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Ripper Wealth

TAX ESSENTIALS FOR BUSINESS • STEP 3 OF 4

Try It: Your Business Tax Tools

Knowledge without action is just trivia. Let's calculate your numbers.

Anonymous

Use our interactive tools to compare structures and test your deduction knowledge.

Your Learning Journey

GET READY

SEE IT

TRY IT

CHECK IT

This Step Takes: 20 minutes

Use two interactive tools: structure calculator and deduction finder quiz.

What You'll Do

Calculate your optimal structure and test deduction knowledge.

Business Structure Calculator

Enter your business income to see which structure saves you the most tax.

BEST OPTION

Sole Trader

Tax Paid

$39,570

Net Income

$109,230

Setup:$0
Annual compliance:$1,200

Pty Ltd Company

Tax Paid

$37,920

Net Income

$108,580

vs Sole Trader

-650 / year

Setup:$1,500
Annual compliance:$3,500

Company + Trust

Tax Paid

$47,040

Net Income

$97,960

vs Sole Trader

-11,270 / year

Setup:$3,500
Annual compliance:$5,000

💡 Recommendation:

At $150,000 income, a sole trader structure is fine. Consider incorporating when you consistently earn $100,000+.

This is a simplified calculator for educational purposes. Actual tax outcomes vary based on your specific circumstances. Consult a tax professional before making structure decisions.

When to Change Structure

You don't need to stay locked in. Review your structure annually. If your income jumps from $80k to $150k, incorporate. If you add a non-working spouse, consider a trust. Structure should evolve with your business.

Business Deduction Finder

Can you claim it? Test your knowledge with these 10 real scenarios. Click Yes or No for each.

1

Client lunch at a restaurant

2

New laptop for business work

3

Gym membership for personal health

4

Home office electricity (20% work use)

5

Accounting and bookkeeping fees

6

Commute from home to office

7

Professional indemnity insurance

8

Suit for work meetings

9

Industry conference registration fee

10

Mobile phone bill (60% business use)

0 of 10 answered • Answer all to check your score

Golden Rule: Deduction Records

The ATO requires records for ALL deductions. No receipt = no deduction, regardless of amount. Digital tools like Xero, MYOB, or even a simple Google Drive folder make this painless. Snap photos of receipts immediately. You'll thank yourself at tax time.

Key Takeaways

The $100k Rule

Under $100k = sole trader is fine. Over $100k = incorporate to access the 30% company tax rate. Over $150k + spouse = add a trust for income splitting.

Deduction Discipline

Business owners who claim deductions systematically save $10-20k/year more than those who don't. It's not about being aggressive. It's about being organised.

Get Professional Help

A good accountant costs $3-5k/year but saves you $10-30k in tax and hours of stress. DIY is fine under $100k, but professional help pays for itself beyond that.

Tax-101 for Business - Try It: Complete

  • Structure choice can save you $20-40k/year depending on your income level
  • Common business expenses are deductible, but personal expenses (commute, gym, suits) are not
  • Professional accounting fees ($3-5k) easily pay for themselves through tax savings and compliance

Homework

Reflect

Based on the calculator, are you currently structured optimally? If not, what would it cost to switch vs the annual savings?

Action

Set up a digital receipt folder (Google Drive, Dropbox, or accounting software). Start capturing every business expense from today. This makes tax time effortless.

What's Next?

5 minutes

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