Like you, most home business operators have key questions about tax when they start. These questions and answers were compiled by H&R Block Accountants in 2008.

Businesses with an annual turnover of $75,000 or more are required to register for GST. If your business has a lower turnover, or you expect it will this coming financial year, you are not required to register. You can still register if you wish to. You can only charge your customers GST if you are registered for GST yourself.

If your turnover is less than two million dollars, you are classified as a Small Business Entity (SBE) which provides access a number of small business concessions. A SBE is able to use simplified depreciation rules which allow for a full deduction of the whole cost of depreciating assets costing less than $1,000. Most other assets are pooled and depreciated at a higher (accelerated) rate than that otherwise available.

If your turnover is less than $75,000 you may be eligible for the Entrepreneurs' Tax Offset. There are also several capital gains tax concessions available for businesses that are SBE's.

Provided you satisfy certain criteria you can claim a deduction for the contributions made to a complying superannuation fund or retirement savings account.

To be eligible you must be fully self employed or ensure that no more than 10% of your assessable income is from an employer who is required to provide you with superannuation support.

You may be eligible for the government co-contribution if more than 10% of your total assessable income is from running that business, eligible employment or a combination of the two.

Investment income is not eligible income. Any of your superannuation contributions that you claim as a tax deduction are also not be eligible for the co-contribution.

Fuel tax credits are available to businesses that use fuel to run vehicles on a public road that have a gross vehicle mass of greater than 4.5 tonnes. Most businesses can claim fuel tax credits for running machinery, plant and equipment used in running their business. To be eligible to make a claim the business must be registered for GST and the claim is made on the Business Activity Statement that GST registered businesses must lodge. Fuel tax credits are not available where alternative fuels (e.g. LPG) are used.

If your turnover is less than $2 million you will qualify as a Small Business Entity and will be able to claim certain eligible pre-paid expenses in the year they were paid. Some examples of prepaid expenses that can be claimed in the year they are paid are: rent, insurance and subscriptions to professional associations. Eligible expenses will be payments that are made for periods of 12 months or less and that the period of service ends in the next income year. Your pre-paid subscription qualifies because the period it covers does not exceed 12 months and that period will end before the end of the next income year. The whole amount will be claimable on your tax return this year.

Online entrepreneur Sue Papadoulis publishes the popular e-newsletter Smart Biz Chicks. If you're ready to jump-start your home business to make more money and have more fun and free time, get your FREE tips now at www.homebizchicks.com