From compliance obligations to regulatory changes, business taxation law in Australia is becoming increasingly complex. It is important to understand the tax implications of day-to-day trading as well as the impact tax may have on business sales, mergers and acquisitions and financing and leasing arrangements.
Our team can provide expert tax advice to businesses of all types. We offer advice on:
sale of businesses and business succession;
mergers and acquisitions;
property developments; and
Our corporate lawyers can also help you manage your ever-changing business tax obligations.
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5 Things You Need to Know About Business Taxes
1Paying your taxes is part and parcel of running a business. Business owners need to pay, or arrange payment of, a large number of taxes. Examples include GST, payroll tax, company tax and, if you sell shares in your business, capital gains tax.
2GST is a consumption tax collected by the ATO. If your business generates over $75,000 or more in a year, you are required to collect GST. As a GST-registered business, you need to issue tax invoices to your customers to collect GST, and these need to be sent to the ATO with your BAS statements. Your accountant will be able to assist in completing your BAS statements.
3Payroll tax is a state and territory tax which is assessed on the wages that a business pays to its employees when the total amount of wages exceeds a threshold amount.
4If you sell your business, you will likely be liable to pay capital gains tax. Capital gains tax is calculated based on the difference between the amount you purchased your business for, and the amount you sold it for. If you’re considering selling your business, you should speak with an accountant to work out the most effective tax treatment.
5Finally, remember that taxation for businesses is complex. Make sure you work with an accountant, and a tax lawyer if necessary.