Question: An employee started on 29.5.12 then become permanent 27.8.12. When calculating LSL what date do I calculate from? Answer The Long Service Leave Act 1955 (the Act) provides full-time, part-time, and casual workers (or any combination of these throughout the period of service) in NSW to 2 months (8.6667 weeks) paid long service leave on completion of 10 years’ …

Question: We have a staff member who has been encouraged to have the Astra Zeneca Vaccine. “As recommended by my doctor and due to existing medical condition, I need to have Vaccine (Astra Zeneca).” It is for the entire day so have asked if they can submit the day off as sick leave? If everyone wants a day off to …

Question: Please advise if when using the statutory formula method for calculating FBT payable, if we should be using Type 1 or Type 2. Please provide an extract from the legislation if possible. Answer The difference between a Type 1 fringe benefit and a Type 2 fringe benefit is whether the amount is entitled to a GST credit. Type 1 fringe benefits are a GST …

Question: A quick question on an employee’s termination pay. A staff member worked full time before their maternity leave. Due to the COVID impact and their young child, changed to a different position and worked reduced hours after their return. However, the new role is no longer available, and the business has decided to pay them their redundancy and in …

Question: One of our employees is moving to China and will still work for us remotely. Is there anything we need to consider for tax purposes under this situation? Do we still need to withhold PAYG tax? Although the employee will be in another country, she will still have her TFN and Australian banking account. Answer In the event the …

Question: I know that the small company tax rate will be reduced to 26% from the year 2021/22. So far, the company has franking account balance on 30/06/2020 as below: Total profit $190,000    Tax (27.5%): $52250 all paid. If the company wants to distribute $100,000 profit to its shareholders(two), In this case, it is my understanding that the franking credit …

Question: Two employees have been doing extra days/hours for the entire term 1. Regarding the 2 weeks holidays approaching (in which we do not work) are they entitled to be paid for the hours they have worked during term 1 or do they go back to their normal hours? Also, we have an employee that has been absent (LWP) from …

Question: We have a new client they are a small family partnership. The previous accountant has deferred all the losses from the business activity. I believe this may have built up to approximately $200,000, for both partners. I suspect this was to enable the client to receive the Age Pension. Apart from a small holding of shares and age pension …

Question: Withholding Clearance – House Sold Over $750k Query please – client sold a house and was one day late with the certificate of clearance, so  $50K was withheld. Spoke to the ATO and they said I cannot lodge a 2021 tax return  now (by paper) to recoup the funds – the client needs the money now, not in say …