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  • leigh@branderaccountants.com.au

Other Tax Facts

The following general information may be of use. This information does not represent advice.
See also:
Income Tax Rates
Capital Gains Tax (CGT)
Goods & Services Tax (GST)
Small Business Concessions
Fringe Benefits Tax (FBT)
Self Managed Superannuation Funds
State Government Taxes

 

Business Tax Break

The Australian Government announced the tax break as an ‘investment allowance’ in December 2008 aimed at helping businesses meet the challenges of the economic downturn.

The tax break covers eligible new tangible depreciating assets and improvements or additions to existing assets costing $1000 or more. The tax break is in addition to deductions available under the simpler or normal depreciation for the decline in value (depreciation) your business is entitled to claim for an eligible asset. This deduction is available for a limited time.

 

Fuel Tax Credit Scheme

GST registered businesses may be able to claim fuel tax credits for fuel used in vehicles with a GVM greater than 4.5 tonne and in specified activities in agriculture, forestry, fishing, mining, marine and rail transport, nursing and medical services and electricity generation.

A wide range of other activities associated with construction, manufacturing, wholesale/retail and landscaping activities may also be eligible for fuel Tax credits.

Fuel Tax Credits are claimable on the Business Activity Statement.

 

Imputation System

The imputation system allows corporate tax entities to pass on to members/shareholders credit for income tax they have paid. They do this is by franking a distribution. Without the imputation system, income tax would be levied when income is earned by the corporate entity and then again in the hands of the members when it is distributed to them.

All entities (excluding partnerships and trusts) that are members of a corporate tax entity, and are in receipt of a franked distribution will:

  • include the distribution and the franking credits in their assessable income, and
  • obtain a tax offset equal to the amount of franking credit. This tax offset can be used to reduce the entities’ own income tax liabilities.

Certain eligible members may be entitled to a refund if the tax offset allowed exceeds the members’ basic income tax liability.

 

Superannuation for Employers

Generally, if you pay an employee $450 or more before tax in any calendar month; you must pay Superannuation Guarantee (SG) Contributions.
The SG rate is 9.5% of ordinary time earnings for the year ended 30 June 2016.
The SG contributions must be paid at least 4 times per year by the quarterly due dates