Many years ago, Kerry Packer openly & publicly admitted to a Parliamentary enquiry that he paid 1c in the dollar income tax. OK, on $4bill (or whatever he was worth) that still adds up to quite a bit, but it's certainly not the 46.5% that "rich people" supposedly pay.
At the time, he also said that anyone who doesn't do everything legally possible to reduce the amount of tax they pay is a drongo.
Just a few business expenses and running costs.
Employee Work Cover anywhere from 1%- 6% of wages/sal depending on industry
Employee Super 9.5% of wages/sal
Employee wages/sal
Long service leave
Christmas Parties
Employee gifts, birthdays etc.
Sales Commissions
Bonuses
Overtime
Holiday pay
Sick leave etc
Commercial Rent/lease far higher than residential and cpi increases every year.
Shop fitouts.
Advertising & Marketing
Stock, Samples, Displays
Insurances, business, contents, 3rd party, vehicles
Computers, faxes, electricity, water, cleaning, etc
Repairs/replacements
postage costs
Couriers
Interstate Transport cost.
Vehicles
Mistakes
Theft
Security system
Security monitoring system
Bank fees
Merchant fees. 2-4% of takings.
Accountant
Lawyer
GST 10% of takings
Company tax.
Personal tax.
Interstate EXPO's
Training
Upgrading
Bank Loans
I can keep going
"Profit" most has to go back into the business if you want to grow and try to make more money............so all the above grows as well.
These are just a few
Yes they do pay the correct tax margins but they also have a hell of a lot of overheads and carry all the risks to supply you with what you want
And trying to compete against "cheap copies" from overseas which most consumers complain about the poor quality and they don't last the test of time but still buy them
Yes these are tax deductible, if they weren't, a very high % would not be in business and you would be living in a cave wearing a grass skirt, rubbing 2 sticks together, eating weeds.
Just saying
But to stay on topic..................CL does suck!!!!!!!!!!!!!!!!!!!!!!!!!! Great employee tax funded pay and retirement packages for very little quality workmenship. I know someone