Flourish Health & Wellbeing eMag - Latest Edition - Flipbook - Page 21
Converge
As the end of June approaches, so does the season of tax
returns. Whether you’re hoping for a refund or preparing to pay,
tax time can feel confusing and overwhelming. But with a little
planning and know-how, it doesn’t have to be.
Personal vs Business Tax:
Understanding the Basics
Personal tax in Australia is calculated based on your annual
income. Your employer withholds tax from each pay, and you
lodge your return between July 1 and October 31. If you use a
registered tax agent, you might qualify for an extension.
Here are the current income tax brackets:
$0–$18,200: No tax
$18,201–$45,000: 19c for every $1 over $18,200
$45,001–$120,000: $5,092 + 32.5c per $1 over $45,000
$120,001–$180,000: $29,467 + 37c per $1 over $120,000
$180,001+: $51,667 + 45c per $1 over $180,000
Business tax tends to be more complex. The type and frequency
of taxes vary depending on your business structure, revenue, and
employees. Key types include:
Income Tax – based on business profit
PAYG instalments – quarterly tax prepayments
GST – can apply to businesses earning over $75,000 per year
These payments may be due at different times throughout the
year, so keeping up with your obligations is essential.
What You Can
Claim: Deductions
for Individuals &
Businesses
Getting your deductions right can
make a big difference to your
refund. However, accuracy matters
—ATO data shows an $8.7 billion
tax gap, partly due to incorrect
claims.
As an individual, you may be able
to claim:
Home office expenses
Work-related travel and car
use
Uniforms and protective
clothing
Education and training
Donations to registered
charities
As a business, you can generally
claim:
Vehicle and travel expenses
Salaries and superannuation
Repairs and maintenance
Operating costs
No matter your situation, keeping
receipts and clear records is
crucial. Without proper
documentation, your claims could
be denied, and penalties may
apply.
