If your business involves a significant volume of imported goods there are a number of planning opportunities available to you to minimise customs duty. For example, genuine buying commission paid by an importer to a person who acts as an agent of the importer in buying goods overseas can be deducted from the customs value of the goods. From 1 January 1988 rates of duty have been determined by reference to a common international system for classifying goods known as the Tariff Harmonisation System. Some refinancing business loans are exempted from stamp duty. In Victoria the Stamps Act 1958 imposes stamp duty on a number of commercial documents which affect business transactions.
Stamp duty is calculated by reference to the subject matter of the transaction.
Mortgages attract stamp duty based on the amount borrowed. If you employ more than ten employees you are required to register as a group employer and to remit to the Commissioner, by the seventh day of each month, the equivalent of the total taxation instalment deductions withheld from the salary or wages of your employees during the calendar month. There are a number of allowable deductions which reduce assessable income. For example, debt collection costs, bad debts and other losses and outgoings incurred in providing the services which have been billed out to clients are all deductible. There may be more advantages in purchasing rather than leasing plant and equipment.