Company Money vs. Your Money

When you’re an owner, a shareholder, or director of a company, it’s easy to blur the lines between your company as a “separate legal entity” and yourself as a person. It’s important to remember that company money cannot be used flippantly for personal transactions, as the funds belong to the company, not you.

The Australian Tax Office requires that all company transactions are recorded and declared. It is not illegal to use company money for personal reasons, however, it’s important to make the distinction and keep all records. There are many ways that you can report these transactions, including dividends, fringe benefits, and salary payments.

For more information, read this article from the ATO Small Business Newsroom.

If you’re not sure whether you’re correctly keeping your records and reporting transactions correctly, get in touch with us to straighten things out.

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Payroll Tax: Pay It!

Account Daily’s article warns business owners of the increased penalties associated with avoiding payroll tax payments. Points to note from the article are as follows:

  • Penalties to increase by 400%

  • Penalties include jail time and fines of up to $110,000.

  • Revenue NSW may ‘name and shame’ offending businesses. This information is to be made available to Fair Work in supporting wage theft investigations.

  • Penalties will apply to those disposing of, falsifying, or poorly keeping their records.

  • Second-time offenders found avoiding payroll tax will incur harsher penalties.

The government is also calling for the establishment of a national framework to thwart wage theft.

Read the article