|
Frequently Asked Questions:
|
| |
1. |
What types of Tax is the University Liable for?
|
|
| |
|
The University is a Charitable Institution endorsed to access the following tax concessions:
Income Tax Exemption - We do not pay income tax or capital gains tax
Tax that we do pay:
GST
As we are registered for Goods and Services Tax (GST) we must remit GST on Taxable Supplies and are able to claim back Imputation Credits on any Creditable Acquisitions.
The University accounts for GST on a Monthly activity statement Prepared by Business Services.
FBT
Fringe Benefits Tax (FBT) is a tax payable by employers on the value of certain benefits, known as "fringe benefits", that have been provided to their employees or to associates of employees in respect of their employment.
The University pays Quarterly FBT instalments and submits an annual return in May Each year.
Other
The University is also required to pay other taxes such as those administered by the Office of State Revenue and is also liable for various withholding obligations to the ATO.
We can also be liable for tax on transactions carried out in jurisdictions outside Australia.
|
TopÈ |
| |
2. |
What are my responsibilities as a finance officer for meeting the University's Tax Obligations? |
|
| |
|
1. |
As a University Finance Officer Taxation responsibilities are as follows:
|
TopÈ |
| 2. |
Responsible for identifying transactions that have taxation consequences "up front"
|
| 3. |
Ensure that you have a working knowledge of GST and FBT.
|
| 4. |
Regularly attend Tax training run through TEDI and be familiar with the resources available internally via the FMPM and also the Australian Taxation Office website : www.ato.gov.au
|
| 5. |
Refer to any available source documentation when determining the GST status of an Acquisition and consider the correct treatment of any supplies made by the University.
|
| 6. |
FBT should also be considered when any benefit is provided to a UQ staff member or associates of employees.
|
|
The Finance and Business Services website contains a range of resources to help you identify and classify Fringe Benefits especially the "Hospitality Calculator". which can be found on Online Forms web page.
The tax compliance team can also visit your School or Faculty and provide hands-on training to finance staff. Please contact the Tax compliance section to arrange a training session x 56133.
|
| |
3. |
I am going to conduct business outside Australia. What tax issues should I consider? |
|
| |
|
You should consider overseas tax obligations "up front" prior to amounts being withheld.
In many cases the Australian Government has negotiated double taxation agreements with foreign governments and our tax exempt status is often recognized overseas.
You should communicate with the withholding party and find out what information they require to avoid the withholding of tax.
Once tax has been withheld it is often difficult to recover amounts as you will need to deal with the tax system of a foreign country.
Please contact the tax compliance section for more information or assistance.
|
TopÈ |
| |
4. |
Why is it so important to code Hospitality expenses correctly? Is my cost centre liable? |
|
| |
|
The University currently captures FBT on Income Tax Exempt Body entertainment expenses through a system of posting codes.
Expenses are apportioned to hospitality provided to UQ Staff and Associates of UQ Staff via account 707410.
Visitors' hospitality expenses are charged to account 707450.
Amounts posted to 707410 automatically incur an FBT liability.
You should be aware that Fringe Benefits tax is levied at the rate of 46.5% on the gross taxable value of a fringe benefit.
The hospitality calculator on the Finance and Business Services website will assist you in making the correct apportionment.
|
TopÈ |
| |
5. |
What Hospitality and other staff expenses can be allocated to account 707360? |
|
| |
|
Amounts posted to 707360 only relate to certain hospitality expenses that are not subject to fringe benefits tax.
For example: A light lunch consumed at an eligible seminar of more than four hours.
Meals consumed in a restaurant or other similar venue as a "working lunch" should never be coded to 707360 - instead the hospitality calculator should be used and amounts correctly apportioned to accounts 707410 & 707450.
If you are providing other fringe benefits to staff please contact the Tax Compliance team and we can discuss methods to correctly capture other benefits you provide.
You should also note that the reimbursement of private expenses will always attract fringe benefits tax
|
TopÈ |
| |
6. |
How do tax codes in UniFi work? Why are they relevant? |
|
| |
|
Tax Codes assist in the preparation of the Universities Business Activity Statement (BAS)We are required by law to report the different types of supplies and acquisitions we make.
Tax codes also allow the correct attribution of GST component of a transaction to be updated in the central GST clearing accounts and a monthly refund claimed from the ATO.
If you need assistance with tax codes and their application to a transaction please consult the UniFi Help function or contact the Assistant Tax Compliance Officer for an explanation.
The tax compliance team is more than happy to carry out practical training to assist Finance Officer's in coding transactions.
Please contact the tax compliance team to arrange a time for training.
|
TopÈ |
| |
7. |
What are the consequences if I am not issued an ABN? |
|
| |
|
Under the PAYG system, a business must withhold at the top marginal rate plus Medicare levy (currently 46.5 per cent) from a payment it makes to a supplier if the supplier does not quote an ABN.
Under the GST system you must have an ABN in order to be registered for GST.
If you are not registered for GST you can not charge GST nor claim refunds for GST paid.
|
TopÈ |
| |
8. |
How will I know if the price includes GST? |
|
| |
|
All prices; for example on supermarket shelves must be GST inclusive i.e. the price shown is what you will pay.
If you divide the gross price shown by 11 that will calculate the GST paid on the transaction.
Businesses that charge GST, must issue a Tax Invoice which will allow the University to clearly determine the GST paid and enable a refund from the tax office.
If an invoice is not provided and you have been charged GST on a transaction you will need to contact the vendor for a Receiptant Created Tax Invoice to enable claiming of GST.
|
TopÈ |
| |
|
|
|