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    Thread: Registering, Tax and all matters regarding setting up a small business!


    1. #1
      ali
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      Question Registering, Tax and all matters regarding setting up a small business!

      Hi everyone,

      I'm trying to set up a small import/export home business. As I really don't know how the taxing system works here or if I really need to register my business to begin with and the costs that follow any information would be much appreciated.

      Cheers,

      Ali

    2. #2

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      Hi Ali

      You will have to register with the ATO and get yourself an ABN (Australian Business Number). Very easy to yourself online.
      Taxation here in general is fairly simple to follow - GST is 10%. But you need to turn over a certain amount to have to join the system where you charge the GST and also claim it back on goods and services charged to you.
      Using a simple tax / invoice system helps - I use Cashflow Manager and Invoice manager. Reasonable to purchase and very easy to use - you have to put in quarterly GST reports and will have to claim or pay back GST depending on the balance - this program does it all for you.

      Direct costs towards running your business are tax deductible and come off your combined income at the end of the tax year.
      Think of phone /home office costs. You will only receive a proportion back - for example we claimed $1100 a year back for heat and light at our old house.

      Importing can be fun.
      You need to speak to Customs and Quarantine.

      Different products = different rules.
      Foodstuffs will attract a lot on interest from Quarantine.
      As long as there are not seeds that can germinate or any product carrying disease.

      Import duty varies - as a general rule food attracts 5% then 10% GST on top.

      Might be an idea to use an import agent for a few times to get the hang of it???

      As you know I'm getting involved with importing Pommie foodstuffs so I'll let you know how I go.

      Must catch up for a beer sometime as well!!!
      Last edited by Guest75; 20-12-2012 at 02:22 AM.
      ali likes this.

    3. #3
      ali
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      Hi Tyke,

      Thank you for the informative post. You said that direct costs to the business are tax deductible. Do import, packaging, marketing, promotional activities and wages count as direct costs to the business as well?

      As a whole I will have to mark-up my prices to 15 % to be accountable for the 5% import tariffs and 10% GST. Am I right?

      What is the cost of registering my business with ATO? What about branding? I'm thinking of creating an Aussie brand here, make it local, then national and then if the business is growing maybe go International.

      Regarding the financial bits and parts of the business I'm very useless. Never dealt with the tax office before and never did accounting for our business back home. It was done by someone else so I'm a bit terrified of making mistakes there

      How much did the cash flow manager and the invoice manager cost you?

      Sorry for throwing so many questions at the same time.

      We should definitely catch up soon. Next week I think I have Wednesday and Thursday off. See if any of those days are suitable for you and we will meet up.

      Cheers

      Ali

    4. #4

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      Hi, I have just registered for ABN, it is really easy and you will get it instantly, just go the the www.ato.gov.au and register for it, a lot of information to be found there as well ;)
      I registered as sole trader with my own name so no cost for it, but if you registered a business name it will cost you a little, sorry I can't remember how much is it.
      Last edited by zhou77; 23-12-2012 at 11:38 PM.

    5. #5
      Kathrine Joseph
      Many promising entrepreneurs who are looking for business ideas stumble across the idea of an import export home business. But exactly what are import export businesses and how can you start your own? This guide will get you started. - See more at: bit.ly/118hri9

     

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