Assessment Tasks BSBFIM601 Manage finances Page | 4 BSBWHS302 Apply knowledge of WHS legislation in the workplace v2.1 September 2016 Copy rights Reserved Assessment Information The assessment tasks...

1 answer below »

View more »
Answered Same DayMar 15, 2020BSBFIM601Training.Gov.Au

Answer To: Assessment Tasks BSBFIM601 Manage finances Page | 4 BSBWHS302 Apply knowledge of WHS legislation in...

Pulkit answered on Mar 19 2020
143 Votes
Assessment Task 1
Answer 1
Main taxation and superannuation obligations for a business-
Australian business number (ABN): This number helps a business to manage all its tax and other business obligations. The number is used as a reference while communicating with Australian Tax Office (ATO) and other government departments. Thus this number acts as an identification number for the business entity and is used by several agencies for identifying the business. So the first crucial aspect that is to be considered for obligation of a business is getting this number.
Goods and Services Tax: Goods and services tax is an indirect tax which is charged on the supply of goods and services by a company. When a customer is billed for any goods or services
he is charged this tax by the vendor who is responsible for depositing it to the government’s account. Depending on the turnover, a business might have to get registration under Goods and Services Tax. Majorly tax rate is 10% on the goods and services supplied in Australia.
Business Activity Statement: This is the statement lodged with ATO so as to inform the activities of the business and to pay taxes. This statement can be submitted online through business portal. The Business Activity Statement can be submitted on a quarterly, half yearly or on annual basis depending on which for the business is eligible.
PAYG: This lets a business pay unexpected liabilities in installments.
Fringe Benefit Tax: If the employer or any other person on his behalf provides and kinds of benefits to its employees then this tax is payable by them. Also, a return is also required to be lodged by them for this every year.
Payroll Tax: In case the weekly payment of wages by an employer exceeds a certain amount then he is also liable to pay payroll taxes.
Superannuation guarantee obligations: Either a charge can be paid to the ATO by the employer or some small amount is required to be fixed so as to pay as superannuation to the employee.
Withholding tax: There is certain tax which has to be withheld by the employer while making payment to the employee.
Answer 2
For the companies whose turnover is less than $25 million for the 2017–18 income year (i.e., small companies) is required to pay tax at the rate 27.5%
For all other companies (i.e., large companies) the tax rate is 30%.
Answer 3
Cash accounting is the one form of accounting where the recording of transaction is based on actual inflow or outflow of cash in or outside the business. That is to say that a transaction will be recorded in books of accounts when it becomes visible by actual flow of cash. Thus all the expenses in the business are recorded when they are actually paid that outflow of cash takes place and all the incomes are recorded when they are actually received in cash i.e., actual inflow of cash takes place inside business. Cash accounting is a simpler form of accounting as compared to accrual one. In cash accounting what is to be taken care is the inflows or the outflows of cash in and outside the business and nothing else.
Answer 4
Advantages of Cash Accounting System:
Very simple in nature: The biggest advantage of cash system is accounting is that it is very simple. It is simple in terms that the expenses are recorded when the actual cash inflow takes place and the incomes are recorded when actual cash is disbursed.
Deferment Taxes: Cash method of accounting also defers the tax liability that arises on a business. Since revenues are recorded only when cash is actually received it takes into account the credit period allowed to customers. Thus the income becomes taxable only when the customer actually pays cash despite that fact that the sale might have completed before only.
Disadvantages of Cash Accounting System:
No tracking of actual transactions: Since cash accounting is very simple it does not allow tracking of actual transactions. Actual dates of purchases and sales may have been different and the date of recording them in books in this method of accounting would be different.
Additional record keeping is required: Since the books of accounts do not record the transaction on due basis actual balances of debtors and creditors might sometimes be difficult to ascertain. Thus it becomes difficult to get the actual balances until and unless there are separate set of books required to be maintained by the businessman for his reference.
Answer 5
The concept of accrual accounting is based on due basis. The transactions are recorded in the period in which they actually occur irrespective of the cash flow of these transactions. Thus the incomes will be recorded in the period in which they are earned and expenses will be recorded in the period in which they are incurred. Accrual form of accounting is although not as simple as cash method but is more reliable in terms of depicting correct picture of the business. This method of accounting works on the lines of matching concept of accounting where expenses and the revenues are to be recognized in the period in which they are incurred or in other words in the period to which they belong. It is no needed to check whether actual cash flow has occurred or not.
Answer 6
Advantages of Cash Accounting:
Very simple in nature: The biggest advantage of cash system is accounting is that it is very simple. It is simple in terms that the expenses are recorded when the actual cash inflow takes place and the incomes are recorded when actual cash is disbursed.
Deferment Taxes: Cash method of accounting also defers the tax liability that arises on a business. Since revenues are recorded only when cash is actually received it takes into account the credit period allowed to customers. Thus the income becomes taxable only when the customer actually pays cash despite that fact that the sale might have completed before only.
Disadvantages of Cash Accounting:
No tracking of actual transactions: Since cash accounting is very simple it does not allow tracking of actual transactions. Actual dates of purchases and sales may have been different and the date of recording them in books in this method of accounting would be different.
Additional record keeping is required: Since the books of accounts do not record the transaction on due basis actual balances of debtors and creditors might sometimes be difficult to ascertain. Thus it becomes difficult to get the actual balances until and unless there are separate set of books required to be maintained by the businessman for his reference.
Answer 7
The process to report and pay GST to the government is by lodging an annual GST return or a Business Activity Statement (BAS). The BAS is sent by the ATO before few days of due date. This statement is divided into labels which are required to be filled by the business and submitted to ATO. This statement can be submitted online through business portal. The Business Activity Statement can be submitted on a quarterly, half yearly or on annual basis.
Answer 8
The penalty rate is the top rate of tax which is required to be withheld from the payment being made to the supplier for the goods or services supplied by him in case he does not provide ABN.
Answer 9
A Non-Profit (NFP) organization needs to register for GST if has a turnover of $150000 or more.
Answer 10
Since an employee is a worker in the business the payments must be made to them only after proper withholdings. Although this does not apply in case of contractors since he is self-employed and provides services to the business.
Answer 11
Large...
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here
April
January
February
March
April
May
June
July
August
September
October
November
December
2025
2025
2026
2027
SunMonTueWedThuFriSat
30
31
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
1
2
3
00:00
00:30
01:00
01:30
02:00
02:30
03:00
03:30
04:00
04:30
05:00
05:30
06:00
06:30
07:00
07:30
08:00
08:30
09:00
09:30
10:00
10:30
11:00
11:30
12:00
12:30
13:00
13:30
14:00
14:30
15:00
15:30
16:00
16:30
17:00
17:30
18:00
18:30
19:00
19:30
20:00
20:30
21:00
21:30
22:00
22:30
23:00
23:30