Governance crackdown, the ATO and ACNC are taking it seriously in 2019 - Get ready Sunshine Coast!
Fiona McKinlay • March 14, 2019
The Australian Charities and Not-for-profits Commission (ACNC) are seeking increased authority to regulate the “effective use of resources”. Charities, unsurprisingly enough, do not wish to be controlled by a commissioner.
There is a Not-for-Profit Information Line, too
The ACNC wishes to promote “the effective use of the resources of not-for-profit entities,” and to “enhance the accountability of not-for-profit entities to donors, beneficiaries and the public,” which means they want to maintain public trust and independence while reducing “unnecessary regulatory obligations”.
You can rest assured knowing your books will be accurate, compliant and on time.
There are over half a million not for profit organizations in Australia, but only about a third of them are registered with the Australian Tax Office (ATO), and only about a quarter of those receive tax concessions. So they have to report and pay Pay As You Go
withholding for their employees as well as paying superannuation, and reporting GST on their business activity statements.
Some need to be registered for fringe benefits tax and lodge returns too, if they are providing employees with benefits.
Bookkeeping support ranges from the normal day-to-day functions through to far more complex dealings with the ATO and ACNC.
Also, registered charities need to be endorsed by the ATO and lodge tax returns. Fringe benefits tax concessions do however permit charities and not-for-profits to give benefits to employees instead of wages, which can prove an incentive. The charities range from religious groups, care homes and shelters for the homeless to universities and colleges, animal welfare societies and artistic or cultural groups.
Charity runs better with Balanced Bookkeeping and Business Solutions.
Anyway, as you can see, it is all extremely complicated for a layman. If you are a charity, then the most affordable, most practical, most sensible solution is to consult, if not contract, Balanced Bookkeeping and Business Solutions to keep everything straight for you. We can provide advice and help with your audits and reviews, and we work extensively with both the ATO and ACNC.
A home-grown company that understands on your doorstep.
Balanced Bookkeeping and Business Solutions is a local Sunshine Coast company that provides a complete bookkeeping service and solutions for small to medium businesses and can cope easily with both the ATO and ACNC, so that you can pursue the far more rewarding and philanthropic business of fund-raising and distributing to the deserving foundation or trust of your choice.
And then there are employee payment summaries and the summary of income and expenses in a profit and loss statement, the record of debtors and creditors, asset purchases and expenditure on improvements, depreciation expense claims and capital gains tax, income tax returns and yearly reports, returns for PAYG withholding, fringe benefits tax (FBT), Goods and Services Tax (GST), and the taxable payments reporting system, meeting superannuation requirements… the list goes on and on.
With so many great software options including XERO, MYOB and Reckon. It’s vital for Balanced Bookkeeping and Business Solutions to be on top of them all. Our expert team can help tailor fit any software your business needs. We proudly keep the Sunshine Coast on top of their accounts. Ask us how we can help you today.
Balanced Bookkeeping and Business Solutions is a local, Sunshine Coast business that provides a complete bookkeeping service and solutions for small to medium businesses. The principal of Balanced Bookkeeping and Business Solutions has worked in the accounting industry for over 20 years and is a qualified accountant and registered BAS agent, which means that you can discuss the pros and cons of casual and full time and part time employment, knowing that you will receive practical, constructive, valuable advice.
So, what is Fringe Benefits Tax? Simply put, it’s an extra tax that you cover for your employee that is for the benefit of the employee in lieu of paying them more money. The tax is calculated on the value of what is being used for FBT.
This is only a new initiative as we mention that came into effect as of the 1st of July 2018, so there are still a lot of questions to be answered. This is why a number of clients we serve on the Sunshine Coast have been coming to us at Balanced Bookkeeping and Business Solutions to see their options.
The fact is the Australia Goods and service tax, while it’s not going to just go away, has been around for a long time and people are still getting it wrong when they are doing their books.