STUDENT NAME: IMRAN JAVED STUDENT ID: VTI18T1458

Financial compliance and tax liabilities report

The purpose of this report is to explain to the principal consultants the key financial compliance
requirements and tax liabilities of grow management consultants.

Financial compliance
Grow management consultants has a clear finance policy and procedures in place to prevent funds from
being misappropriated. This finance policy includes a finance authorization policy, a petty cash policy, a policy for
using business credit cards, and a policy for new suppliers.
Finance authorization policy establishes the procedure and authority for approving any financial
transaction, such as the CEO/Finance Manager's delegation to approve bank account transactions. Petty cash policy
states that business expenses up to $100 can be met with petty cash when bank payments and business credit cards
are not justified or appropriate. For this purpose, petty cash vouchers must be used. The policy on the use of
business credit cards outlines the process for issuing and using business credit cards. The maximum limit for grow
management consultants employees is $500, which can be used for travel, authorized entertainment, and the
purchase of small value equipment. According to the new supplier policy, all new suppliers must be reviewed and
accepted in accordance with the procedures outlined in this policy. This includes conducting background checks on
new suppliers.

Tax liabilities
Grow management consultants must comply with all tax obligations in order for their business to run
smoothly. In Australia, the corporate tax rate is 30%, but this rate could be reduced if grow management consultants
are classified as a small business or a base rate entity (Australian Taxation Office, 2019). General Sales Tax (GST),
Pay As You Go (PAYG) withholding obligations, PAYG income tax installments, payroll tax obligations, and
superannuation entitlements are all examples of tax liabilities.

GST reporting requirements

Grow management consultant has a GST turnover of more than $75,000, so the company must register for
GST purposes. According to the Australian Taxation Office (Australian Taxation Office, 2019), the current GST
rate is 10%, and Grow management consultants is required to report GST quarterly.

PAYG withholding obligations

PAYG withholding tax is the amount withheld by Grow Management Consultant from certain payments
such as: payments to employees, payments to workers under labor hire, payments under voluntary agreements, and
payments where the supplier has not provided an Australian Business Number (ABN).

PAYG income tax installment

PAYG income tax installments are the regular amounts paid to the Australian Taxation Office by growing
management consultants (ATO). It differs from the PAYG withholding tax, which is paid on behalf of others. The
purpose of PAYG installments is to reduce the entity's one-time tax burden.

Payroll tax obligations

Payroll tax is the amount deducted from eligible entities by each Australian state. Grow management
consultants have offices in all of Australia's major cities, including Sydney, Brisbane, and Melbourne. Grow
management consultants must register for payroll tax obligations in all states where they employ location people and
meet the threshold limit, which includes Victoria, New South Wales, and Queensland. As a result, the payroll tax
thresholds in each state are as follows:

State Threshold per month ($) Threshold per annum ($) Rate (%)

ACT 166,666.66 2,000,000 6.85

NSW 72,192 (31 days month) 850,000 5.45

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BSBFIM601 MANAGE FINANCE
STUDENT NAME: IMRAN JAVED STUDENT ID: VTI18T1458

NT 125,000 1,500,000 5.50

QLD 108,333 1,300,000 4.75 or 4.95

SA 125,000 1,500,000 0-4.95 (variable)

TAS 106,164 (31 day month) 1,250,000 6.1

VIC 54,166 650,000 4.85 or 2.425 (regional)

WA 79,166 950,000 5.5 (variable)

(Source: Payroll Tax Australia, 2019)

Superannuation entitlements
Grow management consultants must pay super for each employee who earns $450 or more before taxes.
The super guarantee rate is currently 9.5 percent of an employee's salary. If you do not rate your super on time, you
may be subject to a super guarantee charge.

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