Unit 10, 15 – 21 Collier Road,Morley, WA 6062
08 9275 3888
How is this achieved?
With Standard Individual Tax Returns, our base charges start at $200 plus GST. We do however offer a discount to pensioners and low income earners.
Accurate and Good Record Keeping is guaranteed to keep costs down. This may include taking the following steps:
Apart from merely keeping your Accountant’s costs down, you should keep records because:
Business Records that need to be maintained
Sales & Income Related
Purchases & Expenses
Year End Tax Related
PAYG Withholding for Business
Sole Trader Description
A sole trader is an individual who is trading on their own. That person controls and manages the business.
A sole trader applies for an Australian business number for their business and uses this number for all their business dealings.
Tax File Number (TFN)
A sole trader uses their individual tax file number when they lodge their income tax return.
Who pays income tax?
Income of the business is treated as the person’s individual income, and they are solely responsible for any tax payable by the business. Business income is included along with any other income in the sole trader’s individual tax return.
For tax purposes, a partnership is an association of persons or entities that carry on business as partners or receive income jointly (except a limited partnership, which is treated as a company).
Australian Business Number (ABN)
Liability of each partner is unlimited. Partners are jointly & severally liable.
ABN Partners apply for an ABN for the partnership and use this number for all the partnership’s business dealings.
TFN: partnership needs its own tax file number.
Who pays income tax?
A partnership does not pay income tax – each partner includes their share of the profit or loss in their individual tax return. However, the partnership lodges a separate income tax return to report its income.
A trust is an obligation on a person to hold property for the benefit of others (who are known as ‘beneficiaries’). TheTrustee/s is/are generally liable and has/have obligations imposed by the trust deed.
A Trust has its own ABN. The trustee needs to register for an ABN in its capacity as the Trustee of the Trust.
The trust must have its own tax file number, which is used when its annual income tax return is lodged. The Trustee needs to register for the TFN in its capacity as Trustee of the trust.
Who pays income tax?
Except in special circumstances it is the beneficiary, rather than the trustee, who is taxed. Usually the beneficiary has to include their share of the trust’s net income in their personal tax return (Form I). The trustee is liable to pay tax on income distributed to minor or non-resident beneficiaries, or on any income it accumulates.
A company is a legal entity separate from its shareholders. Companies are regulated by the Australian Securities and Investments Commission. For tax purposes, a Company means a body or association, incorporated or unincorporated, but does not include a partnership or a non-entity venture. Directors and shareholders’ liability is limited to what is paid into the company as shares and guarantees. Directors however have legal duties in accordance with the Corporations Act.
A company needs to register for an ABN.
A company needs to register for its own tax file number.
Who pays income tax
A company pays income tax on its profits – the general rate of tax is 30%.
Please discuss with the Team at Terrace to determine the correct structure for you.
Essentially a business performs transactions. These transactions create the flow of monies which may be inwards flowing, i.e. the receipting of money or outward flowing, which is the payment of money. Money flows into the business due to activities that are of an income nature and also those that are non income. Inflows may be classed into 4 main categories:
Money flows out of the business for essentially the opposite purpose that it flowed into the business. Hence outflows have 4 categories.
Good record keeping of these transactions enable the easy retrieval of meaningful information. The law accepts records to be maintained either electronically or manually.
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