Australian Tax To Pay?

Question

Hi i am planning on starting a business and i have been researching alot and i know if i am a sole trader i can use my personal TFN and if i make less then $75,000 i do not have to apply for GST... What tax do i have to pay? how often do i pay it and where do i pay it to? How much tax do i include on items i sell or services? Anything else you can tell me about tax in my situation would be very helpful, thanks :)

Answer 1

Sole traders DO NOT use their TFN for business purposes

If you are plannng on starting a business then you must have an ABN.  

If you are under the $75000 threshold then you can choose whether you wish to be GST registered or not.

If you are not GST registered then you DO NOT charge GST on your services or items to sell nor can you claim GST on any expenses etc  for your business - you will however be able to claim the full cost of any expenses at the end of the financial year.

The only taxes you will be liable for is on your taxable income for the year.  Plan on putting away about 20 - 25% of any money earned to cover any taxes.

for more detailed info please go to the ATO website and research thoroughly all items etc on small business requirements - there is quite a lot.

If you have any other questions would be glad to help if possible - contact me through profile

Answer 2

This link may answer all your questions ....... Australian Taxation Office

http://www.ato.gov.au/businesses/content...