Claiming R&D Tax Incentives: Crucial Steps and Deadline Reminders
If you’re a business or an individual engaged in eligible research and development (R&D) activities in Australia, it’s vital to be aware of the essential steps and deadlines necessary to claim the R&D Tax Incentive. As per the regulations outlined by the Australian Taxation Office (ATO), the first crucial step is to register your eligible R&D activities before making any claims. To ensure a smooth process, you need to apply for the registration within ten months from the end of your income year. For instance, if your income year concluded on the 31st of December 2022, the deadline for submitting …
Reminders for Lodging Your Own Tax Return
Tax season can often be a whirlwind, and as a business owner, it’s crucial not to let the self lodgement deadline of October 31st slip by. Regardless of whether your business has been thriving or you’ve faced financial setbacks, lodging a tax return is a mandatory step in the process. To ensure you’re on top of your tax game, here’s a comprehensive guide to help you navigate the process seamlessly. Know Your Deadline The 31st of October is the due date for lodging your own tax return. If you’re a sole trader, utilising the user-friendly myTax online system can streamline …
ATO Urges Swift Action to Avoid Debt Disclosure on Credit Reports
The Australian Taxation Office (ATO) is issuing a stern warning to businesses: Settle your tax and superannuation debts quickly or risk having these debts disclosed on your credit reports. Below, we will cover the ATO’s recent actions, the consequences of debt disclosure, and the steps businesses can take to safeguard their credit profiles. ATO’s Assertive Approach Since July 2023, the ATO has been proactive in debt collection, sending Notices of Intent to over 22,000 businesses with tax debts exceeding $100,000, overdue by more than 90 days. Over 9,000 businesses are expected to see their debts disclosed to credit reporting agencies …
Transitioning from Sole Trader to Company: A Comprehensive Guide to Protecting Your Business and Assets
When it comes to choosing the right business structure for your clients, there are several crucial considerations, especially when it comes to taxes, compliance requirements, and safeguarding the interests of business owners. The primary goal is to protect their personal wealth while minimising risks and exposure. Sole traders make up a significant portion of small businesses, accounting for 31% according to ABS statistics. However, recent challenges have prompted many sole traders to reconsider their business structure, particularly due to the substantial personal liability they face for all business debts, including tax obligations. If you’re thinking about transitioning your business from …
Understanding Director Penalty Notices (DPNs) from the Australian Taxation Office (ATO)
In recent times, the Australian Taxation Office (ATO) has been issuing director penalty notices (DPNs) at an alarming average rate of 60 per day, as reported by an ATO spokesperson. If you’re a director of a company or considering such a role, it’s essential to grasp what DPNs entail and how they can affect your responsibilities and liabilities. Below, we’ll break down what DPNs are and the steps you should take to navigate this complex landscape. What is a Director Penalty Notice (DPN)? First and foremost, it’s crucial to understand that a director penalty notice (DPN) doesn’t make you liable …
