Category Archives: Tax

Taxation is the way the government gets its lifeblood of funds. This fund is used to provide basic social services; and are used in the education of our children as well as safeguarding peace in our country. It is therefore the responsibility of the business owner to pay his own dues and taxes to the government.

Income tax is regularly collected by the government through a revenue system. The failure to pay the correct amount of tax in the right time could lead you to some problems that could harm the reputation or hamper the operation of your firm. With this important piece of information in mind, let us not forget to pay our taxes correctly and on time.


Tax Tips for SMBs

While hiring a financial expert can make filing your taxes convenient, there are still other tips that can put to practice to make your business smoothly glide when the tax deadline comes near. These tips will provide you with ways on how you can lessen the trouble that you usually encounter when you file your taxes. Even if you choose not to do it yourself, you will still have to do certain things for to accomplish the task. And keep in mind that in the end, you will be responsible for your business.

Employing a Strategy

One of the bigger steps that a business takes towards organizing the finances is to start bookkeeping. Bookkeeping is a simple task for people who have a background. It does not require specialized skills but you must be familiar with the terms. Accuracy is the most important feature of accounting since the details in the books will be the bases for the health of the business. Make sure that the bookkeeper is honest and objective. Accounting for small businesses is usually performed by the owner but as a firm expands, it becomes more effective to hire someone else. When this time comes, listen to what your accountant has to say. He or she knows more when it comes to your finances so make sure that you hear him or her out especially when making business decisions.

Getting used to it

Tax payments are perennial payments. Learning to accept that and getting used to it is a giant leap towards easy management. It will also save you resources when you realize that it is a normal part of your business and that you have to incorporate it in all aspects of the business the whole year round and not just when the deadline comes near. Here are other advantages when you distribute your tax-related tasks to your everyday activities:

  • You will have enough time to finish the documents.
  • You get to set aside cash for the payments. This will make the expense easier since you do not have to shell out in bulk.
  • You will also make the most of you accountant’s skills.

Make the Most of Technology

If you are ever caught in a pile receipts, then you must make use of this impressive soft wares. Not only will you have less clutter but you can fill out your Business Activity Statement (BAS) and Annual Tax Assessment easily. If you have an Apple iPhone, you can use Genius Scan+ for easier documentation. You can take a photo of the receipts and have them kept in online storage sites that you can access anytime. There are also similar applications for other phones. These soft wares will spare you the time of looking for old receipts and give you an easy time as the deadline draws near. And since you are required to keep the receipts for seven years, you will be able to save space and ensure that the ink has not been erased by water and other materials.


Deductions Maximisation

You may not be aware of it but some of the payments you make can actually reduce your taxable income. And these acts are purely legal. You need not skip certain earnings that can actually bring you to jail. Take your cue from these actual cases when you would never think these people can actually get more for what they did.

Mark Morris, a senior tax counsel in Australia talks of a police officer who can claim the payments he makes to informants through his tax payments. With adequate documentation and authorization from his service, he can actually get his money back. It works like any expense made by an employee that the business must reimburse. Especially since the police officer works for the state, it is also the state that will pay him back through the cut in his taxable income.

Another interesting way that you can actually cut on your taxable income is through the clothes you wear to work. It may seem kind of odd but if a change in wardrobe is required for you to perform your job, then you can you can actually save some money come tax payment time. Flight attendants are awarded allowable cuts when they have to buy shoes or clothes in place of the ones that they have but would affect their jobs. Electricians who work outdoors can seek cuts for the payments made in buying protective gears and clothing.

You may find these instances odd but you will be surprised to find out about the mundane things you do every day that actually allow significant deductions to your taxable incomes .

  • You can actually avail of laundry deductions when you have to pay more to clean protective clothing and other work-related apparel. This is applicable to employees of chemical companies and similar industries where the clothes they wear are different from the normal clothes a person wears. Since they are made of different materials of have delicate structures, you can be spared of the costs of cleaning them.
  • Home office costs are allowable deductions for people who work in their homes. At a normal rate of $0.26 per hour, the worker can save the costs he or she incurs for electricity and other costs for the work.
  • Self-education costs can also be claimed if you are taking up higher studies aimed at your current career alone.
  • Motor Vehicle costs can also be allowed if your company does not reimburse your vehicle costs like petrol consumption for work-related trips.

In general, allowable cuts work as reimbursements wherein the paybacks are made through the cuts in the taxable income. Allowable deductions are usually awarded to builders, cleaners, healthcare workers, electricians, engineers, hairdressers, lawyers, miners, security guards and travel agents. It you have inquiries and questions on how you can avail of allowable deductions, visit Just keep in mind that for transactions to be valid and authorised, proper documentation is necessary. You can also seek help and assistance from your financial advisers.


