Setup Instalment Tax

You can watch our video tutorial below:


The Agrimaster Instalment Income Tax calculator is an incredibly powerful feature in both the cashbook and budgets. This feature allows you to calculate the predicted tax liability the business may incur in current and future financial periods.  As a business, this allows you to plan and save for tax to minimise risk or accruing debts with the ATO.

This is the amount of ordinary income derived in the instalment quarter that is assessable income and excludes any GST payable.

Once this feature is setup, Agrimaster will calculate the Instalment Tax in your cashbook (and will be reported on your BAS) and budgets. 

Your accountant will be able to notify you of the tax rates for all entities for the current financial year.  We also recommend that you confirm with your accountant which receipt Codes are included in the Instalment Tax calculation.

1. To calculate estimated quarterly (or monthly-if applicable) instalment income tax in.
2. To calculate the actual quarterly (or monthly-if applicable) instalment income tax for all entities, as a percentage of the gross income to send to the ATO.

You will need to get the following information from your accountant:

• The tax rates for all entities for the current financial.
• How the tax is dispersed amongst each entity on a percentage.
• A clear understanding, which Receipt codes are included in the Instalment Tax calculation.

 To Setup Instalment Tax 

1. Start at the Home Page.
     
2. Click on Setup.
   

3.  Click on the Tax.
   

4. Click on Setup Instalment Tax.
   
5. The Instalment Tax Setup screen will now appear.
   
   
   
6. In the Receipt Codes list, select the codes to be included as instalment income under advice from your accountant. 
7. In the Instalment Tax Return Period select your return.
8. Select the Instalment Tax Period Code in which the calculated tax will be placed for both budgets and the cashbook for payments to the ATO, e.g. PAYG Income Tax.
9. Select Activate the Instalment Tax in the Cashbook.
10. In the Detailed Setup area, check the Activate Instalment Tax in Cashbook box.
11. A warning box will now display checking that you have sought professional advice if you are certain you should proceed, select YES.
12. Click on Setup Cashbook Instalment Tax.
    
13. Enter for each entity a Tax Entity Name, Tax File Number & Tax Rate %. You can list up to 12 different tax entities.
    
    
    
14. Click the Next button to move to the last stage.
    
15. This next screen allows you to allocate the % rate of income that each partner will receive. It must be done in a certain manner without the use of your mouse. For example: 
    • To allocate 30% of the income to partner A, press the A key on the keyboard, type in the numbers 30, press enter.
    • To allocate 40% of the income to partner B, press the B key on the keyboard, type in the numbers 40, press enter.
    • To allocate 30% of the income to partner C, press the C key on the keyboard, type in the numbers 30, press enter. 
16. Click the black cross to save data. 

Please Note: 

• The Instalment Tax calculator should only be used after consultation with your accountant.
• If using the Instalment Tax calculator in the Cashbook or Budgets, gross figures should be entered and then expenses deducted.
• Percentages can be entered with up to 3 decimal places for accurate calculation on Instalment Tax.
• All records must be kept for 5 years from the date of the claim.