• IMPORTANT & URGENT & VITAL & IMPORTANT - Really, really important 
• What now for Transitional BAS Agents - Moving Forward (pinched that from somewhere – hmmmmmm cannot remember where)
• Supervisory arrangements for BAS Agents- What you must do
• BAS Service Provider Portal – do you still want access?
• Changes to GST – For EVERY Bookkeeper
• What does your client and their account need now – What is needed at EOFY

The PDF version of this newsletter is available here

• Registered your billing entity (maybe yourself or your company or your partnership) with the Tax Practitioners Board before Midnight 31 August

Notify the Board using “Option A Transitional Notification” if at all possible

Why? Because then you have always remained legally able to provide BAS Services

• Register yourself personally in any case

Also Notify the Board personally even if you work in your entity – ie that is definitely two registrations

Why? Because we believe the law says that if you Notify then you are taken to be a real Registered BAS Agent. Then in 2 years time you prove your 1000 hours (as an ICB Voting Member or 1400 hours if you are not a member of an RBAA) by signing your “Relevant Experience” declaration yourself and you don’t need another agent to declare you have done the work.

Technically you don’t “HAVE” to but we believe there are problems coming if you don’t.

If you registered using the Transitional Application (option B) or Standard Application (option C) then you are not legal until the Board approves your registration. ie you MUST have stopped doing BAS Service work on 1 March and not start again until the Board have approved you.

• If you registered this way and haven’t heard back yet then you should NOTIFY (Option A) before midnight 31 August to make yourself legal since last 1 March.

How do you check what you have done?

If you are on the BAS Agent Register ( http://www.tpb.gov.au/tpb/agent_register.aspx ) already or been issued your certificate by the Board then:

1. If your registration date is 1 March 2010 then you did notify and all is good and you have always been legal
2. if your registration date is later than 1 March then your renewal date will be showing as 3 years later and you have been legal since your registration date

If you arent on the register:

1. Did you receive the email from the Boards computer “Notification Acknowledgement” that says they have received your submission

• if YES then you are ok and you should follow it up say 4 months after your submission date
• if NO then we recommend you notify again.

If you work in an entity and only you have a registration:

Then you MUST register the billing entity before midnight 31 August.

Check out the full details at www.tpb.gov.au and or www.icb.org.au/BAS_Agent 

It is the new security system to allow your computer to talk to the government computers.
 

• Superannuation contributions made to numerous funds will be electronically paid to a single location (the clearing house) which will process the transactions;
• Small businesses that choose to use the clearing house service will have their legal obligation to make superannuation contributions discharged when payment of the correct amount is made to the clearing house;
• The clearing house facility will be offered free of charge to small businesses with less than 20 employees; and
• The clearing house will manage employers’ choice of fund obligations.

The service will be available to eligible small businesses from 1 July 2010. An announcement will be made shortly about the commencement date for registration for the service.

Further information on the small business clearing house service is available at www.medicareaustralia.gov.au/super. 

1. Profit and Loss Last Year Analysis YTD – This shows comparison between years 
2. Balance Sheet defining Cash on Hand, GST, PAYG, Superannuation and Holiday and Long Service Leave Obligations and Outstanding Debtors and Creditors with prepaid deposits if applicable. 
3. Debtors and Creditors Reports showing individual supplier and customers 
4. Stock on Hand Value by item
    
5. Report of Project/Job Profitability

Accountant 

1. Notes to the Accountant over the year 
2. Backup of file including login details
    
3. Copy of BAS’s lodged in the year
    
4. Copy Finance, Hire Purchase and Lease documents taken out of the year
    
5. Documentation of Shares Bought, Sold and Dividends received
    
6. Documentation to support Prepayments and Accruals
    
7. Detail of Assets purchased and sold over the year
    
8. Bank Reconciliation of ALL Banks (Including Petty Cash) and Credit Cards
    
9. Detail of Customer and Supplier Deposits at 30th June

There is varying views on the Thresholds of Assets for NON STS businesses. ICB recent reference guide defines that the ATO allows assets costing less than $100 (GST inclusive) to be written off immediately.

Under the simplified depreciation rules you can claim an immediate deduction for most depreciating assets which cost less than $1,000 (GST Exclusive) and pool most other depreciating assets.

The threshold of less than $300 (GST Exclusive) is used at time of depreciating the asset. Choice of prime cost or diminishing value method can offer an immediate deduction for certain non-business depreciating assets costing less than $300.

In summary, ICB recommend to use the less than $100unless STS or the bookkeeper is guided by the accountant to use the less than $300 for certain assets.

