TaxDigital believes that you didn’t start your business so you can deal with the books and an accounting file. We take care of the numbers stuff while you spend your time growing your business and making sales. Everyone at TaxDigital is an experienced & qualified chartered accountant. We are best positioned to offer you a fixed fee monthly bookkeeping package, so you know exactly where you stand. No hidden extras and no ticking clock on those phone calls!

Check out our full range of bookkeeping services below and reach out today for a free accounting file review or which package best suits the needs of your business.

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We work closely with small business owners to help bring clarity to the numbers. We provide valuable insights to your business that help you make informed decisions. 

All-Inclusive Small Business Bookkeeping 

All our agreements are no lock-in contracts, which means you can leave any time you like. Or even take a break if things are tight. Also, we let our customers upgrade and downgrade at any time their circumstances change.

At TaxDigital, we want to make it as simple as possible for you, TaxDigital will manage the process for you. The first step is to book a meeting with us to review your current software and accounting needs. After we have received an invite to your accounting file, we will notify your previous accountants of the change. That’s it! 

By using an online accounting package, we can view (read-only access) your bank transactions and match these to digital invoices. From here we can prepare all your accounts! Of course, we still want to see you occasionally! Therefore, we will schedule regular video conferences, at a time convenient for you to make sure you are across your finances. 

We are always here to help you. Can’t find the answer you’re looking for? Contact us at any time.

Our business & taxation services ensures that we not only keep you compliant but to add significant and measurable value to your business.
We take care of the numbers stuff while you spend your time growing your business and making sales.

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Our sole-traders packages are best suited for people contracting as a tradesperson, general labourer, or an Uber driver.
We offer three different fixed pricing options for sole traders based on their volume and complexity of their business.

Sole Trader Tax Returns

Feel like your accounts are getting out of control? We can help you get set-up with an online accounting package to make invoice and paying bills a breeze.

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Our accounting and bookkeeping services allow businesses to focus on the stuff that matters. Visit our website to learn more about our range of services.

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Choosing a business structure can be a daunting task, and trust me, it is something that you want to get right in the first place. Setting up your business in the correct structure can set you up for long term success. Ultimately you can operate your business out of a myriad of structures. However, this article will outline the differences between a trust and a company. 

A Trust is best described as a relationship between the trustee and the beneficiaries, which is outlined in a trust deed. 

Discretionary Trust - The trustee can choose what income or capital can be distributed to which beneficiary

Unit trust - The trustee has no choice over the distribution of the income or capital of the trust. Instead, beneficiaries can purchase "units", similar to how a shareholder can buy shares in a company. 

A company is a separate legal entity controlled by the shareholders and operated by managers/directors. 

Below is a quick outline of some basic principles to help you choose an entity structure. Note that these principles are general rules of thumb and do not apply to all situations. 

Company - Often a choice for operating businesses where your business has increased risk/liability to the owners, and there are no CGT assets being held

Discretionary Trust - Chosen when the entity's primary purpose is to hold CGT assets with low risks, such as commercial properties, shares in companies, etc. 

Unit Trust - Chosen when the entity's primary purpose is the same as a discretionary trust, but the parties require strict distribution and income splitting. (I.e. various parties each contribute a set amount of money to the purchase of the assets)

Do you have a combination of business and investment? Well, it's a good thing you can combine entities and choose a structure that works for you. 

At TaxDigital, we assist small businesses set up their businesses correctly to ensure the best short term and long term outcomes. We do that by having a  structuring session with you. That session would include analysing your business needs, your overall goals and a review of your current risks. We can then handle the set-up of your entities within a few short days. If you would like some personalised advice or assistance, feel free to reach out to us on 0407 438 849 or contact@taxdigital.com.au.

This is general advice only and does not take into account your financial circumstances, needs and objectives. Before making any decision based on this document, you should assess your own circumstances or seek personalised tax advice from us at TaxDigital. Information is current at the date of issue and may change.

Get the latest industry and tax information from our small business blog.

Small Business Structures: Trust vs Company

Small business structures can be daunting. Let's take a closer look at Trusts vs Companies. Trust me when I say it is something your want to get right in the first place.

