tax question, page-45

  1. 5,526 Posts.
    g'day milesg,

    this is from the snippet

    reduce your tax by 25%
    The entrepreneurs' tax offset, which benefits more than half a million aus. small businesses each year.A discount applies to businesses or sole traders with a turnover of $75,000 or less, with the maximum discount of 25% available on turnovers of $50,000 or less.The maximumpossible benefit depends on the amount of tax that would otherwise be paid.
    For example, if a company has a turnovere of $50,000, the maximum tax it would pay would be $15,000( i.e 30% of $50,000). The 25% discount would reduce this tax liability by $3750, to only $11,250. The discount has the potential to reduce the tax paid by eligible businesses or sole traders by several thousands of dollars each year.
    That's all it says.
    Anyway in regard to my own return i got a couple of months mortgage payments locked in now, and my agent advises to stay as a share holder and not a trader and do it all right, legally, as you would expect from a professional and to not raise any concerns from the ATO.
    cheers
 
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