The beauty of every small or big business is its ability to pay taxes for a seamless business run. Starting a business and having to think about taxes can sometimes be confusing.
You will encounter many other tax-minded questions before joining the market that you need help with. If you’ve ever been deep in thought, our articles clearly answer your worries.
The business world can be challenging sometimes, primarily for small business owners (SMEs), if you don’t know the tax rates charged to them.
The good news is that all these questions can be answered if you get guidance from leading tax- offering companies like KSH Tax.
Are you curious to know what will work best for your small business tax preparations?
Well, stay on and read this piece to help give answers and get you the confidence of an entrepreneur you need;
Table of content
- How much tax does a small business pay in Australia?
- What are some of the small business tax exemptions?
- Reasons you should consider KSH Tax as your SME tax services solution.
- FAQs
How much tax does a small business pay in Australia?
Small business tax rates vary in Australia as different companies and groups offer different rates.
Tax filing for small businesses has become a game changer as entrepreneurs know their obligations, keeping them on the right side of the law.
With the help of a company tax calculator, their work has been made easy, hence exercising their patriotic rights on time with the correct data keyed in.
The amount of taxes SMEs are required to pay depends on their size and the tax rates they have.
The tax rates might change from time to time. There are also different tax charges for different businesses, e.g., taxes for sole traders and companies, among many others.
With the popularity gained through the use of SME tax calculators, small business owners’ tasks have been simplified since they can understand the amount of SME tax deductions happening on their end.
What are some of the small business tax exemptions?
Being a small business owner, you are always looking for the best and cheapest ways to suit your services regarding taxes. This is where SME tax exemptions come in.
ATO allows small business owners to reduce or disregard some or all of their capital gains depending on individuals’ options.
According to ATO, the small businesses capital gain tax concession includes the following;
- Claim and apply for 15 years of exemption on their business assets to be reduced or not to pay for their capital gain tax (CGT) when disposing of any active assets.
- You can apply for the 50% active asset reduction provided your business meets the conditions, which are well-known among all four small business CGT concessions.
- Small business retirement offers many options to choose from and apply once you meet the requirements.
- Small business rollover allows small business owners to defer all or part of the capital gain made from sold active sets. Individuals are encouraged to apply for as much capital gains as they wish.
Note: These rules only allow small businesses eligible for the exemptions.
Simplify tax compliance for Australian SME with KSH TAX
When it comes to running a small business, being tax compliant is just as important as being profitable. But what if you could be tax compliant and save money? That’s where we comes in.
Here’s why you should choose KSH TAX as your SME tax service:
- We give low costs tax services from $150 per month. Whether you’re a sole trader or part of a partnership, we have a tax solution to suit you.
- Experienced and keen to detail accountants are thorough when it comes to your books. No errors, no hassle, no stress and you can be sure your taxes are done right.
- Free tax consults as we value long term relationships with our clients. To help you understand your tax obligations we offer free tax consults. This personal approach allows us to tailor our services to your business.
- We deliver on time of which we give a full refund of your money if we fail to deliver at the specific given time.
Partner with us and let us enable your small business to grow. Let us handle your taxes so that you can focus on business.
FAQs
How much tax should you put aside for a small business?
Depending on the business type, SMEs have different income tax charges that the business owner needs to provide.
Whether you are a sole trader or a company, the charges won’t be the same. How much a business may pay varies.
What are the tax rates for small business companies in Australia?
Company taxes have changed over time. For the year 2017-18, they were 27.5% until 2021-2021, when they changed to 30% for full company rate payment.
The 30% rate charges are applicable to all companies that are not eligible for lower rates.
For companies with base entity, a 25% charge rate is applicable.
This only applies to companies with an aggregated turnover threshold of $50 million for the previous income year.
How much can a sole trader earn before having to pay taxes?
Unlike companies, sole traders’ taxes are categorically under individual taxes. Their tax-free threshold can range from $0 to $18200.
The amount will be based on your business’s income at different rates.
Do you want a better experience at an inexpensive charge for your taxes? Get in touch with us at KSH TAX for a better solution!
