Finances

GST

Goods & Services Tax (GST) is only payable once your revenue reaches $75,000 or more. Speak to your accountant if you need further information. Information can be found here:

https://www.ato.gov.au/Business/GST/

 

PAYG

If you think your business will earn enough to warrant paying tax PAYG is a way of paying installments over the course of the year so you don’t end up with a tax bill. However when setting up a new business the costs can be extensive for the first few years so most businesses will run at a loss. Meaning you’ll spend more than you earn so won’t need to pay tax. Be mindful however that if you earn an income from an employer as well this gets added to your business income, talk to your accountant for more information.

 

Tax Return

When you do your taxes after June 30^th if you’re a sole trader you can do your business tax return on your personal tax return. It can still be quite involved so it is advisable to consult a qualified accountant rather than just doing it yourself on MYGOV as you may be losing out on deductions you aren’t aware you can claim.

 

***IMPORTANT***

Every single cent you spend on business items from machinery down to paperclips KEEP THE RECEIPT. Every expense can be claimed in your tax and bring the income down so you don’t have as much tax to pay or may receive a refund.

 

It’s a good idea to invest in a bookkeeping software. Some are expensive but there are some that are cheap to start with and then as your business grows and needs change you can change subscriptions to a more in depth program. Be aware some programs are used internationally as well be sure that you are on an Australian website so if you need to charge GST at a later date you can set it up on the program.