5 things every business owner should know about tax

Maybe the most daunting element of starting a new business, is understanding your legal obligations as a business owner.

There’s so much, you need to be aware of, compliant in, registered for and reporting to the correct agency for.

So, we asked our accountants of choice, Halpin Partners Accountants to create a super simple checklist of the top five thing every business owner should know about tax!

The tax responsibilities of your business will depends on various factors, such as the type of business and number of employees.

We have compiled a short list of some basic tax requirements for businesses within Australia, they are:

1. A tax file number (TFN) is essential: Every business registered in Australia requires a Tax File Number (TFN). A TFN is a unique nine-digit number issued by the Australian Taxation Office (ATO), which is used to identify you for tax purposes. You can apply for a TFN online through the ATO website.

2. Keep accurate records: It is important to keep accurate records of all financial transactions related to your business. This includes invoices, receipts, and tax receipts. It is also a good idea to keep accurate records of your business expenses.

3. Register for Goods and Services Tax (GST): If your business earns more than $75,000 per year, you must register for GST. GST is a tax of 10% that applies to most goods and services sold in Australia. When you register for GST, you will need to charge this tax on all sales and collect it from customers. You can claim back the GST on any expenses you incur in running your business.

4. Claim all relevant deductions: As a business owner, you are entitled to claim a range of deductions on your tax return. This includes any expenses that are directly related to your business, such as cleaning equipment, rent, and vehicle costs. Make sure you keep accurate records of all your expenses so you can claim the correct deduction.

5. Get help from a tax professional: Running a business can be complex when it comes to tax, so it is often best to seek advice from a tax professional. They can help you understand your tax obligations and ensure you are meeting all your requirements in a timely and accurate manner.

Understanding Australian tax obligations is essential for any business to ensure your business is taxed correctly and avoids penalties.

If you would like to discuss any of the items above or general tax responsibilities please contact one of the Halpin Partners Team on 07 40 520 800.

Or, if you’d like to chat to one of the James team about starting your own James business, so we can help you navigate all the complexities, you can book a 15 minute call with Justin, one of our owners.