Welcome to the world of complexity! We do try our best to explain it in the simple terms to meet our clients’ need. Don’t be scared, for it’s just the way it works! Relax, relax, relax...we’ll be there with you!

 

Individual Tax Returns

First of all, we treat every Salary & Wage Earner as important as individual person and our business depends on every one of you.

 

What to have ready when we prepare your taxes:

  • PAYG Payment Summaries (Group Certificate)
  • Investment Income – Interest on bank accounts & dividends received on shares
  • Medicare Expenses – Your portion of costs paid
  • Work-Related Expenses
    1. Motor Vehicle expenses
    2. Travelling expenses
    3. Uniforms
    4. Self-education expenses
    5. Union fees
    6. Seminars/courses
    7. Trade journals
    8. Computer costs, including internet access
    9. Mobile and telephone costs – only the work related portion
    10. Tools & equipment
    11. Professional registrations
    12. Sun protection costs – only apply to workers outside
  • Donations
  • Any other information you consider may be necessary

As the tax agent, we do have excess to your tax information from the ATO website to make sure that you declare all your incomes, so that we can give you a “peace of mind” in case you forgot some of your income like bank interests, share dividends, etc.

 

Useful Individual Tax Links

Individual Income Tax Rates: https://www.ato.gov.au/rates/individual-income-tax-rates/

 

ATO provide a comprehensive education on individual returns: https://www.ato.gov.au/Individuals/


 

Business Tax Returns

We do agree that business returns are more complicated than individual returns, but the principle is the same.

 

Business Income Tax = Net Income * Company tax rate

 

Net Income = Business Net Income + Other Net Income

 

Business Net Income = Business Income – Business Expenses

 

Other Net Income = Other Income – Other Expenses

 

Examples of Business Income:

  • Retail or wholesale sales
  • Professional fees
  • Contract payments
  • Income where on ABN was quoted
  • Income – Voluntary agreement
  • Income – Labour hire payments

Examples of Business Expenses:

  • Accounting fees
  • Advertising & promotions
  • Bank fees & charges
  • Cleaning and rubbish removal
  • Contract payments (including payments to sub contractors)
  • Depreciation of fixed assets
  • Electricity
  • Government charges, like council rates, etc.
  • Hire or rent of plant & equipment
  • Home Office
  • Insurance premiums
  • Interest paid
  • Materials & supplies
  • Motor vehicle expenses
  • Postage
  • Printing & stationery
  • Protective clothing
  • Repairs to equipment
  • Replacement of loose tools
  • Subscriptions & publications
  • Telephone – landline & mobile
  • Travel & Accommodation

The two main tax obligations as a business owner are:

 

GST Reporting

(BAS – Business Activity Statements)

If your business is registered for Goods & Services Tax reporting purpose, the reporting terms can be monthly, quarterly or yearly based on your business turnover.

 

Income Tax Reporting

(Company/Trust Tax Returns)

Reported yearly based on the financial year calendar, may need to pay PAYG Income Tax Instalment by ATO based on previous year’s income.

 

There are other tax obligations, like Fuel Tax Credit, Luxury Car Tax, Fringe Benefit Tax, Payroll Tax etc depending on the circumstances of businesses.

 

No matter you’re sole traders, small to medium businesses or even multi-million businesses, the goal is the same: By using the minimum resources you have to generate the maximum business income in a sustainable way.

 

There are ways to increase income and ways to decrease expenses, so that our job is to get to know you and your business, then to work with you to achieve your ultimate goal of wealth creation from your business.

 

Useful Business Tax Links

Setting up or closing your business: http://www.asic.gov.au/for-business/?_ga=1.143359218.679591137.1427535809

 

On-going business issues: https://www.ato.gov.au/Business/