Yes, it is a possibility, all you need is to place your cards rights and then play the game. You can take the help of your tax accountant at any given point or you can even give him the entire contract for the same, whichever way it suits you better. But we advise you to take his help because he will make sure of it that you are not paying double tax here.
Australian tax authorities are keenly observing all the financial transactions in the country. They are keeping a tab on most of the big organizations. All these organizations are also paying taxes regularly for them. It is a very complex matrix and most of the organizations prefer to cut the tax on the source. Even if you are a small player, even then you are somehow connected to these big organizations either directly or indirectly.
Even if you are a very small vendor and not liable for any taxes, even then there are chances that you might be paying your taxes in the base payment. Your tax expert may warn you against this double payment. All you need is a certificate to prove that they have deducted your tax at the source and this way you will get this rebate on your tax, which you can also count as a gain from your tax return.
If you belong to any particular group where you have a fluctuating income pattern, then in this case you can always save taxes by maintaining a tax calendar. In Australia your financial year begins in the month of July. Now suppose you have a very nice year in the terms of business and you had very good business in a certain fiscal. Now to save taxes you can actually distribute your profits into two brackets.
In the first bracket, which current year, you can pay all the debts and count all the depreciations and show all the expenses and this way you can minimize your profit and in the second bracket which may be the first week of the July of the second fiscal year, you can show the profit. This way you can save the tax during a good year.
You can continue your tax cycle like that for the next few years and wait for the right time to come. If you have a lean year, then it is better to show your income in that year. This way you can save your money and distribute your profits into right proportions and save money from the clutch of taxation.
Tammy Richards is a seasoned finance writer with over 15 years of experience in the industry. With a keen eye for detail and a passion for helping people make smart money decisions, Tammy has become a trusted voice in the world of personal finance. Holding an MBA and drawing from her extensive entrepreneurial background, she offers valuable insights and practical advice to her readers.
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