A country where there has been no recession for about thirty years, a country where the Gross Domestic Product is always growing steadily
The Australian regulatory system allows different types of business structures to conduct an economic activity on one’s own or in partnership with others
Business structures regulate and identify the functioning of economic activity; the most common are:
- Sole trader (sole proprietorship)
Corporations are governed on a federal basis primarily through the Corporations Act 2001.
Sole proprietorships are disciplined in a fragmented manner by national and regional regulations in the field of consumer, tax and private law in general
Furthermore, all the business structures rely on further application regulations of the various regional governments.
Open a company
It is essential not only to establish and distinguish the desired image of the company, but also to minimize the risk of fraud, counterfeiting and other forms of unfair competition.
The business name is the name under which an individual or corporate enterprise conducts its commercial activities and is connected with the Australian Business Number (ABN).
The services provided by Algebra Accounting Australia provide for the electronic registration of the Business name through the website of the Australian Securities & Investments Commission (ASIC).
Registration is valid in all Australian states and territories.
A company with separate legal personality (proprietary company) must include the wording ‘Proprietary’ or the abbreviation ‘Pty’ in the company name.
Types of business structures
The reference legislation for the regularization of companies is the Coorporate Act.
Before registering with the ASIC, you must identify your registered office with pre-registration requirements depending on the type of company:
The parent company is liable for the branch and its tax report must also include that of the company of which it is a branch. Logically the branch will pay Australian taxes subject to the provisions of the double taxation treaties.
It is a type of company that is generally chosen by foreign investors and can be established from a minimum of one to a maximum of 50 and cannot offer shares or bonds. The administrator must be resident in the area.
This type of company must have a minimum of 5 shareholders, three directors (including 2 resident in Australia) and an Australian contact person. It can offer stocks and bonds and therefore have a public participation.
The constitutive agreement drawn up in written form determines the rights and obligations of the shareholders (they have unlimited liability for the obligations) which, with some exceptions, cannot be more than 20 people.
Logically, for this type of company reference is made to the regulations of the States and in fact in some it is also possible to establish limited liability partnerships.
The Joint Venture can be contractual or corporate and the substantial difference is that the second is a legal entity, while the first is not.
It is essentially a commercial agreement for which a person directs a company in the name of some beneficiaries.
When a company is registered, the ASIC assigns it a unique number, called the Australian Company Number (ACN). The ACN can also be used as a ‚company name.
The ASIC provides a public register to first verify that the company name in progress is not identical or too similar to others already in use. The register can be consulted on the ASIC portal.
In general, the taxes you need to register for depend on the type of business you are running. Some tax registrations apply to all businesses, while others may be mandatory depending on the administrative structure.
In particular, the registrations that may be necessary for tax purposes are:
- Tax File Number (TFN), mandatory for all commercial activities
- Australian Business Number (ABN), optional
- Australian Company Number (ACN), mandatory for companies
- Goods and Services Tax (GST), optional for small businesses only
- Pay as you go (PAYG) withholding, mandatory if paying taxable wages.
- Finge Benefits Tax (FBT), mandatory if you pay bonuses to employees
Setting up company officeholders
Proprietary companies must have at least one director (who ordinarily resides in Australia) but do not need to have a secretary.
Company secretarial services
Algebra Australia is a registered agent with ASIC (Australian Business Registry) no. 47883.
Our specialized Company Secretary service offers the security and peace of mind to keep company records constantly updated and to fulfill the obligations required by the ASIC.
To comply with the ASIC regulations, it is necessary that all the provisions and shareholders’ resolutions prepared in accordance with the provisions of the law (Corporation Act 2021) and filed with the ASIC.
Documents and information required:
- Members and directors identity documents
(passport for a physical person, business profile in case of legal person)
- Indication of Share capital, subscribed and paid up
- Members and directors proof of address
- Proposed company name
- Registered office
- Beneficial owners disclosure in case of a group of companies
To meet this requirement, Algebra offers a full range of Company Secretary services including:
- Registering Business Name
- Registering a Company
- Running a company, including Company officeholder duties, Annual Statements, Member of a Company, Shares
- Renewing your business name
- Changes to your Company, including Changing company addresses, Changing a company name, Changing officeholder details, passing a company resolution
- Small Business including starting a small business, starting a company, running a small business
- Members and directors identity documents
Algebra Australia can help you with tax and statutory compliance for individuals and companies, including the submission of tax and ATO returns.
