I’m very happy tonight as I’ve tested out the ATO’s new file transfer routine for uploading our payroll clients Annual Payment Summaries direct to the ATO (rather than copying to disk & risking mailing them)… and it WORKED!
This will make our year-end processing for all our payroll clients a lot easier and more transparent – and will assist in their employees employees having their base tax return data available for pre-fill earlier than ever!
Good One ATO!
- Raymond
This is a new facility as advised by the ATO.
Often, when setting up a business, we advise our clients to set aside an amount to cover the tax on the profit of the business. You can quite often setup an online investment account, attached to your main trading account to park tax money.
This new method lets you voluntary enter the PAYG system and activate instalments on each BAS. The ATO will hold those funds until your tax return is lodged. The full amount of instalments will offset against any tax payable for that year (with the balance refunded)
The pay as you go (PAYG) instalments system is for individuals and businesses to pay instalments towards their income tax liability.
In your first income year of business, you are generally not required to pay PAYG instalments. This is because we may not receive your tax return and assess your eligibility to pay PAYG instalments until some time after the end of your first income year.
However, you may need to budget for the total amount of income tax you are liable to pay. An alternative is to voluntarily enter the PAYG instalments system.
The option to voluntarily enter the PAYG instalments system is available due to recent improvements in our systems and following feedback supporting it.
Once you enter the PAYG instalments system, any instalments you pay during the income year are credited towards your final tax assessment after you lodge your tax return.
Taxpayers who are likely to choose to pay PAYG instalments include:
How to estimate the amount of tax you are liable to pay?
Soon after starting a business, you should be able to work out your taxable income periodically - perhaps weekly, monthly or quarterly - using the following formula:
Assessable income - allowable deductions = taxable income
You can use weekly, fortnightly, monthly or quarterly tax tables to see how much tax you need to put aside. If you operate your business as a partnership or trust, refer to the tax rates for individuals to work out your total amount of tax you are liable to pay for the income year.
How do you enter the system?
If you want to enter the PAYG instalments system, you need to call us. Our customer service team will ask you a few questions about your income and deductions. You must advise whether you want to remain in the PAYG instalments system until the end of the income year or until you are manually exited.
Once you have entered the PAYG instalments system, you should receive a letter from us telling you your quarterly instalment rate or amount. At the end of each quarter you will receive an activity statement with the amount you need to pay.
For more information about activity statements, visit Activity statements - home.
If you enter the PAYG instalments system you will remain in the system until the end of the current income year unless you have been re-entered under the PAYG instalments standard entry rules.
If during the income year your circumstances change, you can contact us to vary the amount you are paying to more accurately reflect your likely end-of-year tax situation.
If you choose to enter the system voluntarily, you are not subject to variation penalties for the quarters you are manually entered for.
For more information about varying instalments, refer to How to vary pay as you go (PAYG) instalments.
We offer a range of convenient payment options, both in Australia and overseas.
For more information about making a payment to us, refer to How to pay.
If you need more information about PAYG instalments, you can:
This is a temporary post that was not deleted. Please delete this manually. (a64c1500-a5c1-44c5-ba7b-33b2de0865a6 - 3bfe001a-32de-4114-a6b4-4005b770f6d7)
People can now apply for their Tax File Number (TFN) online and authenticate their proof of identity documents at participating Australia Post retail outlets.
Australian residents aged 16 years and older can apply for a TFN at www.ato.gov.au/TFNapply and lodge their application form at a participating Australia Post retail outlet.
"With over 709,000 TFNs registered last year, this new partnership with Australia Post is making the TFN process simpler and easier," ATO Deputy Commissioner David Diment said.
"It's as simple as completing your TFN application online at www.ato.gov.au/TFNapply, printing out your application summary and taking it to the post office.
"Australia Post will authenticate your proof of identity documents on behalf of the ATO."
Over 230 participating Australia Post retail outlets nationally will provide the service from February, with a total of 475 outlets to offer the service by end June 2013. A full list can be viewed on our website.
Current paper TFN application forms available via newsagents around the country are not accepted as part of the Australia Post service. You can visit the ATO website to find out more about applying for a TFN.
Last Modified: Monday, 4 March 2013
A myth surrounding the employee or contractor decision is that having a registered business name makes a worker a contractor. Having a registered business name makes no difference to whether a worker is an employee or contractor for a particular job. You need to check whether your workers are employees or contractors by examining the details of the working arrangements. A worker who has a business name might be a contractor for one job, and an employee for another. It all depends on the specific terms and conditions under which the work is performed. See the ATO Employee/contractor decision tool will help you correctly determine whether your workers are employees or contractors. By answering some simple questions, the online tool will provide you with an answer you can rely on. It is free, anonymous and easy to use. Employees, contractors and registered business names
The ATO has released key lodgement dates for January to March 2013 as follows:
Date
Obligation
15 January
Income tax return for taxable large/medium business taxpayers as per latest year lodged (all entities other than individuals) due date for lodging, unless required earlier.