A Fringe Benefit is something provided to an employee in addition to their wage. Essentially it is a non-cash benefit as a result of their employment. Some examples of this are meal or recreational expenses, personal usage of a business car, car parking expenses, low-interest loans, gym memberships, etc. 

A business could pay an employee for their work in Fringe Benefits and avoid withholding and paying tax by not paying a cash wage. But, of course, the government doesn't like this, enter stage left Fringe Benefits Tax. Because the government sees a Fringe Benefit as a type of employee remuneration, they like to collect tax on that amount. Hence Fringe Benefits Tax. It is essential to understand that Fringe Benefits Tax is a separate tax from regular income tax and salary and wage taxes. In fact, to make things more confusing, the FBT year runs from 1 April to 31 March. 

Just because you provide a Fringe Benefit to an employee doesn't mean that Fringe Benefits Tax will apply. There are many exemptions and reductions available for various industries and types of benefits. 

A common exemption is where the Fringe Benefit provided is something that is used primarily for work purposes. Examples include a laptop, mobile phone, etc. 

Another common exemption is that car parking Fringe Benefits are exempt for small businesses with a turnover of less than $50 million. 

We suggest that if you provide any Fringe Benefits to your employees that you consider lodging a return, even if the taxable value is nill. The reason for this is that from the date of lodgement of the FBT return, the ATO has two years to review it; if you don't lodge a return, they have an opened ended amount of time to review your FBT obligations. 

You can register for FBT online via the Australian Government Business Registration Service. The due date for filing your FBT returns via a tax agent like TaxDigital is 35th June.

Note that when the taxable value of FBT per employee reaches $2,000, you will need to report these amounts on their yearly payment summary via your payroll software. 

Unfortunately, FBT is highly complicated, and many businesses try their very best to avoid it - we would recommend avoiding it where possible. See, the problem is that there are regular changes to Fringe benefits and how they are to be reported. So it can be challenging to stay up to date. At TaxDigital, we assist small businesses in reviewing their employee agreements, remuneration packages, and expense accounts to identify any possible FBT liabilities. If you would like some personalised advice or assistance, feel free to reach out to us on 0407 438 849 or contact@taxdigital.com.au.

What is Fringe Benefits Tax (FBT)?

A Fringe Benefit is something provided to an employee in addition to their wage. Remunerating employees in non-cash ways could lead to underpaid taxes. But, of course, the government doesn't like this, enter stage left Fringe Benefits Tax!

A Fringe Benefit is something provided to an employee in addition to their wage. Fringe Benefits are taxed seperatly to income tax.

As the financial year draws to a close, it's essential for small business owners to start planning their finances for the upcoming year. The 2022/2023 financial year has been a challenging one, with various factors impacting businesses' financial stability, such as inflation, interest rates, fuel costs, and staff expenses. Moreover, the pandemic has significantly affected businesses, causing significant shifts in business operations and personal goals. In light of these challenges, small business owners need to plan proactively for their future.

TaxDigital is dedicated to helping small businesses survive and thrive in the ever-changing environment. We offer comprehensive planning packages designed to achieve financial stability, tax minimization, and success for small businesses. These planning packages cater to a wide range of business needs, including gaining clarity on business performance, tracking KPIs, minimizing taxes, capitalizing on opportunities, addressing challenges, managing cash flow, and protecting business operations.

To ensure small businesses don't pay excessive taxes on their profits, a tax plan is essential. Appropriate tax-saving strategies must be put in place before 30 June 2023. Some of these strategies cannot be implemented after that date. If a small business operates via a trust, TaxDigital will prepare the required ATO trust distribution minute. Additionally, they will also look at some 2023/2024 planning with respect to the small business's goals, pricing, and profit plan.

Small business owners who have been doing well this year and want to ensure they don't give the ATO any more of their hard-earned dollars than they have to should take advantage of TaxDigital's tax planning service.

Planning is crucial for small business success, and every business should have a Business Plan. Business Planning sessions enable business owners to review past performance, clarify future direction, set realistic and measurable goals, and define strategies for achievement. At the end of the session, business owners will have a one-page Business Plan that will act as a guide map to ensure they are on course for success.

