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What Tax Does A Business Have To Pay?

What Tax Does A Business Have To Pay

Want to know what taxes you need to pay as a business owner? Taxes in Australia are complicated and so are the procedures involved in filing them. If you are new to a business, and don’t know the ins and outs of business taxes, you may need the assistance of a professional tax accountant to help you out, otherwise you may end up paying more tax.

The four most common tax forms a business owner needs to pay are:

Goods and Services Tax (GST)

The majority of goods and services you offer are subject to the Goods and Services Tax (GST).

GST is levied at 10% of the cost of goods and services in Australia. You must register your business with the Australian Taxation Office (ATO) for GST, if:

  • You expect your yearly businessincome to be at least $75,000 and $150,000 for non-profit organisations.
  • You operate a firm that provides taxi travel as part of its service andyou charge clients for limo or taxi service.
  • You wish to claim tax credits for fuel expenditures.

Depending on the BAS reporting structure of your business, you can opt to pay your GST due monthly, quarterly, or annually.

Pay As You Go (PAYG) Withholding

PAYG withholding means employers gather the income tax payments of their employers, which they later forward to the tax office. With PAYG withholding, a small business owner must assist employees in meeting their tax obligations. PAYG payments are often made quarterly with an additional payment made at the conclusion of the financial year.

Payroll Tax

Payroll tax is a state tax levied against the wages and other perks that companies provide. It is determined by the number of employees you have and the monthly salaries you pay out to the employers.  Your payroll tax responsibilities may differ depending on which stay you reside in.Payroll tax is also related to fringe benefit tax which you arealso required to pay.

Company Tax

A tax on the revenue your company generates is known as company tax or corporate tax. For companies with average annual revenue of less than $10 million in Australia, the corporate tax rate is 28.5 percent. This tax rate is increased to 30% for the annual earnings for enterprises that generate more than this amount. Pay as you go (PAYG) is used by Australian companies to pay company tax and these payments are made on a quarterly basis.

If you are new to a business and don’t know the ins and outs of taxes, our tax accountants can help you out. Talk to our team for all sort of individual and company tax lodgements.

Consulting with KPG Taxation

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