Instalment Activity Statement (IAS)
Instalment activity statements are used by individuals and businesses. IAS are used to pay different tax liabilities. IAS helps you to pay your tax monthly or quarterly. This is an estimate based on the information from your previous years’ tax return. This is good way to track your tax and pay this tax over the year. Sole traders that are registered for GST don’t need to lodge IAS but have to lodge BAS.
Business Activity Statements (BAS)
The business activity statement is also known as BAS. BAS is a tax reporting requirement for businesses issued by the ATO. The reporting frequency is monthly, quarterly and in some cases yearly. It’s used for reporting and paying goods and services tax (GST), pay as you go (PAYG) instalments, PAYG withholding tax and other tax obligations.
If your business is registered for GST then you have to lodge BAS when they fall due to avoid penalties. Mas Tax Accountants provides a comprehensive service to prepare and lodge your BAS. If you can’t pay on time please contact us and we will work with the ATO on your behalf.
- Sole Trader
Many people start as a sole trader when they begin their business. It is cheap to setup and maintain. We at Mas Tax Accountants can help you to lodge your Sole trader Tax return on time. You may have to register for GST if your turnover is more than $75000.
Partnership is a very common business structure for businesses where two people are engaged in a business activity. It is not uncommon for a husband and wife to setup a partnership to split the income between them to minimise their tax liability. Our experienced staff at Mas Tax Accountants will help you to prepare and lodge your partnership tax return.
Most small business when they start growing prefer to trade under a Company structure. Companies in Australia are proprietary companies limited by shares and regulated by Australian securities and investment commission (ASIC). A Company is legal separate entity and has its own income tax liability. Incorporating a Company is a complex structure and expensive to set up. But it has benefits for asset protection to directors. Companies pay a flat rate of 30% tax; this was reduced to 28.5% in latest budget! A Company needs to have its own ABN, TFN, PAYG withholding and may be registered for GST. Our staff at Mas Tax accountants can help you to set up company for your business. We can also lodge your company tax return.
A Trust is an agreement between parties (Individuals or company) to hold the assets for the benefit of others. The person who controls the trust is called a Trustee and those who benefit from it called beneficiaries. The terms must be set out in the written document called trust deed. The assets are separately controlled by the trust. Normally a trust doesn’t have to pay tax but the beneficiaries are required to add the distributed income in their personal tax returns. Please note the undistributed funds are taxed at highest rate.
If a trust is used for trading or investment then it is required to have its own ABN and TFN. A Trust is the best tool to minimise tax liability. Trusts are allowed to have CGT discount available for small businesses.
The different types of Trusts are:
- Discretionary Trust or Family Trust – This is the most common type of trust used in Australia. Trustee have the discretion to distribute the income to family members based on the terms set out in trust deed.
- Unit Trust – In this trust the income is distributed based on the units set out in trust deed. This is not as flexible as a Discretionary trust. Unit trust is not as good in asset protection as well.
- Hybrid Trust – This is the Trust which includes mix of both trusts above
We are at Mas Tax Accountants have extensive experience in dealing with small business trading under trust structure. We are small business Accountants who can lodge your tax return for trust and fulfil Accounting needs for your business
Many business owners in the trade industry work long hours with physically demanding work. They find it hard to manage the Accounting side of their business. Our qualified and experienced staff at Mas Tax Accountants can help you to meet your obligation with the ATO. We can also help you find the bookkeeping software that is right for your business, and easy to understand; or you have the choice to outsource this service to our firm.
Examples of just some Industries we have helped:
Accountant for Painters
Accountant for Brick layer
Accountant for Plumber
Accountant for Landscaper
Accountant for Arborists
Accountant for Concreter
Accountant for Gardner
Accountant for Cleaner
Accountant for Electrician
Accountant for Jim’s Franchisees
Accountant for Carpenter
Accountant for Builder
Accountant for Renderer
Accountant for Fencing
Accountant for Carpet Cleaners