The Business Planning session is ideal for small business owners who want to increase their growth, profitability, and cash flow, and it supports them in unlocking their business potential, provides a clear outline of what they need to do to unlock this potential, and a document against which to measure their progress.

Understanding the financial drivers in a business is critical for making informed decisions that impact revenue and cash flow. Financial Awareness Coaching is a great starting point for small business owners to gain confidence and essential business knowledge to lead and manage their businesses successfully. A Financial Health Check enables business owners to fully understand and interpret their financial reports, thereby gaining a solid foundation to manage their cash flow and grow their business.

A Financial Health Check includes an analysis of personal living expenses, ensuring accuracy in the future, a more precise format to aid decision making, informed decisions with a better understanding of the financial implications, managing and monitoring cash flow effectively, managing debtors and creditors, and understanding other information that may need to be captured monthly. For small business owners who want to know how much money they need to have the lifestyle they desire, the profit they're making, and the variables that can improve this, a Financial Health Check is an essential investment.

The end of the financial year is the perfect time for small businesses to plan for their financial future. TaxDigital's comprehensive planning packages can help small businesses achieve their financial goals, minimize their tax liabilities, and thrive in a complex and ever-changing environment. Investing in a Financial Health Check, Business Planning, and Tax Plan will set small businesses on the right path to success. Contact us today at 0407 438 849 or contact@taxdigital.com.au to schedule your planning session.

This is general advice only and does not take into account your financial circumstances, needs and objectives. Before making any decision based on this document, you should assess your own circumstances or seek personalised tax advice from us at TaxDigital. Information is current at the date of issue and may change.

Get the latest industry and tax information from our small business blog

Small Business Tax Planning in Australia for 2023

Maximise your profits, Minimise your tax. It's essential for small business owners to start planning for the end of the 2023 year now. Our planning packages provide financial awareness and stability in the future.

Maximize Your Financial Stability and Minimize Your Tax Liability

The ATO has changed how working-from-home deductions can be claimed in your 2023 tax returns. This affects both business owners and employees that complete duties from their homes. Given how tightly stipulated the attached factsheet is, we expect higher scrutiny from the ATO for any working-from-home deductions claimed.

Below is a summary of the new methods. The ATO factsheet provides greater detail and links to further information. The biggest thing to note is that if you wish to claim the revised fixed rate method, you need to be able to prove every hour you work from home after 1 March 2023, and not just a 4-week period. The fixed rate method also now includes phone and internet usage, along with computer consumables and stationery, which used to be separate deductions under the old methods. With these changes, we expect clients’ overall deductions and refunds/amounts payable to be negatively impacted.

Claiming the actual method, whilst you own your primary place of residence, will impact capital gains tax when you go to sell/depart the property. 

What does it include?  Phone, Internet, Electricity, Computer consumables (ink), stationery.

What does it not include? Depreciation, repairs & maintenance on computers and office furniture.

Do I have to have a dedicated home office space? No

Can I claim cleaning? Only if you have a dedicated office space.

What is the rate? Percentage of total costs

What does it include?  Phone, Internet, Electricity, Computer consumables (ink), stationery, depreciation and repairs and maintenance on computers and office furniture.

TaxDigital specializes in helping you claim work from home tax deductions. Our team of experts can review and assist you in calculating the various methods to ensure you get the most out of your deductions while staying compliant. Contact us at 0407 438 849 or contact@taxdigital.com.au to receive personalized advice and assistance on claiming work from home deductions.

2023 Tax Return Working From Home Deductions Changes

Learn about the changes to claiming work-from-home deductions for the 2023 tax returns by the ATO, and the impact it has on both employees and business owners. The revised fixed rate method includes phone and internet usage and requires proof of every hour worked from home after March 1, 2023.

Changes to Working from Home Tax Deductions in FY 2023: What You Need to Know

As an Australian small business owner, staying on top of your tax obligations is crucial to avoid any costly mistakes. Here are some common tax mistakes made by small businesses in Australia and how to avoid them.

