GST you'll need an Australian Business Number (ABN).
  You can register for GST:
  

  • online via the Business PortalExternal Link
  • by phone by calling us on 13 28 66
  • through your registered tax agent or BAS agent.

  We will notify you in writing of your GST registration details, including the date your registration is effective (and your ABN details, if you haven't already received them).
  

  Do you need to register?

  You must register for GST if:
  

  • your business or enterprise has a GST turnover (gross income minus GST) of $75 000 or more
  • your non-profit organisation has a GST turnover of $150 000 per year or more 
  • you provide taxi or limousine travel for passengers in exchange for a fare as part of your business, regardless of your GST turnover - this applies to both owner drivers and if you lease or rent a taxi
  • you want to claim fuel tax credits for your business or enterprise.

  If your business or enterprise doesn’t fit into one of the above categories, registering for GST is optional. However, if you choose to register, you generally must stay registered for at least 12 months.
  See also:
  

  • Working out your GST turnover

  When do you need to register?

  You can register for GST when you first register your business or at any later time.
  If you've just started a new business and expect it to reach the GST turnover threshold or more in its first year of operation, you should register for GST.
  If you're not registered for GST, check each month to see whether you've reached the threshold, or are likely to exceed it. If your turnover exceeds the relevant threshold, you must register within 21 days of reaching it.
  You only register once for GST, even if you operate more than one business.
  If you do not register for GST and you are required to do so, you may have to pay GST on the sales you have made since the date you became required to register – even if you did not include GST in the price of those sales. You may also have to pay penalties and interest.
  

  Watch
  

   

  Duration 00:57. A transcript of When to register for GST is also available.
  End of watch

  Working out your GST turnover

  Your GST turnover is your gross business income (not your profit), excluding any:
  

  • GST you included in sales to your customers
  • sales that are not for payment and are not taxable
  • sales not connected with an enterprise you run
  • input-taxed sales you make
  • sales not connected with Australia.

  See also:
  

  • GST definitions

  You reach the GST turnover threshold if either:
  

  • your 'current GST turnover' (your turnover for the current month and the previous 11 months) totals $75,000 or more ($150,000 or more for non-profit organisations)
  • your 'projected GST turnover' (your total turnover for the current month and the next 11 months) is likely to be $75,000 or more ($150,000 or more for non-profit organisations).

  In working out your projected GST turnover, don't include amounts you receive for the sale of a business asset (such as the sale of a capital asset) or for any sale you made, or are likely to make, solely as a consequence of ceasing or substantially and permanently reducing the size of your business.
  If your current GST turnover reaches or is more than the GST turnover threshold but you satisfy us that your projected GST turnover will be below the threshold, you do not have to register for GST.
  If you are a member of a GST group, your turnover includes the turnover of the other group members (but it does not include transactions between group members).
  See also:
  

  • GST groups and branches
  • When do you need to register?
  • Examples

  GST groups and branches

  Related entities may
  form a single group for GST purposes.
  An entity may separately register a branch for GST purposes if this suits its management and accounting structure.
  

  GST groups

  Two or more related entities may form a GST group if they satisfy certain membership requirements.
  GST groups are treated as a single entity. Generally, transactions between group members are ignored for GST purposes. So you do not have to pay GST and you cannot claim GST credits on these transactions.
  One entity, known as the representative member, manages the group's GST affairs. The representative member is responsible for the GST payable and can claim the GST credits on transactions undertaken by group members (except transactions between group members).
  The representative member is the only group member who must complete the GST component of an activity statement. In doing this, the representative member will effectively be accounting for the group's total GST liability.
  See also:
  

  • GST groups - in detail
  • GST branches, groups and non-profit sub-entities – Tax basics for non-profit organisations

  GST branches

  If an entity registers a branch for GST purposes, the branch operates as a distinct entity for reporting purposes, accounting for GST separately from its parent entity.
  Unlike GST groups, transactions between the branch and the parent entity will be taxable and GST credits can be claimed.

