The Australian taxing environment can be daunting for entrepreneurs. With its many requirements and processes, it’s not difficult to become confused.
But a clear understanding of the tax code is necessary for compliance and financial success. In this article, we break down a few useful tips to make it less daunting.
Know Your Business Structure
The taxing requirements for your business vary a lot with its form of structure. Are you a sole proprietor, partnership, company, or trust? Each form of structure entails different taxing implications, including:
- Taxing Rates for your Earnings
- Reporting
- Allowable Deductions
Knowing your structure is the key to knowing your taxes.
Get Familiar with the ATO Website
The Australian Taxation Office (ATO) website is a goldmine of information. It’s a website full of guides, tools, and information about a variety of taxes. You can learn everything from registering for a GST to claiming allowances
It’s full of specific information for different industries, and a must for any owner of a business.
Learn Key Tax Concepts
A variety of key concepts form the backbone for the Australian taxing system. These include:
- Assessable Earnings: This is your earnings for your business that are subject to tax
- Deductions: These are expenses for your driving and car maintenance, etc., that you can claim off your assessable earnings to reduce your tax liability
- Goods and Services Tax (GST): This is a 10% tax of most goods, services, and other items sold or consumed in Australia
- Business Activity Statements (BAS): These statements are used by companies to report and pay for their GST, PAYG withholding, and other taxes.
Have Accurate Records
Record accuracy is important when dealing with taxes. You will have to have a record of your expenses and incomes, such as bank statements, invoices, and receipts.
Accurate books will not only allow you to comply with your taxes but will ease your claim for a deduction and bookkeeping.
Obtain Expert Advice
If you’re struggling with tax codes, don’t suffer in silence. Get expert advice for any section of your business taxation with a registered tax agent. They can advise you about your requirements, apprise you about potential claims, and make certain you’re complying with all relevant laws.
Get Informed
The legislation varies and can change, and staying updated is a must. Subscribe to updates through ATO, attend a seminar, or follow a reliable publication to remain in the loop.
Glance Consultants can help. With Glance Consultants, our experienced professionals can sift through all your business taxation complexities and make certain that you’re complying and getting your full claims. Get in contact with Glance Consultants today and see for yourself, receive a consultation free of charge.
