Ph: (03) 9776 9006
Julie Dixon Accountant
  • Home
  • About Us
    • Our Philosophy
    • Staff Profiles
  • Our Services
    • Accounting for Trades People
    • Accounting, Taxation & GST
    • Benchmarking
    • Business Coaching
    • Financial Planning
    • Insurances
    • Loans & Mortgages
    • Management Consulting Services
    • Negative Gearing
    • Primary Production & Farmers
    • Recession Proof Your Business
    • Self Managed Super Funds
    • Starting Or Buying A Business
    • Vehicle & Equipment Finance
  • Resources
    • Taking Care of Business
    • On The Money Archive
    • Useful Links
  • Send Files
  • Newsletters
  • Contact Us
  • Home
  • About Us
    • Our Philosophy
    • Staff Profiles
  • Our Services
    • Accounting for Trades People
    • Accounting, Taxation & GST
    • Benchmarking
    • Business Coaching
    • Financial Planning
    • Insurances
    • Loans & Mortgages
    • Management Consulting Services
    • Negative Gearing
    • Primary Production & Farmers
    • Recession Proof Your Business
    • Self Managed Super Funds
    • Starting Or Buying A Business
    • Vehicle & Equipment Finance
  • Resources
    • Taking Care of Business
    • On The Money Archive
    • Useful Links
  • Send Files
  • Newsletters
  • Contact Us

Resources

Simplified Tax System

20/9/2016

 
Picture
The Simplified Tax System (STS) is an alternative method to determine taxable income for eligible small businesses with straightforward financial affairs. Participating in STS is optional. 
The key features of STS are:
  • Cash accounting rather than accruals accounting
  • Most business income and deductions will be recognised only when they are received and paid.
A simplified depreciation system (capital allowances): 
  • Depreciating assets that cost less than $1000 each will be written off immediately and claimed as a deduction in the year in which you started using the asset or installed it ready for use, for a taxable purpose. 
  • Other depreciating assets which have an effective life of less than 25 years will be pooled and depreciated at the diminishing value rate of 30%. 
  • Depreciating assets with an effective life of 25 years or more will be pooled and depreciated at the diminishing value rate of 5%
Simplified treatment of trading stock: 
  • Tax payers will only be required to account for changes in their trading stock on hand or do stock takes at the end of the year where the difference between the value of opening stock and your reasonable estimate of closing stock exceeds $5000.
To qualify for STS in an income year you must meet all these requirements: 
  • Be carrying on a business in that year
  • Have an STS average turnoverfor that year of less than $1m 
  • Have the total of the adjustable values of the depreciating assets held by you and your grouped entities at the end of that yearas less than $3m. 
FURTHER INFORMATION: See the Simplified Tax System section at the ATO website for more information. 



Comments are closed.

    Categories

    All
    On The Money Archive
    Taking Care Of Business

    RSS Feed


    ​IMPORTANT DISCLAIMER:
    ​These articles are published as a guide to clients and for their private information. These articles do not constitute advice. Clients should not act solely on the basis of the material contained in these articles. Items herein are general comments only and do not convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of these areas. 
Copyright © 2020 Julie Dixon F.I.P.A -  Accountant - Registered Tax Agent - Registered SMSF Auditor
All Rights Reserved.
Picture
Admin Login

Designed by Jon Web Design and Powered by Sitebuilder.