Tax Obligations
What is a TFN ?
Tax File Number
What does the government use tax money for?
Roads, infrastructure, healthcare, etc.
What is a BAS (business activity statement)?
A form to report and pay tax obligations?
The Business
Why do we pay taxes?
Taxes support public infrastructures and services that we use on a daily bases.
When registering with the ATO what taxes are you registering for?
GST, fringe benefits tax (FBT) and PAYG withholding
What percentage of tax are companies that earn over $25 million required to pay?
30%
What happens when a business does not report their taxes on time?
The business will be imposed with penalties and interests.
What’s the rate of GST in Australia?
10%
What are the 3 basic financial statements?
Balance sheets, income statements, cash flow statements.
What is PAYG?
As an employer, you have a role to play in helping your payees meet their end-of-year tax liabilities. You do this by collecting pay as you go (PAYG).
After possessing an asset for over 12 months, what percentage discount are individuals offered on Capital Gains Tax?
50%
If a business is unwilling to work with the ATO (Australian taxation office) what will happen?
The ATO will take firm action, including legal action.
Which item being sold needs to include GST, Sunscreen or tampons?
Sunscreen
What makes a B-corp? (2 reasons)
High standard of social performance, high standard of environmental performance, good public transparency.
What is superannuation?
Superannuation in Australia are the arrangements put in place by the Government of Australia to encourage people in Australia to accumulate funds to provide them with an income stream when they retire. Superannuation in Australia is partly compulsory, and is further encouraged by tax benefits.
What are the start and end dates of the Fringe Benefits Tax year?
1st April and 31st March
To manage their payment obligations, a business should keep money aside. Why?
For paying their PAYG (pay as you go) instalments, income tax payments, and super guarantee payments.
Business owners have to register their business for GST once they reach the threshold of…?
$75,000
How do we build trust for our business? (3 ways)
Gain positive media exposures, be transparent and honest, build up company reputation, build up good relations with customers… (other reasonable answers acceptable)
What must a business cancel when it has ceased trading or has been sold?
ABN and GST registration.
Are companies required to pay the Medicare levy?
No
How long must a business keep its records?
5 Years
What does GST stand for?
Goods and Services Tax
Why do most businesses fail? (7 reasons)
Lack of capital, poor management, lack of planning, ignoring customers, lack of differentiation, poor location, lack of profit, lack of focus, overexpansion, business funds misuses… (other reasonable answers acceptable)