From reinvesting in the business to offering dividends, companies have several choices, including the Div 7A loan, for managing their profits. It can also use it to pay down debt, or, among other things, reinvest in new technology and equipment. But in most cases, private companies will choose to distribute their profits via dividends, wages,…
Running a business is not always easy. One of the most important aspects for businesses, especially those who are just starting out, is to ensure they are compliant with company tax laws in the Australian tax system. There’s no point in working hard to build your company if you’re going to get fined or penalised…
It’s not uncommon for business owners to experience losses in their business operations. From a tax perspective, however, this isn’t always a bad thing. The good news is that there are several ways Australian business owners can minimise tax and still keep their companies profitable. One way is by carrying forward tax loss – which…
Doctors are among the highest-earning professionals in Australia. And the higher the income, the higher the marginal tax rate. But did you know that as a medical professional, you’re eligible for a pretty long list of deductions? Unfortunately, however, many doctors are missing out because they don’t know what tax deductions they can claim. So,…
As an investor, there are several property taxes that you need to be aware of, one of them being a land tax. While there may be some exemptions, paying land tax is an inevitable part of owning a property. It can often be overwhelming trying to navigate land tax and how it’s assessed – especially…
Payroll tax is tax payable where a business’s wages exceed specific thresholds that are imposed by each state or territory. According to the Bureau of Statistics, payroll tax represents about 30% of state tax revenue. As a business owner, it’s essential that you’re equipped with all there is to know about your payroll tax obligations. …
Given that every cent counts in the current distressed market, as a small business owner, you’re going to want to figure out how to reduce taxable income for your business. According to a recent report by the Australian Tax Office (ATO), with over four million small businesses in Australia, they play a crucial role in…
Knowing about your sole trader tax deductions will undoubtedly boost your tax return each year. Many of the costs that you incur from running your sole trader business can be claimed as a tax deduction. Yet, many sole traders miss out on expense claims because they aren’t equipped with all the knowledge presented by the…
The Australian Tax Office (ATO) offers significant benefits and small business CGT concessions in an attempt to recognise that they are in a unique position in comparison to larger companies. But understanding them can be a bit tricky without the help of a qualified tax agent or a savvy business partner. For small business owners…
In an effort to drive innovation, the Australian Government offers an R&D tax incentive to companies who invest in research and development (R&D). However, according to a recent submission by CPA Australia, only 11,935 companies out of 1 million corporate taxpayers, claimed R&D tax offsets in the 2016 – 17 financial year. Based on their…
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