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BSBFIN601 Presentation

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7 views10 pages

BSBFIN601 Presentation

Uploaded by

ruililiu1024
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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BSBFIN601

BY XXXXX
Budget
INCOME
Consulting fees 1210000
Conference 75000
E – book 1000
Executive search 144000
NET INCOME 1439000
EXPENSES
Salaries/wages 504000
Superannuation 63000
Cleaning 10080
Accounting fees 6300
Advertising and marketing 5250
Contract writer (e – book) 11550
Computer software 4200
Motor vehicle expenses 4200
Utilities 4200
Insurance 4200
BUDGET DEVELOPMENT
Budget is developed based on the following areas:
• Previous year loss and profit statement
• Upcoming business activities
• Business objectives in the next year
So that one can assume that budget is developed based on the accurate evidences and have
not involve any misappropriate spending.
GST REPORTING REQUIREMENTS
• a. Monthly - if your GST turnover is $20 million or more.
If you report and pay monthly, you use one of two reporting methods:
• Full reporting method: you can also elect to use the GST full reporting method if either: your
GST turnover is less than $10 million but you have aggregated turnover greater than $10 million
(for the previous year or the current year) and you make input taxed supplies as your main
business or enterprise activity.
• Simpler BAS reporting method - if your business has a GST turnover of less than $10 million.
• Quarterly - if your GST turnover is less than $20 million - and we have not told you that you
must report monthly.
Continue…
If you report and pay quarterly, you use one of three reporting methods:
• Full reporting method
• Simpler BAS reporting method
• GST instalments
• method
Annually - if you are voluntarily registered for GST. That is, you are registered for GST;
and your GST turnover is under $75,000 ($150,000 for not-for-profit bodies)
PAYG WITHHOLDING OBLIGATION

As business employer, the employees should be provided with PAYG Statement at the end of the financial year in
order to meet their tax liabilities. They can be done by collecting money from payments which are made to
employees, other workers such as contractors, consultants, and any other payments made to individuals based on
voluntary agreements and contracts and the business who have an ABN.
The procedure:
• The business should first register and get an ABN (Australian Business Number)
• Get your employees register for PAYG withholding before you are first require to withhold and amount from a
payment
• You must register for PAYG withholding before you are first required to withhold an amount from a payment.
• If you cease to be an employer you should cancel your PAYG withholding registration.
• Before an employee enter into a work agreement or contract, they need to check that the worker is legally allowed
to work in Australia.
PAYG INSTALMENT AMOUNT, INSTALMENT
RATE, PAYG INSTATEMENT NOTICE
The table shows the PAYG installment amount and the tax rates. PAYG instalment notice is
given to the employee at the end of the financial which give a summary of the tax amount
paid by him based on his pay. This can be used in order claim or pay tax, at the end of the
period.

Taxable income Tax on this income


0 $ 18,200 Nil
$18,201 $37,000 19c for each $1 over $18,200
$37,001 $90,000 $3,572 plus 32.5c for each $1 over $37,000
490,001 $180,000 $20,797 plus 37c for each $1 over $90,000
4180,001 and over $54,097 plus 45c for each $1 over $180,000
PAY ROLL TAX OBLIGATIONS
All employers in Australia has payroll tax obligations. This tax is a state or a territory tax which is imposed on the wages
which are paid to his employees. As mentioned rates and the obligations differ from state to state. The amount of tax
calculated depends on the total amount of wages which an employer pays to its employees. And this tax is payable at the end
of each month to the state in which the services were performed. The following types of wages are liable for payroll tax
• Employee wages
• Contractor payments
• Directors' remuneration
• Superannuation
• Allowances
• Fringe benefits
• Bonuses and commissions
• Termination payments
SUPER ANNUATION ENTITLEMENTS AND
REQUIREMENTS TO COMPLY WITH
LEGISLATION
If an employer is paying his employee more than $450 a month in a tax calendar, they will
have to pay super on top of their wages. The minimum that the employer must pay is called
super guarantee. The current super guarantee rate is 9.5% of the ordinary earning. And this
must be paid at least four times a year that is every quarter by the due dates. When the
payments are made, the employer must ensure that it is paid and reported electronically in
a standard format which will then meet the super requirements. Id the super guarantee
amount is not paid by the employer he will have to pay a super guarantee charge to ATO.
Employees have the freedom to choose their own fund provider.
Thank you for your attention!

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