1. How long does it take for my income Tax Return to be processed?
For Individuals it is six to eight weeks. Usually the time taken is quicker however during busy periods it may take longer. If additional information is required from you this can take longer depending on when we receive the information.
2. How long does it take for the Tax Office to process the income tax return?
Usually two weeks from the date of lodgement. 99% of returns are electronically lodged – the 1% that are manual can take up to six to 12 weeks. If a refund is higher than $8,000 the return is taken off line and manually checked by the Tax Office – this can take up to four to six weeks.
3. When is my tax return due?
Please contact this office as the dates vary depending on the entity. Generally if you use Scott Associates, you will gain an extension past the 31st October deadline.
4. What is Fringe Benefits Tax (FBT)?
Fringe Benefits Tax (FBT) is a tax payable by employers for benefits paid to an employee or the employee’s associate. FBT is separate from income tax and is based on the taxable value of the various benefits provided. Common examples where FBT is payable is the provision of motor vehicles, entertainment expenses and payment of health fund premiums.
5. What is a Novated Lease?
A novated Lease is an agreement between your employer, yourself (the employee) and the financier, where the obligation to meet the repayments under the finance leases is with the employer. With a novated lease agreement, you have the right to take the motor vehicle with you should you change jobs and, structured correctly, there may be tax advantages with your remuneration package. As with other leasing structures, repayments with a novated lease are flexible and amounts depend on the term, interest rate, amount borrowed and the residual payment.
6. What is the difference between a Lease, Commercial Hire Purchase (CHP) and a Chattel Mortgage?
A lease is a financial arrangement between the financier (“the owner”) and either you or your employer whereby fixed payments are made to the financier with a residual payment at the end of the arrangement. Your employer or you do not own the vehicle until such time as you pay out the financier. If you are registered for GST you will be able to claim back your business % entitlement which will be the same for each period – for example in a payment of $550, $50 will be the GST component.
Commercial Hire Purchase (CHP) agreement is simply a contract where the financier (the ‘owner’) allows you (the ‘hirer’) the right to possess and use a car or other vehicle in return for regular payments usually with a balloon payment at the end. GST is included in these payments and if you are registered for GST you will be able to claim back your business % entitlement. GST is calculated for each repayment period – e.g. if the agreement is monthly then GST is calculated monthly. If for example the payment was $550, GST may be $30 in one month, $34 the next month, $38 the next month etc.
A Chattel Mortgage is simply a business loan agreement to borrow funds to purchase equipment such as a new motor vehicle. Security for the loan is a mortgage over the equipment financed. If you are registered for GST you will be able to claim the business % entitlement upfront. For example, if a motor vehicle costs $22,000, your GST claim would be $2,000 if it was used 100% for business purposes. You do not claim back over the period of the loan.
7. How much tax do I need to withhold from my employees wages?
The amount withheld is in accordance with tax tables published by the ATO. The tax tables take into account income tax rates plus Medicare levy, any offsets or rebates, the Higher Education Scheme, residency status and other relevant matters. See our tax centre for further tools and calculators - https://www.ato.gov.au/Calculators-and-tools/Tax-withheld-calculator/
8. What can Scott Associates do for you?
- We provide a variety of services as follows:
- Budgeting and Cash Flow Analysis
- Business & Instalment Activity Statements (BAS/IAS)
- Business Plans
- Company, Superannuation Fund & Trust Formations
- Computer Systems Advice
- Financial Statement Preparation including processing
- Fringe Benefit Tax and Remuneration Planning
- Goods & Services Tax (GST) advice
- Investment Planning and advice (in conjunction with licensed financial planners)
- Loans and Financing Advice (in conjunction with Lawfund)
- Xero, QuickBooks, MYOB & other accounting software assistance and implementation
- Profit Improvement Reviews
- Superannuation Fund Structuring and Management
- Taxation Advice and return preparation