The following information is a very useful reference source for small businesses:
Resident Individual Rates for 2008/09 Resident Individual Rates for 2006/07 & 2007/08 Reasonable Travel Allowance Claims Within Australia Reasonable Overseas Travel Allowance Claims Goods Taken from Stock for Private Use by Business Owners Status of Individuals - Employee or Independent Contractor Companies PAYG Withholding Calculator FBT Car Calculator Motor Vehicle Depreciation Cost-Limit Per Kilometre Motor Vehicle Rates Complying Superannuation Funds Deductible Superannuation Contribution Limits Undeducted Superannuation Contribution Limits GST Thresholds
2008/09 Thresholds
Tax on this income (2008-09 Budget)
0 - $6,000
Nil
$6,001 - $34,000
15c for each $1 over $6,000
$34,001 - $80,000
$4,200 plus 30c for each $1 over $34,000
$80,001 - $180,000
$18,000 plus 40c for each $1 over $80,000
Over $180,000
$58,000 plus 45c for each $1 over $180,000
2006/07 Thresholds
Tax on this income
2007/08 Thresholds
$6,001 - $25,000
$6,001 - $30,000
$25,001 - $75,000
$2,850 plus 30c for each $1 over $25,000
$30,001 - $75,000
$3,600 plus 30c for each $1 over $30,000
$75,001 - $150,000
$17,850 plus 40c for each $1 over $75,000
$17,100 plus 40c for each $1 over $75,000
Over $150,000
$47,850 plus 45c for each $1 over $150,000
$47,100 plus 45c for each $1 over $150,000
2004/05 Thresholds
2005/06 Thresholds
$6,001 - $21,600
17c for each $1 over $6,000
$21,601 - $58,000
$2,652 plus 30c for each $1 over $21,600
$21,601 - $63,000
$2,340 plus 30c for each $1 over $21,600
$58,001 - $70,000
$13,572 plus 42c for each $1 over $58,000
$63,001 - $95,000
$14,760 plus 42c for each $1 over $63,000
Over $70,000
$18,612 plus 47c for each $1 over $70,000
Over $95,000
$28,200 plus 47c for each $1 over $95,000
Notes on tax rates
Taxable income includes capital gains Medicare levy currently 1.5% of taxable income is not included Resident individuals are entitled to a refund of imputation credits that exceed the primary tax payable Resident individuals are entitled to the 50% discount on the disposal of assets that are held for at least 12 months
Where an employee, company director, or office holder receives an allowance for travel costs within Australia and the person makes a claim for the costs of accommodation, food, drink and incidental expenses up to certain limits, then the person is not required to keep written evidence (i.e. receipts) of the expenses. These deduction limits are based on the salary of the person and the destination of the trip.
The travel must be for business purposes and the person must be sleeping away from home. Note this concession does not apply to self employed persons, including partners in a partnership.
Click here and then scroll down to access the reasonable travel allowance claims within Australia for 2007/08. Click here and then scroll down to access the reasonable travel allowance claims within Australia for 2006/07.
Where an employee, company director, or office holder receives an allowance for travel costs outside of Australia and the person makes a claim for the costs of food, drink and incidental expenses up to certain limits, then the person is not required to keep written evidence (i.e. receipts) of the expenses. These deduction limits are based on the salary of the person and the destination of the trip. Note the person is still required to keep receipts for accommodation expenses.
The travel must be for business purposes. Note this concession does not apply to self employed persons, including partners in a partnership.
Click here and then scroll down to access the reasonable overseas travel allowance claims for 2007/08. Click here and then scroll down to access the reasonable overseas travel allowance claims for 2006/07.
The ATO each year issues a Determination which outlines the amounts that are acceptable as estimates of the value of goods taken from trading stock for private use by business owners (including their associates) in certain industries who operate as sole traders or in partnership. The relevant amounts need to be included in the assessable income of the individual for the year.
Note that an adjustment for the GST credits claimed in relation to these amounts also needs to be made.
Fringe benefits tax and a different set of valuation rules apply where the business owner is employed through a company or family trust.
Click here and then scroll down to access the acceptable amounts for 2007/08. Click here and then scroll down to access the acceptable amounts for 2006/07.
The ATO has published a very useful Guide to assist businesses in the Building & Construction to determine if the "individual" they are paying is an employee or independent contractor for income tax purposes. This information can also be applied to workers in other industries.
Click here to access the ATO Guide.
