Companies

A Company is a complex business structure that has some very favourable advantages. It is a separate legal entity and a significant advantage of a company structure is that it provides limited liability to its shareholders.

A Company pays tax on its profit and throughout the year it may be required to pay PAYG instalments to the ATO and may also have the reporting requirement such as PAYG Withholding, FBT Instalments etc. A company must also register for GST if its annual turnover is greater than $75,000.

Companies that make a capital gain have to pay tax on the full assessable gain unlike Trusts and Individuals that may be entitled to a 50% discount on the gain. However, SBE concessions may still be available to the company. Since a Company pays tax at the 30%, a franked dividend maybe made to its shareholders.