New Provisional tax option
From the 2019 Financial Year small business (turnover of less than $5 Million) have the option to work out their provisional tax using AIM (Accounting income method).
AIM helps small businesses avoid cashflow issues as using this method you only pay provisional tax when your business makes a profit. AIM payments are worked out using accounting software such a Xero and MYOB.
It suits businesses if:
- your business is growing
- you're new to business
- you have irregular or seasonal income
- it's hard to forecast your income accurately
- you have accounting software or want to start using accounting software.
You should contact a professional if you are not sure if AIM is right for your business.