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Hi AJ You won't need to make separate claering account for GST items. The clearing account only correspondends with the payment type rather than the income type. The GST should be determined by each service and the settings you have on those rather than the payment types. Hope that helps.

@@clarico Thankyou!

Still subject to law but it sounds unlikely that it won't happen. We always take the approach of only spending $ that you were planning to anyway so it doesn't really affect client negatively whether it happens or not.

Hi Anne - unfortunately, at this stage, it's both invoices AND payments. If you don't have many different payment types, you could just get away with using 1 or 2 types of clearing accounts. Another alternative is if people pay you on a per invoice basis (rather than in bulk), you could reconcile each payment that comes into the bank against each invoice. You could set the Xero account for payments to be the main bank account. I'd recommend working with your accountant to come up with the process that best suits your business situation.

Hi Jack, The final tax collected from individuals and Companies isn't the same. Companies have a 25 % - 30 % tax rate whereas Individuals can go from 0 % - 45 % Let's run example - a Company pays a dividend to a individual and that dividend has full 30 % tax credits on it. - the Individual has a 45% tax rate If the ATO didn't tax the individual, the the Individual would be getting $ at a 30 % tax rate while their tax rate is actually 45%. This is why the ATO taxes the Individual. in the above example, the Individual would just need to pay the 15% top up tax (the difference between the Individual's 45% tax rate and the 30% credit received)

Glad you found it helpful :)