ATO
Changes to Fuel Tax Credits
The Australian Taxation Office (ATO) has increased the Fuel Tax Credit Rates from 10 November 2014. Further these rates will now be indexed on 1 February and 1August each year in line with the Consumer Price Index.
So, if you claim the credit you need to make sure you are using the correct rates.
If you happen to do your BAS monthly and have already done November’s don’t panic – you can still make an adjustment. If you are not sure how to do this speak to us and we will guide you in how to make the adjustment.
If you are not claiming the credits but you use machinery, plant, equipment or heavy vehicles in your business you may be eligible for the Fuel Tax Credit. How do you know if you maybe eligible – well the starting point is determining which fuels are eligible.
Eligible fuels include petrol, diesel, kerosene, mineral turpentine, white spirit, toluene, heating oil and most solvents.
Fuels which are not eligible include aviation fuel, fuel used in light vehicles of 4.5 tonnes gross vehicle mass or less which travel on public roads, fuel that you have purchased but has been stolen, lost or otherwise disposed of and lastly some alternative fuels which have already received a grant or subsidy.
So how do I go about making a claim?
The first thing you need to do is to be registered for both GST and Fuel Tax Credits. Once you are properly registered the Fuel Tax Credit will appear on your BAS.
Please note the Fuel Tax Credits are part of your business income and therefore needs to be included on your tax return.
In addition, should you be using a heavy diesel vehicle manufactured before 1 January 1996 you may also meet some environmental criteria as well.
Like everything in business, you should seek professional advice for your particular circumstances. If you are interested to find out more and discuss if this applies to you, call us today – we can –help (3264 4783).
Balanix Solutions – Taxation | Accounting | Business Advice.
Situated in Strathpine on Brisbane North, we partner with our clients to assist them in their accounting, business management and bookkeeping needs. Our clients vary in industries from professional services (such as law, vet and dentist) to the trades (mechanic, bricklaying, plasterer etc), hospitality and retail. Are clients are located in the Pine Rivers area (including Brendale, Lawnton, Albany Creek and Eatons Hill) through to Kallangur, Petrie, North Lakes and Caboolture, as well as Brisbane South, the Gold Coast and various other parts of Queensland.
Call us today … we can help (07 3264 4783)
Are You a YouTube Performing Artist for Income Purposes
Did you know there maybe tax consequences for people who generate income from YouTube?
If you are thinking of giving up your current job and making a living from YouTube make sure you talk to a your tax accountant before taking the step.
There is a difference between income derived from a hobby and income derived from carrying on a business and generating income from that business which is taxable. Referring to the Australian Taxation Office – ATO ID 2014/41, people who earn income from YouTube will be treated as “performing artist for income purposes”.
The Facts as presented in this Interpretative Decision are as follows:
“The taxpayer carries on a business of creating cooking and baking videos for upload onto YouTube.
The taxpayer produces, designs, edits, scripts, voices over, films and acts as presenter in the videos for the purpose of up loading onto YouTube.
The taxpayer receives income from Google for their YouTube videos based on a share of advertising revenue and the number of views their videos receive.”
It is important to mention that, if you are deemed to be a performing artist then you could be eligible for income-averaging concessions if you had unusually high income in a particular year.
What you need to keep in mind in today’s world is that income from this source can grow quickly if your productions suddenly takeoff and you become a hit. I have clients who take up hobbies that often never become anything other than a hobby, but with the advent of YouTube and other forms of electronic media the capacity to turn into an overnight sensation has increased significantly over recent years.
If you are serious about going down the road of producing YouTube videos or the like (for income) make sure you seek professional advice before you go down this path. If you do not seek the appropriate advice then you may find yourself facing significant tax liabilities. It is not all bad news though because of the income-averaging concessions available as mentioned earlier.
Balanix Solutions is more than happy to provide guidance if going down this road is where you see your future. Like all business adventures success is based upon good planning and strategies and not managing bush fires once they are raging.
David Balwin
FCPA | Registered Tax Agent | Business Advisor
Balanix Solutions – Registered Tax Agent, Accountant, Business Advisor, Bookkeeping.
Situated in Strathpine on Brisbane North, we partner with our clients to assist them in their accounting, business management and bookkeeping needs. Our clients vary in industries from professional services (such as law, vet and dentist) to the trades (mechanic, bricklaying, plasterer etc), hospitality and retail. Are clients are located in the Pine Rivers area (including Brendale, Lawnton, Albany Creek and Eatons Hill) through to Kallangur, Petrie, North Lakes and Caboolture, as well as Brisbane South, the Gold Coast and various other parts of Queensland.
