As a business owner there are several taxation requirements you need to comply with. These include things such as:
- paying your income tax and tax withheld from your employee's wages through Pay As You Go (PAYG) instalments
- registering for Goods and Services Tax (GST)
- keeping records for the Australian Taxation Office (ATO)
- payroll tax in your state or territory.
Australian Veterinary Association Practice Management (AVAPM) has developed Smart operating guides for AVAPM members. These guides provide all the information you will need to operate your veterinary practice.
For more information visit the AVAPM website.
To join AVAPM contact 02 9431 5010 or email avpma [at] ava [dot] com [dot] au. You must be a member of the Australian Veterinary Association to join.
Pay As You Go
Pay As You Go (PAYG) is the Commonwealth system for paying instalments towards your expected tax liability on your business and investment income.
Under PAYG, your income tax instalments will be based on you current trading or income conditions and will generally be paid after the income is received.
As a business owner you will pay your income tax through monthly or quarterly PAYG instalments, the ATO will notify you if you have to make PAYG instalments and give you an instalment rate.
For more information about PAYG visit the ATO website.
Goods and Services Tax
There is a Goods and Services Tax (GST) of 10% on most goods and services in Australia.
If the annual turnover of your business is $75,000 or more you need to register for GST. If your annual turnover is less than $75,000 registering is generally optional.
For more information about GST visit the ATO website.
As a business owner you are required to keep certain records for reporting to the ATO. These include:
- records relating to income tax and GST
- payments to employees
- PAYG withholding records relating to business payments.
Records must be kept for five years and should be readily accessible and available in English.
For more information about record keeping visit the ATO website.
Each Australian state or Territory has its own payroll tax legislation which determines liable wages. Generally speaking, employers whose wages exceed the monthly threshold of their state or territory are required to register with the relevant government department.
More information about payroll tax in your state or territory can be found using the links below:
- Australian Capital Territory – ACT Revenue Office
- New South Wales – NSW Office of State Revenue
- Northern Territory – Territory Revenue Office
- Queensland – Queensland Office of State Revenue
- South Australia – Revenue SA
- Tasmania – Tasmanian Department of Treasury and Finance
- Victoria – Victorian State Revenue Office
- Western Australia – Western Australian Department of Finance