Lesson 4 - Taxation obligations and business structure
Outcomes (What you need to know and be able to do)
• Explain the importance between effective book keeping
and tax obligations
• Outline the taxes in Australia
• Explain how a business structure can inﬂuence its tax
• Calculate the amount of tax a business is obligated to pay
in case studies
From last lesson…….
Outline one beneﬁt of a cash book
Beneﬁts of a cash book
determine the cash balance.
keep a tight control on the cash
monitor the business’s cash ﬂow position — that is, the
money coming into the business and the money
leaving the business
Commonwealth government taxes
PAYG is a system whereby tax is taken directly from an
employee’s salary or wage.
Company tax is charged against the earnings of a company.
The tax is calculated on the proﬁt of the company at a rate of
30 per cent.
Fringe beneﬁts tax (FBT)
A fringe beneﬁt is a beneﬁt provided by an employer to an
employee or their wife or husband in addition to wages,
superannuation or other traditional rewards.
Capital gains tax (CGT)
Capital gains tax is a tax calculated on transactions involving
proﬁt earned from the sale of assets.
State Government Taxes
Payroll tax is charged against a business based on the
payroll of that organisation.
Stamp duty is payable by individuals and businesses for
transactions involving the purchase of items such as land,
buildings and motor vehicles.
Stamp duty tax
Land tax is a tax on land owned by individuals or