The rates of tax for all companies and some associations are as follows:
Year
Rate %
2000
36
2001
34
From 1 July 2001
30
Companies are required to maintain a franking account on a tax paid basis and are not entitled to a refund of imputation credits that exceed the tax payable. Companies are not entitled to the 50% discount on the disposal of assets that are held for at least 12 months.
This calculator is provided by the Australian Taxation Office and determines the PAYG Withholding for an employee who is paid either weekly, fortnightly or monthly.
Click here to access the calculator.
This FBT car calculator is provided by the Australian Taxation Office and determines the taxable value of a car fringe benefit using either the statutory formula method or the operating cost method.
The base value of a car under the statutory formula method is the GST inclusive cost, including dealer and delivery charges and non-business accessories (e.g. air conditioning and stereo). Registration and stamp duty on transfer are excluded. Note the base value of the car can be reduced by one third after the car has been held for four full FBT years. For example if a car was purchased on 15 April 1998 (i.e. in the 1999 FBT year), the base value would be reduced by one third at the commencement of the 2004 FBT year (i.e. from 1 April 2003) and future FBT years.
When using the operating cost method all costs are inclusive of GST. Deemed operating costs refer to deemed depreciation and interest and are both calculated in much the same way as depreciation using the relevant car depreciation rate and statutory interest rate. Deemed operating costs only apply if the car is owned (including on hire purchase) and not leased. The cost of the car upon which these deemed costs are calculated is inclusive of GST.
Since 1980, the depreciation deduction for cars has been limited by a deemed maximum cost price depending on the year in which the car was acquired.
Income Year
Depreciation Cost Limit $
55,134
2002
2003
57,009
2004
2005
2006
2007
2008
57,123
These rates are used by individuals when making a claim for motor vehicle expenses up to a maximum of 5,000 business kilometres. They are also used by employers when reimbursing employees for business use of their vehicles.
The rates are based on the engine size of the car and are as follows:
Engine Capacity (non-rotary engine)
Engine capacity (rotary engine)
Rate per Kilometre (cents)
2001/02 year
2002/03 year
2003/04 year
2004/05 year
2005/06 year
2006/07 year
Up to 1,600cc
Up to 800cc
49.3
50.0
51.0
52.0
55.0
58.0
1,601 to 2,600cc
801 to 1,300cc
59.0
60.0
61.0
62.0
66.0
69.0
Over 2,600cc
Over 1,300cc
63.0
67.0
70.0
Income received, including capital gains and employer contributions and the deductible portion of self employed contributions are taxed at the rate of 15%. Funds are entitled to a refund of imputation credits that exceed the tax payable.
Income tax is not payable on income and capital gains where pensions are paid to the members.
A Fund is entitled to a one-third discount on the disposal of assets that are held for at least 12 months.
From 1 July 2007, the maximum concessional superannuation contributions that can be claimed by an employer or a substantially self employed person is as follows:
Below 50 years of age at 30 June: $50,000 (indexed) *
Age 50 and over at 30 June: $100,000 (unindexed) **
* Both employers and substantially self employed persons are entitled to claim a full tax deduction for the entire contributions made.
** This is a transitional measure that applies for the 2008 to 2012 income years, upon which the limit will reduce to the standard $50,000 indexed amount.
Note that contributions above these limits can still be claimed as a full deduction, but will be taxed at an overall effective rate of 46.5%.
From 1 July 2007, the maximum after-tax contributions that can be made by an individual to a superannuation fund is limited to $150,000 per annum. This amount is fixed at three times the deductible contributions limit of $50,000 and will therefore increase as the $50,000 limit rises with indexation.
Where an individual is under the age of 65 at any time during the income year, there is a 3 year averaging rule whereby the person will be able to utilise the $150,000 cap for the current year and for the next two income years. This means that the person can in effect contribute a maximum of $450,000 as an undeducted contribution during the income year, but no further contributions can be made by the person in the subsequent two income years.
Item
* Threshold
Requirement to issue a tax invoice
$75
No requirement to withhold if supplier does not quote ABN
Turnover for compulsory registration for GST
$75,000 (for any 12 months)
Turnover for compulsory registration for GST (non-profit entity)
$150,000 (for any 12 months)
Annual turnover for compulsory use of non-cash accounting
$2,000,000
Annual turnover for compulsory monthly electronic BAS lodgement
$20,000,000
* all amounts are GST exclusive
Disclaimer
This information is provided as a guide only and is not intended to constitute professional advice. You should obtain appropriate advice concerning your particular circumstances.
Australianbiz and its representatives disclaim all liability for any loss or damage to any person or organisation, whether a user of this site or not, for the consequences of anything done or omitted to be done by any such person relying on this information.
