The last date for lodging your FY2017 tax returns are coming up and will quickly fly by.
For individuals, sole traders, partnerships, trusts, companies and SMSF, remember that if you are lodging the tax return through a tax agent such as Chan & Naylor and your previous tax return eg FY2015 was lodged on time, than the due date for lodging your FY2017 tax returns is on the 15th of May 2018.
However please contact your Client Manager from your local Chan & Naylor office to find out when your personal tax returns are due.
If you have already lodged your FY2017 tax returns please ignore these reminders.
If you are lodging your tax returns including your SMSF tax return for the very first time this year than the due date is on the 28th of February of the year following the relevant tax year and due on the 15th of May for subsequent tax returns. (example First tax return FY2017 than due 28th February 2018 and if the second and subsequent tax return than the due date is 15th May 2018)
You must also have your SMSF audited by an approved auditor before you lodge with the ATO. This can be organized by your Chan & Naylor Client Manager.
For those who are not lodging through a tax agent your last date for lodgment is the 31st October following the end of the tax year 30th June.
If your previous tax return were lodged late, than the due date will be reduced by several months.
Contact your Chan & Naylor Client Manager and they can log into the ATO portal and tell you exactly what your last date will be. It could be anywhere between September to April.
If you fail to lodge a tax return on time, it may result in a penalty plus interest. Meanwhile, ATO determines whether or not you have to be in the IAS (Income Activity Statements) installments system based on your latest tax return.
If your income is high enough, they will advise you to pay IAS installments. These payments act as installments against your final income tax result. You may get a refund for overpayment or a notice to pay if there is a shortfall when you lodge your tax returns.
An IAS installment notice comes at the end of every quarter (March, June, September and December) and the due date is generally on the 28th of the following month but check with your Chan & Naylor Client Manager for your personal details.
Income activity statements (IAS) include reports on GST, PAYG Withholding, PAYG Installments, Fuel tax credits for heavy offroad trucks and industrial plant and other government credits.
You can use it to make a payment or receive a refund. The due date of lodging this document is every 28th of the month after each quarter end and failure to do so on time may result in a penalties as well.
If you are an employer and have paid wages of more than $450 per month to an employee, you should also pay superannuation, which is 9.5% of the total wages paid to each employee for each quarter. The amount should be paid directly to the employee’s superannuation fund and is payable by the 28th of the month after each quarter end.
If you do not pay on time, you would have to pay an annual interest of 10% on the shortfall from the start of the pay quarter. You won’t get a deduction for this, and you will have to lodge a form to the ATO to declare the unpaid shortfall. You then would have to use the Super Stream system to pay super as well.
If you pay wages of more than $7,500 per month including super, you are required to get workers compensation insurance. Find out if your worker or subcontractor is an employee as failure to pay this insurance may lead to heavy penalties.
PAYG payment summaries report the total remuneration paid to each employee or superfund member. Employers are required to provide a copy to the payee on or before the 14th of July, and to ATO on or before the 14th of August.
You also have to check the due dates of lodging PAYG withholding payment summary statements, extension to the due date for lodgment of PAYG payment summaries and PAYG withholding payment summary statements for closely held entities. Again, failure to do so on time may result in a penalties and interest.
It is also good to check the lodgment due dates and fees when making changes to a company’s ASIC register and submitting annual ASIC reviews.
The latter needs to be paid within 28 days of the company’s anniversary or you will be penalised. To avoid being fined, you may want to set up a yearly scheduled BPAY transfer to ASIC of $250 or prepay next year’s fees.
Or if you can ask your Chan & Naylor Client Manager to take care of this for you. They will ensure your ASIC Annual Reviews are completed correctly, Minutes prepared and fees paid on time. Note that company directors are required to pass a solvency resolution within two months after each review date.
There are two types: positive solvency resolution and negative solvency resolution.
What can you do?
If you are a new client and would like to know more about how you can plan your finances this new year 2018, you can click here to know more about Chan & Naylor services. You can leave your details here and we can schedule you for a free consultation. We’ll contact you to explain more.
If you are an existing client and you have not lodged your FY2017 tax returns yet please contact your personal Chan & Naylor Client Manager.
Whether you are a beginner, seasoned investor or business owner, we can provide guidance and assistance to eliminate any concerns or stress with your obligations to the ATO.
We can also give you an integrated and tailored solution for your superannuation, taxation, property investment, asset protection, correct structuring, estate planning, life insurance, income protection, loans with a better interest rate, investments in shares and much more.
Chan & Naylor Group has nationwide offices in Brisbane and Capalaba in Queensland, Melbourne and Moonee Ponds in Victoria, East Perth in Western Australia, and South West Sydney, Parramatta, Pymble, North Sydney, and Sydney in New South Wales.
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