Sunshine Coast Region, Queensland
Business Accountant in Kawana Waters
Moving the business into a company, and getting the GST back on an invoice that never got paid
Business structuring, BAS and business tax for Kawana Waters businesses, from a CPA practice.
Kawana Waters is an urban centre of seven suburbs between Caloundra and Maroochydore: Birtinya, Bokarina, Buddina, Minyama, Parrearra, Warana and Wurtulla. Construction on Kawana Island began in 1960, Nicklin Way opened in 1965, and the name became official on 1 November 1968. Kawana Shoppingworld is among the facilities in the area.
An estate that became an urban centre
Kawana Waters in brief.
Earthmoving between 1970 and 1995 uncovered more than 100 pieces of unexploded ordnance from World War II training. The broader Kawana Statistical Local Area grew from 5,261 people in 1981 to 22,593 in 2011. Kawana Waters is not an official suburb, so the ABS publishes no 2021 Census profile for it.
Three questions for an established business
Moving into a company without a tax bill on the way in
Why it happens
A business started as a sole trader or partnership and now wants a company, for example as income grows or new owners come in.
Why it matters
The small business restructure roll-over lets an entity with aggregated turnover under $10 million transfer active CGT assets, trading stock, revenue assets or depreciating assets to a new entity without income tax arising at the time. It must be a genuine restructure of an ongoing business, and the individuals who ultimately own the assets, and each one's share, must stay the same. It doesn't apply to GST, FBT or state stamp duty.
How we help
Choosing the right structure influences tax outcomes, asset protection, and how your operations scale. Once a direction is chosen, we handle the steps to implement it properly.
The 3-year safe harbour
Why it happens
The owners restructure, then consider selling an asset or bringing in a new owner soon after.
Why it matters
A restructure is treated as genuine if there is no change in the ultimate economic ownership of the business's significant assets for 3 years after the roll-over and they keep being used in the business. Falling outside the safe harbour doesn't automatically fail the roll-over, but the general test then has to be met.
How we help
Keep a record of the commercial reasons for the restructure at the time you make it.
GST on an invoice that was never paid
Why it happens
A customer stops paying, and the GST on the sale has already gone to the ATO in an earlier BAS.
Why it matters
A business accounting for GST on a non-cash basis can claim a decreasing adjustment of 1/11 of the unpaid amount once the debt is written off as bad or has been overdue for 12 months or more. If the customer pays later, an increasing adjustment follows. A debt that has been forgiven can't be written off as bad.
How we help
We can work with your existing tools or implement cloud software to streamline approvals and document storage. Run an aged receivables report each quarter.
Frequently asked questions
Can I move my Kawana Waters business into a company without paying CGT?
Possibly, under the small business restructure roll-over, if aggregated turnover is under $10 million, it is a genuine restructure and ultimate ownership doesn't change.
What doesn't the roll-over cover?
GST, FBT and state stamp duty. It is an income tax roll-over only.
Can I get the GST back on an unpaid invoice?
Yes, if you account for GST on a non-cash basis and the debt has been written off as bad or is 12 months or more overdue.
Where to next
Main page
Business accountant on the Sunshine Coast
Nearby areas
- Business accountant in Caloundra
- Business accountant in Mooloolaba
- Business accountant in Sippy Downs
Related services
Get in touch
Have a question?
Plan the restructure
With the routine handled, you can focus on running the business with current and dependable numbers.
Lomandra Accounting is a CPA Practice, registered with the Tax Practitioners Board and an SMSF Specialist. Emma, the Director, is a Certified Practicing Accountant (CPA) with extensive experience in commercial business management, and specialises in Self-Managed Super Funds (SMSFs).
- 07 5234 9201
- admin@lomandraa.com.au
- Sunshine Coast, QLD
- Monday to Friday, 9am to 4:30pm