This month as our New Financial year starts we still have to review TPAR & Payment Summaries for 2014. While getting started with the compliance changes for 2014/15. Being prepared at tax time can offer your business many benefits, such as, stress reduction to you & your accountant. This can result in reducing your accountants bills, providing shorter processing time for financial reports.
Taxable Payments Annual Report 2014
We are now in our 2nd year for TPAR and businesses who lodged last year will still be required to lodge a TPAR report this year even if they have not provided 50% or more building and construction services in this current financial year.
Who has to Report?
Any business is required to report if ALL the following 3 conditions apply:
- You’re a business that is primarily in the building and construction industry, which means if any of the following apply:
- 50% or more of your business income is derived from provided business and construction services
- Current financial year, 50% or more of your business activity relates to building and construction services
- Previous financial year, 50% or more of your business activity relates to building and construction services
- You make payments to contractors for building and construction services
- You have an ABN
Remember that the TPAR is reported on a CASH basis even if the business is on Accrual.
This means you only report on actual payments made in the financial year.
Due date remains at 21 July. (Last year an extension was granted for businesses lodging through a registered agent for the first year of the program only. This does not apply to anybody this year).
For those new to TPAR, the ATO are regularly running webinars on the topic.
Fuel Tax Credits – Updates at 1 July 2014
Some rates are changing on 1 July 2014 because of the changes in carbon charge amounts. There are further proposed changes to FTC, but these are not yet law. There is no change to the rate for fuels used in heavy vehicles traveling on public roads https://www.ato.gov.au/Business/Fuel-schemes/In-detail/Fuel-tax-credits—for-GST-registered-businesses/Overview/Fuel-tax-credits—changes-from-1-July-2014/?anchor=table1fueltaxcreditratechanges#table1fueltaxcreditratechanges
Tax Rates & Tax Free Threshold
The proposed increase to the tax free threshold will not proceed next financial year, but instead will apply from 1 July 2015. The tax free threshold will then be $19,400.
You can download the new Tax tables from the ATO website. If you have accounting software ‘in-the-cloud’, you should find it has been updated as required. With ‘desktop accounting software’, you will be advised of a ‘Compliance’ update to your software that needs to be installed.
