This document outlines taxation obligations and different business structures in Australia. It explains the importance of effective bookkeeping for tax obligations and outlines several key taxes at the Commonwealth and state level, including PAYG, company tax, fringe benefits tax, capital gains tax, payroll tax, stamp duty, and land tax. Different business structures can influence a business's tax obligations, and case studies are used to calculate the amount of tax a business must pay.
Lesson 4 taxation obligations and business structure
1. Lesson 4 - Taxation obligations and business structure
2. Outcomes (What you need to know and be able to do)
• Explain the importance between effective book keeping
and tax obligations
• Outline the taxes in Australia
• Explain how a business structure can influence its tax
obligations
• Calculate the amount of tax a business is obligated to pay
in case studies
4. Benefits of a cash book
determine the cash balance.
keep a tight control on the cash
monitor the business’s cash flow position — that is, the
money coming into the business and the money
leaving the business
6. Company Tax
Company tax is charged against the earnings of a company.
The tax is calculated on the profit of the company at a rate of
30 per cent.
7. Fringe benefits tax (FBT)
A fringe benefit is a benefit provided by an employer to an
employee or their wife or husband in addition to wages,
superannuation or other traditional rewards.
8. Capital gains tax (CGT)
Capital gains tax is a tax calculated on transactions involving
profit earned from the sale of assets.
10. Stamp duty is payable by individuals and businesses for
transactions involving the purchase of items such as land,
buildings and motor vehicles.
Stamp duty tax
11. Land tax is a tax on land owned by individuals or
organisations.
Land Tax
