Question 1

Can I have deferred tax assets and liabilities at the same time?

Accepted Answer

No, these cannot occur at the same time.
The reason is, deferred tax appears on your balance sheet as either positive (asset) or negative (liability).

Depending on whether tax is overpaid or owed will determine whether you have an asset or a liability.

Question 2

Can I defer the payment of Goods and Services Tax for taxable imports?

Accepted Answer

Yes. The Deferred Goods and Services Tax (DGST) enables importers to defer GST payments on every taxable import into Australia. To be eligible, you must:

Have a current ABN
Be registered for GST
Lodge monthly activity statements, and;
Ensure goods are for home consumption

However, you will be ineligible if you:

Are not up to date with your tax payments, or
Have been penalised by the Court for specific offences in the past three years.

If you are eligible, simply complete the “Application for Approval to Defer GST on Imported Goods” form (NAT 75136) for DGST status.

Question 3

What is tax deferred income in Australia?

Accepted Answer

In Australia, deferred income tax is a liability, recorded on your company’s balance sheet. It is the result of a difference in income recognition between your company’s accounting methods and current tax laws.

As such, your payable income tax may not equal the tax reported on your return

Question 4

Could you defer taxes?

Accepted Answer

Has your business overpaid tax or paid tax in advance?

If so, you have deferred tax assets.

As a business owner, you may be carrying a net operating loss, have business expenses, revenue recognised in one accounting method, or bad debt.

If you have any of these, you have deferred tax assets.

These drastically reduce your income tax and offset future taxable profits.

However, they are realised, deferred tax assets must be calculated using expected future tax rates.

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