Business Registrations – Legal Compliance

When you are starting a new business it's important to find out what registrations and licenses apply to your business. Having the correct licenses and registrations is fundamental to your business. They allow you to operate without fear of closure from non-compliance and are the foundation to successful business.
ACN (Australian Company Number):  The Australian Company Number (ACN) is a nine digit number with the last digit being a check digit calculated using a modified modulus 10 calculations.
ABN (Australian Business Number):  An Australian Business Number (ABN) is a unique 11 digit number that identifies your business to the government and community. An ABN doesn't replace your tax file number, but it is used for various tax and other business purposes.
GST (Goods and Service Tax): Goods and services tax, often known as GST, is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia. GST applies to most Australian businesses and it's highly likely that your business will be affected by the tax.
PAYG withholding registration: When you make payments to employees and some contractors, you need to withhold an amount and send it to the Australian Taxation Office (ATO) at regular intervals. The ATO calls this Pay As You Go (PAYG) withholding.
Fuel Tax Credit: Fuel tax credits provide businesses with a credit for the fuel tax (excise or customs duty) that's included in the price of fuel used in:
  • Machinery
  • Plant
  • Equipment
  • Heavy vehicles
  • Light vehicles travelling off public roads or on private roads.
Fringe Benefit Tax: Fringe Benefits Tax (FBT) is a tax payable by employers for benefits paid to an employee (or an employee's associate e.g. a family member) in place of salary or wages.  
For more information please click- http://www.cygnusaccountants.com.au/br/






Comments

Post a Comment

Popular posts from this blog

Why Tax Planning is Important?

Tax planning includes the analysis of a financial situation or planned transactions from a (direct or indirect) tax perspective. The purpose of tax planning is normally to ensure tax efficiency and compliance, so that all the elements in a transaction are working together in a tax efficient manner, reducing the overall tax liability and ensuring that every action taken is compliant with the relevant rules and policies under which the transaction is conducted. International Tax Planning: - Transactions of a cross-border nature are at risk of attracting double taxation, which may make such transactions less efficient and can sometimes limit cross-border trade and other activities. Tax planning helps in estimating how much tax a company will have to pay. This is done by making estimations and comparing it to the previous year’s data. For a business, regular tax planning and paying of tax will help save them from complexities of the legal authorities of the government. Thus,...
Read more

Purpose of Tax Planning

Tax planning  is the process of forecasting one's tax liability and formulating ways to reduce it. Tax planning  entails creating portfolios or circumstances that are as tax efficient as possible. Purpose of Tax Planning :-Tax planning is a legal and accepted practice followed by business all over the world. Tax planning allows a company or individual to use tax laws and regulations to its benefit to save on the tax it would otherwise pay. These savings can be plowed back into the business to help it grown and become more profitable or to augment the wealth of an individual. Because tax avoidance is illegal and tax planning is completely legal. Tax Planning is nothing but showing your income and investing your money in such a manner that reduces your tax liability and eventually results in saving of money. Tax Planning follows an honest approach, to achieve maximum benefits of tax laws, by applying the script and moral of law. If you are looking f...
Read more

SUPERANNUATION

Superannuation in Australia is the arrangements put in place by the Government to enable people to accumulate funds to provide them with income in retirement. Superannuation in Australia is partly compulsory, and is further encouraged by the government and supported with tax benefits. The government has set minimum standards for contributions for employees as well as for the management of superannuation funds. It is compulsory for employers to make superannuation contributions for their employees on top of the employees' wages and salaries. SMSF property investment  SMSF property investment has gained considerable momentum since the amendment of borrowing provisions to allow for the purchase of residential real estate. The ability to obtain a limited recourse loan to buy income-producing property in a favorably low tax environment, has affected a rapidly emerging incidence of direct property investment within SMS...
Read more