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!
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:
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.
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/
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:
Examples of Business Expenses:
The two main tax obligations as a business owner are:
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.
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.
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/