Failing to keep accurate records: One of the most common tax mistakes small business owners make is failing to keep accurate records. Keeping detailed records of all income and expenses is essential for lodging an accurate tax return. Make sure to keep track of receipts, invoices, and bank statements throughout the year.


Mixing personal and business expenses: It's important to keep personal and business expenses separate. Failing to do so can make it difficult to claim deductions and could result in penalties from the Australian Taxation Office (ATO).


Not registering for GST: Small businesses with an annual turnover of $75,000 or more must register for GST. Failing to register can result in fines and penalties from the ATO.


Failing to lodge on time: Lodging your tax return late can result in penalties and interest charges from the ATO. Make sure to keep track of lodgement due dates and seek assistance if needed.


Failing to claim all deductions: Australian tax law allows for a range of deductions that small businesses can claim. Failing to claim all eligible deductions can result in paying more tax than necessary.


Incorrectly classifying workers: Small businesses must ensure that workers are classified correctly as either employees or contractors. Failing to do so can result in penalties and fines from the ATO.


Failing to pay superannuation: Small businesses must pay superannuation contributions for eligible workers. Failing to do so can result in penalties and interest charges from the ATO.

By avoiding these common tax mistakes, small businesses in Australia can ensure they remain compliant with tax laws and avoid costly penalties and fines. Seeking advice from a qualified accountant or tax professional can also be helpful in navigating the complexities of tax law.

If you're a small business owner in Australia, navigating tax compliance can be challenging. At TaxDigital, we understand the complexities of tax law and offer an all-inclusive monthly pricing solution to help small businesses stay compliant. Our services include wages processing, bookkeeping, ASIC compliance, yearly tax preparation, etc., ensuring that your business stays on top of its tax obligations while also managing cash flow. With TaxDigital, you can rest easy knowing that your business is in good hands. Contact us today at 0407 438 849 or contact@taxdigital.com.au to learn more about our services and how we can help your business thrive.

Avoid These 7 Common Tax Mistakes Made by Small Businesses in Australia

Expert Tips for Staying Compliant with Tax Laws and Maximizing Deductions

Christmas is just around the corner, and we are all counting the days down until we knock off work for Christmas. Often businesses take the opportunity to strengthen their connections with employees, customers and suppliers. Surely you can claim a tax deduction for a bit of Christmas cheer? Well, no, it's not that simple. If we are being honest, it is a bit of a minefield, and many factors come into play. So let's take a bit of a closer look. 

For the purpose of this article, a client also means customers, suppliers, contractors, etc. 

Just because your gifting something to someone doesn't mean it is a gift. What? 

A gift could actually be a 'gift', or it could be classified as 'entertainment'. A 'gift' includes traditional items such as hampers, boxes of chocolates, bottles of wine, etc. Whereas 'entertainment' includes things like movie tickets, holiday home vouchers, etc. 

Employee 'gifts' are tax-deductible and are subject to Fringe Benefits Tax (FBT) if the cost of the item is more than $300. The minor benefits exemption will apply if it is under $300, and no tax deduction is allowed.  

Client gifts are tax-deductible regardless of the spend. FBT does not apply either. 

Employee 'entertainment' gifts are tax-deductible and are subject to FBT if the cost of the item is more than $300. The minor benefits exemption will apply if it is under $300, and no tax deduction is allowed. 

Client 'entertainment' gifts are not tax-deductible regardless of the spend. FBT does not apply either.

Generally speaking, Christmas parties will be exempt from FBT if they are held on a regular business day, on the work premises, only employees attend, no alcohol and only light meals are provided......who calls that a Christmas party? I don't know.  

Where you hold a Christmas party offsite and the cost per employee/associate is less than $300 (inc. GST), then the minor benefits exemption will apply, and no tax deduction is allowed. 

Where you hold a Christmas party offsite and the cost per employee is more than $300 (inc. GST), then the cost is tax-deductible and is subject to FBT.  

Where a Christmas party is held for clients, then the cost is not tax-deductible regardless of the spend. FBT will also not apply. 

Where a mix of both employees and clients attend a Christmas party, then you need to keep specific records of attendees and the cost per head to correctly calculate your tax deductions and FBT liability. 

