When Do I Start Paying Taxes?

[Igor]

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I recently started a webdesign business. I registered for ABN and already included my ABN number into invoices of my 2 customers.

The total for orders for this year so far is under $3k. The question is –

At what point do I start submitting tax declarations / paying taxes? As a recent immigrant I have zero experience with Australian Tax System. So far, I only found that there is no tax on income between 0 – $18,200 / per year but it is not clear if I have to submit any sort of declaration before I reach this level or not.

I will appreciate any advice and pointers in the right direction.

[Chris – Marketing]

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Do You anticipate that your turnover will exceed AU$75,000? how have you set up your GST?
Pay as you go tax depends on the your profit and tax scales. Do you have an accountant? You should be talking to an accountant now if you are serious about succeeding.

[James Millar]

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Igor, post: 167291 wrote:

I recently started a webdesign business. I registered for ABN and already included my ABN number into invoices of my 2 customers.

The total for orders for this year so far is under $3k. The question is –

At what point do I start submitting tax declarations / paying taxes? As a recent immigrant I have zero experience with Australian Tax System. So far, I only found that there is no tax on income between 0 – $18,200 / per year but it is not clear if I have to submit any sort of declaration before I reach this level or not.

I will appreciate any advice and pointers in the right direction.

ATO self assessment tool here. The answer is that it depends on both your taxable income AND the contents of that income (various credits and other reportable non taxable items etc). Assuming you are an Australian tax resident.

http://calculators.ato.gov.au/scripts/axos/axos.asp?CONTEXT=&KBS=Lodge13.XR4&go=ok

Helping build better businesses and better lives with expert financial and taxation advice. info@360partners.com.au www.360partners.com.au 03 9005 4900

[themobilebillboardco]

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If you’re in Australia… the question should be, when do i NOT pay my taxes

JR

[KellyB]

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Hi Igor,

Assuming your turnover stays below $75,000 you are not required to register for and collect GST. Once you do register, you are required to pay the GST you collect to the Tax Office (normally submitted quarterly). So at this stage, this part of the tax system is not applicable to you

The other are is Income Tax. As you have seen, you need to lodge a Tax Return if you earn more than $18,200 (this is for the period 1st July – 30th June, not a calender year by the way). If you fall below this amount, there is a form you have to fill out with you name, Tax File Number, etc which declares that you do not need to do a return for that year.

Once you are over that amount (or if you recieve certain Centrelink payments, pay any PAYG tax, etc – as outlined in the online tool James shared), then you must lodge a tax return and pay income tax. If the tax you pay is over a certain amount (not sure of the amount though, I think it is around $2,000) then you have to start paying this quarterly in instalments for future years.

Hope this helps, what I have mentioned is broad and basic, but as someone new to Australia you may not be familiar with some of this.

Kelly

[Igor]

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Thanks a lot for your replies. They clears things up for me.

In some cases, according to http://calculators.ato.gov.au/scripts/axos/axos.asp?CONTEXT=&KBS=Lodge13.XR4&go=ok, even if the income is below non-taxable amount of $18,200 the declaration still needs to be made.

[themoneytap]

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What’s the hobby tax rate at?

If you need a hand marketing your business online Igor give me a message or visit my blog mate

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