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Your Essential Guide to Business Tax Rates

Your essential guide to how business tax rates will impact you in 2019

Whether you are new to business or in your 20th year of operating, staying up to date with current business tax rates will ensure you can work them into your business plan. Tax rates can be an overwhelming subject for many business owners so we have broken down the essentials for you. Knowledge is power, so grab a coffee and let’s get started. We promise to keep the boring bits to a minimum and get your excited about tax (yes! It is possible!)

Company Tax

There’s been some good news this year for small businesses. Although for the current tax year the tax rate is the same as last financial year, there are plans for it to get progressively lower. By the financial year 2021-2022, for businesses with an aggregated income below 50 million dollars, the tax rate is forecasted to be up to 25% less than the current rate.

What this means for you: Now is a great time to get started on that business dream you have. Turn that side hustle in to your main gig and enjoy all the benefits of being your own boss!

Capital Gains Tax

Did you know that Capital Gains Tax (often referred to as CGT) is actually considered part of your income tax? The silver lining is that for many small businesses, there are simple ways to reduce this tax in 2019, putting you in a better financial position than you may realise.

What this means for you:  Have you been wanting to sell off a business asset but have been put off by the tax implications? Now is the time to get expert advice in how to manage this process to your advantage.

Payroll Tax

If the annual taxable wages that you are paying staff are less than 1.5 million dollars, then from January 1st 2019, you can enjoy the benefits of being exempt from payroll tax. If you’d like a complimentary chat about how payroll tax is impacting your staffing strategy, then get in touch here.

What this means for you: Scaling your business can be a great way to grow it beyond your wildest dreams. Taking on employees just became a little more attractive with this exemption.

Concessions

More good news for small business owners! 2019 has seen small business concessions expand, making more businesses eligible. There have also been a few changes to thresholds which means you business may be better off financially this tax year. For example, the instant asset write-off threshold has increased to $30,000 for each asset from the 2nd of April 2019.

What this means for you: If you are unsure about how small business concessions and thresholds impact your business, then 2019 is the perfect time to get in touch with us and let us help you. We translate all the tax jargon into easy to understand language so you can get clear on what these changes mean for you and how you can best benefit from them.

Here at Unfair Advantage Accounting, we take pride in educating our clients on the ins and outs of business tax rates and how their small business could be affected. We love nothing more than sharing our knowledge with customers so they can make empowered decisions about their direction of growth.

Our strong team of accountants are passionate about helping you succeed in your business. Your wins are our wins! Learn more about the services we can offer you here.

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