Clear as Mud? (Yes, I had a giggle when I reread this article.) It's an absolute nightmare; we know it. At TaxDigital, we specialise in making sure you are compliant and aren't exposed to thousands of dollars in tax. Feel free to reach out to us on 0407 438 849 or contact@taxdigital.com.au if you would like some personalised guidance on the tax consequences of your Christmas Party/Gifts.  

This is general advice only and does not take into account your financial circumstances, needs and objectives. Before making any decision based on this document, you should assess your circumstances or seek personalised tax advice from us at TaxDigital. Information is current at the date of issue and may change.

Tax Deductible? Christmas Parties and Gifts

Surely a business can claim a tax deduction for a bit of Christmas cheer? Well no, it's not that simple. It can be an absolute nightmare, we know. At TaxDigital we specialise in making sure you are compliant and aren't exposed to thousands of dollars in tax.

Surely a business can claim a tax deduction for a bit of Christmas cheer? Well no, it's not that simple. It can be an absolute nightmare, we know.

The 2021 financial year has seen significant changes to Australian legislation for small businesses from JobKeeper & Instant Asset Write-Offs through to R&D Incentives. The tax changes present a unuiqe opportunity for small businesses to start thinking about saving tax and making smart business choices.  

While there may be advantages to purchasing new equipment, that might not be the most beneficial business move. 

TaxDigital provides tax planning services which considered well-rounded business advise and not just saving tax. There is no argument that tax planning is a fundamental element in business wealth. By structuring your tax affairs correctly, you can save significant money on your annual tax bill. 
Some of the common strategies to adopt before the end of the year are listed below: 

Outlined below are some of the new legislation pieces for the 2021 income tax year that directly impact small business entities. 

For the 2020/21 year, the reduced corporate tax rate has been reduced to 26%, down from 27.5%, eligibility for the reduced corporate tax rate remains unchanged and applies to base rate entity companies with an aggregated turnover of less than $50m.

 The lower company tax rate for base rate entities will reduce 25% for the 2021/22 income year.

The small business income tax offset has been increased to 13%, up from 8%. The tax offset is a 13% discount of the income tax payable on the business income received from a small business entity (other than a company) with an aggregated turnover of less than $5m, up to a maximum of $1,000 a year.

From 7.30 pm AEDT on 6 October 2020 until 30 June 2022 the temporary full expensing allows:

Eligible business entities with an aggregated turnover less than $5 billion or corporate tax entities that satisfy the alternative test, can immediately expense the cost of eligible new depreciating assets; or 

Eligible businesses with an aggregated turnover under $50 million can immediately expense the business portion of the cost of eligible second-hand assets; or

Businesses with an aggregated turnover under $10 million can immediately expense the balance of a small business pool at the end of each income year in the period.

Accelerated Depreciation Turnover less than $500m

An immediate deduction is available for entities with an aggregated turnover of less than $500m for assets first used or installed ready for use between 12 March 2020 until 30 June 2021 and purchased by 31 December 2020, cost less than $150,000 up from $30,000. 

Note that the general small business pool's balance is also immediately deductible if the balance is less than $150,000 on 30 June.

Backing Business Investment – Accelerated Depreciation

From 12 March 2020 until 30 June 2021, the government has provided an investment incentive to support businesses with an aggregated turnover of less than $500 million by introducing accelerating depreciation deductions. The rules are outlined below (some exclusions apply):

Small business entities using the simplified depreciation rules can claim 57.5% of the cost of a new depreciating asset (for those assets which exceed the instant asset write-off amount) in the first year they add it to the SBE general pool. Existing rules apply for the balance of the asset.

For small business entities not using the simplified depreciation rules, they can claim a deduction of 50% of the cost of a new depreciating asset. Existing rules apply for the balance of the asset.

It is important to note that a business cannot claim a backing business investment – accelerated depreciation deduction if that business uses temporary full expensing or instant asset write-off deductions for the same asset.

Expanded Access - Small Business Concessions

From 1 July 2020, businesses that are not small businesses because their turnover is $10 million or more but less than $50 million can also access an immediate deduction for certain start-up expenses and for prepaid expenditure. As a reminder, these concessions also exist for Small Business Entities with a turnover of less than $10 million. 

