Outsourcing Services For AUSTRALIA
Outsourcing services refer to the practice of hiring external companies or individuals to perform tasks or services that would otherwise be handled by in-house staff. This can include functions such as customer service, IT support, accounting, and many more
Types of Income
Assessable income
Assessable income is income that you pay tax on, if you earn enough to exceed the tax-free threshold.
If you receive your income as cash including cash cheques, you must declare the cash as income when you prepare and lodge your tax return. You can usually claim the tax-free threshold of $18,200 on one source of income you earn in the income year.
Exempt income
Exempt income is income that you don't pay tax on (that is tax-free). You may still need to include these amounts in your tax return for use in other tax calculations.
Examples of exempt income can include:
If the only income you receive during an income year is exempt income you don't have to pay any income tax on it.
Non-exempt income
Non-exempt income amounts are those which you do not include as income in your tax return. Non-assessable, non-exempt income can include:
Taxable income
Your taxable income is the income you have to pay tax on. The taxable amount is the amount left after you claim a deduction for all the expenses you can. These amounts reduce the amount of assessable income you pay tax on.
Assessable income − allowable deductions = taxable income
You can only claim deductions where you incur the cost and weren't reimbursed. You also usually need evidence of your expenses. Deductions that you apply reduce the amount of income you pay tax on. You do not deduct them directly from your tax amount.
The income you must declare
Work out which income you need to declare in your tax return, such as employment, government, and investment income.
The amount you do not include as income
Amount that you earn or receive that you don't need to declare as income.
RESIDENCY FOR TAX PURPOSES
Residency for tax purposes may be different from your residency status for other purposes. You may be a resident for tax purposes even if you’re not an Australian citizen or a permanent resident for immigration purposes.
As an individual, you will fit into one of the following three categories.
Australian resident for tax purposes
If you satisfy any of the residency tests, you are an Australian resident for tax purposes. This means you have to declare all of your worldwide income even if you have already paid tax on it overseas. A foreign income tax offset is generally available to reduce the Australian tax on the same income.
Foreign residents
You are a foreign resident if you do not satisfy any of the residency tests. As a foreign resident, you have no tax-free threshold and do not pay the Medicare levy. You must still declare any income derived in Australia, including any capital gains on taxable Australian property in your Australian tax return. If you have a Higher Education for Loan Program or Trade Support Loan debt, you are required to declare your worldwide income or lodge non-lodgement advice.
Temporary residents
You will be a ‘temporary resident’ if you hold a temporary visa and neither you nor your spouse is an Australian resident within the meaning of the Social Security Act 1991 (that is, not an Australian citizen or permanent resident).
Temporary residents
You will be a ‘temporary resident’ if you hold a temporary visa and neither you nor your spouse is an Australian resident within the meaning of the Social Security Act 1991 (that is, not an Australian citizen or permanent resident).
Dual residents
You are considered to be a dual resident if you are a resident of Australia for domestic income tax law purposes, and a resident of another country for that other country’s tax laws. Where Australia has a double tax treaty with a foreign country, a treaty tie-breaker test would usually determine which country has the right to tax Australian and foreign-sourced income.
Australian
Tax Rates & Due Dates
Bookkeeping Services
Onboarding at a cost of 26 CAD. Our bookkeeping services include bank reconciliation, credit card reconciliation, and monthly financial statements for the client.
For bookkeeping services, we offer monthly fixed pricing based on the monthly number of transactions. The pricing is as follows:
Note: The above rates do not include the Medicare levy of 2%. Details of Medicare levy applicability will follow in the further study.
Example: Tax payable on $ 190000
= 190000-180000 = $ 10000 * 45/100 = $ 4500 + $ 51667 = $ 56167 + 2 % (Ml)
= $ 57290
Foreign residents
These rates apply to individuals who are foreign residents for tax purposes.
Working Holiday Makers
The rates apply to a work holiday maker if you are a foreign or Australian resident not from a non-discriminatory article (NDA ) country. The term working holiday maker means an individual who has a visa subclass of 417: working holiday 462: work & holiday
Children
If you are under the age of 18, and receive unearned income (eg: investment income), special rates apply. If you are under 18 years old, some of your income may be taxed at a higher rate than individual income tax rates for adults. However, you pay the same individual income tax rates as an adult for:
If you aren't an excepted person, you pay a different rate of tax for income that is not excepted income. This rule was introduced to discourage adults from diverting income to their children.
Savings accounts and shares
If your child is under 18 years old and they earn income in their savings account, you may need to consider who declares the interest. If they are under 18 and earn income from shares, you may need to lodge a tax return on their behalf. Income from a savings account is treated differently from income from children's shares investments.
Due Dates
