Business owners must lodge an income tax return for any year in which they run a business. Even if they do not have to pay tax. Penalties can apply if the income tax return is lodged late. After a tax return is lodged, the ATO will advise a business by letter if pay-as-you-go (PAYG) instalment payments must be made against future tax bills.
Capital Gains Tax
Capital gains tax (CGT) was introduced into our Australian taxation system on 19 September 1985 and impacts on numerous events occuring after that date. CGT has been referred to as a “sleeping tiger” that impacts on the taxation requirements of taxpayers. Record keeping is often a problem that a proper understanding of our CGT system can address.
Goods & Services Tax
In Australia, goods and services tax (GST) is charged on the supply of most goods, services and other things – for example, supplies of rights or the sale of certain property. The GST rate is set at 10%. For GST to be charged on the supply the supplier has to be registered for GST. Likewise all GST registered businesses can claim back GST charged on their purchases , referred to as input tax credits.
Financial reporting for companies, registered schemes and disclosing entities in Australia is governed by the Corporations Act 2001 (Corporations Act). Financial reports which have been prepared in accordance with the law help maintain and promote confidence and integrity in Australia’s capital markets.