Make sure that your property is actually available for someone to rent
This is crucial because if not for this you will not be able to claim a tax deduction. You need to make it extremely clear that you wish to rent out your property. Use various platforms to advertise your property so that people come to see it. Another important factor is, you should set the rent for your house in line with the properties around the neighborhood. Always try to avoid unreasonable rental prices.
Business Trends in a Snapshot
- Security. Small business absolutely needs to secure its data and have strong IT security. As people move to rely more and more on automation, computerisation and technology, so we need to address the security and risks associated with that. When did you last assess the risks in your business?
- Machine Learning. Machine Learning is here to stay. With accounting programs, like Xero especially (and MYOB ) ‘learning’ from our coding and ‘rules’ and instructions, our backend is able to be even more automated. The automatic bank feeds mean less time doing basic and extremely simple data entry. Add-ons like Receipt Bank means you and your staff are spending less time stuck in front of a computer doing bookkeeping and more and more time being able to spend on income earning tasks.
- Artificial Intelligence. Linked into the above, this is also on the rise. We have chat systems on websites which are sometimes people but more often, now are bots (software) which is programmed to answer your questions. Whether you’re asking questions of an online retail store or seeking information from the ATO … AI is automating how this occurs. The upside, of course, is that your website is being manned 24/7 – working for you whilst you’re sleeping.
Illegal Phoenix Activities
Phoenix Activity is the term given to a business/company who builds up debts in one entity, then creates another to continue the existing business, whilst leaving behind debts, including taxes, creditors and entitlements for the employees in the old entity. Whilst it’s more common in some industries, and it’s quite illegal from an ATO perspective, it’s still happening. To protect yourself the ATO recommends that you:
- Confirm a business and its ABN registration using the ABN Lookup function
- Acquire a credit check
- Ask them for references (and reference check those references)
- Require a company report from ASIC
- Google the company (and its Directors) online for any negative information
- Request for payment up front or in instalments
- And finally, the ATO recommends that you include a clause in your contract that the business is to have all their tax obligations fulfilled. The ATO states that this creates a contractual right that you can enforce should any illegal phoenix activity occur. My suggestion is that all contracts are reviewed by a qualified Solicitor, to ensure its legality.
7th Each month Payroll Tax
21st March – monthly BAS is due
*For those dates above which have passed, so be sure to action urgently if not already completed.
At Tax Depot, we service Logan, Springwood and Beenleigh clients in all areas of taxation, tax planning, bookkeeping and business accounting services. If you need assistance or advice from our CPA qualified accountants, call us today on 1300 722 955; we would be only too happy to discuss how we can help you and your business.
Noel Ryan BCOM CPA