When I was younger, I remember my Mum becoming frustrated at the way names were shortened to an acronym and then shortened again, ie: the Melbourne Cricket Ground being shortened to the MCG and then again to the G!  While we teased her at the time, little did I know how much of an impact the use of acronyms would have on my daily working life!

On the days I teach First Aid, I joke at how many acronyms are used to remember the terms – DRSABCD, COWS, SAMPLE, PQRST – to name a few…

And in tax and accounting there are acronyms for just about everything!  Here are a few I come across on a daily basis:

GST – Goods and Services tax

BAS – Business Activity Statement

ABN – Australian Business Number

TFN – Tax File Number

PAYG – Pay As You Go

CGT – Capital Gains Tax

FBT – Fringe Benefits Tax

P&L – Profit and Loss Statement

BS – Balance Sheet

TB – Trial Balance

…I promise you I could keep going with this list, at times I think I need an acronym dictionary to keep up with everything.

If you’re keen to know more about any of these acronyms, or you’ve come across one that you don’t understand, drop me a line and I’ll let you know!

Regards

The 31st March each year signals the end of the Fringe Benefits Tax (FBT) year – and with it comes a range of reporting requirements and sometimes rate changes too.

Fringe Benefits are defined as benefits received as the result of an employment relationship that do not take the usual form of salary, wages or cash remuneration.

Common examples include the provision of cars for private use, low interest loans, payment of expenses and superannuation.

The FBT regime is designed to ensure that taxpayers still pay their “fair-share” of tax on these amounts, as they constitute reward for effort but are not taxed under the Pay As You Go Withholding (PAYGW) rules.

From 1st April 2015, the rate of FBT increased to 49% – this has the impact of adjusting the “gross up rate” as well as the amount employees of eligible employers (such as public Benevolent Institutions and Non-profit organisations), may be able to salary sacrifice so they do not exceed the FBT concessional cap amounts for the FBT year.

If you have entered into a salary sacrifice arrangement with your employer – now is an opportune time to review the details of the arrangement to ensure you are receiving the most benefit.  Your accountant or salary packaging provider will also be able to help.

Regards

Just wanted to wish all of my clients, supporters, family and friends all the best for a very Happy Easter!

Having had a couple of wonderfully productive days in Melbourne, I’m also spending Good Friday here – the home of the annual Good Friday Appeal for the Royal Children’s Hospital.

As a young girl I became friends with a family who participated in the appeal by rattling tins up and down the streets and at all of the traffic lights in my home town – I soon became involved and always looked forward to the event with much anticipation.

These days I try to support the appeal with a financial contribution – and I encourage you all to do the same.  It really doesn’t matter how large or small, every cent counts (and if you keep your receipt you might be able to claim a tax deduction!)

On a final note, if you are travelling this weekend, please take extra care on the roads, I want you all in one piece!

I’ll be taking a break for the rest of the long weekend, see you back here on Wednesday!

Regards

I’m sure you all know I love a celebration (don’t worry, I’m not going to mention my birthday again…oops, I think I just did!) – but, can you believe The Tax Chic is one year old today?

That’s not what I want to talk to you about though…

Each year, every company must lodge an annual statement with the Australian Securities and Investments Commission (ASIC).  This annual statement is due around the time of the company’s annual review date – which is usually the anniversary of the date of registration.

So in a way, lodging the annual statement (and paying the relevant fee to ASIC), is kind of like a birthday celebration for your company!

As a director of a company you should ensure you are familiar with the reporting and lodgement requirements to ASIC – if you happen to get it wrong, or lodge your documents late,  some significant financial penalties will be imposed.

Take a look at this link to the ASIC website (I’ve hi-lighted the page dedicated to the annual statement) – and remember to contact your professional advisor if you have any questions.

Regards