Should You Hire an Expert Tax Accountant to Do Your Taxes?

When running a company, there are several things to keep track of, from daily business tasks to customer service to increasing sales. When all these tasks occupy your time, then at that time, it is easy to let the financial status of the company go unmonitored. One of the most difficult things that you may face is ignoring business taxes and this is a huge mistake. For this reason, it would be beneficial to hire a tax return accountant Melbourne for your business to keep your business running smoothly.

To run and grow your business without letting money matters ruin what you need, you need to give a chance to a tax agent. A good accountant will help you handle your business’s financial statements and make sure that you have a consistent positive cash flow or are close to achieving your goals. Before you hire a tax agent, it is necessary to understand why you need one, what you need to consider, and what one can do for your business.

What can you expect from tax accountants?

An accountant is an expert who keeps an eye on the financial situation of your business. It includes keeping track of the money your company owes to other parties such as suppliers, known as accounts payable, and the customers owe money to you, known as accounts receivable.

Submitting and filing your tax returns can be overwhelming and challenging. Not only can it be a daunting and complicated task, but doing it yourself could make your company miss out on essential deductions and savings or even result in paying penalties or fines.

Advantages of Hiring a Tax Agent for Your Company

Here are some most important benefits of seeking help from personal tax accountants Melbourne that can meet your business needs:

·        Time Saver

Running a business can easily take all of your productive time as a business owner. It can be stressful to maintain your business finances, especially if you have a large organisation than a one-person operation. Hiring an accountant will help manage your business finance. You can search for an accountant near your area by searching for the term ‘tax accountants near me’ as it will show you several results, and you can choose one that is near your location. Apart from this, you can contact an accounting firm to seek help from professional accountants.

 

·        Save Money and Avoid Costly Mistakes

When your money is being spent inefficiently or wasted, then your small business accountant can grab opportunities for savings. An accountant can advise you on affordable ways of handling payroll, inventory and more. If you are unaware of taxes, it is easy to make a costly mistake, such as providing the wrong income tax amount unintentionally, simply because the entire taxation process might be confusing. However, the tax bureau will not avoid these errors. Fortunately, tax accountants know how to perform the taxation process easily and can prevent mistakes and save their customers money. For this reason, you must hire a professional tax accountant and to find the tax accountant near your location, you can search for ‘tax return accountant near me.’

 

·        Make Tax Preparation and Filing Process Easy

Paying taxes is a daunting and complicated task. One has to fill the right information in the right form and give accurate income facts, payroll, accounts, and expenses when running the business. You can remove this stress and let an expert tax accountant get the job done.

 

·      Increase Deductions and Refunds

One of the most important benefits of hiring tax accountants is that they can make sure you get the most of available tax deductions. Your experienced accountants will be aware of several methods to find opportunities to increase your refund and deductions. Many business owners don’t track items like depreciation, unnecessary expenses, and home office space. So, avoid doing these things.

 

·        Compliance and Accuracy

Many business owners are not completely confident in their ability to fill their company’s return, avoid fines and penalties, get the benefit of deductions, and manage possible audits. However, your tax accountant is professional in all these matters. So, this is another reason to hire a tax agent for your business, and you can search for ‘tax agents near me’ to find out tax professionals near your location for your business.

 

·        Help You Keep Better Records

A tax professional will help you improve your company’s expense recordkeeping quality. Well-organised and detailed records will help you in tax deductions and increase savings.

Conclusion

Well, hiring a tax professional will help you in many ways and provide you with numerous advantages. However, make sure to choose the right one for your company. For reliable tax accounting services, you can also reach Reliable Melbourne Accountants.

Is Novated Lease Worth It Australia in 2022?

In Australia, people really want to know if that is novated lease worth it Australia. Contrary to popular belief, novated leases are not exclusively advantageous for high achievers. No matter how much money you make, this method of financing can work for a variety of car buyers and users. Reducing your taxable income results in paying less tax, even with a little salary.

Pay Minimum Tax

Death and taxes are said to be the only two things in life that are guaranteed. However, many of us undoubtedly take advantage of the chance to pay less if there was a method to do so.  

