Quote from: Simon Alvinge on August 25, 2012, 09:43

Doest anyone know USA and Australia in this matter?

Australia is great for microstock! (as presumably that means you are not earning a high income!)

There is an entrepreneurs tax offset that (from memory) is shaped between 25 and 50k - if you earn 0-50k it applies an offset on any tax you are due to pay: up to about 30k it can write it out completely.

if you are sole trading and so paying tax as an individual then income tax is stepped (a bit like the uk) and again if your income is modest it means a low tax burden:

0 - $18,200 =Nil
$18,201 - $37,000 19c for each $1 over $18,200
$37,001 - $80,000 $3,572 plus 32.5c for each $1 over $37,000
$80,001 - $180,000 $17,547 plus 37c for each $1 over $80,000
$180,001 and over $54,547 plus 45c for each $1 over $180,000

there is a 1.5% medicare levy unless you have private healthcare and 10% on almost all purchases via GST (business can claim that back)
to compare with the UK there are no separate National insurance contributions to pay.

for small business there are also simplified rules for writing off purchases in the first year without the need to track them as assets and value them each year.

compared to when I ran a business in the UK, Australias tax system seems to be a lot simpler for 'simple businesses'