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.

Advantages of Working with Accounting Firm

If you are a sole proprietor or owner of a small business, you know better than anyone how many hats you have to wear throughout the day. You might be your company's top salesperson one day. The next thing you know, you are a marketing expert. After that, you become the IT director of your company. If you want your company to succeed, you will have to get your hands dirty in all aspects of it. Accounting is one aspect of business that most small business owners dread even considering. Accounting can be time-consuming, difficult, and stressful, but that does not change the fact that it is vital. When it comes to bookkeeping, most business owners have three options: do it themselves, hire in-house accounting staff, or hire an accounting firm in Melbourne.

You probably did not start your own business to pursue your passion for accounting. You should consider working with an accounting firm for a variety of reasons, including the fact that you are not passionate about accounting.

Investing Your Time Where it is Most Needed

For any small business proprietors, time is a precious resource. You are the soul and heart of the company. Most likely, you worked long hours. According to research, roughly half of all small business owners and sole proprietors work more than 50 hours per week.

It is easy to argue that you, the owner/operator, are the most valuable resource for most small businesses. Accountant Melbourne said that why should such a valuable resource be devoted to accounting when you can make a far greater impact in other areas of the business?

You can spend more time focusing on what makes your company unique and great if you spend less time on accounting.

More Affordable than Hiring In-House Employees

Having an in-house accountant is a nice perk, but it is not always feasible for small businesses. A fully qualified accountant will demand a salary that is commensurate with their abilities. Accounting Melbourne suggested that this is a professional-level salary that could be better spent on expanding the company, hiring frontline employees, or launching new products and services.

Furthermore, for many small businesses, having a full-time in-house accountant may be overkill. Working with an accounting firm can provide the same benefits as hiring a full-time accountant for a fraction of the price.

Accountants are Much More than Bookkeepers

Some people believe accountants are only responsible for preparing financial statements. An accountant Melbourne, on the other hand, does much more. You are paying for expert advice and insight when you hire an accounting firm. An accountant's responsibilities include budgeting, tax planning, and payroll advice. Accountants can act as a sounding board for your ideas and provide guidance on how to financially realise your business goals.

Working with an accountant who has the full range of knowledge is a valuable asset. Accounting Melbourne experts go through years of training and keep up with the latest developments to ensure that their clients receive the best advice possible.

Simplifying Your Business

Self-employed business owners must typically purchase specialised accounting software, develop their own filing and organisation systems, devote time to accounting, and Melbourne accounting firm ensures that all documents are completed on time.

This adds a lot of moving parts to most business owners' already hectic workdays.

Working with an accounting firm simplifies your business by delegating one of the more difficult aspects of running a company. When business owners delegate their accounting responsibilities, they have less time to plan around specific accounting tasks.

Accounting Firm in Melbourne Can Decrease Errors

An error can be costly in accounting. A simple oversight could enrage tax authorities or result in incorrect balances being calculated. Furthermore, because rules are constantly changing, what was perfectly acceptable a year ago may now be an error.

When you hire a Melbourne accounting firm to help your company, you are hiring experts who devote their time and expertise to providing exceptional service and knowledge.

Final Say

Reliable Melbourne Accountants is the best accounting firm in Melbourne that provides accounting and bookkeeping services. They have specialists in all areas of corporate accounting and taxation to work with small to medium-sized businesses.

Role of Accountants in Enterprise Risk Management (ERM)

Enterprise Risk Management (ERM) is a risk management methodology that considers risk management from the perspective of the whole company or organisation. It is a top-down method for identifying, assessing, and preparing for potential losses, dangers, hazards, and other forms of harm that could disrupt an organisation's operations and objectives or result in losses. Our accountants Melbourne are using ERM to influence the company's overall risk position by requiring certain business segments to disengage or engage in certain actions.

Our tax accountants Melbourne are recognised as risk experts who are outward-looking and provide significant insights into risk management in a way that helps their companies adapt to uncertainty and achieve their goals in order to contribute value.

Organisations need to take risks and seize opportunities for achieving higher success. The accountant's principal responsibility in ERM is to promote and assist effective risk and opportunity management in support of value generation and preservation across time, not just to limit risk. This entails focusing on the advantages of careful risk-taking as well as the necessity to minimise and regulate risk. ERM necessitates data and analysis that can indicate success or failure, as well as decision-making around possible courses of action.

Risk management is currently underdeveloped in many businesses, and a reactive approach to risk management is the norm. Risk management is frequently categorised instead of being viewed as a fundamental competency and strategic asset.

Our accountants Melbourne professionals in the finance department are working enough to advance ERM procedures and outcomes in their customers’ firms. They are well-known with the risk management principles and applied to manage opportunities and threats as part of the existing planning and controlling management cycle in order to be effective partners and contributors to a business.

Effective risk management necessitates the collaboration of various parts of an organisation and multiple processes to understand how the organisation is exposed to uncertainty, and how this uncertainty may challenge the achievement of business goals as well as opportunities for growth and innovation. Our tax accountants Melbourne ensures that association is resilient, safe, and also thrives.

