Tax Facts

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Tax Facts

In today’s ever-changing market the complexity in providing the most appropriate Accounting and Tax advice is paramount. Every business in every range of profitability requires financial reporting that can be the basis of their growth and ultimate success. We provide accounting services designed for both the expected and the unexpected, guiding our clients through the full range of tax planning strategies that minimize liabilities. Our expertise, experience, analysis, allow us to optimize financial opportunities to be found in existing as well as recently altered tax laws.

Our services include but are not limited to…

    Tax Facts - Income Tax

    Income tax is levied on taxable income, which is calculated as [assessable income] less [any allowable deductions]. Deductions include wages, cost of stock, rent, bad debts, and previous year losses.

     

    INDIVIDUAL

    You can use the tax tables to determine how much you are taxed.

    Resident Tax Rates 2013-14

    Taxable income Tax on this income
    $0 - $18,200 $0
    $18,201 - $37,000 19c for each $1 over $18,200
    $37,001 - $80,000 $3,572 plus 32.5c for each $1 over $37,000
    $80,001 - $180,000 $17,547 plus 37c for each $1 over $80,000
    $180,001 and over $54,547 plus 45c for each $1 over $180,000

     

    Nonresident Tax Rates 2013-14

    Taxable income Tax on this income
    $0 - $80,000 32.5c for each $1
    $80,001 - $180,000 $26,000 plus 37c for each $1 over $80,000
    $180,001 and over $63,000 plus 45c for each $1 over $180,000
    MORE: See the ATO website for more information on Individual Income Tax Rates.

    COMPANY

    A company is a distinct legal entity with its own income tax liability so a Company Tax Return must be completed for each company. A company's income tax is calculated as a percentage of the taxable income the company earned during the financial year. The company tax rate is 30%.


    PARTNERSHIP

    A partnership running a business must complete a Partnership Tax Return to show all income earned and deductions claimed for expenses during the course of the business and how the profit or loss was shared between the partners. Each partner pays tax on their share of the partnership's income so they must include their individual share of the net partnership profit or loss in their personal tax return. 


    SOLE TRADER

    Sole traders are not required to complete a separate return for their business. They use their personal income tax return to report their business income and deductions.