FAQ

As a business, how do I get out of paying tax?

It's simple, if you don't want to pay tax, then don't make a profit. Paying tax means your business is profitable. We have a comprehensive understanding of small business tax concessions and tax law. We can certainly help you minimise tax, however our advisory services help businesses to become profitable so paying tax is just part and parcel of that result.

How can I save on tax?

There are many ways in which you can save on tax. Organise a consultation with one of our accountants to look into your individual circumstances.

How much can I sell my business for?

Typically business will sell between 1 and 7 x profit. As a general rule, the businesses that sell for 1 x profit are the ones that are only generating a wage for the owner and little to no additional profit.

In general, the businesses that are selling for 7 x profit are the ones where they are not key person dependent. Typically these businesses have built a loyal customer base as well as diligently increased their sales and price elasticity by building a brand. They will generally have a low staff turnover and a high level of staff engagement. Their systems and processes are world class and financially, they are highly profitable.

Mostly, we see businesses sell regionally between 1 and 3 x their profit.

As a business owner, do I need to declare all of my income?

Yes you do. The income that you need to declare each financial year includes:

• Employment income
• Super pensions, annuities and government payments
• Investment income (including rent, interest, dividends and capital gains tax)
• Business, Partnership and Trust income
• Foreign income
• Crowdsourcing
• Activity through a digital platform (such as a website or an app) where people share assets or services for a fee e.g. Uber, Airbnb etc.
• Other income such as insurance and compensation payouts, money received via prizes and awards, income from rendering personal services and ATO interests, remissions or recoupment.

As a director, am I liable for any of my company ATO debts?

Company directors are legally responsible for their company meeting its PAYG withholding obligations. They are liable for a penalty if they fail to withhold or pay a pay-as-you-go (PAYG) withholding amount when required. For example; if you withhold from payments made to employees, directors, office holders or other individuals in various capacities.

The penalty imposed is equal to the amount that you should have withheld or paid.

Do I need to register for GST?

If you are running a business and your turnover is more than $75k, you need to register for GST.

Do I need receipts for all of my deductions?

Yes you do. For a full list of records that you will need to keep during the financial year, click here.

The good news is, there are now several Apps available that will integrate with your accounting software to help you keep electronic records of receipts.

Do I need to pay super for my employees?

If your employees earn more than $450 per month (before tax), or more than $350 per month if they are a housekeeper or nanny, then you do need to pay them superannuation.

There are consequences for not paying your employees super including fines or they can be charged with fees and interest. Employers who don't pay employees super also risk losing their tax deduction for super contributions.

When is my BAS due?

If your GST turnover is less than $20million then your GST reporting and payment cycle will be quarterly.

When lodging via a tax agent, the following dates apply for quarterly reporting:

• For July, August September quarter – BAS due date is 28 October
• For October, November, December quarter – BAS due date is 28 February
• For January, February, March quarter – BAS due date is 28 April
• For April, May, June quarter – BAS due date is 28 July.

I need some help with my accounting software (Xero, MYOB, Quickbooks etc.), who can I speak to about this?

We have extensive knowledge of the leading accounting software and we are always happy to help our clients out if they have administrative questions or get stuck. If we cannot solve the problem from our end we can advise you of the next best step.

If you are not currently working with Wrights, we suggest you access the software providers Help function, they are generally very responsive and helpful.

What would make the ATO want to Audit my business?

Things the ATO looks for things such as over or underclaiming on GST, being outside of your industry benchmarks and more. In our experience, once a business has been audited once, it tends to attract interest for future audits.

How much do you charge for your services?

We have three levels of business advisory services that businesses can choose to access depending on the size of their business and the advice that they require. Please refer to the table below for more details about each service level.

How much does it cost for an Audit?

Once we understand the full scope of your audit requirements, we are able to provide you with a quote for our services.

When can you have my Audit completed?

We generally work on a turn-around of three weeks. We generally work it back from the date of your Annual General Meeting. Smaller audits will take closer to two weeks.