Income tax for business
Federal income tax is levied on the taxable income of a person or a business. It is calculated on assessable income less any allowable deductions.
- Assessable income is generally income your business earns - it does not include GST payable on sales you make, or GST credits.
- Allowable deductions are deductions for certain expenses that you necessarily incur in relation to your business.
You must lodge an income tax return for any year in which you carry on a business, even if you expect to have no tax liability.
What to do...
- See the Tax Office Income tax for business essentials for information about income tax.
- Read about How income tax works.
This content is supplied to Flying Solo via business.gov.au,
the Australian Government's principal website for business information and resources.
