Setting Up and Planning

  • I know what I can and cannot claim
  • I plan for taxation returns to be filed and payments paid on time
  • I maintain separate bank accounts and keep business and personal transactions separate
  • I have set myself up on myIR
  • I use online accounting software
  • I put aside at least 40% of all business receipts into my 2nd bank account

Planning for Taxation Income Tax in My First & Second Year

  • My first year in business is not tax-free
  • During my second year of business I:
    • must pay tax on the profit I made in the first year, and
    • may also need to pay provisional tax for my second year
  • I can choose to make voluntary tax payments during my first year of business

Tax Rates

Sole Trader Tax rates for the 2018-2019 tax year

  • Up to $14,000 10.5%
  • Over $14,000 and up to $48,000 17.5%
  • Over $48,000 and up to $70,000 30%
  • Remaining income over $70,000 33%

Corporate Tax — Flat rate for all companies 28%

GST Rate 15%