Legal requirements for various registrations required for Australian business Entity. Registration Requirements for starting a small business in Australia. It describes various requirements for obtaining GST Number, Tax Filing number etc.

1. OUTSOURCE Your Accounting WorkOUTSOURCE Your Accounting Work
A brief on Australian Tax System

2. A brief overview on Australian Accounting
System for small business
This Presentation is aimed at explaining basic
compliance requirements for small business in in
Australia
 It gives an overview of the taxation aspects in
Australia.

3. Obtaining Tax File Number (TFN) and Australian
business number(ABN):
You can complete and lodge an application for an
Australian business number (ABN) and TFN for a
company, partnership or trust online.
Goods and services tax (GST)
If your annual turnover is $75000 it is mandatory
for you to get registered and collect GST.
Fringe benefits tax (FBT)
Registration under FBT is required if you provide
perquisites and benefits to your employees.
Registration Requirements for Small
Business

4. Types of Business EntitiesTypes of Business Entities

5. Sole Trader
• It is a simplest structure for business and
highly recommended in order to avoid tax
complications for business.
• Income Tax: The liability to pay income
tax is on individual as the business income
earned by sole trader is considered to be
individual income.
• GST: A sole trader needs to collect and pay
GST if turnover is $75,000 p.a. or more.

6. Partnership
• A partnership is an association of people
who carry on a business as partners or
receive income jointly.
• Income Tax: Each of the partner has to
pay income tax on share of the profits.
However partnership business is required to
lodge an annual return giving details of
income and expenses
• GST: A Partnership needs to collect and pay
GST if turnover is $75,000 p.a. or more.

7. Company
• Company is a separate legal entity in eyes
of law.
• Income Tax: The income earned belongs
to the company hence the liability to pay
tax arises on Company.
• GST: A Company needs to collect and pay
GST if turnover is $75,000 p.a. or more.

8. Legal Requirements forLegal Requirements for
record keepingrecord keeping

9. Record Keeping
• Manual v/s Electronic Records: You can
keep your records manually or in Electronic
Form
• Time Period: You need to maintain your
records for at least 5 years.
• Records to be kept: It is advisable that all
the business records should be kept and
none of them discarded.

10. Rates of Income TaxRates of Income Tax

11. Income Tax Rates for
2013-14 income year
Taxable income Tax on this income
0-$18,200 Nil
$18,201-$37,000
19c for each $1 over
$18,200
$37,001-$80,000
$3,572 plus 32.5c for
each $1 over $37,000
$80,001-$180,000
$17,547 plus 37c for
each $1 over $80,000
$180,001 and over
$54,547 plus 45c for
each $1 over $180,000
In addition to income tax there is a Medicare levy of 1.5%
or the Medicare levy surcharge. The Medicare levy will
increase to 2.0% from 1 July 2014.

12. Goods and Service TaxGoods and Service Tax

13. Goods and Sales Tax in Australia
 GST is a 10% tax on most goods and services sold in
Australia.It is collected by registered businesses at each
step in the supply chain.
Credit of GST:
The purchases for the purpose of business are eligible for
GST credits.
Business can claim credit of GST in order to reduce the
amount of GST payable.

14. COMMUNICATION ADDRESS:
Plot No : 10, G.I.D.C Electronic Park
IT/ITES SEZ Kolwada Road, Gandhinagar- 382026,
Gujarat, India.
CONTACTS:
Rushabh Shah
Mob: +91 9712381843
Skype: rushabh_s_shah
WEBSITE:
www.rayvataccounting.com
Email:
rushabh@rayvat.com
Rayvat Accounting.