| MATTER |
Criteria or
Threshold ? |
Criteria Satisfied |
Criteria not
Satisfied |
| SYSTEMS & METHODS |
|
| Accounting Systems for
Income Tax -Cash Versus Accruals |
From
1 July 2007: Change to upper limit from $ 1m to $ 2
million and allowance of accruals as alternative. |
Small Business
Is your entity entitled
to apply the Cash basis of accounting ?
|
Large Business
Is Accruals Based
accounting appropriate or required due to the nature and size of
business ?
|
|
Alienation of Personal
Services |
Definition of personal services and 80 % rule |
If caught, restricted
tax deductions and extra PAYG withholding |
not applicable |
|
GST |
< $
50,000 |
GST registration is
optional if less than this turnover -but cannot claim input credits |
|
| Simplified Tax
Systems |
< $ 1 million
turn-over |
Taxable Income based
upon Cash accounting |
Taxable Income based
upon Accruals accounting |
|
|
Concessional
depreciation |
More complex
depreciation |
|
|
Simplified trading stock
valuation |
Traditional trading
stock record-keeping |
|
|
Prepayments
< $ 1,000 : Allowable
If period exceeds 13 months : deduction
is spread over lesser of 13 months and 10 years .
13 month rule to be replaced by 12 month rule |
Prepayment
Large Coys -if performed within 13 months -deduction is spread over that period,
otherwise it is spread over lesser of 13 months and 10 years but special
rules apply. |
| Simplified PAYG
Reporting |
< $ 1 million
turn-over |
Eligible for quarterly
PAYG instalments based on previous year's income uplifted by GDP factor |
If greater than this
turn-over No "simplification" |
| Simplified GST Reporting |
< $ 1 million
turn-over |
May choose to have GST
instalments based on 25 % previous year's net GST amount, adjusted by
GDP & annual return no later than annual ITR lodgement date- or 28
Feb 2002 for 2001 year if earlier |
If greater than this
turn-over No "simplification" |
| Non-commercial business
losses |
Where business activity
has assessable income
>or=$20,000, produced a tax profit in 3 out of past 5 yrs, uses real
property with value of >or=$ 500K or uses
assets of value >or= $ 100k
|
Loss from activity may
be offset against other income |
Loss is deferred
to be offset against profits from activity |
| Non-commercial primary
production, professional arts business or writer
losses |
Total other assessable
income < $40,000 |
Loss from activity may
be offset against other income |
Loss is deferred
to be offset against profits from activity |
|
