There is no doubt that Australia is a favourite destination for foreigners for both business purposes and its lifestyle allure. As such, there are many foreign entrepreneurs and workers who migrate to Australia. As a foreigner, you should carefully consider some factors regarding Australian taxes regardless if you are an individual or business owner. Let’s take a quick look at what these entail.
Check on Double Tax Agreements
If you are a business individual or company wanting to business in Australia, you will have to apply for an Australian Tax File Number (TFN) and pay taxes in Australia. But whether you also have to pay taxes back home depend on whether the country you originate from has a tax treaty with Australia (also known as double tax agreements).
Small Business Discount Concessions
If you are setting up a small business, there are three common business structures you can consider: sole traders, partnerships and companies. There are some reliefs available for sole traders and partnerships, such as the sole trader’s tax free threshold of having a taxable income which is equal to or less than $18,200 (though this value may change every now and then).
There are also some small business discount concessions available, which can be applicable for capital gains, GST and excise duty concessions, and a number of Fringe Benefit Concessions.
Returns To Be Submitted
There is also the need to regularly submit income tax returns for sole traders. In case of partnerships and companies, both the individuals and also the companies should separately file income returns. There can be hefty penalties and fines for improper or incomplete submissions to the Australian Taxation Office (ATO).
Minimise Your Taxes
The Australian legal system can be fairly daunting to a foreigner or first-time tax payer in Australia, and that’s why you should consider getting an accountant to help with your taxes. At Femia Accountants, we specialise in helping foreigners minimise their taxes and maximise their deductions, so contact us today and see how we can help prepare your taxes accordingly.
Contact our office today on 9316 4500 or book a time to meet with us.