Be Your Own Boss : Taxation for Small Business
The taxation requirements for running a small business in Western Australia will depend on the structure of your business, the industry you operate in, and your annual turnover. Here are some common taxes that may apply:
Goods and Services Tax (GST): GST is a 10% tax that applies to most goods and services sold in Australia. If your business has an annual turnover of $75,000 or more, you must register for GST and include it in the price of your goods and services.
Income tax: All businesses must pay income tax on their profits. The rate of tax you pay will depend on your business structure. For example, sole traders and partnerships are taxed at the individual tax rates, while companies are taxed at a flat rate of 30%.
Payroll tax: If your business pays wages of more than $850,000 per year, you may need to pay payroll tax. The rate of payroll tax in Western Australia is currently 5.5%.
Fringe Benefits Tax (FBT): If you provide non-cash benefits to your employees, such as a company car or private health insurance, you may need to pay FBT.
State taxes: Depending on your industry, you may need to pay additional state taxes, such as land tax, stamp duty, or mining royalties.
It's important to note that tax laws and requirements can change over time, so it's a good idea to seek advice from a qualified accountant or tax professional to ensure that you're meeting your taxation obligations.
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