Understanding tax jargon when you’re a care provider

As an NDIS or My Aged Care provider, looking after your tax arrangements can be a daunting prospect. There are so many acronyms and jargon thrown around that it can be hard to understand what is being said, let alone what you need to do.

 Here is some basic information that will help you decipher the most common tax terms you will encounter as a small business.

ATO: Australian Taxation Office. This is the government agency that looks after taxation in Australia.

 ABN: Australian Business Number. This a unique 11-digit number to identify your business. It’s simple to register for your ABN, you can apply online for your ABN here.

 GST: Goods and Services Tax. While many of your services may not require you to charge GST, your business will be required to be registered for GST if your turnover is more than $75,000 per year (or if you are a taxi or ride-sharing driver). Contact the ATO or your tax agent to register for GST.

 BAS: Business Activity Statement. This is a form that reports your tax obligations to the ATO. This form is completed annually, quarterly or monthly depending on your business reporting obligations.Don’t worry, the ATO will let you know if and when you’re required to complete a BAS.

 PAYG: Pay As You Go. This is when you pay regular, smaller amounts of your expected tax liability to the ATO, rather than one large payment at the end of the year.

 PAYGW: Pay As You Go Withholding. These are amounts that you have withheld from your staff to contribute towards their tax liabilities. You must register for PAYGW before before making a payment to staff that is subject to withholding.

 ABR: Australian Business Register. All ABN registrations are kept on this public register.

 FBT: Fringe Benefit Tax. This is a tax that employers pay when they offer their employees extras in addition to their pay. Such as the use of a company car on the weekend, car parking, different memberships (gyms, sporting clubs) and social events (including social functions, parties).

 

PROVIDER can help you

PROVIDERplus are the experts when it comes to the NDIS and My Aged Care. If you’re a care provider looking to transform into a high quality and successful business, become a PROVIDERplus member today. As a member you’ll receive essential support, knowledge and resources to demystify the NDIS and allow your business to thrive. Call 1300 852 790or click here  to find out more.

 

 

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