Quote:
Originally Posted by stanlite
In truth there is really nothing stopping anyone from forming their own one person company that hires themselves out to do work. Doing this you circumvent income tax by being a company then pay for everything as business expenses, thus no profits and no business tax. The only difference between the rich and the average man is knowledge and willingness to take the time to do it.
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If you are the owner of a pty ltd and take a wage let's say of $10k, you'd have to put $3k in taxes and $1.2k in super so you need to generate $14.3k of money + GST (1.4K). $15k gross will give you $10k nett. If you buy a business car it's a company asset, so not 100% tax deductible. You pay company tax. It is a common misconception from employed people to think that having a business allows to claim everything as business expenses. You still have to pay your taxes. And your super. When you're employed, your employer pays your super, and sick leave and holiday pay and also group tax because he's employing you. I don't get any sick leave or holiday leave.
