Key Tax Solutions

Ana is our reliable and dedicated office coordinator and bookkeeper, who always keeps the office running smoothly. Having been with us from the very start, Ana knows everything about Key Tax Solutions, and takes meticulous care of our administration and bookkeeping tasks, while also supporting her clients to improve their own internal financial administration systems.

With a background in marketing and mortgage finance, Ana’s people skills and commitment to customer service drive her passion to see her clients succeed. But it’s her supportive, professional and empathetic nature which set the standard of service that our clients know us for.

When she’s not at work, Ana spends her time with her two adult children and her gorgeous 12-year-old black Cavoodle. She also enjoys challenging herself to try new things, having completed the gruelling Tough Mudder course back in 2013.

With Ana’s dedication to providing an excellent client experience, you know you’re in great hands with Key Tax Solutions.

How do you calculate your car’s Fringe Benefits Tax?

The current FBT (Fringe Benefits Tax) year is finishing soon, on 31 March 2027.

I thought I would discuss the most common fringe benefits, motor vehicles. There are two methods to calculating your Fringe Benefits Tax on motor vehicles - Statutory Formula and Operating Costs.

Statutory Formula is based on the value of the vehicle when it was purchased, including GST. The statutory rate is 20%. For example, if your business owns a BMW acquired for $90,000, your fringe benefit is $18,000. The FBT debt is calculated at $18,000.

Please be aware that you can only claim depreciation deductions for $69,883 on motor vehicles in the 2027FY.

The best way to reduce your FBT on your motor vehicles is by using the Operating Costs method for calculations. You will need to complete a log book to work out the business percentage use. You will calculate all running and ownership costs related to the motor vehicles. The private use percentage is the value of your fringe benefit and the value used to calculate your FBT debt.

Sometimes the Fringe Benefits Tax can be more than the deductions on luxury cars.

Maybe the property you require is above your individual credit limits and using both incomes and other equity is needed.

Having two unrelated parties who trust each other does give you a lot more flexibility. Some of the structure options are:

Your own names as partners, you could even add spouses to the title.
Set up a trust, Fixed Unit Trust is best. Both partners will own the units in the trust, ie. this is their equity contribution. The trust can borrow the funds.

Set up an SMSF together and use the SMSF to buy the property.
Using a Fixed Unit Trust, both partners set up their own SMSF and buy units in the trust. SMSF provide the equity, the trust borrows the funds.

I would not recommend buying the premises in your trading entity. This way your asset is protected from any potential liability or solvency issues in your trading entity.

There are a few more issues, feel free to reach out if you would like to learn more.

Vicky is one of our hard-working and motivated Accountants, with a passion for teamwork, problem-solving and finding the right solutions for her clients every time.

With a Bachelor of Business and Cert II in Office Administration, Vicky joined Key Tax Solutions in 2021. She is a Member of CPA Australia and has more than 15 years of accounting experience.

Vicky never backs down from a challenge and draws on her vast experience to prepare small business accounts and tax returns accurately, with a personalised approach and a willingness to help.

When she’s not at work, Vicky is very active and loves to spend time outdoors. She is always setting new goals to help her grow and become a better person, and she channels her willingness to learn and adapt into her work each day, ensuring she continues to meet her clients’ evolving needs.

We are excited to announce that Vicky is now an authorised tax agent at Key Tax Solutions. Need your income tax return prepared? We can now offer more appointments in the office, or remotely at more times that suit you. Get in touch with us today 02 9774 4412.

You may be aware that It is compulsory to register for GST when your sales are above $75,000. This includes the sale of a commercial property. One of the reasons for registering for GST is a one-off commercial transaction, which selling a commercial property is.

If you do not register for GST and you sell your commercial property, you can be held liable for 1/11th of the sale price as GST. This could potentially cost you tens of thousands of dollars.

Purchasers of commercial property should also register for GST. If the purchase is a creditable acquisition you will be able to claim the GST on purchase, i.e. receive a large GST refund. Another advantage is, that the banks are happy to fund the purchase GST-inclusive. Having this refund is great to fund any small repairs or improvements you would like to make to the property before moving in.

You might have heard of people not charging GST on these transactions. This can be the case if the Going Concern test is passed. However, both the seller and the buyer of the commercial property still need to be registered for GST.

There are a few more issues, feel free to reach out if you would like to learn more.

https://www.keytaxsolutions.com.au/contact_us

One of the greatest compliments we can receive is the trust of a long term client.

Thank you for your wonderful review and for choosing Key Tax Solutions since 2007. Knowing that you have found our team efficient, knowledgeable, friendly and reliable over so many years means a great deal to us.

We believe great accounting is about more than numbers. It's about building lasting relationships, providing clear advice and being there when our clients need us.

A sincere thank you for your recommendation and continued trust. We look forward to supporting you for many more years to come.

Do you know whether your business will be affected by the new Anti Money Laundering laws which are now in place from 01 July 2026?

Many company directors use their accountant's office as their registered company address and assume nothing will change.

In reality, these new laws will introduce additional compliance requirements for accounting practices that provide this service, including customer due diligence, ongoing monitoring, record keeping and regular reviews.

My concern is that many businesses will only discover what is required when the deadline has passed.

At Key Tax Solutions, we have already put the necessary systems, training and processes in place to meet these obligations and support our clients.

If you currently use your accountant's address as your registered office, now is a good time to understand what these changes mean for your business.

If you are unsure whether these reforms will affect your company, please get in touch with our team. A short conversation today could save a lot of time and uncertainty later.

The new financial year is an excellent time to review your subscriptions and direct debits. Many businesses carry unnecessary expenses into the new financial year without realising it.

Consider tracking all recurring software and service subscriptions in a subscription register. The register should include the cost and the next renewal date.

Cash flow for a small business is crucial! Managing your subscriptions and direct debits with a structured approach will help identify unused licences and prevent accidental automatic renewals.

Don’t forget to also check your bank and credit statements regularly to catch any unnecessary charges.

Many years ago, one of my trade-based clients, Kevin, won a large government contract worth around $1.6 million per year over a five-year term — roughly $8 million in total.

Kevin had spent a couple of years pursuing government contracts and had been building his business to handle work of this scale. Once he won the contract, he hired an additional 20 staff to deliver the project within the required timeframe. The first year went smoothly: deadlines were met, and the customer was happy. Everything was going well.

Then, at the start of year two, the government department decided it no longer needed the full scope of works agreed in the contract, and would instead only require around $400,000 worth of services per year. Kevin had built his business around the original contract value — not just in staffing, but in vehicles, computer equipment, software subscriptions, additional insurance, and expanded office space and fit-out.

Losing $1.2 million in annual income was devastating for Kevin and his business. He'd borrowed funds to grow the business and had taken on ongoing costs and commitments he could no longer meet. With surplus staff on the books — and being over 15 employees in NSW — we had to have serious conversations about redundancies.

We also had to work through some difficult discussions around solvency and restructuring. It was a hard few years for Kevin, and a clear reminder that relying too heavily on one source of income always carries risk.

One of the most rewarding parts of my job is working with clients over many years and being part of their journey.

Thank you, Maureen, for your kind words and for trusting my team and me with both your personal and business accounting needs for more than 25 years.

Relationships like these are something I never take for granted. Our goal has always been simple. Provide honest advice, be available when our clients need us, and make the accounting side of life and business as straightforward as possible.

Thank you again for your continued support.