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  • #969853
    kerem
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    Hi Everyone
    I am going to stay in Australia for next three years. I decided to open my own online business as an after hours job which I will manage from my home. I will work as a sole trader and the business is about online fine art photography. I applied for my tax file number and also applied and received my Australian Business number. At the moment I decided to take care of everything by myself so I haven’t applied to an accountant yet.
    I have installed AUSkey and everything is ready to go since July. My question is “when will I start to lodge my activity statements?” At the moment the e-tax software does not allow me to do any activity statement, am I supposed to do statements at a later stage? And my second question “When will I start to pay tax as a newly formed business?”
    Thanks very much

    #1041246
    Anonymous
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    • Total posts: 11,464
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    Hi Kerem,

    Welcome to Flying Solo :)

    I’m sure one of our resident tax and accounting experts will be able to help you with your questions.

    All the best,
    Jayne

    #1041247
    StellarScott
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    • Total posts: 239
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    Hi Kerem

    If you have registered for GST your first payment will be due on the 28th October for the July-September quarter

    Any income from your business as a sole trader will be included in your 2010/11 taxable income along with your ‘day’ job . As a ‘temporary’ resident I suggest you speak to an accountant as there will be implications if you are taxed as a resident or not. You may even have tax advantages such as the living away from home allowance

    #1041248
    tzutzy
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    Hi,

    If I make a capital purchase now that I know will be fully deductibe at year end because of the Small business system (being under $1000), will that purchase have to be put at the capital purchases item on the BAS or at the other purchases item?

    Thanks

    #1041249
    rvnd
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    • Total posts: 40
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    Hi there. If you do have problems with filing your tax returns online (and I’m not saying that you will, but I did), I humbly suggest that you don’t waste time trying to solve it, but revert to paper as soon as you can. The time and headache I’ve saved going back to paper, avoiding the horrible online BAS system, has been invaluable.

    #1041250
    RapidEntryBiz
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    • Total posts: 134
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    tzutzy, post: 62806 wrote:
    Hi,

    If I make a capital purchase now that I know will be fully deductibe at year end because of the Small business system (being under $1000), will that purchase have to be put at the capital purchases item on the BAS or at the other purchases item?

    Thanks

    Hi
    You should record it as a CAP purchase if you believe it is, in good faith. The ATO won’t penalize you for later claiming it as if it were a nonCAP item on your Tax Return. Your accountant won’t advise you to submit an amended return for that period on the basis of 1×1000 item. If you were to buy many of these items, the advice might be different as the ATO uses this information to formulate benchmarks. The answer therefore is one of degree.

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