Everyone is having issues with arranging the financial information and records to maintain one’s taxes to a minimum. Since it is quite a bit of a task, handling taxes can be problematic and which is why it will be better for you to outsource an accountant who can help you with filing taxes. Before you go and start doing your taxes, here are some things that people usually want to know about income taxes. The entire Australian taxation realm relies on the personal income tax and is so important for one to understand what income is. The capital that you receive from any investment or firm is a result of delivering work, income though usually comes in a form of capital but there are times when you receive services and goods that can also be treated as your income. There are three kinds of income and that are Assessable, Exempt, and Taxable…
Let’s talk about which kind of income can be considered as taxable, okay? In simple wor ds, taxable income is radically your income that is assessable minus the tax deduction. Income that you have to pay tax on is inclusive of pensions, employment, investment, government payments, income that you receive from partnership and trusts, and foreign income. In case you are wondering about the stuff you don’t have to pay tax on, well it includes, lottery winning, birthday gifts, government payments, tax-free redundancy pay, child support, and some co-contributions.
Coming on to the part where we will learn a little about dodging the situations of getting a tax bill…The followings are the steps that you can take to avoid such a situation.
- In case you are receiving income from some kind of investment or being a sole trader, you should make PAYG installments, on purpose!
- You should prefer prepaying the tax to make is conveniently easy to handle your tax. Unless you demand a refund, the entire prepaid amount is held by the Australian Taxation Office.
Keep all this in your mind and make a wise decision, and to know more stay connected with Joe Madrajat Blogs.