ATO Reference:http://www.ato.gov.au/businesses/content.asp?doc=/content/36431.htm

Note: An amendment will be made to the ICB Reference guide to change the GST Inclusive for $300 and $1000 threshold to GST Exclusive

• help these organisations understand how to treat mutual dealings with their members
• provide guidance on various taxes, including GST
• explain registering for GST, mutual receipts and GST turnover, and the GST treatment of gambling sales, the ‘GST rebate’ on gaming machines, vouchers, tips and gratuities.

To read the guide, refer to Mutuality and taxable income (NAT 73436).

1. TAX Invoices – don’t have to be in the right period

The basic principle has always been you cant claim GST back from the ATO until the client has in their possession the tax invoice.

The ATO has now clarified further that you may claim the input tax credit in a following GST period even though the date relates to the previous period.

ie: you don’t have to go back and adjust a previous BAS

This is not considered a GST mistake that requires notification   

1. Tax invoices – they might not need to be correct

The ATO has issued guidelines indicating that Tax Invoices may not need to be 100% correct in order to be considered valid. However they must contain sufficient information to enable the following key items to be readily identified:

1.  
   • the supplier’s identity and
   • Australian business number (ABN)
   • the nature of the sale
   • the amount of GST payable. 
      
2. GST input tax credit must be claimed within 4 years
    
3. If private use changes – then alter the amount of GST claimed

The thresholds are changing so that for purchases of less than $100,000 there is a two year time limit to change the portion of GST Input Tax credit.

Over $100,000 - it is five years 

1. Self assessment and alterations

It has been a principle in Income Tax matters since self assessment came in that there is a time limit to self assess changes or make amendments to what was originally lodged.

The concept is that to simplify matters for GST, WET, LCT & FTX is that the self assessment system that applies to them will also have the same adjustment deadlines as income tax. 

1. Adjustment Notes

Adjustment notes must now be issued has been increased to transactions only over $75 (instead of $50 previously)  

1. Business to Business transactions for GST treatment

ATO has confirmed that where there are mixed transactions for GST purposes or debate over the GST applicability of a transaction, that as long as both the supplier business and the purchasing business treat the transaction as including GST then that will be acceptable. This does not apply to Input Taxed Purchases.

• products and services
• lodgment due dates and concessions
• common BAS errors
• correcting GST mistakes
• Standard Business Reporting
• reportable employer super contributions
• assistance for small business
• safe-harbour provisions

These seminars will not cover issues relating to the registration of BAS agents. For matters regarding registration go to the Tax Practitioners Board website at www.tpb.gov.au

You will find all the details and registrations are now open, and people can register online at Speakers and seminars, or alternatively, you can phone 1300 661 104.

Courses are scheduled to be held in both Sydney and Melbourne initially. However, Reckon will consider scheduling additional course dates and locations subject to demand. To register your interest for an additional date or location, click here

Attend just one course – or both!

You can choose to attend and complete just one course – or both. But you’ll only receive the special ICB QuickBooks Proficient Bookkeeper Certificate of Achievement upon completion of both courses. And for just $398 – there’s never been a better reason to invest in training for your business!

Click here to register and secure your seat today!

• Have been absent from education, accredited training* and the workforce while caring for children
• Are currently unemployed and wish to return to work, preferably in the next 12 months **
• Have not worked for more than 4 months full time, or equivalent part-time, in the last 2 years
• Are Australian residents living in Victoria***
• Will enrol in training to improve their workforce skills and/or earning potential
• Have not received a grant under the program Victoriaworks for parents returning to work or previous versions of the Program
• Were unable to activate a grant previously allocated under the Program due to unforseen circumstances.

* Accredited English Language training is an exception to this condition

** For the purposes of the Victoriaworks for parents returning to work program, ‘unemployed’ is deemed to include paid employment for less than 6.5 hours per week.

*** TPV holders are deemed as eligible residents  

Training with Australian College QED (an ICB Accredited Trainer)

If you are an eligible parent you may be able to claim the grant (up to $1,000) to cover the costs of a training course through Australian College QED (ACQ).

What’s more, Australian College will subsidise up to $200 off course fees if your chosen course is over $1,000. For example, If your course is $1,200 the grant will cover $1,000 and Australian College will subsidise the remaining $200. This means your entire course is FREE. If your fees are higher than this we will break them into easy installment payments for you that you can pay off over your course.

Apply for a $1,000 grant online www.returningtoearning.com.au

Or discuss your eligibility and study options with Leonie or Luke at Australian College QED on Freecall 1800 790 490

www.australiancollege.edu.au

• Incorrect amounts at RESC on payment summaries
• Your small business tax calendar
• DO NOT INCLUDE 9% super in RESC – ATO says so….. 
• ICB is “On The Road” 
• BAS Agents get extension for Payment Summaries

• Apply for ICB Membership here
• Renew your ICB Membership here
• BAS Agent updates and information