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A brief on the Australian Tax System

This Presentation is aimed at explaining basic compliance requirements for small businesses in Australia. It gives an overview of the taxation aspects in Australia.

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A brief on the Australian Tax System

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  1. OUTSOURCE YOUR ACCOUNTING WORK A brief on the Australian Tax System www.mymconsultancy.com.au

  2. A brief overview of the Australian Accounting System for small business This Presentation is aimed at explaining basic compliance requirements for small businesses in Australia It gives an overview of the taxation aspects in Australia.

  3. Registration Requirements for Small Business Obtaining Tax File Number (TFN) and Australian business number(ABN): Goods and services tax (GST) If your annual turnover is $75000 it is mandatory for you to get registered and collect GST. Fringe benefits tax (FBT) Registration under FBT is required if you provide perquisites and benefits to your employees. You can complete and lodge an application for an Australian business number (ABN) and TFN for a company, partnership, or trust online.

  4. Types of Business Entities Sole Trader It is the simplest structure for the business and is highly recommended in order to avoid tax complications for business. Income Tax: The liability to pay income tax is on individuals as the business income earned by a sole trader is considered to be individual income. GST: A sole trader needs to collect and pay GST if turnover is $75,000 p.a. or more. Partnership A partnership is an association of people who carry on a business as partners or receive income jointly. Income Tax: Each of the partners has to pay income tax on a share of the profits. However, a partnership business is required to lodge an annual return giving details of income and expenses GST: A Partnership needs to collect and pay GST if turnover is $75,000 p.a. or more.

  5. Types of Business Entities Company A company is a separate legal entity in the eyes of law. Income Tax: The income earned belongs to the company hence the liability to pay tax arises on Company. GST: A Company needs to collect and pay GST if turnover is $75,000 p.a. or more.

  6. Record Keeping 01 02 Manual v/s Electronic Records You can keep your records manually or in Electronic Form Time Period You need to maintain your records for at least 5 years. 03 Records to be kept It is advisable that all the business records should be kept and none of them discarded.

  7. Goods and Sales Tax in Australia GST is a 10% tax on most goods and services sold in Australia. It is collected by registered businesses at each step in the supply chain. Credit of GST The purchases for the purpose of business are eligible for GST credits. Businesses can claim credit for GST in order to reduce the amount of GST payable.

  8. Contact Us. MYM Accounting and Business Consultancy Phone: 0437 157 610 Email Address: info@mymconsultancy.com.au Website: www.mymconsultancy.com.au

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