Account Keeping Plus – Business Administration, Bookkeeping, Compliance News & Tips MYOB Reckon Quickbooks Xero Software Training Small Business

Making Business Books and Accounting Come Alive! MYOB Reckon Xero

Business Tax Tips – Should you have a Company?

Leave a comment


Business Tax Tips – Should you have a Company?

Business Tax Tips –
Should you have a Company?

It is good to seek advice and regularly consider your business structure – such as whether using a company to operate your business is best. Operating as a company has some tax and commercial benefits, eg many organisations prefer dealing with companies rather than individuals or trusts, but it could be cheaper to operate as an individual, especially in the initial stages.
The 30% individual marginal tax rate (31.5% including Medicare) now applies in 2012 onwards to income up to $80,000 and the top marginal tax rate of 46.5% applies above $180,000. This means the company tax rate of 30% is becoming less attractive with taxable income up to $80,000 – that is, revenue less expenses.
So a couple with a family business can have an annual net income of up to $160,000 before their salaries will be worse off from a taxation perspective if they retain profits in the company. Best to seek a tax professional to see what is best for your situation.
Need help? Not sure? Call for FREE 30min advice / strategy session today!
And also get Free “Avoid these GST mistakes” – there’s 18 that the Tax Office see regularly – get them right!


Author: Account keeping plus (Business accounting software

Administration, Bookkeeping and Compliance for small business, and Self-Managed Super Funds (SMSF) Training, trouble-shooting, or we can do the books and payroll for you! Self Managed Superannuation Fund Service Provider, Free support 30 min call 0407 361 596 Australia (+61 drop 0 from overseas) MYOB Certified Consultant, Reckon/QuickBooks Professional Partner.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s