You must keep a few things in mind if you are running a business. When your business starts, you'll have to report your business income and other expense data in order to lodge business tax return.
The key points you ought to know about are:
1-Business activity statement (BAS)
- The main taxes a person reports need to be GST if he/she is registered for GST.
- Taxes that are withhold from the employee's salary
- Installment towards your tax as you go installment system
2- Income tax return
-To report total income and file for tax return
You can file for business tax returns in the following types:
1- Sole Trader
Sole trader Tax return: A sole trader is an individual maintaining a business. It is the easiest and least expensive business structure. As a sole trader, you are answerable for paying your executive's super. You're likewise answerable for your own super and may decide to pay it into a reserve for yourself to help put something aside for your retirement. You are legitimately answerable for all parts of the business. Obligations and misfortunes can't be imparted to others.
On the off chance that you work your business as a sole dealer, you are the main proprietor and you control and deal with the business. You can employ laborers in your business, yet you can't employ yourself.
Important details regarding sole trader tax return:
- He/she must use individual tax file number while filing income tax return
- There is no separate business tax return for sole traders therefore they should report all their income in individual tax returns and they can show their business income and expenses in the section business items in the form.
- They can apply and use ABN for all business dealings
- They need to register for GST if turnover in a year $75000 or more.
- They need to pay taxes at the rate of individual taxpayers
- They can save money to pay income tax at the end of the financial year by paying quarterly Pay as you go(PAYG)
- After notifying their fund, they can claim a deduction for a personal super contribution
A sole trader cannot claim deduction on the amount drawn from business. This amount is not considered for tax purposes even if you consider them wages.
Personal service income (PSI)
You will be receiving personal service income if you are paid for your skills and deduction to this income needs to be treated differently.
I believe this information will be helpful for you while preparing for a business tax return. However, it is advisable to contact an experienced tax accountant Perth to outcast the challenges.