 From 1 July 2021, businesses that are not   small businesses because their turnover is $10 million or more but less   than $50 million can also access these small business concessions:

Tax planning is legal when you do it within the intent of the law. However, the Australian Taxation Office (ATO) imposes harsh penalties for those businesses that undertake tax minimisation schemes outside the spirit of the law. The ATO refers to these schemes as tax avoidance schemes or arrangements.

The ATO broadly defines a tax avoidance scheme that involves the deliberate exploitation of our tax and superannuation systems. 

As there are many factors contributing to tax planning and overall business decisions, it is important to obtain professional advice regarding your businesses tax planning strategy. 

If you would like some personalised advice on the best tax planning strategy, feel free to reach out to us on 0407 438 849orcontact@taxdigital.com.au.

Small Business Tax Planning 2021

Small business tax planning is vital for keeping your company running smoothly in 2021. Check out our blog post to learn more about business tax planning.

Small Business Tax Planning Information 2021

Tax planning in 2021 will have a signifcant impact on your small business wealth creation.

New regulations require that all existing and new Directors acquire a unique Director Identification Number (DIN). The Australian Taxation Office (ATO) is responsible for administering the DIN regime. Your DIN is a unique identifier, much like your Tax File Number, that you will only be required to register for once.  Penalties will apply for non-compliance with the DIN regime. 

Every existing or new director of a company listed with ASIC is required to register for a DIN. This includes:

Directors must register for their DIN personally and they cannot ask another person or even a Tax Agent to do it on their behalf. 

From 1 November 20201, directors will be able to register for a DIN. At TaxDigital, we highly recommend applying for the DIN as soon as practical. However, the deadlines for obtaining a DIN are outlined below:

The first step is to register for a MyGovID account. (Note that it is different from the MyGov account.) You can find more information about a MyGovID account here. 


After obtaining a MyGovID account, you can apply for a DIN on the Australian Business Registry Services (ABRS) website. 

Download the MyGovID app on your phone and register using your email address.

Verify your email with the passcode sent to your email address.

Verify your identity within the MyGovID app (to a "standard" identity strength).

Once you have obtained "standard" strength in your MyGovID app, go to the ABRS website and complete the DIN application.

Use your email to log in to the website, and a security verification code will be sent to your MyGovID app. 

Follow the prompts on the ABRS website to complete your application. 

Firstly, keep a record of your DIN in a safe place. We have not yet dealt with a lost DIN, but we suspect the process will be similar to a lost TFN (i.e., impossible). 

Secondly, after you receive your DIN, it is essential to: 

Figuring out if you need a DIN and how to use your new MyGovID app can be a little confusing. Don't worry, you are not alone and we get it! If you would like some personalised advice or assistance, feel free to reach out to us on 0407 438 849 or contact@taxdigital.com.au.

How to Register for a Directors Identification Number

New regulations require that all existing and new directors acquire a unique Director Identification Number (DIN). Figuring out if you need a DIN and how to use your new MyGovID app can be a little confusing. Don't worry, you are not alone and we get it!

How to Register for a Director Identification Number

New regulations require that all existing and new directors acquire a unique Director Identification Number (DIN).

Filing Tax Returns can often be a daunting task for sole traders. This is because of a lack of clarity regarding the process and eligibility of filing tax returns. It gets particularly confusing in cases where sole traders are unaware of the tax deductions they can claim. Tax deductions can be defined as expenses that can be subtracted from the taxable income to reduce the tax payable. Fascinating, isn’t it?

With complexities involved regarding what to claim and what to let go of, many sole traders end up getting perplexed. However, it is not as difficult as it appears. Here is a checklist to help you learn what can be claimed if you are filing returns as a sole trader, according to the Australian Tax Office:

The list above refers to regular operational expenses that companies can claim over time. However, in the case of depreciation charged on capital expenses, claims can be made spanning several years. This is primarily because charges like these are often continual and are meant to have a longer life. Therefore, examples of such expenses include:

However, it must also be noted that claims can only be made for expenses that are directly associated with the business portion. This implies that in the case where some of the costs are related to personal use and for business use, only those costs can be claimed that can be distinguished to be a part of the business. In other words, personal expenses, or domestic household expenses cannot be claimed for any tax deductions in this regard. Having this checklist in mind when filing for tax returns is particularly fruitful because a lot of sole traders end up saving significant sums of money.  