Superannuation rates and thresholds for 2015/2016 year (and 2014/2015 year)

Trish Power - April 22, 2015 9 Comments

Note: This article lists the latest superannuation rates and thresholds for the 2015/2016 year, and for the 2014/2015 year, and also for earlier financial years.

One of the most searched-for superannuation thresholds is theconcessional contributions cap for the latest financial year. For the 2015/2016 year, and for the 2014/2015 year, the general concessional contributions cap is $30,000 while the special concessional contribution cap for over-50s is $35,000. The special over-50s cap specifically applies to those aged 49 years or over as at 30 June 2014 (for the 2014/2015 year concessional contributions cap), and those aged 49 years or over as at 30 June 2015 (for the 2015/2016 concessional contributions cap).

The ATO has also released other updatedsuperannuation rates and thresholds for the 2015/2016 year. The tables within this article also list the super rates and thresholds for the 2014/2015 year, and earlier financial years. You can click on items in the list below for details of each super rate or threshold, or scroll down the page:

 Concessional contributions cap^

 Non-concessional contributions cap*

 Maximum superannuation contribution base^

 Co-contribution income thresholds^^

 Minimum annual pension (income stream) payments

 Low-rate cap amount

 Untaxed plan cap amount

 CGT cap amount

 Tax-free part of genuine redundancy payments

Concessional contributions cap^

Income year Under 50 50 years to 59 years* 60 years and over*

2014/2015 $30,000 $35,000 $35,000

2013/2014 $25,000 $25,000 $35,000

2012/2013 $25,000 $25,000 $25,000

*Concessional contributions cap for older Australians applies in the following way for different financial years:

 2013/2014 year: If you were 59 years of age or older as at 30 June 2013 then you were eligible for the higher concessional cap of $35,000 for the 2013/2014 year. If you were 58 years or younger as at 30 June 2013, then you were eligible for the general concessional cap of $25,000 for the 2013/2014 year.

 2014/2015 year: The concessional cap for older Australians was broadened to those in their fifties from 1 July 2014. If you were 49 years of age or older as at 30 June 2014, then your concessional contributions cap for the 2014/2015 year is $35,000.

 2015/2016 year: If you were 49 years of age or older as at 30 June 2015, then your concessional contributions cap for the 2015/2016 year is $35,000.

Income year Under 50 Transitional cap for over-50s

2011/2012 $25,000 $50,000 $50,000

2010/2011 $25,000 $50,000 $50,000

2009/2010 $25,000 $50,000 $50,000

2008/2009 $50,000 $100,000 $100,000

^You can find more information about the concessional contributions caps in the followingSuperGuide articles:

 Super concessional contributions: 2015/2016 survival guide

 Salary sacrificing and super: 10 facts you should know

 Higher concessional contributions cap applies to over-50s from July 2014

 Concessional contributions caps: 10 facts you should know

Non-concessional contributions cap*

Income year Cap Bring-forward rule

2015/2016 $180,000 $540,000

2014/2015 $180,000 $540,000

2013/2014 $150,000 $450,000

2012/2013 $150,000 $450,000

2011/2012 $150,000 $450,000

2010/2011 $150,000 $450,000

2009/2010 $150,000 $450,000

2008/2009 $150,000 $450,000

*You can find more information about the non-concessional contributions cap in the followingSuperGuide articles:

 Your 2015/2016 guide to non-concessional (after-tax) contributions

 Bring forward rule: 10 facts you should know

Maximum superannuation contribution base^

Income year Per quarter Annualised

2015/2016 $50,810 $203,240

2014/2015 $49,430 $197,720

2013/2014 $48,040 $192,160

2012/2013 $45,750 $183,000

2011/2012 $43,820 $175,280

2010/2011 $42,220 $168,880

2009/2010 $40,170 $160,680

2008/2009 $38,180 $152,720 

^You can find more information about the maximum superannuation contributions base in the following SuperGuide articles:

 Upper limit on SG contributions (for 2014/2015 and previous years)

 Superannuation Guarantee: What is the maximum SG employers must pay?

