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Time to take advantage of GST concessions

  • Positive cashflow is a sign that things are running smoothly in your business, but that can sometimes be tough for smaller businesses.

    Seasonal demands may require a heavy investment in extra staff and increased inventory during the year and that can lead to an inevitable juggling of payments to suppliers with important ongoing costs such as GST.

    The ATO has recognised the challenges facing smaller businesses and in 2016 it raised the threshold for concessions to include businesses with annual turnover of $10 million or less.

    Under the changes, more businesses have, among other measures, access to simpler BAS reporting requirements and the opportunity to pay GST by instalments.

    For those businesses that use an agent, such as an accountant, there is also the benefit of extended payment timelines.

    Businesses that report BAS on a quarterly basis are eligible for concessional lodgement and payment dates if lodging via their tax agent. It’s a measure that MWM Advisory has found is helping more businesses manage their cashflow.

    Through an agent, a business has an extra month to prepare and lodge the Business Activity Statement (BAS) which also includes payment of the liability (if any).

    So, for those businesses preparing their 2019 June quarter BAS, they would have been required to lodge by July 28. However, if lodging through an agent they have until August 25.

    Similarly, the 2019 September quarter lodgement is deferred from October 28 to November 25.

    There’s no doubting the importance of staying abreast of tax commitments, but for those businesses looking for extra time to pay it makes sense to take advantage of tax agent concessions.

    MWM Advisory’s highly experienced team of tax professionals is ready to help business owners stay on top of their GST commitments without unnecessarily sacrificing cashflow.

    For further information, contact an MWM Advisory team member at mwmadvisory.com.au/contact or phone 5596 9070.

  • Posted On: July 31, 2019