Remote Bookkeeping and OnLine Accounting Services Australia

Businesses are required to prepare and lodge appropriate statements periodically depending on the activities being reported and the type of taxes to be paid. In addition to taxes on income, fringe benefits (FBT) and goods and services (GST), the Australian government may issue new taxes and mandatory payments as part of its revenue-generating authority. It is the obligation of every business to observe new tax rules in order to remain tax compliant which is why Quickbooks Online accounting software has incorporated the recent 2011/2012 Tax Table Update and Parental Leave Pay computation.

Reliable payroll and accounting programs such as Quickbooks online accounting software are constantly updated to include new formulas, tax tables, and rates which promote business compliance of new tax schemes.

Paid Parental Leave

Under the new Paid Parental Leave scheme, employers must provide Parental Leave pay to qualified employees in an amount equivalent to 18 weeks of National Minimum Wage. This pay is fully funded by the government and taxable.

Flood Levy

The government introduced a flood levy applicable for the income year 2011/2012 which will be used to assist communities affected by the recent floods and to rebuild essential infrastructure damaged as a result.

The flood levy applies to all individual taxpayers whose taxable incomes are more than $50,000 in the income year 2011/2012. Individuals who report a taxable income equal to or less than the threshold amount and those who were recipients of the Australian Government Disaster Recovery Payment for a flood event in the previous revenue year are exempt from paying the flood levy.

The ATO has issued new tax tables for the income year 2011/2012 to aid the employers in determining the total amount of withholding taxes of employees subject to the flood levy and of those exempt from the levy.

Fuel Tax Credit Changes

Fuel tax credit allows businesses that use fuel in the course of business to claim a tax credit in their activity statement. When calculating this tax credit, it is important for a business to use the latest rates applicable to it. Starting on July 01, 2011, the fuel tax credit rate was reduced. The change affects heavy vehicles that use fuel such as diesel and petrol and which travel on public roads.

Impact on users of payroll software

Employers must use the new tax tables and formulas for calculating the amounts to be withheld from the employee’s wages. The new tax credit rates for fuel must also be considered for qualified businesses. Users of payroll software such as quickbooks online accounting system need not worry about making adjustments to their software as the Quickbooks has already incorporated the 2011/2012 Tax Table Update, the Paid Parental Leave scheme and reduced fuel tax credits in its system.