Individual Tax Returns

When is my tax return due?

For individual taxpayers who lodge their own return, the due date is 31 October each year. However, if you use a registered tax agent (like Balance Accountants and Advisers), you may be eligible for an extended lodgment deadline, typically in March or May of the following year, depending on your circumstances.

What documents do I need to prepare my tax return?

Common documents required include:

• Payment summaries or income statements from employers
• Bank interest statements
• Dividend statements
• Receipts for work-related expenses
• Private health insurance statement
• Investment property income and expense records
• Any other income or deduction documentation

What work-related expenses can I claim?

You can claim deductions for expenses directly related to earning your income. Common deductions include:

• Home office expenses (if you work from home)
• Car and travel expenses
• Tools and equipment
• Professional development and education
• Uniforms and protective clothing
• Union fees and professional memberships

Business Tax Returns

When are business tax returns due?

Business tax return due dates depend on your business structure:

• Sole traders: Same as individual tax returns (31 October or extended deadline if using a tax agent)
• Partnerships: Generally due by 31 October, or extended deadline with a tax agent
• Companies: Due date varies based on the company's balance date and whether you use a tax agent
• Trusts: Generally due by 31 October, or extended deadline with a tax agent

What is BAS and when is it due?

Business Activity Statement (BAS) is a form submitted to the ATO to report and pay GST, PAYG withholding, PAYG instalments, and other tax obligations. Due dates depend on your reporting cycle:

• Monthly: 21st day of the following month
• Quarterly: 28th day of the month following the end of quarter (28 Oct, 28 Feb, 28 Apr, 28 Jul)

Do I need to register for GST?

You must register for GST if:

• Your business has a GST turnover of $75,000 or more ($150,000 or more for non-profit organisations)
• You provide taxi or limousine travel for passengers (regardless of turnover)
• You want to claim fuel tax credits for your business

You may choose to register for GST even if you're below the threshold. Contact us to discuss whether this is right for your business needs.

Understanding Capital Gains Tax

What is Capital Gains Tax?

Capital Gains Tax (CGT) is the tax you pay on the profit you make when you sell or dispose of certain assets. It's not a separate tax but forms part of your income tax. Common CGT assets include investment properties, shares, and business assets.

When do I have to pay CGT?

CGT applies when you:

• Sell an investment property
• Sell shares or managed fund units
• Dispose of business assets
• Transfer ownership of certain assets as gifts

How is CGT calculated?

The capital gain is generally calculated as:

If you've held the asset for more than 12 months, you may be entitled to a 50% CGT discount (for individuals and trusts) or 33.3% (for complying super funds).

The cost base typically includes the purchase price, plus costs of buying and selling (such as legal fees, stamp duty, and real estate agent fees), and any capital improvements to the asset.

What records do I need to keep?

Keep all documentation relating to:

• Purchase and sale contracts
• Settlement statements
• Receipts for improvements and renovations
• Legal and conveyancing fees
• Agent's commission and advertising costs

Getting Started with Xero

What is Xero?

Xero is cloud-based accounting software that helps you manage your business finances. It allows you to track income and expenses, reconcile bank accounts, send invoices, manage payroll, and generate financial reports - all from any device with internet access.

Is Xero suitable for my business?

Xero is suitable for most small to medium businesses across various industries. It's particularly beneficial if you want real-time financial information, need to manage invoicing and expenses efficiently, or want your accountant to have direct access to your financial data. Contact us to discuss whether Xero is the right fit for your business needs.

How do I set up Xero?

We recommend having your accountant set up Xero for you to ensure it's configured correctly from the start. We can help with:

• Creating your Xero account and selecting the right subscription
• Setting up your chart of accounts
• Connecting your bank accounts
• Configuring invoice templates
• Importing opening balances
• Training you on how to use the system

Common Xero Questions

How do I reconcile my bank account in Xero?

Bank reconciliation in Xero is straightforward:

• Go to the Bank Accounts section
• Xero will automatically import transactions from your connected bank feed
• Match imported transactions to existing invoices or bills, or create new transactions
• Categorise transactions using the appropriate account codes
• Click 'Reconcile' to confirm all transactions are accounted for

We recommend reconciling at least monthly. If you need assistance, we offer bookkeeping services and Xero training.

How do I create and send an invoice in Xero?

Creating invoices in Xero:

• Navigate to Business > Invoices > New Invoice
• Select or create a customer contact
• Enter the invoice date and due date
• Add line items with descriptions, quantities, and prices
• Review the invoice and click 'Approve and Email' to send it to your customer
• Xero will track the invoice status and send reminders for overdue payments

Can I access Xero on my mobile device?

Yes, Xero has mobile apps for both iOS and Android devices. The mobile app allows you to:

• Capture and upload receipts on the go
• Create and send invoices
• Reconcile bank transactions
• View financial reports and dashboards
• Monitor cashflow and outstanding invoices

How long should I keep my records?

The ATO requires you to keep records for:

• 5 years: Most business and tax records
• 7 years: Records for depreciating assets
• Indefinitely: Records relating to property (for CGT purposes)

Digital records are acceptable. We recommend using cloud storage for easy access and backup.

What bookkeeping records do I need to maintain?

Essential records include:

• Sales invoices and receipts
• Purchase invoices and receipts
• Bank statements
• Credit card statements
• Payroll records
• Asset registers
• Stocktake records (if applicable)

What are my obligations as an employer?

As an employer, you must:

• Withhold PAYG tax from employee wages
• Pay superannuation guarantee (currently 11.5% from 1 July 2024)
• Provide employees with payment summaries
• Report through Single Touch Payroll (STP)
• Comply with Fair Work requirements and awards
• Keep proper payroll records

When is superannuation due?

Superannuation must be paid quarterly by these due dates:

• 1 July - 30 September: due 28 October
• 1 October - 31 December: due 28 January
• 1 January - 31 March: due 28 April
• 1 April - 30 June: due 28 July