How tax can impact a person or business
Tax is money that is required by the government to be paid on the money you earn.
Taxes fund services and resources such as universal healthcare, urban resources and infrastructure, roads and transport and many other services utilised by the general population. If you are an individual and you earn under $18,200 then Tax may not impact you as you are earning under what is called the “tax-free threshold”. However the expectations of tax become more complicated for a business, as there may be other reporting requirements, deadlines for payments and tax rules that affect you compared to an individual or sole trader.
If you would like to learn more about how much you owe and how to pay, visit the Australian Taxation Office website to help.
If you are an individual who earns an income (especially if it’s over the tax-free threshold), please sign up with MyGov and connect to the ATO (Australian Taxation Office).
It’s important not only to track how much money you earn as income, but also to keep track of your losses and claimable expenses (deductions). Find out more about Individual Deductions and Business Deductions, which you can track through the MyDeductions section on the ATO app.