As with any new business, you'll have a number of tax obligations to comply with when starting up. You may need to register for a Tax File Number, Australian Business Number, Goods and Services Tax, Pay As You Go withholding and Fringe Benefits Tax.
But if you carry on a home-based business there are specific tax issues you should know about, especially what expenses you can claim. Two types of expenses that are specific to running a home-based business are:
You may wish to join the Simplified Tax System which is an alternative method of determining taxable income if your small business has straightforward financial affairs.
What to do...
- Read about home-based business essentials from the Tax Office home-based work webpage.
- See the Tax Office’s guide on tax and the home-based business for:
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