Taxation for Australian Businesses Understanding Australian Business Taxation Concessions

Small businesses are often just that?small. Bookkeeping may be done by a professional outside the company, but more often falls to an employee or the business owner, who may or may not be well-schooled in the intricacies of tax law and business regulations. Tax time can end up costing small businesses a fortune in either professional fees or missed deductions every year. What if you could simplify the process and save money?

Taxation for Australian Businesses: Understanding Australian Business Taxation Concessions is the ultimate guide to tax for the small business owner. Author Rod Caldwell, 20-year veteran of the Australian Taxation Office, leads you through the process of managing your books and keeping more straightforward records to simplify the process of filing tax. The introduction of the GST and the new tax system involves a lot of new work for business owners, but Taxation for Australian Businesses eases the way by explaining the intricacies of applicable tax law, fully updated to parallel the May 2014 budget. Topics include:

• Business structures, accounting systems, and cash accounting
• FBT, private versus domestic use, and when to record a payment
• Motor vehicles, the GST, and depreciation
• Owners salary, end of period processing, and how to account for stock trading

The book explains everything you need to know and ties it all together to show you how to put the information into practice. No jargon, no textbooks, just common sense and reason. If you would like to get your bookkeeping straightened out and get back to your business, Taxation for Australian Businesses: Understanding Australian Business Taxation Concessions is the one guide that will get you there quickly.

About the author ix

Preface xi

1 A general discussion of taxation 1

2 Business structures 27

3 Taxable income 41

4 Capital allowances (depreciating assets) 65

5 Trading stock (inventory) 85

6 Capital gains tax (CGT) 97

7 Fringe benefi ts tax (FBT) 109

8 Motor vehicles 121

9 Goods and services tax (GST) 137

10 Putting it all together 151

11 Employing staff 161

12 Running a business through a family discretionary trust 195

Appendix A: Effective life schedule 203

Appendix B: Tax rates, 2014–15 207

Index 209

ROD CALDWELL worked as a tax accountant for the Australian Taxation Office (ATO) for 20 years before becoming a tertiary level lecturer in taxation and management accounting. Rod has written three other books on Australian business accounting and tax law. Visit his website at www.tpabusiness.com.au