1. I have started my own business and wonder if I need to register for GST.

Australian businesses with an annual turnover of $75,000 or more are required to register for GST. If your business has a lower turnover you are not required to register, but you may do so if you wish. You will only be required to charge your customers GST if you are registered. Your local H&R Block office can assist you with your application to register for GST.

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2. I run my own business and want to know how I can minimise my annual tax bill?

If your turnover is less than two million dollars, you would be classed as a small business entity (SBE). As such you would be able to access a number of small business concessions including: 

income tax concessions

capital gains tax concessions

excise concessions

Goods and Services Tax (GST) concessions

Pay As You Go (PAYG) installment concessions and

Fringe Benefits Tax (FBT) concessions.

 

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3. I am self-employed and have paid personal superannuation contributions all year. What can I claim?

Provided that you satisfy the eligibility criteria, you will be able to claim a deduction for the superannuation contributions you have made to a complying superannuation fund or retirement savings account.

 To do so you must be fully self-employed or no more than 10% of your assessable income (including Reportable Fringe Benefits and Reportable Superannuation Contributions) is from an employer.You must also have first notified your superannuation fund of your intention to make the claim and received a confirmation.

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4. I have heard that self-employed people can claim the superannuation co-contribution from the government. Am I eligible because I paid money into my super this year and I run my own business?

You may be eligible for the superannuation co-contribution if more than 10% of your total assessable income is from running that business, eligible employment or a combination of the two.

 Investment income is not eligible income. If you claim any of your superannuation contributions as a tax deduction, only the amount that you do not claim will be eligible for the co-contribution.

 

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5. I run a small business and in June pre-paid 12 months’ rent on the premises that I operate from. Can I claim the whole amount on my tax return even though most of the payment is for next year?

If your turnover is less than $2 million you will qualify as a small business entity and will be able to claim certain eligible pre-paid expenses in the year they were paid. 

Some examples of prepaid expenses that can be claimed in the year they are paid are rent, insurance and subscriptions to professional associations. 

Eligible expenses will be payments that are made for periods of 12 months or less and that the period covered ends in the next income year. Your pre-paid rent qualifies because the period it covers does not exceed 12 months and that period will end before the end of the next income year. The whole amount will be claimable on your tax return this year.