Co-contribution income thresholds^^

Income year Lower income threshold Upper income threshold

2015/2016 $35,454 $50,454

2014/2015 $34,488 $49,488

2013/2014 $33,516 $48,516

2012/2013 $31,920 $46,920

2011/2012 $31,920 $61,920

2010/2011 $31,920 $61,920

2009/2010 $31,920 $61,920

2008/2009 $30,342 $60,342

^^For the 2015/2016 and 2014/2015 years (and for the 2012/2013 and 2013/2014 years), the co-contribution matching rate is 50% of the non-concessional (after-tax) contributions that you make, and also note that the maximum co-contribution that you can receive is $500. For more information about the co-contribution rules see the following SuperGuide articles:

 Cashing in on the co-contribution rules (2015/2016 year)

 Super contributions: How much co-contribution will I get?

Minimum annual pension (income stream) payments

Back to normal Temporary relief

  2015/2016, 2014/2015 and 2013/2014 years 2012/2013 and 2011/2012 years* 2010/2011, 2009/2010 and 2008/2009 years

Age      Percentage factors (PF)   No relief 75% of PF 50% of PF

55-64       4%                                 4%                  3%                2%

65-74       5%                                 5%                  3.75%        2.5%

75-79       6%                                 6%                  4.5%        3%

80-84       7%                                 7%                  5.25%        3.5%

85-89       9%                                 9%                  6.75%        4.5%

90-94      11%                                11%                  8.25%        5.5%

95 or older   14%                                14%                  10.5%        7%

*For the 2012/2013 year and for the 2011/2012 year, the annual minimum pension payment factors were 75% of the usual factors.

For more information about the minimum pension payment rules see the followingSuperGuide articles:

 Minimum pension payments for 2015/2016 year and 2014/2015 year

 Retirement and tax: What are the minimum pension payment rules?

 SMSF pension: How do I calculate my minimum pension payment? 

Low-rate cap amount

Income year Cap

2015/2016 $195,000

2014/2015 $185,000

2013/2014 $180,000

2012/2013 $175,000

2011/2012 $165,000

2010/2011 $160,000

2009/2010 $150,000

2008/2009 $145,000 

For more information on the low-rate cap see the following SuperGuide articles:

 Retirement: 3 ways of taking super benefits before the age of 60

 Retiring before the age of 60: the tax deal 

Untaxed plan cap amount

Income year Cap

2015/2016 $1.395 million

2014/2015 $1.355 million

2013/2014 $1.315 million

2012/2013 $1.255 million

2011/2012 $1.205 million

2010/2011 $1.155 million

2009/2010 $1.1 million

2008/2009 $1.045 million 

For more information on how super benefits from an untaxed source’ are taxed, see the following SuperGuide articles

 Tax-free super for over-60s, except for some

 Retirement: 3 ways of taking super benefits before the age of 60

CGT cap amount

Income year Cap

2015/2016 $1.395 million

2014/2015 $1.355 million

2013/2014 $1.315 million

2012/2013 $1.255 million

2011/2012 $1.205 million

2010/2011 $1.155 million

2009/2010 $1.1 million

2008/2009 $1.045 million  

Tax-free part of genuine redundancy payments

Income year Base limit For each complete year of service

2015/2016 $9,780              $4,891

2014/2015 $9,514              $4,758

2013/2014 $9,246              $4,624

2012/2013 $8,806              $4,404

2011/2012 $8,435              $4,218

2010/2011 $8,126              $4,064

2009/2010 $7,732              $3,867

2008/2009 $7,350              $3,676

For more information on these rates, you can use the search function (at the top right of theSuperGuide website), or you can visit the ATO website.