If you would like some personalised advice on the best tax deductions for you, feel free to reach out to us on  0407 438 849 or contact@taxdigital.com.au.

Tax Deductions for Sole Traders

What can I Claim? Being aware of what you can claim will help you avoid an unwanted tax bill at the end of the year.

As a small business, knowing when to register for GST is crucial to ensure that you remain compliant. By being ahead of the curve and registering early, you may boost your cash flow in those early stages of business when things are a bit tight. Firstly, let's take a look at what GST is and what it means to be registered for GST. 


Goods and Services Tax (GST) is a form of consumer tax that is added to most prices in Australia. The current rate of GST in Australia is 10%. As a business, if you are registered for GST, you must charge your customers GST and pay it to the Australian Tax Office (ATO). 

For example, if you sell a laptop for $1,000, you would need to charge an additional 10% of GST; the total sale price will be $1,100. The additional $100 you collect from your customer will need to be paid to the ATO. 

The great bit about being a business is that you can offset the amount you owe the ATO by the amount of GST your suppliers have charged you. 

For example, if the same laptop above costs you $880 ($800 + 10% GST), you can offset this $80 of GST against the $100 you would owe to the ATO. Now you only have to pay $20 ($100 less $80) to the ATO; you can pocket the rest. 

Not every business needs to be registered for GST. However, businesses that meet the following criteria must be registered for GST:

It is important to note that a business that does not meet the above criteria can still register for GST. However, if they register for GST, they must stay registered for a minimum of 12 months.

There are two main reasons a small business would voluntarily register for GST:

Right or wrong, often, other businesses and financial institutions will automatically assume that your sales are at least $75,000. This gives the impression that you are well established and have a proven track record.

In the early stages of operating a small business, you may find your expenses are greater than your income. By being registered for GST, you will boost your cash flow by getting a GST refund.

What does it mean to be registered for GST?

If you're a GST registered business, you must add GST to your prices and also need to issue GST invoices to your customers. In addition, you will need to lodge a Business Activity Statement (BAS) with the ATO. A BAS declares how much GST you have collected from your customers and paid to your suppliers. Don't stress about this, as modern accounting systems like Xero, can calculate these amounts for you. 

At TaxDigital, we assist small businesses with their obligations, ensuring they have the tools to achieve success. We do this by offering our comprehensive bookkeeping and accounting services, which includes strategic advice regarding GST and other statutory registrations. TaxDigital can also act as your intermediary when dealing with the ATO for your BAS/GST obligations, so you don't have to.

If you would like some personalised advice or assistance, feel free to reach out to us on 0407 438 849 or contact@taxdigital.com.au.

When To Register For GST?

As a small business knowing when to register for GST is crucial to ensure that you remain compliant. By being ahead of the curve and registering early, you may boost your cash flow in those early stages of business when things are a bit tight.

There are many good reasons for hiring an accountant during the different stages of your business’s growth. Accountants can help you establish the legal structure of your business, provide advice around accessing bank finance, and they can help with day-to-day record keeping. DIY finances aren’t for everyone, especially when your business starts growing and your accounts become more sophisticated. You don’t always need to hire an accountant full-time, Often just a couple of meetings a will be enough to point you in the right direction. 


 Here are some ideas about when to hire an accountant and how they can help your business develop.

Majority of people start their own businesses to do what they love, and what they’ve always dreamt of doing. That does not include spending hours on financial records. 

Like the majority of small business who are looking to save money, you might try and take the DIY approach instead of hiring an accountant. But how long does it take you to do those accounting tasks? Is it a good use of your time, or should you be out there doing what you love and making money? 

For example, say it takes you 10 hours to make your Business Activity Statement (BAS) every quarter, and your time is worth $150 an hour. Effectively it costs you cost of $1,500 to do your BAS yourself. Plus there’s always the risk you’ve made errors – especially if you’re multi-tasking like most business owners.

