Irina Hollander & Associates Pty Ltd Chartered Accountants in Frenchs Forest, New South Wales, Australia | Professional service
Irina Hollander & Associates Pty Ltd Chartered Accountants
Locality: Frenchs Forest, New South Wales, Australia
Phone: 80931913
Address: Suite 12/14 Frenchs Forest Road 2086 Frenchs Forest, NSW, Australia
Website: http://www.irinahollander.com.au
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21.01.2022 An artist's impression ... ;)
08.01.2022 When your income is PSI ("Personal Services Income") and how does it affect you? There has been plenty of confusion over the years about when income constitutes PSI and when it does not, even among the tax professionals. The Commissioner of Taxation says that if the majority (more than 50%) of your income is for the skills, knowledge, expertise or efforts of the person who performed the services, this income will be classified as PSI. PSI income is taxed in the hands of indiv...idual performing the services, regardless of whether the income is invoiced via a trust or a company. Deductions are limited to the range of deductions available to an employee. Rate of tax is the individual marginal rate of tax, i.e. up to 46.5% Most of small business sole traders would be generating PSB (Personal Services Business") income, which is an extension of PSI. PSB income earners enjoy a wider range of deductions that would be available to a business, though the net income is still taxed in the hands of the sole trader. Rate of tax is the individual marginal rate of tax, i.e. up to 46.5% What can be done to improve personal tax position of a business operator? Following the logic of the tax legislation, all sole traders should strive towards growing their businesses to enjoy the benefits of the "Business Structure" type of income. This is when the number of non-principal material fee earners exceeds the number of material fee earners, who are principals. The premises, the acquired goodwill, the tools and machinery used to produce this income are all taken into consideration. Once the income generated can be deemed Business Structure Income, it can be tax-effectively streamed to lower tax bracket family members and family holding companies and taxed at 0%-30% rates of tax. Disclaimer The information provided above is of a general nature only and should not be relied upon as a substitute for specific professional advice.
06.01.2022 Should my business be registered for GST voluntarily? The answer to this question is more relevant to the owner of a business with the annual turnover below $75,000. Once the turnover is over $75,000 a year, GST registration is no longer a matter of choice, it is compulsory. If your business is new or small and though voluntary registration is a possibility, one should ask themselves whether there is any benefit in being registered for GST voluntarily?... On too many occasions, the GST registration is entered into automatically as part of obtaining an ABN for the new business without giving much thought as to: 1) how having GST on top of your fees or price of the goods you are selling is going to impact the competitiveness of your new venture on the market? 2) who are your customers? Are they too GST- registered businesses that are able to claim the GST from the ATO? Or are they individuals and SMSFs not registered for GST, to whom the GST on top of your invoice is an additional cost? 3) is the quarterly GST refund greater than the cost of a professionally prepared and lodged BAS? 4) is there a good financial reason behind the voluntary registration for GST? Are you registering because you are about to buy a business vehicle from a car dealership, import goods from overseas or to outfit your new business premises? For more information please contact Irina Hollander CA. Disclaimer The information provided above is of a general nature only and should not be relied upon as a substitute for specific professional advice.