Our accountants have experience with risk management and internal control as it relates to financial reporting and risk which, if not handled appropriately, can undermine investor trust in a company. Their involvement in these areas, however, may lead to a mitigation attitude rather than one that promotes business enablement and risk-taking in the context of value creation.

Enterprise risk management encourages better dialogue on alternative options and performance. Proactive management approaches, rather than reactive risk registers, are used to achieve ERM. ERM integrates risk into effective decision-making and applies to all businesses regardless of their size and type. It aids in the alignment of strategy, risk appetite, and performance with mission, vision, and values.

Risk management concepts are used by professional accountants in decision support positions in most facets of the business, including:

·        The financial and non-financial ramifications of project or investment ideas, as well as potential alternatives.

·        Testing assumptions, sensitivity analysis of critical variables, and designing alternative scenarios are all part of forecasting processes done by accountants. This includes examining the positive and negative effects that external sources may have.

·        Identification and analysis of risks, risk weighting and risk-adjusted performance metrics, sensitivity analysis, and scenario modelling are all risk procedures used to support decisions by the accountant.

·        Considering risk when making decisions about planning and budgeting, performance assessment and indicator selection, business continuity, and quality management.

Businesses search tax accountants near me for more services, as our accountants at smaller businesses are frequently involved in risk management are part of their day-to-day work, especially when it comes to offering insights into existing and future risks and possibilities related to crucial choices like entering new markets or serving new consumer groups.

Conclusion

In today's multicapital world, intangible assets and nonfinancial capitals such as brand and reputation, people and culture, data, access to resources, intellectual capital, and innovation are increasingly driving value and cash flow. Although the value and risk in these areas cannot be fully reflected in financial terms and by methodologies expressly designed to evaluate financial risk, such as value-at-risk, there can be a financial and reputational risk in any of them and these can be evaluated by accountants.
Reliable Melbourne Accountants provides various accounts services to individuals and businesses can also access these services by searching tax accountants near me. 

Purpose of Bank Reconciliation for Small Businesses

What is Bank Reconciliation?

The process of reconciling the balances in an entity's accounting records for a cash account to the equivalent information on a bank statement is known as Bank Reconciliation. The purpose of this procedure is to determine the differences between the two and, if necessary, make modifications to the accounting records. The bank statement includes the bank's record of all transactions upsetting the bank account of entity during the previous month. Regular bank reconciliations are executed to ensure that the company's cash records are accurate. Our Bank Reconciliation expert team helps customers to detect fraud and money laundering.

Our specialist Tax Agent Melbourne guarantees that a company's cash records are accurate and bank reconciliation will be done at regular periods for all bank accounts. On the other hand, cash levels may be far lesser than planned, consequential in bounced checks or overdraft expenses. After the fact, bank reconciliation can uncover some types of fraud. This information can be utilised to develop improved controls over cash receipt and payment.

If a bank account has so little activity that periodic bank reconciliation is unnecessary, you can ask small business accountant in Melbourne whether the account exists at all. We could prefer to close the account and transfer any remaining funds to a more active account. It may be easier to invest the remaining funds and track the investment's progress.

Our bookkeeping for small business services provider team performs a bank reconciliation at the very least shortly after the end of each month when the bank provides the company a bank statement showing the bank's beginning cash balance, monthly transactions, and ending cash balance. Even better, perform daily bank reconciliation using the bank's month-to-date information, which will be available on the bank's website. Tax Agent Melbourne is helpful in discovering and rectifying problems quickly by doing bank reconciliation every day. A daily reconciliation, in particular, will highlight any ACH debits from the account that you did not authorise and we can then set up a debit block on the account to prevent any ACH debits from being utilised to withdraw cash without consent.

Bank Reconciliation Process Flow

Starting with the bank's closing cash balance, add any deposits in transit from the organisation to the bank, deduct any checks that have not yet cleared the bank, and either subtract or add any other objects is the process flow for bank reconciliation. Then subtract any bank service fees, NSF checks, and penalties from the company's final cash amount and add any interest gained. The adjusted bank balance should equal the firm's ending adjusted cash balance at the end of this process. However, our Reliable Accountants’ small business accountant Melbourne team will be more beneficial to provide comprehensive knowledge of Bank Reconciliation to our clients.  

What are the Benefits of Bank Reconciliation?

The bank reconciliation procedure has a various benefits, including:

·        Problems such as multiple payments, skipped payments, calculation errors, etc., are detected.

·        Keeping track of bank fees and penalties and recording them in the books.

·        Fraudulent transactions and theft are easy to spot.

·        Keeping track of the business's receivables and payables  

Bank Reconciliation via accounting software is more convenient and error-free. The bank transactions are automatically imported, allowing you to quickly match and categorise a huge number of transactions. The bank reconciliation procedure becomes more efficient and manageable as a result. Our bookkeeping for small business team will deliver more beneficial knowledge of Bank Reconciliation.

Conclusion

Before beginning the reconciliation procedure, be sure that all transactions up to the end of your bank statement have been documented and our tax agent Melbourne will be helpful in providing all the services needed to do all these tasks.

Other useful blogs:-

1) What is the Need to Hire Tax Accountants for Small Businesses?

2) When Do You Need To Hire Small Business Accountants?