Income tax paid for 2014/2015 $2500

Dated 30/6/15 you would process a general journal entry debit 9-xxx Income tax payable $2500 cr 2-xxxx Income tax liability. When you pay the tax bill you would do a spend money for $2500 with the allocation account being the income tax liability account 2-xxxx.

The spend money entry for the payment of it will be dated when you paid the debt, ie this financial year.

Journal Entry at 30/6/15: (do the general journal entry for the tax liability as at 30/6/15, so that it appears in the profit and loss for that year)
9- 2000 - Income tax payable $2500 (DR)
2-1400 - Income tax liability $2500 (CR)

I have paid ATO $2500, then I enter:
Spend money at use the current date which I paid ATO
2-1400 - Income tax liability $2500 (DR)

The bond is capital in nature and not deductible in accordance with paragraph 8-1(2)(a) of the ITAA 1997. The payment does not relate to the daily activities of the business.

Dr Rental Bond Paid (Asset) Capital - tax code is n-t; you haven't bought anything.
Cr Bank
Deductibility of Bond for Rental Premises

On 3 May 2016, the government announced in the 2016–17 Budget that it will reduce the corporate tax rate progressively from 30 per cent to 25 per cent. The government announced a reduction in the small business tax rate from 28.5 per cent to 27.5 per cent for the 2016-17 income year. The turnover threshold to qualify for the lower rate will start at $10 million and progressively rise until the 27.5 per cent rate applies to all corporate tax entities subject to the general company tax rate in the 2023-24 income year. The corporate tax rate will then be cut to 27 per cent for the 2024-25 income year and by one percentage point in each subsequent year until it reaches 25 per cent for the 2026-27 income year. www.ato.gov.au/General/New-legislation

In the 2016-17 Budget it was announced that from 1 July 2017, the current 18% tax offset of up to $540 will be available for any individual, whether married or defacto, contributing to the super account of a spouse whose income is up to $37,000. This is an increase from the current income threshold of $10,800. www.ato.gov.au/General/New-legislation

From 1 July 2016, Business with a turnover of less than $10.0 million will be able to access a range of concessions which are currently only available to business entities with a turnover of less than $2.0 million. This change is not yet law. www.ato.gov.au/General/New-legislation

It is very common for businesses to purchase major assets such as motor vehicles via a loan. They can use a commercial bank loan but often finance is “purchased” by way of either Hire Purchase or a Chattel Mortgage.

Chattel Mortgage - a mortgage on a movable item of property. Under a Chattel Mortgage a finance company lends money to the customer to purchase a car or other motor vehicle (the "chattel"), and the customer makes regular repayments.
It is called a “mortgage” because the financier retains the title of the item purchased until the final payment is received. The GST is claimable at the time of the purchase
The allowable depreciation and interest payments are tax deductible
The full amount of the purchase can be financed including an upfront deposit and/or trade-in

1. Nissan is purchased by business INVOICE:
Nissan $50,000
Stamp Duty $950
Registration $800
Insurance $500
Insurance Stamp Duty $45
GST $5,050

Deposit $5,000

Balance owing $52,345
-------------—-------------------

2. The Finance Company schedule could look like this INVOICE:
Nissan (amount payable) $52,345
Establishment Fee $400
Stamp Duty $160
Interest to pay $11,600

Total Loan Amount $64, 405

Repayment Details:
Residual Repayment $15,000
48 monthly repayments of $1,029.27
---------------------------------

3. Set up the following accounts (if not already created):
Deposit Paid (Current Asset) – no tax code
Nissan MV at Cost (Non-Current Asset) – apply capital expense including GST tax code
Chattel Mortgage (Motor Vehicle) (Non-Current Liability) – no tax code
Chattel Mortgage Interest Charges (Expense) – no tax code
Chattel Mortgage Fees & Charges (Expense) – tax code varies, could be be Free or GST inclusive
Nissan MV Registration (Expense) – apply GST Free tax code
Nissan MV Insurance (Expense) – apply GST inclusive tax code
Unexpired Term Interest (Non-Current Liability) – no tax code
-------------------------------

