WHAT ARE THE TAX OBLIGATIONS FOR FRANCHISEES IN AUSTRALIA?

Hi there,

Many franchisees are not concerned about their tax obligations even after purchasing the franchise. However, this attitude leads to errors in tax calculation during the filing of income tax returns and causes financial losses. Thus, franchisees must know about their annual and ongoing business expenses that can be claimed as deductions to reduce the tax amount. While the franchise fee cannot be claimed, the royalties can be claimed because they are an ongoing expense. Similarly, they need to know about tax obligations in case they want to sell of transfer the franchise to someone else. Here is an article that will shed some light on all these points in detail.

https://www.franchise2sell.com.au/blogs/franchise/what-are-the-tax-obligations-for-franchisees-in-australia