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joeljp
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BizHelp, post: 200003 wrote:
Hi All,

Do apologise if this topic has been covered, I have trawled through the forums but am unable to find the answer to my question.

I am employed in the public sector at the moment and have decided to start a side business (for the moment) in strata maintenance with a friend who I also work with.

The question I have is “how does tax affect us both if we had a partnership business set up, being employed full time on about 80kp.a and with a ballpark figure of 50k in our first yearof business.

Could someone pls explain how we are taxed on the earning of our business.

Thank you in regads,

Hi, assuming your partnership is 50/50’and your net profit is $50k as stated, then the $25k extra you earned on the side would form part of your taxable income. Your assessable income therefore = $105,000. You’ll pay tax based on this figure.

I hope this helps :)

Regards, jj