4. First enter a SPEND MONEY transaction to record the payment of the deposit:
Dr Nissan Deposit Paid (NT) $5,000
Cr Bank $5,000

Enter journal to record the purchase of the new vehicle (exclusive GST):
Dr Nissan - Nissan MV at cost (GST on Capital purchase) $50,000
Dr Stamp Duty - Nissan MV at cost (NT) $950
Dr Registration - Nissan MV Registration (Free) $800
Dr Insurance - Nissan MV Insurance (GST) $500
Dr Insurance Stamp Duty - Nissan MV Insurance (Free) $45
Dr Establishment Fee - Chattel Mortgage Fees & Charges (GST) $363.64
Dr Stamp Duty - Chattel Mortgage Fees & Charges (Free) $160
Dr Interest to pay - Unexpired Term Interest (NT) $11,600
Dr GST paid - GST $5,086.36
======================
$69,405

Cr Chattel Mortgage Liability (NT) $64,405
Cr Nissan Deposit Paid (NT) $5,000
======================
$69,405

purchase via a chattel mortgage

HELP repayments

If your RI is less than $53,345, you make nil HELP repayments in 2014-2015 financial year. The compulsory Help income threshold will decrease down from $53,345 to $50,638 from July 1, 2016 and repayments will start at 2% of RI.
Repayment income = TI + RFB + RSC + exempt FI + total Net investment losses inc. net rental loss. 
http://www.smh.com.au/business/federal-budget/radical-shakeup-to-university-funding-in-budget-will-see-some-fees-soar-20140513-3887c.html

9.5% Super Guarantee for 3 financial years

The good news is that our employers start paying 9.5% SG as from July 1, 2014. The bad news is that this percentage will be frozen for 3 consecutive financial years.

Temporary Budget Repair Levy of 2%

Temporary Budget Repair Levy of 2% is a three year additional levy which will apply on the part of personal taxable income which exceeds $180,000. Temporary Budget Repair Levy will apply from July 1, 2014 and to the 2014-15, 2015-16 and 2016-17 financial years. 
https://www.ato.gov.au/general/new-legislation/in-detail/direct-taxes/income-tax-for-individuals/temporary-budget-repair-levy/ 

NMETO

From July 1, 2019 Net Medical Expenses Tax Offset (NMETO) will be repealed. Disability aid claims, attendant care and aged care expenses claims can be made until June 30, 2019. Otherwise, claims can be made in 2013-2014 Fin Year only if a taxpayer made a claim in 2012-2013; and claims can be made in 2014-2015 Fin Year only if a taxpayer made a claim in 2013-2014.
Claims thresholds are revised after March 31 each year.

Medicare levy increase to 2%

Medicare levy has increased from 1.5% to 2% this year. And MyGov account is crap, I haven't had problems creating it but linking services was a real pain. It might be because of the year beginning or too many people logged in. Anyway, I have just lodged my Tax Return for this fin year.

Tax havens

The main feature of an offshore jurisdiction is a tax policy favorable to foreign investment. But it is far from the only one. There are several additional features that make a country to pass from being considered a simple low-tax country to a real tax haven.

1. Personal data of owners and shareholders of companies are not listed in public records, or the use of formal representatives (called nominees) is allowed.
2. There are strict rules on bank secrecy. Data about account holders are only available to the authorities if there is evidence of serious crimes such as terrorism or drug trafficking.
3. Signing treaties with other countries involving exchanges of banking or tax information is avoided. Although this situation is changing in recent years.
4. Stability and monetary policy are promoted. Who would invest in a place with continuous coups d'état, wars or rampant inflation?
5. They have an excellent range of legal, accounting and tax advice services.
6. They often have good tourist and transportation infrastructure.

Countries such as Switzerland, Cyprus and Latvia, for example, have been highlighted for their strict bank secrecy laws. Another example is Ireland, which offers significant tax benefits for artists (writers, singers…).http://www.taxhavensguide.com/offshore.php

Paid Parental Leave Scheme

I worked for a company which had to pay Parental Leave to one of its employee.

