Family Daycare Tax – what do you need to know?
Key Business Accountants is committed to working with Family Day Care Schemes and Family Day Care Educators to assist with building a sustainable, tax effective business. With hundreds of Educators and a growing number of both Government and private schemes as clients, we KNOW and UNDERSTAND Family Day Care Tax. Our office deals with both educators and schemes and is happy to offer free training sessions for professionals in this industry.
Whether it be business tax considerations, GST and BAS assistance, home loans, personal insurances, superannuation, or even family budgeting, we’re here to help you make the most of your business and improve your lifestyle.
5 Family Daycare tax tips are:
- Record keeping – Keeping excellent financial records of your business transactions is essential to ensure that we can ensure your family daycare tax return includes the tax deductions you are entitled to – this will also keep you out of trouble if you get audited by the ATO
- Budget 2015 – The May 2015 Budget announced that there will be a 5% tax reduction on income tax payable on the business income received from an unincorporated small business entity (i.e. sole trader) up to a maximum of $1,000. Effective date is 1 July 2015 provided the eligibility criteria is met
- Separate bank accounts – To avoid unnecessary complications when doing your family daycare tax return you should have separate bank accounts to separate their your business transactions from your non-business (personal) transactions.
- GST Registration –Generally you must register for GST if your projected or actual annual gross business income is $75,000 or more. However consider GST Registration even if GST Registration isn’t mandatory as it provides an opportunity to reclaim GST paid on business expenses.
- Budget for expected income tax liabilities –You will typically need to pay income tax on income earned over $20,000. To avoid a nasty surprise when you get your family daycare tax return is prepared ensure you put aside sufficient money for any expected income tax liabilities at the end of the financial year
While not endorsed by Family Day Care Australia we try and work as closely as possible with Family Day Care Australia as well as the federal government and are committed to ensuring the Family Daycare industry is sustainable long term.