Superannuation Guarantee rate remains at 9.5% for 2015/2016 year

Trish Power - June 21, 2015 20 Comments

The Superannuation Guarantee rate remains at 9.5% for the 2015/2016 financial year, and stalls at this rate for another 6 years. The Superannuation Guarantee rate first increased to 9.5% from 1 July 2014 (the 2014/2015 year).
Based on revised laws, the SG rate will remain at 9.5% for another 6 years, increasing to 10% from July 2021, and eventually increasing to 12% from July 2025 (see table below).
Superannuation Guarantee (SG) is the official term for compulsory superannuation contributions made by employers on behalf of their employees. An employer, regardless of whether they are a small or large business, must contribute the equivalent of 9.5% of an employee’s salary for the 2015/2016 year, as was the case for the 2014/2015 year. (The SG rate was 9.25% for the 2013/2014 year.)

Background: Originally, the SG rate was set to increase to 12% by July 2019 under laws passed by the former ALP government, and then pushed back to July 2020 by the new Liberal government, and then pushed back again to July 2022. In the 2014 Federal Budget, the Liberal government further delayed the SG increase stretching the timeframe over 12 years. Due to negotiations with the Palmer United Party to get the Mineral Resource Rent Tax repealed, the timeframe has now stretched to 1 July 2025 before Australian workers receive 12% SG.
Effective since 1 July 2014, the Superannuation Guarantee percentage increased to 9.5%, and is expected to rise to 12% by July 2025 under the Liberal government, rather than the original starting date of 2019, planned by the former ALP government and what was in place before the Liberals pushed back the starting date.
Note: In short, the SG rate will now remain at 9.5% until 30 June 2021, and will increase to 12% by 1 July 2025.


The Liberal government, in making a downward adjustment in how fast the SG rate will increase over time means that it will take 5 years longer for the SG rate to increase to 12% from the Liberals pre-election commitment, and 7 years longer than originally planned by the ALP .
Background: In May 2010, employed Australians received a pleasant surprise when the then-federal treasurer, Mr Wayne Swan, announced that compulsory employer super contributions were set to jump from the current 9% of salary to 12% by July 2019, an eventual 33% increase in Superannuation Guarantee (SG) contributions. On 29 March 2012, the proposed increase in SG entitlements received Royal Assent and became law. The new Liberal government promised to continue the SG rate increase, but at a slower rate.  The Liberal government introduced amendments to slow down the increase in the SG rate, and then in negotiations in parliament, further slowed down the SG increase.
The Liberal government promised in the 2014 Federal Budget that the SG rate increase will stall for 3 years (from 1 July 2015), rising to 10% from 1 July 2018. The SG rate would then increase by 0.5% each year until it reached 12% by July 2022. What the Liberal government has now enacted is that the SG rate stalls from 1 July 2015 for 7 years (until 30 June 2021), and then increases by 0.5% each year following until the SG rate reaches 12% from 1 July 2025.

Superannuation Guarantee rates

Financial year	New SG rates (%)	Old SG rates (%)
2012/2013 (starts 1 July 2012)	n/a	9.0
2013/2014	n/a	9.25
2014/2015 (starts 1 July 2014)	9.5	9.5
2015/2016	9.5	10.0
2016/2017	9.5	10.5
2017/2018	9.5	11.0
2018/2019	9.5	11.5
2019/2020	9.5	12.0
2020/2021	9.5	12.0
2021/2022 (starts 1 July 2021)	10.0	12.0
2022/2023	10.5	12.0
2023/2024	11.0	12.0
2024/2025	11.5	12.0
2025/2026 (starts 1 July 2025)	12.0	12.0

Source: Adapted from explanatory memorandum for Mineral Resource Rent Tax Repeal and Other Measures Act 2014
Note: If your employer fails to pay the required rate of SG to your super fund by the quarterly due date, your employer may be subject to the Superannuation Guarantee Charge (SGC). The SGC is a penalty that your employer must pay to the ATO. The SGC includes the SG owing to an employee or employees, interest on the SG amounts owing, plus an administration fee. Your employer must lodge the SGC statement (if failed to pay SG , or was late paying SG) by the due date and pay the SGC to the ATO. The majority of this SGC will eventually make its way to your super account.

