Frequently Asked Questions

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Australian businesses with an annual turnover of $75,000 or more are required to register for GST. If your business has a lower turnover you are not required to register, but you may do so if you wish. The exception is ride-sharing and tax drivers, who need to register for GST irrespective of their turnover. You will only be required to charge your customers GST if you are registered.

If your turnover is less than $50 million dollars, you would be able to access a number of small business concessions including:
• income tax concessions
• excise concessions
• Goods and Services Tax (GST) concessions
• Pay As You Go (PAYG) instalment concessions and
• Fringe Benefits Tax (FBT) concessions.

The $50 million turnover threshold applies to most concessions, except for:
• the small business income tax offset – which has a $5 million turnover threshold
• the capital gains tax (CGT) concessions – which have a $2 million turnover threshold

Provided that you satisfy the eligibility criteria, you will be able to claim a deduction for the superannuation contributions you have made to a complying superannuation fund or retirement savings account.
 

The maximum concessional superannuation contribution (which includes employers superannuation contributions, salary sacrificed super and personal deductible contributions) is $27,500 per year.
 

You must have first notified your superannuation fund of your intention to make the claim and received a confirmation.

If a taxpayer carries out all or part of their employment activities from home and has an office set aside to do the work, some portion of the running expenses can be deducted. A diary should be kept for a minimum of 4 weeks stating hours the office was used for work related purposes.
 

The Commissioner’s rate of 67 cents per hour can be claimed for the hours the home office is used. Only running expenses (electricity, heating and depreciation of office equipment) can be claimed for home office unless the home is being used as a place of business. If you are claiming the 67 cents per hour method, additional claims can be made for stationery, phone bills, internet costs and depreciation of IT equipment (computers, laptops and mobile phones). 

We suggest you print off a copy of our individual or business tax check-list for a comprehensive listing of the things you might need. Some of the most common items you will need include: 

• personal details (plus spouse and dependent)
• income (wages, investments)
• interest
• work-related expenses
• charitable contributions
• medical expenses
• childcare expenses.

A good accountant does more than just prepare taxes and prepare financial statements. They actively analyse, interpret and convert financial data into actionable business intelligence. Accounting services include tax planning, business consulting and personal financial advice.
A good accountant is your business mentor. Look at our testimonial page for details from our clients on how we have changed their financial circumstances. 

A business activity statement is how you report and pay your business taxes to the ATO. The reason most businesses need to lodge a BAS is to report and pay GST. If you need to complete a BAS, the ATO will send it to you when it is time to lodge.  You can choose to self-lodge or you can hire a registered BAS agent (bookkeeper or accountant) to prepare and lodge for you. 

An ABN is an Australian Business Number. This is a unique 11 digit number given to people carrying on an enterprise. The ABN is issued by the Australian Business Register.  It is a publicly accessible record (via ABN lookup online) and identifies your business to the Australian Government and wider community.  
An ACN is an Australian Company Number. This is a unique 9-digit number give to every registered company under the Commonwealth Corporations Act 2001. The ACN is issued by the Australian Securities and Investments Commission (ASIC). 

If you are starting a business, or running a business and considering a change, you’ll need to look at the advantages and disadvantages of each business structure to work out which structure best suits your needs.

There are different taxation implications, legal obligations, and potential personal liability for each structure. The most common structures include:

• Sole trader – an individual operating as the sole person legally responsible for all aspects of the business.
• Partnership – an association of people, or entities, running a business together, but not as a company.
• Company – a legal entity separate from it’s shareholders (owners).
• Trust – a separate entity that holds property or income for the benefit of others.
  

It’s important to note, you are not locked into any one business structure for the life of your business, before changing it is worth seeking professional advice. The most important to thing to consider is the exposure to risk of your personal assets, therefore you need to seek an accountant for advice.

Starting your own business can be a really exciting time. Investing your time into some proper planning is integral to turning your dream into a reality.  Many new business owners will also attest to the necessity of having to wear many hats. This means, generally in the early stages of business, the business owner will not simply be “on the tools”, they will also be the general manager, marketer, salesman, HR manager, practitioner and bookkeeper.

We’ve listed some key considerations below, this list is by no means exhaustive and we recommend sitting down with an advisor if you are feeling uncertain, need help with registrations or if you have questions along the way.
• Have you clearly defined your product and/or service?
• Do you know who you are selling to?
• How much income will your business need to generate to break even?
• Do you know where to find advice & support?
• Do you know when your business is a hobby?
• Have you written a business plan or a marketing plan?
• Do you know which business structure suits your business?
• Are you aware of the appropriate registrations & licences required for your business?
• Have you registered for an ABN?
• Will you need to register for GST?
• Have you registered a business name?
• Do you understand your taxation obligations?
• Have you set up a basic bookkeeping system?
• Do you need insurance?

The Australian Government are fantastic supporters of small business and provide some brilliant resources for small business owners.  This link provides access to useful checklists and considerations for starting your own business. A good place to start is the WA Department of Commerce.

Whether you are starting, running or growing your own business, you can take on an employee. Before taking on your new recruit, you’ll need to consider how busy the job you will need to fill will be.  Based on this, will the new employee be a casual, part-time, full-time, contractor, trainee or apprentice or even a temp (through a labour hire firm)? Each employment type brings it’s own specific considerations.

Depending on what you decide, additional considerations may include workers compensation insurance, withholding PAYG tax and paying superannuation.  The ATO and the government have clamped down hard in recent years on superannuation for employees, irrespective of employment type, generally if you pay an employee you have to pay superannuation monthly.
It’s also important to ensure your employee is legally entitled to work in Australia. 

Once you’ve decided on the role you are filling and the person you will hire, it’s also a really good idea to make sure you are meeting the correct wages and entitlements.  Have a look at Fairwork.gov.au for more information.