Register for taxes

Taxation

Taxes are necessary for the efficient running of any country. They are levies imposed on individuals and corporate bodies to facilitate particular public works.

Direct Tax

it refers to taxes levied directly on the taxpayers and is enforced to be paid to the government. Direct taxes are divided into two.

Income Tax

Also referred to as personal income tax is levied on the wages, salaries, investments, or other forms of income an individual or household earns.

Corporate Tax

It is levied on registered companies and businesses from their earned profits.

Indirect Tax

They are taxes levied on goods and services. It includes value-added tax, service tax, sales tax, customs duty, Central excise duty.

Australia administers and collects taxes through the Australian Taxation Office (ATO), and in some cases by government revenue offices. Registration of all taxes is done online on the Business registration service site. The essential taxes affecting businesses in Australia as set by the Australian Government include:

Tax File Number (TFN)

The tax file number is a tax system unique number. It is essential to own when setting up a business. If one is operating as a sole trader, it's important to get individual TFN for business. However, if one is running the business through partnership or trust, one would need a separate TFN to give it to employers (as an individual), the Australian Taxation Office, and investment bodies. A person can get a number through the Australian business registration website.

Goods and Services Tax (GST)

It applies to companies selling goods and services in Australia; such a company is expected to collect one-eleventh of the customers' pay price. GST is 10% on goods sold in Australia. And it's paid to the Australian Taxation office. Business with over $75000 or more turnover and uses taxi travels register for GST. Register GST online through Business register service.

Pay as You Go (PAYG) Tax

Registering for this tax applies to companies or businesses that pay employees or contractors who voluntarily agree with the company and businesses that do not have their ABN. This process is done by withholding a certain amount of the payments made to them and paying it to the Australian Taxation Office; this helps the payees cover their tax liability by the end of the year. The company needs to register PAYG withholding on the business register like every other taxes.

Fuel Tax Credits

This tax type applies to businesses using fuel for transportation or other machinery, plant, heavy and light vehicles, equipment that requires it (customs duty) included in price fuel used for their business activities. For a business to be eligible for fuel tax, then they must have registered for GST.

Taxation is a significant aspect of the financial transaction. It is therefore imperative that you educate yourself on the various tax requirements.