Taking Care of Business Archive

Activity statements are used to make payments and report obligations under the tax system. The statement is used to report and pay your FBT Instalments, PAYG (instalments and withholding), GST and related tax obligations, and to pay deferred company and superannuation fund instalments.

Australian Business Number (ABN) The Australian Business Number (ABN) is a single identifier used for all dealings with the Taxation Office and other business entities and agencies.

​Capital Gains Tax (CGT) is not really a separate tax but is what you need to include on your income tax return for any net capital gain incurred in a financial year for a Capital Gains Tax event which can include compulsory acquisitions, forfeited deposits, etc. Also you may have a Capital Gain from managed funds or other units where the Capital Gain is distributed to you. You are taxed on net capital gains at your marginal tax rate. The date of acquisition and disposal is the date the contract is signed and not when it is settled, so you may have a situation where it is signed pre 30th June and goes into the current tax return even when settlement is post 30th June.

Fringe Benefits Tax is generally the tax payable by an employer on a taxable benefit provided to an employee (or their associate ­usually family) and can relate to current, past or future employment. The benefit could be in place or in addition to salary or wages. The tax is separate to Income Tax and the FBT year runs from the 1st April to 31st March.​

​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 not­for­profit organization but you may elect for voluntary registration if you are below the threshold.

​The imputation system provides a way in which Australian corporate tax entities can pass on credit for income tax they have paid to their members. The system prevents income tax being levied twice ­ once when the income is earned by the entity, and once upon distribution of the income to the members.

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

​The real benefits of negative gearing are only realized when you combine the correct tax and financial advice with a property in the right location funded by the most suitable loan product. You should always seek expert professional advice to make sure the purchase is within your budget and will provide long term taxation and financial benefits.