Hi Coco,
Thanks for your reply to my questions.
I do have a few more questions to ask you, as I have been studying tax:
1. Is the Medicare levy only applicable to individuals?
2. Do wine retailers charge the WET tax as well? Are those who charge the WET able to claim it back from the ATO? Is GST charged on top of the WET?
3. Are donations taxable?
4. Can we include any sales of capital assets in our installment income on the BAS when we are working out our PAYG Instalment?
5. How do we reconcile our payroll accounts?
Thank you for your reply.
Thanks for your reply to my questions.
I do have a few more questions to ask you, as I have been studying tax:
1. Is the Medicare levy only applicable to individuals?
2. Do wine retailers charge the WET tax as well? Are those who charge the WET able to claim it back from the ATO? Is GST charged on top of the WET?
3. Are donations taxable?
4. Can we include any sales of capital assets in our installment income on the BAS when we are working out our PAYG Instalment?
5. How do we reconcile our payroll accounts?
Thank you for your reply.
Sammy
Thanks for the question. Please find the responses:
ReplyDelete1. Is the Medicare levy only applicable to individuals? – Yes, being 1.5% of taxpayer’s taxable income. Please note that certain tax payers are entitled to the exemption.
2. Do wine retailers charge the WET tax as well? Are those who charge the WET able to claim it back from the ATO? Is GST charged on top of the WET? – Wine equalisation tax (WET) is a value based tax which generally applies on the last wholesale sale of wine, usually between the wholesaler and the retailer. For retailers, WET forms part of the cost when they purchase the stock. In general, only the wine manufactures are entitled to the WET rebate (29%). According to ATO: ‘Only WET producer of that wine – that is, you must manufacture the wine from grapes, other fruit, vegetables or honey you produce or purchase, or provide the grapes, other fruit, vegetables or honey to a contract winemaker to be made into wine on your behalf’ can claim the WET rebate. GST is separate from WET. The Retailer usually will factor WET into the sales price. GST is just charged on top of that.
3. Are donations taxable? – Donations above $2.00 to Deductible Gift Recipients (DGR) is deductible for tax payers; So make sure they have DGR status. The tax is exempted for DGR.
4. Can we include any sales of capital assets in our installment income on the BAS when we are working out our PAYG Instalment? – There is no need to include the company’s capital gain on the BAS. The PAYG instalment on the BAS is mainly related to Income Tax and PAYG tax withheld from employees’ wages and salaries.
5. How do we reconcile our payroll accounts? – Your total Super liabilities and PAYG shown on the Balance Sheet will have to match the sum of those liabilities owed to each individual employees.
Regards
Florian