Payment for companies and super funds was due 1 December 2012. Payment for trusts in this category is due as per their notice of assessment.
Note: You cannot 'self-assess' a lodgment deferral from this date or assume a later date for lodgment on the basis that the taxpayer will be non-taxable in the current year.
Income tax return for the taxable head company of a consolidated group (including new registrants) that has a member who has been deemed a large/medium business in the latest year lodged - due date for lodging unless required earlier.
Payment was due 1 December 2012.
21 January
Quarterly PAYG instalment activity statement, quarter 2, 2012-13 for head companies of consolidated groups - due date for lodging and paying.
December 2012 monthly business activity statement - due date for lodging and paying except for small business clients (that is up to $10 million turnover) who report GST monthly and lodge electronically.
28 January
Super guarantee contributions for quarter 2, 2012-13 - employers must make contributions to the fund by this date.
Employers who do not pay minimum super contributions for quarter 2 by this date must pay the super guarantee charge and lodge a Superannuation guarantee charge statement - quarterly (NAT 9599) with us by 28 February 2013.
Note: Remember, the super guarantee charge is not tax deductible.
31 January
TFN report for closely held trusts for TFN's quoted to a trustee by beneficiaries in quarter 2, 2012-13.
Date
Obligation
21 February
December 2012 monthly business activity statement for small business clients (that is up to $10 million turnover) who report GST monthly and lodge electronically - due date for lodging and paying.
January 2013 monthly activity statement - due date for lodging and paying.
28 February
Income tax return for non-taxable large/medium business taxpayers as per the latest year lodged (all entities other than individuals) due date for lodging.
Payment (if required) for companies and super funds is also due on this date. Payment for trusts in this category is due as per their notice of assessment.
Income tax returns for new registrant (taxable and non-taxable) large/medium business taxpayers - due date for lodging.
Payment (if required) for companies and super funds is also due on this date. Payment for trusts in this category is due as per their notice of assessment.
Income tax return for non-taxable head company of a consolidated group - including new registrants - that has a member who has been deemed a large/medium business in the latest year lodged - due date for lodgment.
Income tax return for any member of a consolidated group - who exits in the consolidated group during the year of income.
Income tax return for new registrant (taxable and non-taxable) head company of a consolidated group.
Self managed superannuation fund annual return for new registrant (taxable and non-taxable) self-managed super funds (SMSFs) - due date for lodgment and payment.
Note: For information about certain newly registered self-managed super funds who do not have to lodge a return, refer to the Lodgment program 2012-13 - details of the program.
Quarterly activity statement, quarter 2, 2012-13 - due date for lodging and paying - all lodgment methods.
Quarterly instalment notice (form R, S or T), quarter 2, 2012-13 - due date for payment. You only need to lodge if you are varying the instalment amount.
Annual GST return or information report - due date for lodging (and paying if applicable) if the taxpayer does not have an income tax return lodgment obligation.
If the taxpayer does have an income tax return obligation, this return or report must be lodged by the due date of the income tax return.
Due date for lodging the Superannuation guarantee charge (SGC) statement - quarterly and paying the super guarantee charge for quarter 2, 2012-13 if the employer did not pay enough contributions on time.
Employers who are lodging a Superannuation guarantee charge statement - quarterly can choose to offset contributions they paid late to a fund against their super guarantee charge for the quarter. They will still have to pay the remaining super guarantee charge to us.
Note: Remember, the super guarantee charge is not tax deductible.
For help with working out the super guarantee charge and preparing the Superannuation guarantee charge statement - quarterly, use our Super guarantee charge statement and calculator tool.
Date
Obligation
21 March
February 2013 monthly activity statement - due date for lodging and paying.
31 March
Income tax return for companies and super funds with total income in excess of $2 million in the latest year lodged (excluding large/medium business taxpayers) - due date for lodging, unless due earlier.
Payment for companies and super funds in this category is also due by this date.
Income tax return for the head company of a consolidated group without a member who has been deemed a large/medium business in the latest year lodged, but with a member who had total income in excess of $2 million in their latest year lodged - due date for lodging, unless due earlier.
Payment for companies in this category is also due by this date.
Income tax return for individuals and trusts that were tax level 6 as per the latest year lodged, excluding large/medium business trusts.
Payment for individuals and trusts in this category is due as per their notice of assessment.
Weekends and public holidays
A public holiday is a day that is a public holiday for the whole of any state or territory in Australia. Where a due date falls on a Saturday, Sunday or public holiday you can lodge or pay on the next business day.
