Business Tax Frequently Asked Questions
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Australian businesses with an annual turnover of $75,000 or more are required to register for GST. If your business has a lower turnover you are not required to register, but you may do so if you wish. You will only be required to charge your customers GST if you are registered. Your local H&R Block office can assist you with your application to register for GST.
Call 13 23 25 or use our office locator to find your nearest H&R Block office and book an appointment online.
From 1 July 2008 most Australian businesses could claim fuel tax credits for running machinery, plant, equipment and heavy vehicles used in running that business.
To be eligible to make a claim the business must be registered for GST and the claim should be made on the Business Activity Statement (BAS) that is required to be lodged.
The amount that can be claimed will depend on the type of fuel and what it is used for. Fuel tax credits are not available where alternative fuels (e.g. LPG) are used.
If your turnover is less than two million dollars, you would be classed as a small business entity (SBE). As such you would be able to access a number of small business concessions including:
- income tax concessions
- capital gains tax concessions
- excise concessions
- Goods and Services Tax (GST) concessions
- Pay As You Go (PAYG) installment concessions and
- Fringe Benefits Tax (FBT) concessions.
Provided that you satisfy the eligibility criteria, you will be able to claim a deduction for the superannuation contributions you have made to a complying superannuation fund or retirement savings account.
To do so you must be fully self-employed or no more than 10% of your assessable income (including Reportable Fringe Benefits and Reportable Superannuation Contributions) is from an employer. You must also have first notified your superannuation fund of your intention to make the claim and received a confirmation.
You may be eligible for the superannuation co-contribution if more than 10% of your total assessable income is from running that business, eligible employment or a combination of the two.
Investment income is not eligible income. If you claim any of your superannuation contributions as a tax deduction, only the amount that you do not claim will be eligible for the co-contribution.
If your turnover is less than $2 million you will qualify as a small business entity and will be able to claim certain eligible pre-paid expenses in the year they were paid.
Some examples of prepaid expenses that can be claimed in the year they are paid are rent, insurance and subscriptions to professional associations.
Eligible expenses will be payments that are made for periods of 12 months or less and that the period covered ends in the next income year. Your pre-paid rent qualifies because the period it covers does not exceed 12 months and that period will end before the end of the next income year. The whole amount will be claimable on your tax return this year.
At H&R Block nothing is too complicated. We can assist you with any number of tax questions. Find an office near you and book an appointment online or call 13 23 25.
If a taxpayer carries out all or part of their employment activities from home and has an office set aside to do the work, some portion of the running expenses can be deducted. A diary should be kept for a minimum of 4 weeks stating hours the office was used for work related purposes.
From 1 July 2014, the Commissioner’s rate of 45 cents per hour (increased from 34 cents per hour allowed in the 2014 year) can be claimed for the hours the home office is used. Only running expenses (electricity, heating and depreciation of office equipment) can be claimed for home office unless the home is being used as a place of business.
Where a home is a place of business (and is easily identified as such – for example a separate entrance, signage, clients/customers coming to set area of your home etc.), deductions can be claimed on occupancy and running expenses including:
- mortgage interest
- house insurance
- council rates
- pest control
Find your nearest H&R Block office and book an appointment online or call 13 23 25.