Services

Company Tax Returns

A corporation (including the head company of a tax consolidated group) lodges/files a tax return under a self-assessment system that allows the ATO to rely on the information stated on the return. Where a corporation is in doubt as to its tax liability regarding a specific item, it can ask the ATO to consider the matter and obtain a binding private ruling.

Generally, the tax return for a corporation is due to be lodged/filed with the ATO by the 15th day of the seventh month following the end of the relevant income year or such later date as the Commissioner of Taxation allows. Additional time may apply where the tax return is lodged/filed by a registered tax agent.

Partnership Tax Returns

If you operate your business as a partnership, the partnership lodges a partnership tax return, reporting the partnership’s net income (assessable income less allowable expenses and deductions). As an individual partner, you report on your individual tax return:

your share of any partnership net income or loss
any other assessable income, such as salary and wages (shown on a payment summary), dividends and rental income.
The partnership doesn’t pay income tax on the income it earns. Instead, you and each of the partners pay tax on the share of net partnership income you receive.

Trust Tax Returns

Trusts are widely used for investment and business purposes. In Australia, their main objective is to provide a way for a person to pass on their personal or business assets to specific beneficiaries while shielding those assets from creditors. Generally, all trusts that derive income during the year must lodge an income tax return. The term “trust” is typically used to describe various types of structures, each with its own regulations, procedures and tax implications.

Accounting

Accounting is the process of recording financial transactions pertaining to a business. The accounting process includes summarising, analysing, and reporting these transactions to oversight agencies, regulators, and tax collection entities. The financial statements used in accounting are a concise summary of financial transactions over an accounting period, summarising a company’s operations, financial position, and cash flows. Accounting is one of the key functions for almost any business. It may be handled by a bookkeeper or an accountant at a small firm, or by sizable finance departments with dozens of employees at larger companies. The reports generated by various streams of accounting, such as cost accounting and managerial accounting, are invaluable in helping management make informed business decisions.

Cash Flow

cash flow refers to a company’s money flowing in and out. If it has positive cash flow, this usually indicates the company has money left over after receiving revenue and paying expenses.

In contrast, negative cash flow usually indicates that the company is losing money, as it isn’t generating enough cash receipts to cover its expenses. It’s obvious which is the better financial situation for a business to be in!

In essence, positive cash flow enables a small business to grow as it can use excess capital from its ordinary operations to invest in the pursuit of higher revenue and a profit down the road. To achieve this, a company needs good cash flow management. This can include a cash flow analysis, cash flow budget, and a cash flow projection.

Business Structures

Business structure refers to the legal structure of an organization that is recognized in a given jurisdiction. An organization’s legal structure is a key determinant of the activities that it can undertake, such as raising capital, responsibility for obligations of the business, as well as the amount of taxes that the organization owes to tax agencies.

Before making a choice on the type of legal structure, business owners should first consider their needs and goals and understand the features of each business structure. The four main forms of business structures in the United States include sole proprietorship, partnership, limited liability company, and corporation.

Tax Optimisation Strategies

Tax optimization consists of lowering the amount of tax liability by complying with the tax obligations in force in a given state/country by using the regulations to the taxpayer’s advantage. Purchase or transfer assets into family or property trusts, companies and self-managed super funds to reduce your taxable income and capital gains taxes you owe on investments. Salary package your car lease, superannuation, laptop and more to increase your take home pay.

Tax Effective Investment Adviser

A good way to maximize tax efficiency is to put your investments in the right account. In general, investments that lose less of their returns to taxes are better suited for taxable accounts. Conversely, investments that tend to lose more of their returns to taxes are good candidates for tax-advantaged accounts.
We at Bicanic help our clients in managing the investments and put them into the right place.

Negative Gearing

Negative gearing is a practice common in property investing. It is a form of financial leverage that describes the purchase of an income-producing asset, such as a rental property, but when the asset will not produce enough income to cover the cost of the asset. For example, when the rental income is insufficient to cover the loan payments, maintenance, interest, or depreciation for the asset in the short term. Ideally, the asset will eventually produce enough money to cover those costs.

BAS/IAS

A BAS is form used to report and pay a business’s GST and PAYG withholding liabilities for the period. It will also include PAYG income tax installments and fringe benefits tax installments where necessary. This allows businesses to pay accrued liabilities throughout the year instead of incurring large expenses all at once at the end of the financial year.

An IAS is like a BAS for entities that are not registered for GST. It is used to report and pay PAYG withholdings from employees, PAYG income tax installments and fringe benefits tax installments if necessary. IAS reporting may also be necessary for businesses who are registered for GST but because they are considered medium withholders (withholding more than $25,000 pa) they are required to remit PAYG withholding monthly on an IAS along with their quarterly BAS obligations.

Business Consultant

A business consultant is an individual who works closely with business owners and managers to improve operations and efficiency. Business consulting includes helping to identify, address, and overcome obstacles to meeting a company’s goals.

Business consultants can assist in nearly any need your business might have. There are business consultants that specialize in specific industries, while others take a more general approach. While specific services vary, some of the most common ones are listed below:

• Identify obstacles that are preventing growth or efficiency.
• ‌Determine what changes need to be made and help implement changes.
• Provide any necessary training and resources to staff and management.

E-lodgement

An Electronic Lodgement Network ( ELN) is an electronic system that enables the lodging of registry instruments and other documents in electronic form for the purposes of the land titles legislation. The Electronic Lodgement Program has commenced rollout and will be fully rolled out over the next several years (i.e. potentially leading to a reduction in ICT project costs), however, there are many other components of LRD’s activities which could benefit from further ICT investment over the medium-term (for example, the Licensing and Registration System database, and further implementation of the Electronic Lodgement Program).

Salary/Wages

The essential difference between a salary and wages is that a salaried person is paid a fixed amount per pay period and a wage earner is paid by the hour. Someone who is paid a salary is paid a fixed amount in each pay period, with the total of these fixed payments over a full year summing to the amount of the salary. Someone who is paid wages receives a pay rate per hour, multiplied by the number of hours worked. This person is considered to be a non-exempt employee. For example, a person who is paid a wage of $20 per hour will receive gross pay of $800 ($20/hr x 40 hours) if he works a standard 40 hour week, but will only receive gross pay of $400 ($20/hr x 20 hours) if he works 20 hours in a week. A person who receives wages is also entitled to overtime pay of 1.5x his normal rate of pay if he works more than 40 hours per week.

Capital Gains Tax Returns

Capital gains tax (CGT) is the tax you pay on profits from selling assets, such as property.

You report capital gains and capital losses in your income tax return and pay tax on your capital gains. Although it is referred to as ‘capital gains tax,’ it is part of your income tax. It is not a separate tax.

If you have a capital gain, it will increase the tax you need to pay. You may want to work out how much tax you will owe and set aside funds to cover it. CGT operates by treating net capital gains as taxable income in the tax year in which an asset is sold or otherwise disposed of. If an asset is held for at least 1 year then any gain is first discounted by 50% for individual taxpayers, or by 33.3% for superannuation funds. Capital losses can be offset against capital gains. Net capital losses in a tax year cannot be offset against normal income, but may be carried forward indefinitely.

Rented Properties

The idea of buying a home or apartment to rent out for profit may sound alluring. But buying a rental property for income and long-term capital appreciation can have its ups and downs. For example, the housing market can fluctuate depending on location, supply and demand, and the economy.

Rental properties can be financially rewarding and have numerous tax benefits, including the ability to deduct insurance, the interest on your mortgage, and maintenance costs.
The drawbacks of having rental properties include a lack of liquidity, the cost of upkeep, and the potential for difficult tenants and for the neighborhood’s appeal to decline.
It’s key for investors in any type of real estate to stay on top of interest rates and consult a tax professional, particularly with the recent changes to the tax code.

Small Business Tax Returns

Small business owners often interact with the ATO and their tax agent throughout the year. Tax time provides an added opportunity to ensure your tax affairs are in order, obtain essential tax advice and see if you can improve your tax position.

You should obtain professional tax advice, especially in areas where more complex tax issues arise. This includes refinanced debt, losses, restructures, capital gains tax, personal services income, trust declarations and distributions, and private company loans.

If you are seeking advice, have made errors or need to correct your business records, speak with a Bicanic tax agent who can work with you to get things right.

Book Keeping

Book keeping means recording the financial transactions and information concerning the business of a company regularly. It is a systematic recording of financial transactions in a company. It ensures that the records of each financial transaction are up-to-date, correct and comprehensive.

The book keepers are individuals or entities who maintain the books of account of a company. They manage all the financial data of a company. The companies can track all their financial transactions on their books with accurate book keeping. Book keeping helps companies to make important investing, operating and financing decisions.