GST & Tax Planning
After determining the tax structure that will protect your individual assets and minimize the amount of future income tax that you will pay, it is necessary to register for the new tax system.
There are several decisions that you need to make before you register for an Australian Business Number. These decisions will determine whether you have to register for the Goods & Services Tax, when you are entitled to claim a tax credit for GST paid and the frequency of how often you lodge a Business Activity Statement.
The timing of when you issue invoices to your customers or when you incur business expenses may affect your reported taxable income and when you pay your tax liability.
The business owner can defer his tax liability and accordingly increase his cash flow by simply timing when he makes his business decisions.