“Everything comes down to having the right mindset. For me, I’m not motivated so much by money; it’s a bi-product of what I love doing. What’s important to me is making a difference and giving my clients that chance to succeed,” says Adarsh Dutt, virtual CFO and co-founder of accounting firm Oyster Hub, which specialises in helping not-for-profits organisations and National Disability Insurance Scheme (NDIS) businesses.
—Published in Accountants Daily
How I help NDIS Businesses
My holistic Approach | More than just a tax accountant firm
My approach to all business is to focus on what the owner's purpose is. Many NDIS businesses are focused on caring for their patients and get stuck with tax and compliance issues.
Your NDIS Consultant
As an NDIS accountant we can help with more than what a traditional accounting service offers. From NDIS business structures, to NDIS tax deductions and claiming we have your back.
Focusing on your purpose
You can get advice from the best accounting firms in Australia. Oyster Hub is an award winning CFO service provider. One of the reasons for this is that we help providers grow their personal wealth in addition to improving their participants lives.
An NDIS Accountant
Looking to start an NDIS business? Before you start an NDIS registration make sure to find an NDIS tax account who understands your business. Many accountants don’t understand how to prepare an NDIS provider for the realities of running a NDIS business.
Why you need an NDIS bookkeeping service
Running an NDIS business is not the same as a regular business. You need to ensure that you keep accurate records for yourself, the ATO and NDIS. You’ll also need to make sure that you are claiming from the NDIS portal and ATO properly. Let us help with that with our NDIS Consulting Services.
Client Success Stories
We are passionate about genuinely
helping families and small business owners
find their pearl with the best intentions at heart.
Many NIDS businesses have approached me with complaints that their accountant simply doesn’t understand what the NDIS is. At Oyster Hub I work with a wide range of businesses small and large. One of my major clients is an NDIS provider with over 30 staff and 2 locations. This client inspired me to specialise in NDIS accounting and apply my CFO services for providers.
Regardless of the size of the business I’ve helped providers large and small. Within the industry I’ve noticed that many providers start to provide care for a handful of clients, but soon end up getting lost trying to run a business. My philosophy is that compliance, administrative and accounting processes that can be automated should be, so that you can focus on providing care.
I’m not just an NDIS accountant, I am a NDIS mentor who provides operation support through systems such as Tsheets, Brevity and Centro Assist. A chat with me can save you time and money in the future.
Common problems associated with not using an NDIS accountant:
- Understanding the complexities of integrating NDIS software with cloud accounting
- Using an NDIS accountant to ensure compliance with STP reporting and GST Registration
- Tracking cash flows consistently so you don't fall short
- Finding an NDIS bookkeeper who can ensure expenses are claimed appropriately
- Management of all receipts
- Accounting and Tax Obligations
Why you need an NDIS Accountant:
- Understand the law and regulations behind the NDIS schemes
- Focus on future growth rather than drowning in compliance which can be automated
- Fast and easy asset finance for you so that you can partake in recreational activities to enjoy life
- Get fast and easy asset finance
NDIS tax Concessions
NDIS Charities must be registered with the Australian Charities and Not-for-profits Commission (ACNC) before they can be endorsed by the Australian Taxation Office (ATO) to access charity tax concessions.
Income tax exemption is an exemption from paying income tax, removing the need to lodge income tax returns. Entities that are endorsed as income tax exempt are entitled to a refund of franking credits on franked dividends they receive.
There are a range of goods and services tax (GST) concessions for transactions involving endorsed charities:
- Gifts and GST credit adjustments – adjustments for GST credits are not required where an item acquired by a business is subsequently gifted to the charity.
- Accounting on a cash basis – the charity may choose to account on a cash basis regardless of its annual turnover.
- Non-commercial activities – where the charity makes sales and the payment it receives in return is less than a certain amount, the sales are GST-free.
- Donated second-hand goods – sales of donated second hand goods by the charity are GST-free.
- Raffles and bingo – tickets to raffles and bingo sold by the charity are GST-free provided the holding of the raffle or bingo event does not contravene a state or territory law.
