As the economy reopens beauty salons around the country are gearing up to cope with a surge in bookings, employing new staff and exploring new ways to maximise cash flow. There are a few things that you can do to help your small business on the road to reopening and beyond.
The 6 tips that will save you tax and time:
- Lodge your BAS online: Still lodging your business activity statements (BAS) on paper? With more time to lodge, it’s better to lodge your BAS to online. It’s secure, helps you avoid mistakes, and you may even get a faster refund. For more information, visit ato.gov.au/lodgeBAS
- Made a mistake on your BAS? Don’t worry, it’s an easy fix. You can revise or fix a mistake on your next BAS. Learn more at ato.gov.au/basmistake
- Avoid these common mistakes:
- enter whole dollar amounts – leave cents out and don’t round up
- only lodge one BAS for each period
- lodged electronically? There’s no need to send us the paper form
- got a replacement BAS? Use the replacement form and not the original.
- For more tips, visit ato.gov.au/bastips
- Payment: If you can’t pay, talk to us so we can help – we’ll work with you to prevent or manage your debt. It’s never too late to speak with us. Visit ato.gov.au/supporttolodgeandpay
- Payment plans are simple to create in Online services for business. Start by accessing the Accounts and payments menu, then payment plans.
- Even if you can’t pay, it’s still important to lodge on time. Once you lodge and have up-to-date records, we can help you understand your tax position and find the best support for you.
- GST registration: You need to register for GST if your turnover exceeds the GST turnover threshold, which is $75,000 . You may choose to register for GST if your turnover is under the GST turnover threshold. If you are closing or selling your salon, you need to cancel your GST registration. You can register for GST or cancel your registration through Online Services for business, by calling the ATO or your tax agent can do it for you. The ATO will usually cancel your GST registration from the date you choose. For more information about GST visit ato.gov.au/GST.
- PAYG Instalments: If you are a new business or expecting to make a profit from your business income, now is a good time to voluntarily enter into pay as you go (PAYG) instalments.
- PAYG instalments allow you to make regular payments during the year towards your end of year tax bill so you don’t have to pay a large amount when you lodge your tax return.
- You will automatically enter the system if you lodge a tax return that has a business or investment income (or both) over the threshold. You can find out how to start paying PAYG instalments at ato.gov.au/PAYGIentry
- PAYG instalments allow you to make regular payments during the year towards your end of year tax bill, through activity statements.
- Review your tax position regularly and vary your PAYG if your situation changes as calculating and paying the right PAYG instalment amounts will help you manage your cash flow.
Remember an easy way to stay updated is by subscribing to ato.gov.au/sbnews, to receive updates about things small businesses need to know when they need to know them.
We know a lot of small businesses are feeling the pressure right now, so we have further help, support, and services:
- Live chat – ask us about GST, ABN, myGovID, BAS, account enquiries and to update details. Live chat is available from 8.00am–8.00pm (AEDT) Monday to Friday and 10.00am–4.00pm (AEDT) on Saturday and Sunday (except public holidays).
- Regular enquiry contacts – for enquiries such as account balances, business registrations, business tax preparation and BAS, from 8.00am-6.00pm Monday to Friday local time (except public holidays).
- After-hours call back service – book a time to talk to us from 6.00pm–8.00pm Monday to Thursday (except public holidays).
- Support for small business – information for small businesses experiencing stress.
For information on good business habits and how they can help you to stay on track visit www.ato.gov.au/sbhabits
Read the current issue of our digital magazine here:
- For more news and updates, subscribe to our weekly newsletter
- Follow us on Instagram
- Like us on Facebook
- Join Australia’s largest network of beauty industry professionals on LinkedIn
- Subscribe to our print magazine
Have an idea for a story or want to see a topic covered on our site and in our pages? Get in touch at info@professionalbeauty.com.au.