Queensland Business Taxation 101
Knowing your legal and tax obligations is essential to putting up and running a business. Business tax requirements in Brisbane differs according to the nature of business and the size of the company or the number of employees you have. It would be wise to have a professional consultation with an accountant or bookkeeper in Brisbane. They can help you understand your tax obligations, tax basis and computations, payment schedules and a lot more tax related concerns.
Below are the major tax considerations common to most businesses in Queensland;
GST – Goods and Service Tax or GST is 10% and is imposed on goods, services, and other items sold in Australia. Click here to know if you are required to register for GST.
ABN – Australian Business Number is your business’ legal identity and is used when dealing with the government and other businesses. It is used to reference your business by the Australian Taxation Office.
BAS – A business activity statement is a required tax reporting instrument. It is issued by ATO monthly or quarterly to inform you of your tax obligations and deadline to lodge.
Payroll Tax – Only employers paying $21,153 or more taxable wages weekly are liable to register and pay the payroll tax.
PAYG – Pay as you go is a taxing system that allows you to pay expected future tax liabilities in installments including tax from payments you make to employees and/or contractors and payments made to businesses without or didn’t provide you their ABN. Registering to PAYG is a requirement before you can withhold tax. The ATO will send notification of your PAYG obligations.
FBT – Fringe benefit tax is collected from employers providing fringe benefits to employees, their families, and other associates. The benefits are considered addition to their salaries. Valuation and tax calculation vary according to the category of the benefit provided.
Superannuation guarantee obligations – This is the employer’s contribution to the employee’s retirement fund, paid on top of the salary.
Tax Bookkeeping – Recording all quantifiable business transactions is essential to taxation. It is pivotal to tax obligations and payments computations. A certified Brisbane bookkeeper can help you set up a good recording system that is both easy to manage and to understand.
You might consider managing your own business’s tax to keep costs down. However, the requirements change and could grow into something too complex for someone without the experience in dealing with taxation. Hiring professional or employing a bookkeeper or an accountant can smooth out all the problems for you and save you money in the long run.
Call us to discuss more about the GST, BAS, and tax requirements of your business. We are here to help make your Brisbane bookkeeping, BAS lodging, and business taxation easy, done correctly and on time. We take away the time-consuming and complex part of running a business.