- Fundraising events – the charity may choose to treat all supplies it makes in connection with certain fundraising events as input taxed. The charity is not required to remit GST on supplies made in connection with the event. However, the charity is not entitled to claim GST credits for related purchases.
- Non-profit sub-entities – the charity has the option of treating any of its separately identifiable branches as separate entities for GST purposes. Provided that the annual turnover of the non-profit sub-entity is less than $150,000, the sub-entity is not required to register for GST. An unregistered non-profit sub-entity does not remit GST on sales and does not claim GST credits for purchases.
- Reimbursement of volunteer expenses – the charity can claim GST credits for reimbursements made to volunteers for expenses the volunteer incurs that are directly related to their activities as a volunteer of the charity.
Your not-for-profit organisation may be exempt from FBT if it is a:
- registered public benevolent institution (other than hospitals) endorsed by the ATO
- registered health promotion charity endorsed by the ATO
- public or non-profit hospital
- public ambulance service.
If your organisation is eligible for FBT exemption, benefits provided are exempt from FBT if the total grossed-up value of certain benefits (which are benefits that are not otherwise exempt) provided for each employee during the FBT year is equal to, or less than, the capping threshold. If the total grossed-up value of fringe benefits provided to any employee is more than the capping threshold, your organisation will need to report the details and pay FBT on the excess.
Be aware that if your organisation exceeds the capping threshold for any employee you will need to provide details of fringe benefits provided to all employees not just the details for the employee that exceeded the exemption cap.
The table below outlines the capping thresholds that apply and which organisations need to be endorsed by us to access FBT exemption.
Goods and services tax (GST) concessions are available to not-for-profit (NFP) organisations.
Additional GST concessions are available to:
- Australian Charities and Not-for-profits Commission (ACNC) registered charities that are endorsed to access GST charity concessions
- gift deductible entities
- government schools.
For GST purposes:
- an endorsed charity is a charity that is an ACNC registered charity, has an ABN and is endorsed by us as a charity
- a gift deductible entity is an entity that can receive tax-deductible gifts or contributions.
Australian taxation laws provide generous tax concessions for not for profit organisations like Barnardos Australia. One such concession is an exemption for Fringe benefits tax (FBT).
This means an employer are able to pass on to their employees a proportion of their wages as a reimbursement of personal expenses and no income tax is payable on this money, in effect a proportion of your salary each pay is tax free. (Salary packaging)
You may choose to package a range of items, such as your mortgage, rent, school tuition fees, private health insurance or even a personal loan repayment, or you may decide to use our convenient Salary Packaging Payment Card (Encompass) to package everyday living expenses including groceries, clothing and utility bills.
If you choose to package your salary (it is an option) money is deducted from your salary pre-tax. You pay tax only on the remaining portion of your salary not the salary packaged money, significantly reducing the income tax you pay.
Barnardos employees working over 17.5 hours per week and employed on pay level 33 or above of the Barnardos Australia Enterprise Agreement 2011 have the option of packaging a vehicle as part of their salary. The Barnardos Australia vehicle is available to you for both business and personal use and is of significant value to our staff.
A Public Benevolent Institution (PBI) is a type of charity which has a predominant (main) purpose of relieving needs arising from conditions such as poverty, sickness, distress or helplessness. This is known as providing ‘benevolent relief’.
For a need to attract benevolent relief, it must be significant enough, and the circumstances difficult enough, to arouse a feeling within the community that action should be taken to relieve it.
The characteristics of a PBI are:
- it is a charity
- it is an institution
- it is set up to relieve needs requiring benevolent relief
- it relieves the needs through providing goods and/or services which are directed to people who are in need
- its predominant (main) purpose is providing benevolent relief.
Examples of public benevolent institutions include:
- some organisations providing services for the homeless, such as shelters and meals
- some hospitals and hospices
- some disability support services
- some aged care services
- some providers of low rental or subsidised housing, for people in need
- some organisations that undertake active fundraising activities to generate income for a partner with a common purpose of providing benevolent relief, where the partner provides services to people in need of benevolent relief.
PBIs must be registered with the ACNC as a charity and as the PBI subtype of charity before they can be endorsed by the ATO to access tax concessions available to PBIs.
For more information please see ACNC PBI factsheet on the ACNC website.