What does the SG increase, and its delay, mean for your retirement plans?

The SG increase, and its delay, has significant financial implications for anyone expecting to remain in the workforce for more than 12 years, because the full 3% increase takes affect from the start of the 2025/2026 year –in 12 years’ time (under the new laws), rather than in 5 years’ time (under the former SG laws passed by the ALP government).
An interesting stumble in the selling of the SG increase, is that the company tax rate was eventually going to fall to 28% which the Government argued would soften some of the SG increase for employers. The promise was that from July 2013, the company tax rate would decrease to 29% (from 30%) and from July 2014, the company tax rate would decrease to 28%. During 2012, the former ALP Government announced that the cut to company tax rates would not go ahead.
In the 2014 Federal Budget, the Liberal government announced a drop in the company tax rate by 1.5%, but an offset levy for large companies of 1.5% to help finance the Paid Parental Leave levy. Smaller companies however will not have to pay the PPL levy, so will benefit financially from the drop in company tax rate.
The PPL levy in its current form is now defunct, and the proposed cut in company tax rate to 28.5%, now promised to take affect from 1 July 2015, looks like it will also die a quiet death.

High stakes: The future of the tax profession

Thursday, 2 October 2014 by Mark Chapman
We live and work in an age of increasing digitalisation.  While the landscape for many professions has been changing dramatically for a number of years, imminent developments in the use of “big-data” solutions championed by the Tax Office mean that the taxation profession is about to reach a tipping point.

Tax practitioners in Australia may have been incrementally adopting new technologies in their professional lives to better service their clients, and to meet Tax Office requirements, however all this is about to be given a turbo-charged kick-along.

Taxpayers Australia was invited on Wednesday 24 September 2014 to attend a special purpose working group with the Tax Office. This working group has been tasked with providing the Tax Office with guidance in relation to its strategic plans to redefine and revolutionise the Tax Office’s relationship with tax practitioners.

Some of the insights gained from this meeting were sobering — especially so given the realisation that the changes being discussed are planned to be implemented by July 2016. The changes spelled out by the Tax Office are indeed pervasive, as we discuss below, but also represent an opportunity for practitioners to become an even more valuable part of their clients’ lives and businesses.

Taxpayers Australia recognises that practitioners will need to develop new skills and become ever more adaptable to take advantage of the new landscape, and this heightened need for new skills forms a critical input for our own strategic review of new products and services for members. We recognise that it is not only practitioners that will need to adapt and evolve to stay relevant — indeed, to survive — but also the Tax Office, training providers, and also ordinary taxpayers.

Major changes to be implemented by July 2016
The current online portal and Electronic Lodgement Service will be moved on to Standard Business Reporting (SBR) software. The Tax Office will use this new generation of software to effectively become a wholesaler of software to commercial software providers (think MYOB and Xero). This is important because it means these commercial providers will be able to connect practitioners directly to prefill data and Tax Office forms, thus integrating this information into their software.

This critical step from the Tax Office represents a massive structural shift in relation to the functionality of commercial software. Small business clients on these software platforms will be connected in real time to share registries, banks and the Tax Office. The packages, once set up appropriately, will automate much of the work tax practitioners have traditionally performed. The new software will also allow automation of simpler individual tax returns, which will conceivably lead to many individuals not having to lodge a tax return at all. Given the level of paper lodgements having dropped to very low levels, the pace of change will become increasingly rapid.

