Tax tips for small business

The Tax Office has some useful tips and information to help businesses start the new year on the right foot.

There are some important things all small businesses need to remember, including good record keeping practices, meeting GST obligations, reporting, paying tax and superannuation.

Record keeping

Good record keeping practices include:

recording all information from business transactions in a cash book, either electronically or manually
recording payment summaries for salary, employment termination payments, and reportable fringe benefits
storing all documents in a safe place for a period of five years, and
withholding tax according to the pay as you go (PAYG) withholding rules, recording all GST obligations and paying superannuation contributions to a superannuation fund on behalf of eligible employees.
The Tax Office has a number of programs available to help businesses keep good records including a record keeping evaluation tool, online calculators to help businesses calculate their tax obligations and eRecord - a free, electronic record keeping product which can help small businesses meet their tax reporting obligations.

Relevant dates

BAS

Monthly activity statements due: 21st of each month.
Quarterly activity statements due: 28 Jul 2008, 28 Oct 2008, 28 Feb 2009.

GST

Quarterly GST due: 28 Jul 2008, 28 Oct 2008, 28 Feb 2009.
GST annual return due: the same date as your income tax return, or before 28 February for those who are not required to lodge an income tax return.

FBT, PAYG and superannuation

FBT return due: 25 Jun 2008 (ATO has allowed one month extension this year only).
PAYG two instalment payers: 21 Apr 2008, 21 Jul 2008.
Super contributions due: 28 Jul 2008 (30th June 2008 to obtain a tax deduction) , 28 Oct 2008, 28 Feb 2009.

New to business checklist

This checklist covers basic tax issues that need to be considered when starting a business.

For example, businesses may need to register for a number of tax obligations. The most common tax registrations businesses need include:

a tax file number
an Australian business number (ABN)
goods and services tax (GST), and
pay as you go withholding (PAYG).

Businesses also need to consider how to pay employees and other businesses and how to report and pay tax and superannuation. For further information please contact this office.

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The contents of this Bulletin are general in nature. We therefore accept no responsibility to persons acting on the information herein without first consulting us.