Sunshine Coast Region, Queensland
Tax Accountant in Kunda Park
The personal tax of the people who own the businesses on the estate
Personal tax for company directors, trust beneficiaries and owners of Kunda Park businesses, from a CPA practice.
Kunda Park is almost entirely industrial land, 5.0 km north-west of Buderim, with only 22 residents at the 2021 census. For the owners and directors of businesses there, three personal tax questions follow: directors' fees, trust distributions and personal liability for the company's tax.
Kunda Park in brief
Cabbage tree palms and industry.
The Queensland Place Names Board named the township on 1 May 1975, from gunda or konda, the Kabi words for the cabbage tree palm; before that, locals knew the area as Crete. Eudlo Creek runs along its northern edge, with a conservation park beside it. The Maroochydore Regional Football Complex and the Maroochydore SES facility are also in the suburb.
Three questions for owners and directors
Directors' fees
Why it happens
A company on the estate pays its owners directors' fees as well as, or instead of, wages.
Why it matters
Directors' fees must be reported separately through Single Touch Payroll, for working and non-working directors, and the tax withheld still goes on the activity statement. The company can generally deduct the fees only if it meets its PAYG withholding and reporting obligations for each payment. The director declares the fees in their own return.
How we help
Check that each director's fee appears in your payroll software, not just as a journal entry.
Trust distributions taxed before they're paid
Why it happens
A business is run through a family trust, and the trustee resolves to distribute income to family members but leaves some of it in the trust.
Why it matters
Beneficiaries are taxed on their share of the trust's net income whether or not it is actually paid to them. Entitlement is tested at 30 June. Where no beneficiary is entitled to part of the income, the trustee is taxed on that part.
How we help
Keep a copy of each year's distribution resolution with your personal tax records.
When the company's tax becomes the director's
Why it happens
A company falls behind on its PAYG withholding, GST or super guarantee.
Why it matters
The ATO can recover those unpaid amounts from current or former directors personally, through a penalty equal to the unpaid amount. If the company doesn't report its PAYG withholding or GST within 3 months of the due date, or misses its super guarantee statements, the penalty is locked down and can't be remitted by appointing an administrator or liquidator. The penalty is remitted if the company pays the debt.
How we help
Lodge the company's BAS on time even when it can't pay in full.
Frequently asked questions
Do directors of a Kunda Park company pay tax on directors' fees?
Yes. Directors' fees are income in the director's own return, and the company reports them through Single Touch Payroll.
Am I taxed on a trust distribution I haven't received?
Yes. A beneficiary is taxed on their share of trust net income whether or not it has been paid.
Can I be personally liable for my company's unpaid tax?
Yes, for unpaid PAYG withholding, GST and super guarantee charge, under the director penalty regime.
Where to next
Have a question?
Before the next BAS
Bring the company's latest activity statements and the trust's distribution resolution.
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