Last month, Housing Minister Clare O'Neil told triple j that the government wasn't trying to bring down house prices. The interview found a new life online this week, so we asked the experts what they think.
Oh right, i see what you mean. Its avoiding double taxation of the same monies.
Because the employees pay is taxed also, if the tax office were to tax the whole $10,000 it would mean they effectively tax the same set of money twice. In this example that $5000 of employee wages would be taxed first as business tax, then as income tax.
Yeah pretty much, but for a company it works out well for the owner who pays themselves. Makes it very easy to report minimum profits while paying yourself well
Oh right, i see what you mean. Its avoiding double taxation of the same monies.
Because the employees pay is taxed also, if the tax office were to tax the whole $10,000 it would mean they effectively tax the same set of money twice. In this example that $5000 of employee wages would be taxed first as business tax, then as income tax.
Yeah pretty much, but for a company it works out well for the owner who pays themselves. Makes it very easy to report minimum profits while paying yourself well