Starting a Small Business

Do I need to register for GST to start up a new business?

You must register for GST if:

  • your business or enterprise has a GST turnover (gross income minus GST) of $75,000 or more
  • your non-profit organisation has a GST turnover of $150,000 per year or more
  • you provide taxi or limousine travel for passengers (including ride-sourcing) in exchange for a fare as part of your business, regardless of your GST turnover – this applies to both owner drivers and if you lease or rent a taxi
  • you want to claim fuel tax credits for your business or enterprise.

If none of above applies then it is optional to register for GST.

Do I need to pay super to employee in small business?

You have to pay super to your employee if you are paying $450 or more (before tax) in a calendar month.

No matter if employee is full-time, part-time or casual.

How much super employer has to pay to his employee?

The minimum super you must pay each quarter for each eligible employee is called the super guarantee (SG).

Currently the SG is 9.5% of their ordinary time earnings (OTE).

OTE is usually the amount your employee earns for their ordinary hours of work. It includes things like commissions, shift loadings and allowances, but not overtime payments.

If I have Income below threshold with little amount of tax, Do I need to lodge the Tax Return?
Yes, you need to lodge the Tax Return even if your income is below threshold. Earning with any tax withheld needs to be reported on a tax return to get a refund of tax paid.
Can I claim Fuel Tax Credit?

Before you make a claim you must be registered with GST and Fuel Tax Credit. This is a credit for fuel tax which is included in a fuel price used in machinery, plant, equipment, heavy and light vehicles. Credit amount depends upon when you acquire the fuel, what fuel you use and the activity you use it in

Do Taxi and Uber Drivers need to register for ABN and GST?

Yes, Taxi and Uber Drivers have to be ABN registered and GST registration from the date you started ride-sourcing. You can do GST registration when you get your ABN.

Can Taxi and Uber Drivers report GST Payments annually?

No, Taxi and Uber Drivers has to report GST Payments Monthly or Quarterly. They can’t do annually.

BAS and PAYG for Business

Do I need to lodge Business Activity Statements (BAS) if I’m paying all pay as you go (PAYG) Instalments?

Yes, you need to lodge Business Activity Statements and all your PAYG Instalments before lodging your Tax Returns. PAYG Instalments is a system of making regular payments towards your expected end of year income tax liability.

If missed one of my PAYG Payment Summary and lodged the Tax Return without that. Can I include that PAYG Payment Summary in next Tax Return?

No, you can’t include that income you earned in last financial year into next financial year’s Tax Return. You have to lodge the amendment of last year’s tax return and include the PAYG Payment Summary in that.

Have you got a call from ATO threatening to arrest you?

Whenever you get call from someone saying they are calling from ATO and threaten you with arrest

Demand immediate payment, particularly through unusual means such as bitcoin, pre-paid credit cards or gift cards

Refuse to allow you to speak with a trusted advisor or your regular tax agent

Or present a phone number on caller ID

STAY CALM !
Such calls are never from Australian Tax office (ATO).

IT IS A SCAM