The Latest Update on Tax and GST for Family Day Cares
Author │ Showkat Chowdhury – MAS Tax Accountants Campbelltown
July 2017
Since the start of 2016, the Australian Taxation Office (ATO) have tighten the policies on Tax and GST for Family Day Cares (FDC). As the ATO are conducting reviews on FDC activity statements and tax returns, some tax and GST implications for Family Day Care may arise this end of financial year. The ATO are checking how FDC businesses are claiming their work-related GST returns and expenses, if they have the correct paperwork to support their claims.
At MAS Tax Accountants Campbelltown, we specialise in the tax and accounting matters for Family Day Care businesses and educators. Working with FDC Centres from the local area, we can also help you to manage and lodge your 2017 tax return.
GST Implications for Family Day Care Centres:
To help FDC Educators better understand their tax and GST position, we have complied a quick update on Tax and GST for Family Day Cares. Please note, that this is general information and you should consult with your Accountant for more personalised tax advice.
How GST can be applied to your FDC business
As you would already know, the income generated from a FDC is GST free; however your business-related expenses are GST inclusive. By registering your FDC business for GST, you may be able to claim the GST amount paid on your expenses back in your tax refund. This can help you to increase your refund amount, giving you more money to spend on the things you want – such as your everyday costs and spoiling yourself or the children in your care.
To be able to make these GST claims on your tax return, you must keep all of your business-related receipts and invoices, as a record of your spending. If you try to make a tax deduction claim without the correct paperwork, and are later audited by the ATO, you may risk facing a hefty fine or penalties.
This process can also help you to keep track of your quarterly income and expenses records, which will make your annual tax return much easier to prepare and process.
Which business items can you claim GST on?
This is quite a difficult question, as the deduction list is very long and can vary between business structures. Depending on the business expense, you may be able to claim the full, partial or no amount of GST back in your return.
As it can be complicated, it is best to speak with an experienced FDC Accountant and receive expert, personalised advice.
Learn more about our Campbelltown office, including the Tax, Accounting and Business services that we provide.
For more FDC Tax and GST information or to schedule an appointment, please contact us below or call us on 0433 848 311
