Accounting for Business

Income Tax Solutions

You are in safe hands with the Income Tax Solutions Experts at Blue Dragon. Our team have the experience and know-how to ensure you get the best possible tax outcome. You will have peace of mind knowing that your tax return will always be prepared, reviewed and lodged by an experienced registered tax agent.

Income Tax Solutions

Our Income Tax Services

Individual Income Tax Solution

At Blue Dragon, our team have the experience and know – how to ensure you get the best possible tax outcome. You will have peace of mind knowing that your tax return will always be prepared by a registered tax agent. As a valued client, we will take the time to coach and educate you in appropriate record keeping whether that be storing receipts electronically, keeping essential logbooks particularly for motor vehicles and diary entries for things like business travel and home office expenses. This way, we can maximise your deductions and minimise your assessable income. We are experienced with Capital Gains Tax calculations, share portfolios, rental properties, foreign income and calculating profits and losses from your ABN side – hustle. We also have checklists of industry specific deductions to ensure your income tax outcomes are optimised.

Income Tax Solutions

Sole Trader Income Tax Solutions

“As a sole trader, you are subject to the same marginal income tax thresholds as individual taxpayers. There are a number of important differences. If you have been operating at a surplus for a number of years you will most likely be subject to the PAYG regime so cashflow and savings are important things to be across. Additionally, you are running a micro-business so record keeping becomes even more important and as you grow and potentially have a small number of employees you need to be aware of the obligations and risks that this growth can bring. You may also be liable to the Personal Services Income regime so how you structure your business dealing including services contracts is vital in ensuring the best income tax result. At Blue Dragon, there are four things we recommend up-front for every sole trader who is serious about their business. Firstly, that you keep your business and private expenditure separate, secondly, that you run your business through cloud accounting software, that you integrate an electronic document storage system with your cloud accounting software and finally you keep an eye on your structure and be across the potential to pivot your business into a structure that will offer more protection and security. Keeping these four key points in mind you will find that the benefits in efficiency and time saving will far outweigh the costs of setting up and running this basic structure.

We have found that the well-run sole traders have Blue Dragon also look after their quarterly BAS, TPAR and Superannuation obligations if they have payroll and the best-run sole traders even have Blue Dragon manage their bookkeeping and payroll. This means your back-office is in safe hands while you get out and hustle for business.

Income Tax Solutions

Small Business Income Tax Solutions

You have taken the step to set-up a company, trust or partnership. This is good for asset protection, optimising income tax position and managing a simple business environment. A small business will generally have a single director or family members as directors, partners in a partnership or beneficiaries under a discretionary trust. A small business may also have a small number of employees and contractors and will generally operate from a single site. Your turnover will be less than $25m and it will be most likely you will be base-rate entity where you enjoy a reduced tax rate %.

Even though you are now a company the Personal Services Income regime may still apply if the company receives income from your personal efforts, skills or expertise. Yes, running a business, even a small business, is complex and not for the feint hearted. In today’s complex and competitive world the best-run small businesses are those where they have partnered with their accountants to provide knowledge and support throughout the year and not just at tax time. As a result, your goals will come faster, more directly and be less stressful as you will have visibility on performance and results and a key knowledge partner to assist you.

Blue Dragon offers business owners more than just Income Tax, BAS returns, STP and TPAR. The team at Blue Dragon have actual real-world business experience so we understand the pressure of cashflow, stress from growing pains and the struggle when times are tough. We provide a streamlined business relationship that incorporates financial advice, reporting, performance metrics, bookkeeping, cash-flow control, BAS, PAYG, STP, Income Tax and planning towards future growth.

Medium Business and Corporate Income Tax Solutions

Our definition of a medium business is a more complex structure involving ownership entities, and operating entities. A medium business will be more likely be operating from multiple locations suppling labour, services and/or products into multiple regions. A corporate or large family business may also have direct supply chain involvement internationally and have head offices separate from the operating business structure.

Blue Dragon provide our clients true end-to-end solutions from bookkeeping and payroll services using qualified Australian bookkeepers, BAS preparation and lodgement, Income Tax Returns, Fringe Benefits Tax Returns, Taxable Payment Annual Returns, ASIC and Company Secretarial detail all rounded out with our Virtual CFO program where we will partner with the owners to not only collaborate in the development provide strategic advice, business planning, but importantly facilitate implementation and then circle back to reporting the performance.

When it comes to tax work the success is pivoted on the level of advance planning. We commence our work with detailed income tax planning which includes the review of business performance, income, balance sheet, loans and drawings. We take a deep dive into dividends if you are a company including preparation of a franking account and distributions if you operate under a discretionary or fixed trust. We preview any Division 7A issues if there are debit balance loans to individuals, beneficiaries or trusts. And in the case of trusts, where there are corporate beneficiaries and bucket companies, we will also review any Unpaid Present Entitlements or UPEs that may need to be dealt with. If there is a corporate structure that includes trusts, companies and partnerships, we review the intercompany loan accounts and associated transactions.
Our tax work extends to the careful planning and calculation of:

  • Dividends, franked and unfranked
  • Division 7A loans and Unpaid Present Entitlements
  • Directors fees and Trust Distributions
  • Fringe Benefits Tax calculations, returns and lodgements
  • Corporate Pay As You Go Instalments PAYGi
  • Capital Gains and associated tax consequences

Our business and corporate tax program includes individual tax planning and preparation of stakeholders income tax returns including directors, trust beneficiaries and partner returns.

Trust Income Tax Solutions

Trusts are highly complex structures. The trusts in a business environment are fixed, non-fixed, and discretionary trusts. Using a trust is common way of structuring financial affairs of a family business as they offer very tax-efficient distribution of earnings that can benefit the tax position of members of family groups. A unit trust is typically seen in an environment where the stakeholders are not family members and where income will be distributed based on their unit holdings. All types of trusts can be complex to establish and maintain. But which one do you need? And what are the tax implications of each? Blue Dragon’s experienced team are on hand to help trustees and beneficiaries’ structure and use trusts to suit their specific needs. Our team can advise you in the following areas:

  • Tax planning and advice – creating, structuring and using particular types of trusts and corporate beneficiaries.
  • Trustee Resolutions – Advising on trustee resolutions for discretionary distributions of trust income and capital gains to help lower the tax payable on the distribution and ensure the appropriate beneficiary is taxed on the income or capital gain.
  • Deductions for tax losses - Determining whether trusts satisfy the trust loss tests to allow the trust to deduct current year and prior year trust losses, including consideration of the appropriate elections to make.

Our trust tax program includes individual tax planning and preparation of beneficiaries income tax returns.

Partnership Income Tax Solutions

A partnership is a business structure that involves a number of people who carry on a business together. A partnership may be structured when a business is jointly run with another person or a number of people (up to 20). There are two types of partnerships – general and limited. They are relatively inexpensive to set up and operate, and partners share income, control of the business and losses.

Our partnership tax program includes individual tax planning and preparation of partner income tax returns.