Tax & Accounting system Australia

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OUTSOURCE Your Accounting Work

• A brief on Australian Tax System

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A brief overview on Australian Accounting System
for small business

• This Presentation is aimed at explaining basic
  compliance requirements for small business in in
  Australia
• It gives an overview of the taxation aspects in
  Australia.

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Registration Requirements for Small Business

• Obtaining Tax File Number (TFN) and Australian
  business number(ABN)
• You can complete and lodge an application for an
  Australian business number (ABN) and TFN for a
  company, partnership or trust online.
• Goods and services tax (GST) If your annual
  turnover is 75000 it is mandatory for you to
  get registered and collect GST.
• Fringe benefits tax (FBT)
• Registration under FBT is required if you provide
  perquisites and benefits to your employees.

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Types of Business Entities
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Sole Trader

• It is a simplest structure for business and
  highly recommended in order to avoid tax
  complications for business.
• Income Tax The liability to pay income tax is on
  individual as the business income earned by sole
  trader is considered to be individual income.
• GST A sole trader needs to collect and pay GST
  if turnover is 75,000 p.a. or more.

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Partnership

• A partnership is an association of people who
  carry on a business as partners or receive income
  jointly.
• Income Tax Each of the partner has to pay income
  tax on share of the profits. However partnership
  business is required to lodge an annual return
  giving details of income and expenses
• GST A Partnership needs to collect and pay GST
  if turnover is 75,000 p.a. or more.

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Company

• Company is a separate legal entity in eyes of
  law.
• Income Tax The income earned belongs to the
  company hence the liability to pay tax arises on
  Company.
• GST A Company needs to collect and pay GST if
  turnover is 75,000 p.a. or more.

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Legal Requirements for record keeping
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Record Keeping

• Manual v/s Electronic Records You can keep your
  records manually or in Electronic Form
• Time Period You need to maintain your records
  for at least 5 years.
• Records to be kept It is advisable that all the
  business records should be kept and none of them
  discarded.

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Rates of Income Tax
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Income Tax Rates for 2013-14 income year
Taxable income Tax on this income
0-18,200 Nil
18,201-37,000 19c for each 1 over 18,200
37,001-80,000 3,572 plus 32.5c for each 1 over 37,000
80,001-180,000 17,547 plus 37c for each 1 over 80,000
180,001 and over 54,547 plus 45c for each 1 over 180,000
In addition to income tax there is a Medicare
levy of 1.5 or the Medicare levy surcharge. The
Medicare levy will increase to 2.0 from 1 July
2014.
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Goods and Service Tax
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Goods and Sales Tax in Australia

• GST is a 10 tax on most goods and services sold
  in Australia.It is collected by registered
  businesses at each step in the supply chain.
• Credit of GST
• The purchases for the purpose of business are
  eligible for GST credits.
• Business can claim credit of GST in order to
  reduce the amount of GST payable.

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Rayvat Accounting.
COMMUNICATION ADDRESS Plot No 10, G.I.D.C
Electronic Park IT/ITES SEZ Kolwada Road,
Gandhinagar- 382026, Gujarat, India. CONTACTS Ru
shabh Shah Mob 91 9712381843 Skype
rushabh_s_shah WEBSITE www.rayvataccounting.com
Email rushabh_at_rayvat.com
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Thank you