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Am I Eligible for the Lower Company Tax Rate for 2018?

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company tax rate 2018

 

There are two company tax rates, the full company tax rate and the lower company tax rate.

The full company tax rate is 30% and the lower company tax rate is 27.5%. In general, company tax rates apply to companies, corporate unit trusts, and public trading trusts.

There has been a proposed law (Enterprise Tax Plan Base Rate Entities) to apply the lower corporate tax rate to all corporate entities with no more than 80% base rate entity passive income from 2017–18 to 2023–24.

 

Who is eligible for the lower company tax rate?

First, you need to be classified as a “base rate entity” company. Base rate entities must apply the lower company tax rate for the 2017-18 income year. To be a base rate entity company, you will have to meet the following: Read the rest of this entry »

What is the tax-free threshold for 2018?

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tax-free threshold 2018
The first $18,200 of your yearly income is not subject to tax.

That sounds great, doesn’t it? This is known as the tax-free threshold. However, this only applies if you’re an Australian resident for tax purposes.

You can claim the tax-free threshold to reduce your tax withholding during the year. Find out if you’re eligible by reading on.

Here’s a breakdown of the 2018 tax-free threshold.
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How to Lodge Your 2018 Tax Return!

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2018 tax return
1 July marks the start of the 2018 tax season!

Keep your eyes on your calendar!  The 2018 tax season runs from 1 July 2018 to 31 October 2018.

However, don’t get this confused with your financial year dates. In other words, you are lodging your 2018 tax return from the statements you received from 1 July 2017 to 30 June 2018.

Read on to find out how you can lodge your tax return, at your convenience.

Here’s what you need.

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Here’s Your Income Tax Rates for 2018

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What are income tax rates?

With the 2018 tax season approaching on 1 July, many taxpayers are looking for their specific tax rate for the 2017-2018 financial year. Income tax rates 2018 determine how much of your income will be subject to tax.

Read on to find out your tax rate to prepare for the 2018 tax season!

Take a look at these income tax rates 2018.

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The GST and Low Value Goods

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What is the GST?

The ATO has announced a new tax law on the goods and services tax (GST) before the 2018 tax season. You may be wondering, what is the GST? The GST is a tax of 10% on most goods, services and other items that companies or other entities sell to Australia. We actually consume most of these goods!

New Tax Law

From 1 July 2018, the GST will affect businesses that sell low-value goods who import to consumers in Australia. Low-value goods have a customs value of A$1,000 or less when the price is under the agreement with the customer. However, any tobacco products or alcoholic beverages do not have the GST tax since they will be charged at the border.

Here’s the breakdown of the changes.

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Hobby vs Business: What is the Difference?

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Everyone enjoys a good hobby.

From photography, scrap-booking, cooking or even horseback riding, each of these hobbies can turn into a business. With that in mind, when it comes time to lodge your tax return, your hobby could possibly be your business. Taxpayers get confused about whether or not they should be reporting their hobby as a business. Of course, you want to avoid being penalised if you’re not declaring income to the ATO, right?

Find out if your hobby is actually a business by reading below!

What is a hobby?

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Lodge your 2017 Late Tax Return Online!

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Forgot to lodge your 2017 late tax return?

We get it. Life gets busy when you’re dealing with taking care of the kids or rushing to work to finish your proposal for that promotion you’ve been wanting. The deadline passed on 31 October for the 2016-2017 fiscal year, but you’re still in luck. No need to stress, you can still lodge your 2017 late taxes online right from your bedroom.

Read on to find out the consequences of lodging a late tax return and what steps you need to take.

Late Lodgement Penalties

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Accommodation Allowances & Your Taxes

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Traveling for work? Deduct your accommodation costs!

Are you missing out on your friend’s barbie to travel for work? No doubt, we know that work can be a drag if you have to travel, especially if it isn’t for vacation time. On the other hand, you could enjoy being pampered for a few days and get away from home. Luckily, whether you enjoy traveling for work or not, you can deduct most of your accommodation costs on your tax return if you are responsible for all of your up-front business trip costs.

Let’s take a look if you’re eligible to deduct these expenses and how to do it.

 

Did your employer issue you a travel allowance?

First, if your employer issues you a travel allowance for accommodations, you need to report it as income on your tax return. In other words, you do not need to declare the allowance on your taxes if:

  • The travel allowance is not on your payment summary.
  • The allowance is a deductible accommodation cost.
  • You can count meal and incidental expenses.


So, if it’s not included as income, then you can’t report it. It’s as simple as that! 

 

Follow this 6 Rule Checklist:

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New 2017 Australian Tax Offsets!

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Tax offsets are coupons from the ATO.

When we go grocery shopping, it makes sense to bring as many coupons as we can to lower how much we pay. Wouldn’t it be great if we could do the same for our taxes? Well, you can! Tax offsets are coupons from the ATO since they help to lower the amount you owe to the ATO. You might be able to qualify for more than one offset. Let us help you lower your tax due and determine which tax offsets are beneficial to you.

 

How do I qualify for an offset?

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