Kate Upton

As Kate Upton is a sole trader her business income (which is also her
personal income) is taxed the same tax rates as individual
taxpayers (Australian Government, 2014). Kate earns the average
income of about A$63,000 (Open Universities Australia, 2012),
according to the taxable income rates 2012-2013 we can see that
Kate can be taxed A$12,022 and she is still entitled to Medicare levy
which for her is A$1,260 taxed. Altogether Kate is taxed 32.5% of
her income or A$13,282 leaving Kate with A$42,718 after tax.
Kate is not obliged to register for GST (goods and services tax)(a
broad-based tax of 10 per cent on the supply of most goods and
services consumed in Australia) as her annual turn over is less than
A$75,000 (Australian Government, 2014). Kate doesnt want to
register because she wont have GST included in her fees and she
wont be able to claim GST credits anyway (Sydney Morning Herald,
2014). As a sole trader Kate uses her Tax File Number to lodge her
income tax return and she doesnt need to apply for an Australian
business number, as she isnt carrying on an enterprise (Australian
Government, 2014).
Kate has to be quarterly pay as you go payments or (PAYG)
instalments towards the amount of tax she is expected to pay in
total (Australian Government, 2014). Kate lodges her annual tax
return online and because her home is where Kate runs and works
her business she is allegeable to claim tax deductions for a
percentage of the cost of maintaining, owning and using her home
with purposes connected to her business. Kate claims electricity, her
business phone costs (as she has a phone separate from private
use), and decline in value of equipment such as a canvas holder,
tables and essential home furniture such as carpet and light fittings
(Australian Government, 2015).