Reliable Melbourne accountants said that it will always be fashionable to pay as little income tax as possible. One of the biggest arguments in favour of novated leases is that they are both cost- and tax-effective, giving you more after-tax money to spend.

The final respectable tax advantage for employees is a novated car lease. According to the terms of the agreement, the employer deducts all car payments and maintenance charges from the employee’s paycheck. As a result, the employee’s taxable income is significantly reduced at no extra expense to the employer.

What are the Benefits of Novated Lease?

·        First off, the majority of novated leasing expenses come from your pre-tax income. Accounting firms Melbourne said that your novated lease payments are deducted from your income before tax, just like salary sacrificing on other things, like your computer or additional contributions to super, so you will pay less tax overall. A novated lease also keeps money in your pocket allowing you to use funds for other purposes, as opposed to buying outright, which is extremely expensive upfront for a depreciating asset.

·        In contrast to outright car purchases, novated leases allow you to avoid paying GST because the product is exempt from it. Additionally, novated leases are primarily paid for out of your pre-tax income, whereas traditional auto leases are not. Additionally, with novated leasing, you can avoid paying GST on your car's gasoline, maintenance, insurance, tyres, registration, and other consumables.

·        You can get fleet pricing, which is essentially wholesale pricing, through novated lease businesses. Furthermore, your novated leasing provider ought to be able to obtain parts and labour for you at wholesale (fleet) rates as well, which could result in significant savings. If you buy outright or take out a conventional auto loan, you might be able to obtain this benefit, but keep in mind that doing so will come out of your after-tax income and would not save you as much money while comprehending that is a novated car lease worth it. Additionally, if you notice a low-interest rate on auto financing at a dealership, be aware that you probably are not getting as good of a bargain as you might think; more than likely, the cost of the car is greater to make up for the lower interest rate.

Is A Novated Car Lease Worth It?

Accounting firms Melbourne said that many of Lease plan's customers who use novated leases save as at least $3,000 yearly.

The main factors for this are the GST savings that occur with novated leases, together with the lower income tax due to the fact that your pre-tax wage is used to contribute to your lease payments.

With a novated lease, you first save money on the vehicle’s actual purchase price. GST is not applicable to the purchasing price. You will save $3000 right now if you are buying a $30,000 car. During the lease, you can also avoid paying GST on any of the car’s operating expenses.

Employee Contribution Method (ECM)

ECM means you will make a portion of your lease payments from your post-tax earnings in order to manage FBT liability rather than making all of your lease payments from pre-tax earnings. Post-tax payments enhance the arrangement’s tax efficiency by effectively eliminating any potential FBT that would otherwise have to be paid.

Final Say

The top firm in Australia, Reliable Melbourne Accountants, offers its clients the best services possible to help them manage their company's accounts more effectively. Hope people gain all the knowledge regarding is a novated car lease worth it.

Asset Write-Off Rules Described by Tax Accountant Melbourne

Tax accountant Melbourne said that the government recently approved a number of amendments to the tax laws, to protect the Australian economy from the effects of the Coronavirus. This includes new accelerated depreciation rules, adjustments to the instant asset write-off regulations, and restrictions on the write-off of SBE general pools. 

The government has essentially only revised certain important levels within the current instant asset write-off laws, making the adjustments in this area in some ways rather simple. Generally speaking, the modifications are:

·        A rise in the low pool value criteria from $30000 to $150000

·        The instant asset write-off cost level is from $30000 to $150000

·        The turnover requirements for depreciating asset deductions from $50 million to $500 million

Melbourne accounting firm claims that depending on whether you are working with a small business entity or a medium business firm, the eligibility rules may be slightly different.

The following prerequisites must be met for a small business organization to be eligible for the $150000 instant asset write-off threshold:

·        The company must operate under generally accepted business practises

·        Must generate annual combined revenue of less than $10 million

o   Based on 2019 or 2020 income year figures

o   It must decide to use the simplified depreciation rules for the 2020 income year

o   The asset must be purchased after 7:30 p.m. AEST on May 12, 2015

o   Professionals of accounting in Melbourne said that it must be used for the first time, or installed in a state of readiness for use, for a taxable purpose between March 12, 2020 and June 30, 2020.

