As a business owner in “Down Under”, it is important to be aware of the tax laws and ensure that your business is compliant. However, ignorance of the law is not an excuse, and you could face significant penalties if you are not in compliance. This blog post will discuss five tips to help you stay on top of things and avoid potential problems.
1) Know the deadlines:
There are a variety of tax deadlines that businesses need to be aware of. These include GST returns, PAYG withholding tax returns, company tax returns, and FBT returns. Failure to meet any of these deadlines can result in penalties. In addition, businesses need to be aware of when their employees’ tax returns are due.
2) Keep good records:
Good record-keeping is essential for any business, but it is especially important when it comes to taxes. You will need to keep track of your income and expenses in order to prepare your tax return accurately. This includes maintaining receipts and invoices for all purchases made by your business. In addition, you should keep records of any assets purchased or disposed of by your business.
3) Be aware of tax concessions and deductions:
There are a variety of tax concessions and deductions that businesses can take advantage of. However, you need to be aware of the eligibility requirements for each one. Taking advantage of these can help reduce your overall tax liability. In addition, there are a number of tax-free threshold amounts that businesses can take advantage of.
4) Use an accountant:
While you are not required to use an accountant, it can be beneficial to do so. An accountant can help you prepare your tax return and ensure that you are taking advantage of all the deductions and concessions you are entitled to. They can also help you with record keeping and provide advice on how to run your business in a tax-effective manner. In addition, an accountant can represent you in dealings with the ATO, which can save you a lot of time and hassle, and in the same breath keep your company on the straight and narrow.
5) Registering for GST:
If your business has a turnover of more than $75,000, you are required to register for GST. This value-added tax is imposed on the sale of goods and services in Australia. Registered businesses are required to collect GST on behalf of the ATO. Once you are registered, you will need to file quarterly GST returns. In addition, calculating gst is very important, so make sure to use a GST calculator when you can.
6) Understand the tax consequences of business decisions:
Before making any major business decisions, it is important to understand the potential tax implications. This includes things like buying or selling assets, hiring employees, and entering into contracts. Seek professional advice to ensure that you are making the best decision for your business. Keep up to date with any changes in the tax law that could affect your business.
In conclusion, following these five tips will help ensure that your business complies with the tax laws in “Down Under”. Ignorance of the law is not an excuse, and you could face significant penalties if you are found to be non-compliant. Good record keeping, seeking professional advice, and being aware of the tax implications of business decisions will help you avoid any problems.
