How To Save Money on Your Corporate Tax for Australian Companies

Are you a business owner in Australia looking for ways to reduce your corporate tax bill? If so, you can do a few things to help lower your taxes. When it comes to payroll & accounting, many businesses make the mistake of not keeping track of their expenses. As a result, they often end up paying more in taxes than they need to.

Businesses in Australia are subject to corporate tax. This is a tax that is levied on the profits of a company. The corporate tax rate for 2019-2020 is 30%. This means that if your company makes a profit of $100,000, you will be taxed $30,000. As a business owner, it is vital to know the different ways to reduce your corporate tax bill.

One way to save money on your corporate tax is to keep track of all your expenses. This includes things like office supplies, travel expenses, and entertainment expenses. By keeping track of your expenses, you can deduct them from your taxes.

Here are some tips on how to save money on your corporate tax for Australian companies:

1. Review your business structure

One way to reduce your corporate tax is to review your business structure. If you are a small business owner, switching to a sole proprietorship or partnership may be beneficial. This will help lower your tax burden as you will only be taxed on your income.

2. Claim all eligible deductions

Another way to reduce your corporate tax bill is to make sure you are claiming all eligible deductions. This includes business expenses, home office expenses, and depreciation on assets.

3. Keep track of your expenses

As mentioned above, keeping track of all your business expenses is essential. This will allow you to deduct them from your taxes.

4. Use accounting software

Another way to save money on your corporate tax is to use accounting software. This will help you to keep track of your expenses and deductions. Some of the accounting software available include MYOB, Xero, and QuickBooks.

5. Hire a tax accountant

If you are struggling to reduce your corporate tax bill, you may want to hire a tax accountant. They will be able to help you identify ways to save money on your taxes. Additionally, they can help you prepare and file your tax return.

6. Use a tax planning service

If you are looking for help with your corporate tax, you may want to use a tax planning service. This service will help you understand the different tax laws and how they apply to your business.

7. Stay up to date with the latest tax laws

It is essential to stay up to date with the latest tax laws. This will ensure that you are taking advantage of all the deductions and credits that you are eligible for.

You can do a few things to reduce your corporate tax bill in Australia. Reviewing your business structure, claiming all eligible deductions, and keeping track of your expenses can help you save money on taxes. Using accounting software and hiring a tax accountant can also be helpful.

Following these tips can save money on your corporate tax bill. This will help you improve your bottom line and reinvest in your business.