The instant asset write-off rules will not be available to a small business organisation if it chooses not to use the simplified depreciation rules in the 2020 income year, regardless of whether the other prerequisites can be satisfied.

If the following criteria are met, entities that are not considered small business enterprises can access the $150000 instant asset write-off threshold.

·        The organisation must operate under general rules

·        It must have a combined yearly revenue of at least $10 million but not more than $500 million

o   Small business accountants said that based on data from the 2019 or 2020 tax year

o   The item must be purchased after 7:30 p.m. AEST on April 2, 2019

o   The asset must be first utilised, or installed and ready for use, between March 12, 2020, and June 30, 2020 for a taxable purpose.

The instant asset write-off rules are open to businesses with a turnover of $10 million or more but less than $500 million, however, they are not eligible for the general pool rules, which are available to a small business organisation with revenue of less than $10 million. 

Melbourne accounting firm said that in all of the prerequisites for claiming an instant deduction in regard to an asset are satisfied, the taxpayer may do so in the year the asset is first used (or installed and made ready for use) for a taxable purpose. The deduction is only permitted to the extent of the asset’s taxable purpose. Applying the business use percentage comes after first determining if an immediate deduction is possible based on the asset’s total cost.

Tax accountant Melbourne said that the entire cost of the asset on 30 June 2020 must be less than $150000 in order for an immediate deduction to be granted.

The first element of cost and the second element of cost are combined to form the cost of a depreciating asset under Division 40 ITAA 1997. The amount paid or assumed to have been paid in relation to beginning to possess that asset under section 40-180 is included in the first element of cost (e.g. a purchase price). After the taxpayer begins retaining the depreciating asset in accordance with section 40-190, the second element of cost comprises a sum paid or taken to have been paid in relation to bringing the depreciating asset to its current condition and location (e.g. improvements or delivery costs).

Experts of accounting in Melbourne claim that the portion of the sale profits that was used for business purposes must typically be included in assessable income when an asset that was initially eligible for an instant deduction is later sold. When assets are lost or destroyed and some proceeds (such as insurance proceeds) are received, similar restrictions apply.

Summary

Reliable Melbourne Accountants delivers skilled small business accountants to individuals and companies with professional accounting services. We deliver our services at very reasonable rates.

Important Tax Return Information 2022

 

Who can Complete Your Tax Return?

You can hire a best small business accountant Melbourne to finish your tax return for you:

·        You can get assistance from friends or family, but they are not allowed to charge you.

·        Tax help is a free service delivered by neighbourhood volunteers who have been trained to support persons making $60000 or less with the preparation of their tax forms. Volunteers with Tax help do not charge a fee for their services. Volunteers with Tax help can help you in person at a tax help centre, over the phone, or online.

·        You can only be charged for filing your taxes by a registered tax agent.

Lodge Your Tax Return by 31 October 2022

Unless they have given you permission to file it later or you have a later due date because a registered tax agent prepared your tax return, you have until 31^st October 2022, to file tax return.

If you are unable to file your tax return by 31^st October 2022, contact small business accountant Melbourne as you can before that date to inquire about your options for filling at a later time.

Failure to Lodge on Time Penalty

If people unable to filed tax return by the deadline, they may impose a late filling penalty.

Typically, up to a maximum of five penalty units, they add one penalty unit for each 28 days (or portion thereof) that your tax return is over late. Refer to failure to lodge on time penalty for further details regarding penalty units. 

Tax accountant near me said that even if there is no tax due, they have the right to impose the penalty. However, it is against government policy to impose a fine when:

·        No tax is payable

·        You willingly file your tax return

Where to Send Your Tax Return

Within Australia

We will lodge your tax return online with myTax for information on how to do so. The majority of myTax refunds are sent out in within two weeks. To file a paper tax return, we mail it in the included, pre-addressed envelope. For paper tax returns, the majority of refunds are handled in 10 weeks.