Major changes out to 2020
Once SBR adoption is complete and software providers have fully implemented the changes up to 2016, the Tax Office is planning to release a standardised chart of accounts. This will mean that company, trust and other entity tax returns will be automated — and is essentially the missing link in fully automating the preparation of these types of returns. Bank and share registry information, and information from various other databases, will be used to record transactions automatically in the Tax Office-designed chart of accounts. All of this data will then be prefilled into the entity’s tax return automatically.

Commercial software providers have also indicated that dual signature functionality is on the way. Gone are the days when practitioners will need to print a copy of returns and organise their signing with the client. Instead, once a practitioner completes a return and digitally signs it, it will be sent to the client electronically, which they will also digitally approve. This will then be recorded in a practitioner’s practice management software and will then simultaneously lodge the return, thereby fully integrating and digitalising this part of a tax practitioner’s practice.

The majority of individual tax returns will be automated at this point, with the majority of these taxpayers having little or no physical interaction with the Tax Office.

What does this mean for practitioners?
Tax practitioners will no longer perform the tasks of preparing accounts and tax returns, and in the near future they may see many clients move away from their practice as automation becomes more pervasive. However, the imminent revolution as mapped out by the Tax Office means the integrity of information and security will become increasingly critical for practitioners. The need to carefully review information and make sure it is accurate will become even more critical. The ability of the Tax Office to data match and automatically audit taxpayers will force practitioners to adopt a risk-based approach to a client’s affairs. This will mean the level of skill in interpreting how tax laws apply to a client will be central to a practitioner’s service offering to clients in mitigating the risks they will now face.

The practitioner of the future will need to be more like a Chief Financial Officer for their clients. They will have access to information in real time, giving a practitioner the ability to be a key partner to their client’s business and take on a critical decision support role. Marketplace demands will also see practitioners shift their focus to become more tax-technical professionals, necessarily focusing more on tax planning and validation of information — and they will need the skills that go with this territory.

We are here to help you with the transition
With all of the above in mind, Taxpayers Australia plans to adopt a strategic approach to all the Tax Office proposals, with a view to evolve our products and services to efficiently assist tax practitioners, and indeed taxpayers in general, in navigating this transition successfully. The tax profession landscape will be starkly different after the transition, but we are committed to assisting our members to negotiate this uncertain period to emerge with an even stronger professional standing in the taxpaying community.

Taxpayers Australia began, almost 100 years ago, as an independent voice to educate and inform taxpayers in relation to taxation and superannuation. To remain relevant today, we see it as our duty to be the bridge between the current tax profession and this new and different landscape that has been thrust on to our horizon. We reaffirm our commitment to our members and to the principle that greater knowledge about the content of tax and super laws is fundamental to being able to engage effectively with the Tax Office, and to better serve your clients and their changing requirements.

We will be in touch throughout this period to keep you up to date with the latest developments, and the implications these changes will have on you, your clients and your practice.

In addition, we’ll be bringing you new products and services to help you with the transition. In the meantime we would like to remind members that they have access to dedicated helpline calls to speak to a tax specialist regarding issues with tax and superannuation, and high quality publications with strategies to deal with technical difficulties in these areas. We are also in the process of moving many of our offerings to a digital platform to give you instant access to fully up-to-date technical information.  In the near future, we will also be re-configuring our online presence for a more intuitive experience.

It is also intended to present more information for general taxpayers, both individuals and small businesses, laying out basic and more general tax and super information for the consumer audience. A more informed and educated clientele can go a long way to smoothing out their interactions with a tax professional, and make the tax practitioner’s working day hopefully a little less filled with having to explain basic tax issues to a necessarily curious client base.

We also would like you to know that we are currently undertaking a major review of the Tax Summary to progressively update it throughout this period and make it even more relevant as a technical guide written in plain English to make it easily accessible.

We request all members give us a call or email regarding our involvement with the Tax Office working group so that we can represent the views of our members and make sure the Tax Office takes these valid viewpoints on board when implementing these changes.