CHN Partners are experts at providing accounting and compliance services for our clients.
We can assist with the accounts reconciliation, preparation of year-end journals, all tax calculations and the subsequent ATO lodgments.
We are able to produce a range of financial statements for companies, partnerships, trusts, sole traders and complex groups of entities.
Furthermore, we lodge over 1,600 tax returns per year and as a registered tax agent, we have various lodgment date concessions with the Australian Taxation Office.
We undertake annual tax planning for our clients and provide them with a detailed report, including the preparation of trust resolution minutes.
At CHN Partners, we have moved our business to the cloud – using Xero as our reporting & lodgment software. We work with all types of software, and have particular expertise with MYOB, Reckon and Xero.
As a registered company agent, we can also attend to all of your corporate compliance needs with the Australian Securities & Investments Commission (ASIC) including the annual return.
How much tax do I pay?
Australia has a progressive or marginal income tax system. This means that the rate at which individuals pay income tax varies depending on how much they earn.
An adult resident individual with a taxable income of
$15,000 is unlikely to pay any tax
$50,000 will pay approximately $8,797 or 17.5% tax
$100,000 will pay approximately $26,497 or 26.5% tax
$200,000 will pay approximately $67,097 or 33.5% tax
The above figures include the compulsory 2% Medicare Levy. However, the level of tax payable can be affected by things such as HECS-HELP debts, Medicare Levy Surcharge, changing residency status etc.
What is my tax rate?
There are currently five rates of tax for Australian Resident Taxpayers.
Resident tax rates 2020–21
Taxable income Tax on this income
0 – $18,200 Nil
$18,201 – $37,000 19c for each $1 over $18,200
$37,001 – $90,000 $3,572 plus 32.5c for each $1 over $37,000
$90,001 – $180,000 $20,797 plus 37c for each $1 over $90,000
$180,001 and over $54,097 plus 45c for each $1 over $180,000
The above rates do not include the Medicare Levy. Accordingly, a 2% Medicare levy will be assessed in addition to the above.
What happens if I move into a higher tax bracket?
It is a common misconception that if you earn enough to move into the next marginal rate or ‘tax bracket’ that you will suddenly pay a significant amount more tax. This is incorrect as it is only the earnings above the relevant threshold that are subject to the higher rate.
For example – with a taxable income of $40,000, only the $3,000 in the third tax bracket is taxed at the higher 32.5% rate.
How do I find a good tax agent?
A good tax agent can be difficult to find, but it is crucial for any successful business. It is also important to remember that not all accountants are tax agents. To give tax advice an accountant must undertake additional training to become a registered tax agent, therefore it is important to understand the qualifications of who you choose to assist your business.
It is important that you have a good understanding of the depth of the tax agents experience and knowledge before making your decision.
When following up on a word of mouth referral, by all reports a tax agent might be great at what they do for someone else, but are they the ‘right fit’ for your business? Do they specialise in your industry? How long have they been operating? Are they familiar with your accounting software? What other services do they provide? Asking for references from like businesses is recommended.
Business Victoria have also a handy list of questions to find the right tax agent/accountant for you.