All residents of Australia who owns or runs a business are subject to Australian business income tax. Thus, they need to get a professional business tax advice to help them start and become compliant – making them more eligible in running an Australian business.

Your taxable income determines how much income tax your company must pay, while your assessable income less any deductions are used to compute it. Generally speaking, assessable income is the revenue that your company brings in. It comprises all gross income (before taxes) from your regular business operations (sales, for example) as well as any other income that is not related to those operations, including capital gains. It excludes GST credits and GST payable on sales you make.

Except for “small or medium business” entities, all businesses must pay a business tax rate of 30% on their taxable income. These entities instead pay a lower tax rate of 25%. Only businesses that fall below the combined turnover threshold of AUD 50 million, along with a few “related” firms, are subject to the reduced tax rate.

Kasker Associates is your reliable tax consultant in Sydney who can assist you throughout your business eligibility errands. We’ll give you simplified and straightforward business tax advice so you know where and how to start. Know more about how Australian business tax works below: