When every time the tax year approaches in Australia, you really feel nervous. This is because it’s the most crucial of phase of the year. Every resident of the country remains super busy in lodging their tax returns effectively. You can hire a Tax Accountant Perth to lodge your tax return impeccably. Aside that, executing the following tips will add an additional perfection to your tax return lodgement in Australia.
Collect all your business records timely
To get started you must gather all your business records as soon as possible. These include your debit or credit card transactions, banks statements, online EFTPOS and cash transactions etc. Each of these records must cover the following details.
- Costs which you can claim as a business deduction. These include your contractor costs, employee wages, operating and business travel wages etc.
- Different forms of your business income and sales.
A Tax Return Accountant in Perth has the knowledge and acumen to guide you in this matter. Your accountant will give you some more useful tips to ensure a successful lodgement of your income tax return.
Lodge according to your business type
There are different types of business which operate in Australia. These chiefly include companies, trusts, partnerships, and sole traders etc. Regardless of your business you can lodge tax return in Australia in the following ways.
Company
You need to lodge a company tax return if you are running a company in Australia. The company has to report certain things during the procedure. These include credits, tax offsets and the PAYG instalments. Aside that you must also report the amount of tax you should pay on your overall income. Don’t miss out on reporting the sum which is refundable. Remember, that your income is completely different from your company’s income.
Trust
Do you run your business via a trust? Then, the trust will be liable to report a few things during the lodgement procedure. These include the total loss or income. These include the deductions and expenses away from the trust’s income too. The person who is the trustee must lodge the tax return. You must also report about your individual tax return pertaining to any income the trust is providing you. You can only do this when you are the beneficiary.
Partnership
Many businesses in Australia run on a partnership basis? So, do you also run a partnership business? Then, you must lodge your partnership tax return properly. During this procedure, you should report your partnership’s total income. These include the less allowable deductions and costs and the assessable income. As one of the partners, you need to provide the following details during the lodgement procedure.
- Details related to the additional assessable income of the business. These include the wages and salaries of your employees displayed on a Payment Summary.
- Crucial details related to the any loss or income concerning your partnership.
Remember, that as a partnership you don’t have to pay the income tax on your earned income. Instead, you and your partners must pay the tax on the total partnership income every year.
Sole Trader
As a sole trader you must lodge an Income Tax Return imperatively. You must do this even if your income is below the income tax-free threshold. Before that lodge your activity statements and clear all your PAYG instalments. This lets the tax evaluation department consider all the instalments you have paid all through the year. This criterion applies only to sole traders who pay their PAYG instalments regularly.
Some quick tips for a successful tax lodgement in Australia
Given below are some effective tips to assist you getting ready during taxing year of 2020 in Australia.
Ensure accurate records
Before lodging tax in Australia, make sure that all your business records are accurate with the necessary information.
Include JobKeeper payments
If you are eligible for JobKeeper payments, include them in your tax returns unfailingly.
Report your company expenses
Have you spent money on some personal expenses from the financial assets of your company? Then, you must report about these transactions by maintaining proper records about them.
Avail small business concessions
You can decrease your tax bills by availing the several small business concessions. These include the instant deductions for prepaid expenses and asset write-offs etc.
Claim home-oriented business costs
Is your home the main place of running your business? Then, you can claim the deductions specifically for the portion via which your business is running.
Adhere to the three golden rules
To claim the business deductions which only you deserve, you must follow the three golden rules. These include the following:
- Show substantial records to prove the expenses and the efforts you put in them.
- In case of a combined expense of business and private use, you can claim the portion of your business.
- The expense should be for your business and not a private use.
So, follow the tips give above and lodge your Company tax return effectively