Tax Deductions – Making The Most Of Them

Taxation is a complicated and even boring topic for most people. However, knowing how taxation works can actually help you save you money at the end of the year. And you can do so in a perfectly legal manner through the aid of tax deductions.

Tax deduction is a sum of money allowed to be deducted from your taxable income at the end of the year. These deductions are allowed depending on the products and services availed by the person. Usually, allowable deductions are awarded to workers who incur additional costs to perform their jobs more effectively. These include clothing expenses, travel expenses and other lifestyle expenses. Donations and gifts are also deducted from the taxable incomes.

To further explain how allowable deductions work, consider a regular labourer. In the previous year, he was able to earn $10,000 dollars. However, he was forced to spend a fraction of his income for some work requirements. He had to spend $500 dollars to buy protective clothing. He is allowed to deduct this amount from his taxable income. Hence, only $9,500 will be considered when computing for the amount he needs to pay. If for example, the tax he has to pay is 10% of his taxable income, he will only have to pay $950 instead of the $1000 without deductions. He will be able to save a total $50 due to the deductions.

Moreover, here are some tips on how you can familiarize yourself with tax deductions and make the most of them. You will be surprised by how much you can save at the end of the year.

Keep Your Receipts

If you are like most people who throw away the receipts or slips of transactions, you may have to think again next time. In order to avail of allowable transactions, you will have to present proofs of transactions and purchases. However, if you have already lost your receipts, you can still avail of fixed rates for work-related costs. On the average, $300 of work-related expenses can be compensated alongside $150 worth of laundry services. Others may require detailed summaries of transactions so it is best to check the requirements imposed by the ATO. Workers are also encouraged to keep their notice of assessments for future reference.

Have a Tax Agent

Aside from using the spread sheet programs to keep track of your finances, you can also use the E-tax program. Through the internet, you will be able to keep track of your expenses and easily identify which if your expenses you can get deductions from. The program also features quick links to the ATO site for quick reference.

However, hiring a tax agent is still the prescribed move by financial advisers and analysts. It is true that it will you to have them manage your taxes but most people find them worth it. Unlike computer programs, these trained professionals can dig deeper into your expenditures and further analyse your possible claims.

To learn more about allowable deductions, visit the ATO site at


Tax for Small Businesses

Taxes can be such a hassle. Filling out forms is tedious enough. Compiling the paperwork and doing the computations is also very exhausting.  But paying taxes is your way of giving back to the economy. And it is also another way of making sure that you get back what you deserve. That’s right. Filing you taxes accurately and religiously is the most effective way of getting a guaranteed refund.

There are a number of ways on how to get through you taxes. There are also important things to keep in mind. The most important consideration is the accuracy of details you submit. The information must true and accurate. It is an advantage if you are well-versed about taxation so that you do not understate or overstate your figures.

The main decision that you have to make is if you will be the one to file your taxes or if you will hire a tax agent. Both options have its ups and downs so it is best if you weigh your needs and current situations.

Doing it Yourself

If you are saving money and would prefer to learn about the processes yourself, just visit the website or personally go to the Australian Taxation Office. They provide comprehensive guides and how-tos for your easy facilitation. It is recommended that you check the rules and provisions every year since they are bound to change regularly.

Filing of taxes for full-time employees who receive a payment summary is bound to be easier. Being employed gives you access to paper works prepared by your employer. However, you may still need professional advice when preparing the list of your benefits and deductions. Some terms are too complicated and may cause wrong computations and statements. However, if you are confident about your abilities and judgement, then you can save money by filing your taxes yourself.

Getting an Agent

The main concern you will have when hiring an agent is the additional cost entailed. The cost would usually depend on the services the tax agent performs and how long it takes for him or her to accomplish it. One way to lessen the time (and hence, the total bill) is to compile your receipts and papers as soon as you get them. This will give the tax agent an easier time when she reviews your documents.

However, it may come as a relief that the payments made to tax agents are normally deductible from the taxable income. Other advantages of getting a tax agent include the high degree of accuracy above all. Second, you will be able to get the maximum allowable refund for your income and expenses. The services of tax agents also do not stop at the filing of the papers. They can (and should) also give insights and recommendations on how you can handle your finances better.

If you decide to get a tax agent, finding one should not be a hard task. You can visit to find a list of credible and registered certified public accountants that you can hire to file your taxes.