Being a Sole Trader you pay tax at your marginal bracket on the profit In your business.
The first point to note, any money you withdraw from the company bank account has tax consequences for you. Taking money out correctly, e.g. wages from the company bank account, will reduce potential tax shock in the future.
When you pay yourself a wage, you will withhold PAYG (i.e. wages tax). Most software packages (e.g. Xero) will work out how much is required.
As you are now an employee, you are now legally required to pay superannuation on your wage. The software package will work this out for you.
Any profit left in the company (after you have taken a wage) tax is calculated at 25% for small business (30% for large).
If you have a motor vehicle in the company, you might be liable for Fringe Benefits Tax (FBT).
All these tax (except super) are paid on your Business Activity Statement, usually quarterly.
At Key Tax Solutions we aim to provide you with advice when your business needs it, not just when you ask for it.
At Key Tax Solutions we are committed to forming close partnerships with our clients, enabling us to understand your unique situation and customise the assistance we provide to suit your requirements.
At Key Tax Solutions we offer a full range of free, easy to use, online resources.