From Overseas

Accountants near me said that the majority of myTax refunds are sent out in within two weeks. To file a paper tax return, we mail it in the included pre-addressed envelope. We address the letter in your own envelope and mail it. For paper tax returns, the majority of refunds are handled in 10 weeks.

When can You Anticipate Receiving Your Assessment Notice?

Your tax return will typically be processed within the following time frame:

·        Two weeks if you file electronically

·        Ten weeks for paper filings

Your assessment notice will be:

·        Regardless of whether you lodge online or on paper, if you have a myGov account, it will be sent to your myGov mailbox.

·        Best small business accountant Melbourne said that if you do not have a myGov account, it will be mailed to you.

Your Right to Make a Complaint

They encourage your right to file a complaint if you feel that they have not lived up to your expectations or have not behaved in a manner consistent with the Taxpayer’ charter. They pledge to take complaints seriously, respond to them immediately and fairly, and use them as opportunities to improve.

You have the right to request a formal review of a technical decision they made on your tax affairs if you disagree with it (disagree with or object to an ATO decision) can protest an ATO decision by referring to dispute.

Small business accountant Melbourne advised you to attempt to resolve the issue with the ATO officer you have been working with (or the phone number you were provided) before deciding to file a complaint. Talk to that officer’s manager if you are still unsatisfied, and if you are still unsatisfied, think about filing a formal complaint. 

How to Make a Complaint?

To voice a complaint:

·        You can lodge your online complaint at Complaints, Compliments, and Feedback. 

·        You can also call on their complaint number which is 1800 199 010 from 8.00 am- 6.00 pm Monday to Friday except public holidays.

·        You can phone the National Relay Service on 13 36 77 (if you have a speech, hearing, and communication problem).

·        Send FAX to 1800 060 063

·        You can write to below mentioned address suggested by tax accountant near me. 

Australian Taxation Office

PO Box 1271

ALBURY NSW 2640

Final Say

We hope that you are fully equipped with the important tax return information 2022. Reliable Melbourne Accountants provides professional accountants to individuals and businesses with better accounting services. By searching accountants near me you can take our professional services at very reasonable rates can. 

Lodgment Program Framework in Australia

BAS agents and registered tax agents play a crucial role in assisting taxpayers in meeting their superannuation and tax lodgment obligations. Taxation accountants provide a lodging option that allows for progressive lodging over a 12- month period in managing this workload. By assessing the success of the lodgment programme, registered agents are encouraged to complete on an even playing field.

The framework familiar agents who:

·        Have Quality Practice Management

·        Lodge Electronically

·        Are Consistently on Time

In order to acquire the lodgment programme due dates, you must:

·        Lodge electronic fringe benefits tax and income tax returns (unless there are extraordinary circumstances).

·        At least 85% of your clients’ current-year returns should be received on time.

“On time” refers to returns being received by the submission programme due date or in the case of a deferral, the deferred due date.

How to Fulfill the Performance Criteria?

To assist people to fulfill their performance, tax agent Melbourne recommended that:

·        If an unanticipated circumstance has prevented you or your client from lodging an obligation, you may think about requesting a lodgment deferment.

·        If an unexpected event has affected your entire practice, ask for assistance from the sponsored lodging programme.

·        Up-to-date your clients’ list.  

·        If your client is not required to file a return for any particular year, notify the government.

Electronic Lodgment

The Tax return accountant said that to get the deadlines for the lodgment programme, you must electronically lodge all of your customers’ tax returns.

The only electronic route for lodging your clients’ tax and annual returns is the Practitioner Lodgment Service (PLS) at the movement:

Individual and Trust Tax Returns

·        Company Tax Return

·        Partnership Tax Return

·        Fringe Benefits Tax Return

·        Self-Management Income Tax Return and Superannuation Fund Annual Return

If You Lodge By Paper

Only tax returns that are lodged electronically are subject to the due dates offered under the lodgment programme. Tax accountant Melbourne said that they may impose a late lodgment penalty if you file a paper tax return after the document’s statutory due date.

You must file electronically unless you are dealing with extraordinary circumstances. You can request a lodging deferral if extraordinary or unforeseeable circumstances in your practise prevent you from lodging by the deadline.