Hiring an accountant can help you focus your business efforts on the really important (money-making) stuff, whilst they take care of the other boring (tax) stuff. It’s a win-win. You’ll not only have extra time to generate revenue, but also the peace of mind that an expert is taking care of the pesky details.

Tax due dates, rates & amounts seem to change daily in Australia. You business can suffer or you could under-estimate your next tax bill if you overlook a single essential change.

Accountants spend an obscene amount of time reading legislation and staying up-to-date. Hiring an accountant ensures that your deadlines are met and that you’ll be paying the amount of tax to the right people. The system is full of red-tape and is a bit of a minefield in Australia; an accountant will guide you through it with ease.

If you started your business as a sole-trader, the red-tape imposed by the ATO is not much different than a larger business. As a business owner, you need to know about the legislation and laws that apply to you. The DIY approach is very time consuming and risky.  Keeping up to date with regulatory changes is demanding on a business owner. A smart sole-trader will hire an accountant and get access to up to date regulatory advice which helps ensure your complying with all the relevant laws.  

Technology plays an integral part in the financial success of a business in the modern world. An accountant can help you set up a completely automated financial package to help you track time, invoicing and evening collecting cash from a customer. 

Dealing with the ATO can be time consuming and tough

An accountant doesn’t just prepare forms and submit them to the Tax Office or relevant government body, they also liaise with them regularly. An accountant can interact with the government on your behalf to arrange deferred payment terms, an extension of lodgement, correct lodgement errors and much more. Dealing with government bodies can be frustrating and time-consuming, let an accountant use their magic phone numbers to speed up the process and navigate the red-tape. 

Accountants don’t just crunch the numbers and help with your finances. They can help you with your whole business set up, improve your profit, or they can give you extra business contacts to help drive your sales.  As your business grows, an accountant can talk you through various options you may have around your business structure and provide CFO services at a fraction of the cost.

Although ultimately you’re legally responsible for your businesses accounts and lodgements, you can get an accountant to deal with it for you. It’s necessary to keep a record of all the income and expenditure that a business incurs, as well as the overall financial position of a business; this often takes the form of Financial Statements. Accountants can manage all that for you and liaise directly with government agencies or financial institutions. No doubt hiring an accountant to assist in the preparation of financial statements will give a bank more confidence in the numbers. 

If the thought of spreadsheets, red-tape and government agencies give you a headache, then perhaps the right move is to hire an accountant. The added benefits of not having to worry about your business accounts and having a business connection to guide you just makes sense. 

Having a qualified accountant on your team will ease your load and give you peace of mind, allowing you to get on with the money-making stuff.

Why Use An Accountant

Proper tax records will help small business owners avoid tax penalties. Here is why you should hire small business tax accountants to handle your taxes.

Why You Need Small Business Tax Accountants

If the thought of spreadsheets, red-tape and government agencies give you a headache, then perhaps the right move is to hire an accountant.

In general, being appointed a company director is often a significant milestone in someone's life. It usually means that small business owners have taken the initial steps to run their own business. Don't be fooled, though; being a company director comes with an array of additional responsibilities. For example, a director has the obligation under the Corporations Act to ensure that the company complies with all appropriate legislation and operates at the highest possible standards. Should a director not perform their duties, they can face penalties, including disqualification from acting as a company director, significant fines and even jail time. In addition, the business could also suffer reputable and financial damages. 

A company is essentially a separate legal entity from those who created it (i.e. directors and shareholders). This has many benefits for small businesses, including keeping taxes and legal liability separate from the business owners. As a result, a private company provides the least amount of risk to the owners; however, as a director of a company, there are still some key responsibilities and risks to take into account.  

For a person to be a director of a company in Australia, they must meet specific requirements, including: 

Be a natural person (i.e. not an entity or a robot)

Provide signed consent to taking on the role and responsibilities of a director

If the company is a 'private company, it must have one director who resides in Australia

have entered into a personal insolvency agreement and failed to comply with the terms

Responsibilities of a Director

Being appointed a company director is often a significant milestone in someone's life. Don't be fooled though! It comes with an array of additional responsibilities and potential pitfalls.

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