If you work as a GP or are involved in running a general medical practice you would be aware of the various state revenue offices reviewing the payment methods of GP practices and the application of payroll tax legislation regarding those payments.
BENEFITS OF CHECKING YOUR QBCC FINANCIAL REQUIREMENTS BEFORE 30 JUNE
As the financial year draws to a close, it's important for businesses in the construction industry to review their financial information and how they comply with the QBCC financial requirements for their licence category
The financial information reported to the QBCC is based on the financial year and after 30 June it may not be possible to make changes to comply with the financial requirements
There are three key areas to check :
1 - TOTAL TURNOVER (INCOME)
This is not only income from construction, but also any other income the business receives. The only exemption to this is if you are a sole contractor and also receive wages from an employer. These wages aren’t included.
2 - CURRENT RATIO
This is your current assets divided by current liabilities. This needs to be at least 1 to 1. Current assets include cash, debtors (adjusted for amounts that are older than 180 and 360 days), work in progress and stock. Current liabilities are financial obligations you must meet within the next 12 months, including creditors, ATO payments and the 12 months loan payments. Amounts owing from or to related parties are not included.
3 - NET TANGIBLE ASSETS (NTA)
NTA governs the amount of turnover you are allowed. The greater the turnover the more NTA you are required to have. NTA is based on total assets and liabilities. You need to be aware there are certain disallowed assets including aged debtors and related party loans (as mentioned above) and also intangible assets
The following link will assist with understanding the requirements
If you have any queries regarding the above, please contact your friendly Eagle accountant