If you have a local operation that produces or manufactures a product you know the challenges of running this sort of business. It might be successful and you might think it would be a good product to sell overseas. However, many Australian business owners struggle with the thought of exporting a product because of the complexities and expenses. Some great businesses with fantastic products just never leave our shores because it just isn’t financially viable to invest in the set up of such a venture.
Despite it having been in place for more than 15 years, Division 7A continues to be a high risk area and the Australian Taxation Office (ATO) regularly monitors. Division 7A is part of the Tax Act and it provides provisions to prevent private company owners from avoiding dividend taxation through accessing company profits in other ways other than dividends.
If you own a business that employs people then you need to know about payroll tax. This is a self-assessed State and Territory based tax imposed on businesses in Australia. The tax is payable when the total wages paid or owed to employees exceeds a threshold.