1. Each fortnight we got payment from Centerlink.  I had to download and print a letter from Centerlink to file in an employee folder for archiving purposes. 
2. The money were paid into the company account. In accounting software I created 3 new accounts:  Liability Account "Parental Leave Funds" (2 - other Liability), Income Account "Parental Leave Received" (8 - other Income) and Expense Account "Parental Leave Paid" (6 - Expense).
3. Each time the company got the money from Centerlink I credited the Liability Account. Entries: Bank - DR, Parental Leave Funds - CR. In MYOB Banking - Receive Money, Tax Inclusive.
4. Payroll category: I created a new Wages category: Parental Leave (it replaces Salary, thus place tick next to Salary). Also tick Override Wages Expense Account and Select the newly created Parental Leave Paid Account.
   Payroll category: Tick Exempt on Superannuation tab.
5. MYOB: Card of the employee - Payroll Details - Standard Pay - Parental Leave category to the amount that is to be paid each pay period. All the other fields - 0.
6. The money stays in the Liability account and needs to be cleared each time the payment is made. Entries: Parental Leave Funds - DR, Parental Leave Received - CR. In MYOB Accounts - Record Journal Entry. 
7. And the last but not the least, Once the employee returns to work, In MYOB open the employee card  and click Reset to Original Amounts (on top).

From 1 July 2011 a company should provide Paid Parental Leave to all eligible employees who have been with the company for 12 months or more prior to the expected date of the birth or adoption. For these long-term employees, the Family Assistance Office will advance funds direct to business. These funds are sent in three instalments or fortnightly over the 18 weeks. For employees who have been with the company less than 12 months, the Family Assistance Office will make the payments directly to them, unless the company chooses to do so. Employees can apply to the Family Assistance Office up to three months before the expected birth or adoption.

The Minerals Resource Rent Tax Repeal and Other Measures Bill 2013

On 24 October 2013, the Government released a draft of the Minerals Resource Rent Tax (MRRT) Repeal and Other Measures Bill 2013. The Bill was introduced into parliament on 13 November 2013.

The Minerals Resource Rent Tax Repeal and Other Measures Bill 2013 removes the Minerals Resource Rent Tax with effect from 1 July 2014. The Bill includes the:

repeal of loss carry back;

reduction in the small business instant asset write off threshold;

repeal of accelerated depreciation for motor vehicles;

repeal of the geothermal exploration provisions;

re-phasing of the change in rate of the superannuation guarantee charge percentage;

repeal of the low income superannuation contribution;

repeal of the income support bonus; and

repeal of the schoolkids bonus.

Dividend washing

occurs when shareholders seek to claim two sets of franking credits on what is effectively the same parcel of shares. https://www.ato.gov.au/General/New-legislation/In-detail/Direct-taxes/Income-tax-for-businesses/Preventing-dividend-washing/
Dividend washing involves arrangements that enable a taxpayer who effectively holds a single parcel of shares to obtain double franking credits. This occurs when an investor, who has access to the Special Market operated by the Australian Securities Exchange, sells shares ex-dividend (seller retaining the dividend with franking credits) and then in 2 days buys cum-dividend shares (ie with dividend rights still attached) in the same company on the Special Market (buyer receiving the dividend with franking credits).
The price paid for shares in this market is usually very close to the price in the normal ex-dividend market, plus the value of the dividend to be paid on the shares. https://www.ato.gov.au/Media-centre/Media-releases/ATO-confirms-dividend-washing-not-allowable-under-tax-law/
The new law will apply from July 1, 2013, to investors who have franking credit tax offset entitlements in excess of $5000. Small shareholders will be excluded. However, experts said that the ATO was relying on a broader anti-avoidance provision to examine share trades which pre-date the new law.
The ATO has been given the go ahead to start chasing investors (including SMSF trustees) after the release of a draft tax determination (TD 2014/D1) which basically outlaws the practice.

Preventing dividend washing 24 March 2014 | Exposure Draft

This draft legislation would amend the tax law to deny an entity the benefits of any additional franking credits that an entity receives as a result of dividend washing.