What type of tax return will you lodge? It varies with your nature of work as you could be a salaried person, a businessman, or got any other earning source. Australia’s tax laws lay down specific guidelines and rules for computing applicable taxes, penalties, and other assessments. Let’s dig deep into different tax return types.
Partnership
An entity owned by multiple people as partners should file a partnership tax return. Partners need to calculate the net income for the return by subtracting deductions and deducting expenses from the total revenue. Besides, every partner needs to report his wage, salary, rental income, dividend, or share of the entity’s net income.
Sole Traders
As a sole trader, you should file a tax return to report your entire income. It includes your taxable income, other business earnings, wages, salary, rental income, dividends, and even losses.
Company
A company should file a company tax return that shows their net income and applicable deductions. However, if you are eligible for a company tax return, you also need to lodge a personal tax return. The latter should cover your income as an individual from all sources.
Trust
Like any business return, a trust income tax return also shows the total income earned, excluding deductions and expenses. If you are one of the trust’s beneficiaries, you should also report your benefits and earnings from the trust. It includes your entire assessable income covering wages, salary, rental income, and dividends.
Besides all these, FBT (Fringe Benefit Tax) Returns, GST Return, and PAYG Taxes are also applicable in Australia. Get in touch with a Tax Accountant in Sydney CBD to know the right return you need to lodge and do it the right way.