As much as we all love our furry friends, unfortunately, the ATO doesn't allow for claiming pets as dependents.
Generally, the cost of buying and maintaining regular work attire is not tax-deductible, even if it's for professional appearances. However, specific industries may have different rules.
Unfortunately, the daily coffee fix doesn't qualify as a tax-deductible
While Netflix can be a great source of educational content, the subscription fee itself is considered a personal expense and not tax-deductible.
The cost of private school education for your child is considered a personal expense and not tax-deductible.
Meeting potential clients while on vacation doesn't automatically make the entire trip a business expense. Only the expenses directly related to the business meetings, such as meals or transportation, may be deductible.
The choice of business structure depends on various factors, including liability, taxation, and compliance requirements. I will assess your specific circumstances and advise you on the most suitable structure for your business, considering factors such as personal liability, tax implications, and future growth plans.
GST compliance involves registering for GST, charging GST on eligible sales, lodging regular BAS statements, and remitting the collected GST to the Australian Taxation Office (ATO). I will assist you in understanding and meeting your GST obligations, including proper record-keeping and timely lodgment of BAS statements.
Individual tax rates in are progressive, meaning they increase as income rises. There are income brackets set by ATO to determine the correct tax rate of any individual depending on their taxable income. There are other factors as well which may affect tax rates and net tax liability.
Personal fitness expenses, including gym memberships, are generally not tax-deductible unless there is a direct requirement for physical fitness in your profession, such as being a professional athlete.
To manage payroll effectively, maintain accurate employee records, understand tax obligations, stay updated on minimum wage rates, and use reliable payroll software. Regularly review and comply with superannuation requirements for your employees.
Buying or selling property may attract various taxes, including stamp duty, capital gains tax (CGT), and Goods and Services Tax (GST). Seeking professional advice from an accountant can help you understand and navigate the specific tax implications.
Hiring employees and engaging contractors have different tax and legal implications. It's essential to understand the criteria that distinguish employees from contractors to ensure compliance with payroll, tax, superannuation, and other obligations.
As an employer, you are generally required to make superannuation contributions for eligible employees. The contribution rate is calculated as a percentage of their ordinary earnings, and failure to comply with superannuation obligations can result in penalties.
Prepare for a tax audit or review by maintaining accurate records, ensuring all transactions are properly documented, and seeking professional advice if you anticipate an audit.
It's important to maintain records such as receipts, invoices, bank statements, payroll records, and financial statements for at least five years to support your tax claims and comply with reporting requirements.
Consider factors like your business size, industry-specific requirements, ease of use, reporting capabilities, integration with other systems, and ongoing support when choosing accounting software.
Unfortunately, we don't possess magical powers. But we can help you find practical solutions to your financial challenges.
Tracking key financial metrics is essential to evaluate your business's performance. Some important metrics to monitor include:
- Revenue and sales growth: Analyzing trends in revenue and sales can help you understand the overall health of your business.
- Gross profit margin: This metric shows the percentage of revenue left after deducting the cost of goods sold and can indicate your profitability.
- Operating expenses ratio: Comparing your operating expenses to your revenue helps identify if you're spending too much on overhead.
- Return on investment (ROI): Calculating ROI helps assess the efficiency of your investments and whether they are generating adequate returns.
- Cash flow: Monitoring cash flow ensures you have enough liquidity to cover expenses and invest in growth.
You may be eligible for deductions such as work-related expenses, self-education expenses, charitable donations, and investment-related expenses.
The current SG rate in Australia is 10.5% of an employee's ordinary time earnings. From 1st July 2023, the SG rate is increasing to 11% of an employee's ordinary time earnings.
STP is a reporting system that requires employers to report payroll information, including wages, superannuation, and PAYG withholding, to the ATO with every pay run. It helps streamline payroll reporting but requires businesses to use STP-compliant software or engage a payroll service provider.
Starting a small business has various tax implications. You'll need to register for an ABN and potentially for GST, keep detailed records of income and expenses, fulfill PAYG withholding obligations, and lodge annual tax returns for the business entity.
Businesses must register for GST if their annual turnover exceeds the threshold of $75,000 (for most businesses). Once registered, they need to charge GST on taxable supplies, lodge regular BAS statements, and remit the collected GST to the ATO.