Electronic Lodgment Exclusions

We acknowledge that there are situations in which electronic filing is not feasible owing to schedule or software constraints. When either of the following applies, we shall exempt lodgment from the electronic requirement.

·        They haven't provided an electronic version of a tax return.

·        Software availability does not coincide with a crucial deadline.

Forms Excluded from Electronic Lodgment

Taxation accountants said that according to the framework for the Lodgment Program, the following tax return types are exempt from the electronic lodgment requirement for 2021–2022.

·        Returns for public unit trusts or large managed investment trusts

·        SAP (Substituted Accounting Period) tax returns, which are those that must be filed while the current year's software is not yet ready. These taxpayers are affected.

If You Do Not Meet the Performance Requirement

If you fall short of the benchmark performance goal of 85% for the 2020–21 programme years, it won't have a detrimental effect on your settling programme.

The Tax return accountant said that they want to support you in maintaining your logging programme and enhancing your performance. As a result, we might get in touch with you to talk about your situation. With your cooperation, we will use our diverse assistance strategies to guarantee that we are giving you the proper support.

Dealing with Unexpected Events

In order to help you deal with immediate problems that prevent you from submitting your paperwork by the deadline, the lodgment programme will continue to offer deferrals. Your performance in terms of on-time delivery will be evaluated using the postponed due date.

You can request assistance from the supported lodging programme to help you get back on track if you are dealing with longer-term extraordinary circumstances. Tax agent Melbourne said that they will collaborate with you and take into account your particular situation, such as:

·        COVID-19 Impacts

·        Serious Illness Within Your Family or Practice

·        Natural or Other Disasters

·        Sudden and Unexpected Staff Changes

Final Word

We hope that you are fully equipped with the knowledge needed for the lodgment program framework n Australia. Reliable Melbourne Accountants provides professional tax accountants Melbourne to individuals and businesses.

How to Account for Leasehold Improvements?

Leasehold improvements are improvements to leased space that are paid for by the tenant. Interior walls and ceilings, plumbing and electrical extensions, built-in cabinetry, and tiles and carpeting are examples of leasehold improvements. Accounting firm Melbourne said that unless the tenant can remove the improvements without causing damage to the leased property, leasehold improvements generally revert to the landlord's ownership at the end of the lease. Offices built in unfinished office space are an example of leasehold upgrades.  

Accounting for Leasehold Improvements

If the cost of leasehold improvements exceeds the corporate capitalization limit, capitalise them suggested by tax accountant Melbourne. If not, write them off as a cost for the time period in which they occurred. If you capitalise these costs, you must amortise them over the lease's remaining term or the shorter of their useful lives. If the lease renewal is fairly assured, the remaining term of the lease can be stretched into further lease renewal periods for amortisation reasons (like when there is a bargain renewal option).

If you later buy the building, the lease is assumed dissolved, allowing you to amortise over the building's estimated remaining usable life, which is likely to be much longer than the original lease term, resulting in a significantly lower monthly payment.

Accountants for small business said that technically, you are amortising rather than depreciating leasehold improvements. Because the improvements are owned by the landlord, you are merely exercising an intangible right to utilise them during the lease term - and intangible assets are amortised rather than depreciated.

Is Leasehold Improvement a Fixed Asset?

According to tax accountant near me leasehold improvements are classified as fixed assets and are recorded in the non-current assets area of the balance sheet as part of property, plant, and equipment (PP&E). Lease improvements are accounted for as other fixed assets in US GAAP, according to ASC 360. (Accounting Standards Codification).

Depreciation of Leasehold Improvement

Because leasehold improvements belong to the lessor (landlord) and not the lessee (tenant), they are amortised rather than depreciated. As a result, the lessee only has the right to utilise the asset for the duration of the lease, making it an intangible asset. Leasehold improvements are amortised rather than depreciated because intangible rights are amortised. Hence, all leasehold improvements are amortised over time until the balance is zero. Tax accountant Melbourne said that there are now some guidelines to follow when it comes to amortisation accounting:

Useful Life Basis: If the leasehold improvements' useful life is estimated to be shorter than the remaining lease term, the associated costs should be amortised over that time. For example, if a freshly installed light fixture is planned to be changed in three years and the lease term is still five years, the asset should be amortised during that time.

