The Small Business Tax Help Blog

Posts Tagged ‘tax australia’

Question: What is the self employment tax rate in Australia?

I want to become a wedding planner and was wondering what percentage of tax I would have to pay on my income? thanks

Answer: It doesn’t matter what profession you are in, you will still be subject to the marginal tax rates:

http://www.ato.gov.au/individuals/content.asp?doc=/content/12333.htm

You will need to withhold tax however. After you lodge your first tax return with sole trader income in it they will issues you a Pay As You Go Installment notice for the next year. The first year you will either have to contact the ATO about withholding money to pay tax or just put aside money for when the tax bill comes in.

I recommend seeing an accountant before setting up a business though, there are a number of hoops to jump through and depending on your expected income you may want to look at alternate structures.

Carnival Corporation & plc Reports Second Quarter Earnings

Carnival Corporation & plc reported net income of $206 million, or $0.26 diluted EPS, on revenues of $3.6 billion for its second quarter ended May 31, 2011. Net income for the second quarter of 2010 was $252 million, or $0.32 diluted EPS, on revenues of $3.3 billion.

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Question: How much GST and Tax do you take out of your self contractor wages in Australia?

My hubby is starting a self contractor business and we where wondering how much GST and Tax do we have to pay to the government as everywhere we look its a different amount. Can any one help. Thanks

Answer: for self employed contractors, there’s a what’s called an ‘Instalment Activity Statement’ they could pay. what this activity statement basically means is after lodging a tax return advising the tax office you’re self employed and what your tax liabilities are for that year, the tax office will then assume your situation (in your case being self employed) to stay the same and estimate your tax liabilities for the coming financial based on the previous years’ return and issued out instalment activity statements for you to pay your tax in advance.

these statements will get divided into 4 quarters, which means if your tax liabilities for the previous year was $2,000 for example, they will increase this slightly to say $2,500 and you’ll pay 1/4 of $2,500, which is $625 every 3 months, so by the end of that financial year, you would have already paid $2,500 towards your tax bill. if you’ve paid too much, the tax office will refund the difference to you, if you’re still slightly short, then you’ll just pay the difference then.

the instalment activity statement system won’t start till your husband lodges his first return as a sole trader, in the mean time, put away about 20% of what he gets paid every week/fortnight, that should be enough to cover his tax liability.

as for GST, if he’s not registered for GST, there’s no need to do anything till when he does his tax return, if he is registered, just worked out how much money he’s make for that quarter, work out 10% of that total income then work out how much expenses for that quarter, work out 10% of the expenses, the difference of 10% total income and 10% total expenses is what he need to pay to the tax office for that quarter.

NRW wins & #36;112m FMG contract extension

NRW Holdings has won a 12 month contract extension for overburden mining at Fortescue & #39;s Christmas Creek project in Western Australia.

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