FAQs

Frequently Asked Questions

ASK A QUESTION

Tax Return

When do I have to submit my tax return by?

If you are Individual, Sole Trader or Partnership you must do one of the following by 31 October Or if you are Business you must do one of the following by May of the next year.

How do I calculate the tax I should pay?
The income bracket you fall into will determine how much tax you will need to pay.
What’s the tax-free threshold?
The tax-free threshold in Australia is $18,200.
I’d like some help with my tax return. What’s the process of engaging one of your accountants?

Working with us is easy! Rather than standing in queues at your local shopping centre or needing to book lengthy appointments at your tax agents office, we offer a completely online tax return service. We’ll supply you with a checklist, where you can attach all the information we’ll need from you from the comfort of your home. We’ll then process your tax return for you

Medicare levy

What is the Medicare levy?

The Medicare levy is an amount you pay in addition to the tax you pay on your taxable income.

The Medicare levy helps fund some of the costs of Australia’s public health system known as Medicare. The Medicare levy is 2% of your taxable income.

You may get a reduction or exemption

Do I need to pay the Medicare Levy Surcharge?

In addition to the Medicare levy, you may have to pay the Medicare levy surcharge (MLS) if you, your spouse or dependant children don’t have an appropriate level of private patient hospital cover and your income is above a certain amount.

More information can be found on the ATO website.

As an international student, do I have to pay Medicare Levy?
International students as they do not get Medicare benefits, they are entitled to claim Medicare Levy Exemption.

Business

What Steps are Involved in Starting a Business?
  1. Make key decisions.
  2. Plan your business.
  3. Set up your business finances.
  4. Protect your business.
  5. Know the law.
  6. Hiring people.
  7. Keep required records
What Tax Records Do I Need to Keep for My Business?
  • Payments or amounts you receive. If you receive income or other payment amounts you need to declare in your tax return, you need records that show the amounts.
  • Deductible expenses.
  • Work-related expenses.
  • Investments and assets.
What’s the difference between an ABN and an ACN?
Every registered business in Australia is required to have an Australian Business Number (ABN). However, not every registered business is required to have an Australian Company Number (ACN). Only businesses that have been registered as a company are required to have ACNs.

BAS

What Is a Business Activity Statement?
The business activity statement is a form submitted to the Australian Taxation Office by registered business entities to report their tax obligations, including goods and services tax, pay as you go withholding, pay as you go instalments, fringe benefits tax, wine equalisation tax and luxury car tax.
Do I need to complete Business Activity Statements (BAS) for my business?

If you are a business registered for GST you need to lodge a business activity statement (BAS).

  • Your BAS will help you report and pay your:
  • Goods and services tax (GST)
  • Pay as you go (PAYG) instalments
  • PAYG withholding tax
  • Other taxes.

GST

What is the GST?

GST is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia. To work out the cost of an item including GST, multiply the amount exclusive of GST by 1.1. To work out the GST component, divide the GST inclusive cost by 11.

Do I Have to Register for GST?
Goods and Services Tax (GST) is a tax of 10% in Australia on most goods, services, and other consumables. If you are a registered business, you need to charge GST on most goods and services you sell or supply. You must be a registered if your business turnover exceeds $75,000 per annum or $150,000 for a not-for-profit organization but you may elect for voluntary registration if you are below the threshold.
Do I need to register my business for GST?

The ATO states that you must register for GST:

  • When your business or enterprise has a GST turnover (gross income from all businesses minus GST) of $75,000 or more
  • When you start a new business and expect your turnover to reach the GST threshold (or more) in the first year of operation
  • If you’re already in business and have reached the GST threshold
  • If your non-profit organisation has a GST turnover of $150,000 per year or more
  • When you provide taxi or limousine travel for passengers (including ride-sourcing) regardless of your GST turnover – this applies to both owner drivers and if you lease or rent a taxi

PAYG – Installments

What is PAYG instalment?
How PAYG instalments work. When your business and investment income reaches a certain amount, you’ll pay your income tax in instalments. These payments are usually quarterly. PAYG instalments help you to avoid a large tax bill after you lodge your income tax return.
When will I receive my PAYG Payment Summary?

Businesses are required to give each of their workers a payment summary by 14 July each year, even if the withheld amount is nil.

With the introduction of Single Touch Payroll payment summaries are now issued electronically directly to your MyGov account.

More information can be found on the ATO website.

Superannuation

What is Superannuation?

Superannuation, or ‘super’, is money put aside by your employer over your working life for you to live on when you retire from work.

Super is important for you, because the more you save, the more money you will have for your retirement.

You can only withdraw your super money in certain circumstances – for example, when you retire or turn 65 years old.

More information in ato.gov.au/individuals/super

Can I make extra payments into my Superannuation?

You can add to your super by entering into a salary sacrifice arrangement with your employer, making personal super contributions, transferring super from foreign super funds or you may be eligible for government contributions.

There are limits on how much you can contribute to your super each year.

More information can be found on the ATO website.