Lease Term Basis: Accounting firm Melbourne said that if the leasehold improvements are expected to have a useful life equal to or higher than the lease term, the associated costs should be amortised over the term of the lease. If the office partition's useful life is projected to be 10 years and the remaining lease term is 5, the asset should be amortised over that time.

Extended Lease Term Bas is: If the lessor offers a low-cost lease, the lessee can rest assured that the lease will be renewed. In this case, accountants for small business said that the lease period extension is quite definite, and the asset can be depreciated over the extended period, which is capped at the item's useful life.

Final Say

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Different Tax Considerations in Australia

There are other different tax considerations in Australia which will be described by our professional taxation accountants.

CAPITAL GAINS TAX

When you sell (or otherwise cease to own) a rental property acquired after September 19, 1985, you may make a capital gain or loss.

The time of the event in the case of a real estate sale or other disposal is usually when you enter into the contract (generally the contract date), not when you settle. The fact that a contract is subject to a condition, such as financing approval, has no bearing on this date. If there is no contract, the event occurs when ownership changes hands.

When you sell or otherwise cease to own a property you acquired before September 19, 1985, you can make a capital gain or loss from certain capital improvements made after that date.

Record Keeping

Tax agent Melbourne said that when a CGT event occurs, keeping accurate records of all expenditures will assist you in calculating the amount of capital gain or loss you have made. You must keep records of your ownership as well as all costs associated with acquiring and disposing of property. It will also assist you in avoiding paying more CGT than is required.

You must keep records in English (or that are easily accessible or translatable into English) that include the following information:

·        the date of purchasing the asset

·        the date on which you sold the asset

·        the date you got something in return for the asset

·        the parties involved

·        any amount that would be included in the asset's cost base

GENERAL VALUE SHIFTING REGIME

Taxation accountants said that if a continuing right to utilise the property was held by an associate of yours (for example, a 10-year lease granted to your associate instantly before you enter into a sale contract) at the time of sale, a loss you make on the sale of a rental property may be reduced under the value shifting rules. The rules only applicable if the right was originally shaped on non-commercial terms, and the market value of the right was greater than $50,000 at the time.

GOODS AND SERVICES TAX (GST)

Tax accountants near me said that if you are registered for GST and it was due on your rental income, do not include it in your tax return's income.

Similarly, if you are GST-registered and eligible to claim input tax credits for rental expenses, you do not comprise the credits in the amount of expenses you claim. You must include any GST in the amounts of rental expenses you claim if you are not registered for GST or the rental income is from residential premises.

NEGATIVE GEARING

If a rental property is purchased with borrowed funds and the net rental income after deducting other expenses is less than the interest on the borrowings then the property is negatively geared.

A negatively geared property generates a net rental loss as a result of its overall taxation. When you file your tax return for the relevant income year, you may be able to deduct the full amount of rental expenses from your rental and other income (such as salary, wages, or business income). Accounting firm claims that the loss is carried forward to the next tax year if the other income is insufficient to cover it.

The rental expenses you claim in your tax return would result in a tax refund if you negatively gear a rental property, you can lower your rate of withholding to better match the year-end tax liability.

PAY AS YOU GO (PAYG) INSTALMENTS

Our tax agent Melbourne experts said that if you make money from your rental property, you should be familiar with the PAYG instalment system.

This is a method of paying instalments toward your anticipated tax liability for the year. If you earn $4,000 or more in investment or business income, like rental income, and your income tax assessment debt is more than $1,000, you will be required to pay PAYG instalments.

Accounting firm will notify you if you are required to pay PAYG instalments. In most cases, you will have to pay the instalments at the end of each quarter.

Final Say

We truly expect that you receive all the information regarding the Different Tax Considerations in Australia. Reliable Melbourne Accountants deliver accurate and consistent accountancy as well as taxation services. You can access these services by searching tax accountants near me.