We take care of your deadlines, we prepare the documents for statutory submission for your review and on line signature….the whole process is paperless.
Our team is composed of professionals with the skills and knowledge needed to provide cutting edge consulting services. By hiring us, you can enjoy tax advantages in Australia, accumulate savings, and so forth. Keep reading for a detailed explanation of our tax consulting services.
What our tax consulting services offer:
Income tax calculations for individuals and corporations
A resident individual is required to file an income tax return where gross income exceeds the tax-free threshold of AUD 18,200.
A non-resident earning AUD 1 or more of Australian-sourced income must file a return. There is no joint assessment or joint filing in Australia.
The Australian Taxation Office (ATO) will issue an income tax assessment of taxable income/tax loss and tax payable (if any) to the individual based on the income tax return.
How to lodge your tax return
To prepare your tax return, some of the information we’ll need:
- Your Tax File Number (TFN)
- Your Income Statement, which is accessible from your ATO online services via myGov, or a payment summary provided by your employer.
- A summary of any interest you’ve earned on your bank accounts.
- Information related to your investment income, such as shares, dividends and managed funds.
- Your private health insurance statement
- Details of child support payments
- Receipts for charity donations
- Receipts for work-related expenses
- Your BSB and account number for any tax refund due to you
CAF and Patronage services for Italians residing abroad
Sending and preparation of each tax return, Model 730, Individual Tax Return, Declarations of succession, IMU, TASI, and patronage services such as early retirement, accompanying allowances, disability allowances, etc.
Companies that are residents of Australia are subject to Australian income tax on their worldwide income. Generally, non-resident companies are subject to Australian income tax on Australian-sourced income only. However, where a company is resident in a country with which Australia has concluded a double taxation agreement (DTA), Australia’s right to tax business profits is generally limited to profits attributable to a permanent establishment (PE) in Australia.
All companies are subject to a federal tax rate of 30% on their taxable income, except for ‘small or medium business’ companies, which are subject to a reduced tax rate of 25% for the 2021/22 income year (26% for the 2020/21 income year). The reduced tax rate applies only to those companies that, together with certain ‘connected’ entities, fall below the aggregated turnover threshold of AUD 50 million.
Integrity measures also ensure that a company will not qualify for the reduced rate unless the specifically defined passive income (including, among other things, interest, rents, and net capital gains) that it derives represents no more than 80% of its total assessable income for the year.
HR and Payroll
Our team manages payroll processing, e-pay slips, claims, statutory compliance, e-leave management and staff attendance tracking system.
The payroll service is managed through an online platform XERO or Quickbooks connected with ATO.
Through our software we can manage:
- Salaries, overtime, bonuses, sales commissions and deductions
- Superannuation Contribution
- Leave submission, approval and tracking – With access to XERO, employees can check available leave balance, apply for leave, and even upload supporting documents such as medical certificates on any smart device
If your business employs staff, payments such as salaries, wages, pay as you go (PAYG) withholding and superannuation need to be reported to the Australian Taxation Office (ATO) via Single Touch Payroll (STP).
STP reporting take places as these payments happen via your preferred online payroll solution and helps reduces your reporting requirements at the end of the financial year.
Australia incorporated Companies and local branches of foreign companies are required to maintain proper records and books of accounts.
Australia has adopted IFRS standards since January 1, 2005, through the application of IFRS 1, First Adoption of the International Financial Reporting Standard.
IFRSs are developed for application by for-profit entities.
The AASB (Australian Accounting Standards) are applied by for-profit and non-profit entities in the public and private sectors.
Monthly or quarterly business activity and instalment activity statements
Algebra provides a highly competitive accounting service that will help you manage, manage effectively and effectively. What our services offer:
- Monthly and quarterly reports
- Budgeting and forecasting accounting
- Project accounting and cost-center
- Custom reports
- Financial statements
- Compliance and legal reporting
- Cash Forecasting
- GST accounting advice
- GST account reconciliation
- Drafting and submission
- GST periodically returns with Activity Statement, BAS
We provide flexible and cost-effective accounting services and use technology to minimize costly and inefficient manual entry.
We are proficient in all major cloud accounting software packages, including Quickbooks and Xero.