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  • #987830
    • Total posts: 10

    Hi everyone, I have a few tax questions.

    I am a carpentry trading as a company. I employ only myself and have set up payg tax instalments which I pay quarterly. along with this I pay my 9.25% super. from my quarterly income i balance my super, tax and wages so that nothing is left in the company account at the end of the quarter. I do this because I work on an hourly rate and need every dollar i get payed.

    my question is, for deductions such as super and tools etc. what do they get deducted from if the company hasnt payed any tax? the company with holds and pays my personal tax but does not have a left over profit, therefor doesnt pay company tax. also when should i be seeing an accountant for the company tax, before or after the end of financial year?

    Thanks for reading.

    James Millar
    • Total posts: 1,739

    The taxable income of the company is equal to revenue (Exc GST) less deductible expenses (Exc GST). Deductible expenses include any element of assets that were only partially expensed (depreciated) in that year. Not all tools and equipment can be expensed in full in the year of acquisition.

    If after revenue you deduct your salary and super (as an employee of the company) and you are producing a zero taxable income then chances are the additional expenses for tool etc will push into making a small tax loss. The loss will be carried forward and can be used in future years effectively as a tax deduction.

    See your accountant before 30 June because they may change the nature of your drawings from the company. For example dividends may produce better outcomes than salaries. You can’t easily change these things super after 28 July (super cut off for the June quarter ended).

    Helping build better businesses and better lives with expert financial and taxation advice. [email protected] www.360partners.com.au 03 9005 4900
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