Tax Obligations That Need Comply With A Business In Australia

Do you run a small business in Australia? If so, then you should pay taxes on time. Meeting all the tax obligations properly is the most important but challenging responsibility you have to take as the owner. Most business owners appoint a professional accountant or tax consultant to help them manage the tax issues. But, as the owner, you should also know and understand all the legal obligations regarding tax because submitting the accurate data to the ATO will solely rest with you. Here we discuss different duties you need to fulfil.

Business Registration Responsibilities

1. Australian Business Number (ABN)

Registering an Australian Business Number is the first step of setting up the business. ATO issues this unique number, which they use and other government departments, individuals, and business companies to spot your business. There is an option to do the registration online and for free. Note, if you want to register your business as a sole trader, then the ABN will get linked to the owner as an individual. But, if the business is operated through other small business structures like company, partnership or trust, then the ABN will be linked to that specific entity, not to the owner as an individual.

Check out: Why should small businesses go for tax returns outsourcing?

2. Tax File Number (TFN)

Another number your business must have is the TFN. If your business is operated through a sole trader or you are one of the partners in a partnership structure, then you can have the option to use your TFN. But, if it operates through a trust or a company or any other business structure, you should register your business to get a unique TFN. You can either register it along with the application for ABN or do it separately. 

3. Goods and Services Tax (GST)

This is a very familiar name you may have come across multiple times. But you have to pay this tax only when your small business will reach a yearly turnover of $75000 or more. Well, if it is less than that amount, then also you have to register for GST. If you haven’t done it before, you have to fulfil it when the annual turnover touches the threshold. Here also, you can do the registration along with ABN registration or do it separately.

4. Additional taxes

In addition to GST, you have to pay other different taxes, if applicable. You can register these taxes too through the Australian Business Register. These taxes are Fringe Benefits Tax (FBT), Luxury Car Tax (LCT), Fuel Tax Credits (FTC), and Wine Equalization Tax (WET).

Record keeping responsibilities

When you are running your business, you must keep all transactions’ records. These records include tax invoices, wage and salary records, sales receipts, purchases that your company makes, and any other sale and purchase records of different assets like land, office equipment or buildings. You have to include specific information in a transaction record like date, the character of the transaction (purchase, sale, rental, or wage, etc.), amount and purpose. 

You should always keep an eye on that you should never change the information you have included in the records and keep them safely so that no one can put any mark on them. You have to keep most of these records at least for five years. You should keep all these crucial records for the specified time because ATO may ask you anytime to produce them. 

Reporting

Following the records you have kept following the rules, you must now report different information through a Business Activity Statement (BAS) to the ATO. The data will include business’ income, tax obligations and different business expenses. If you haven’t registered your business for GST, then you must submit the report of your business’ tax obligations through an Installment Activity Statement (IAS). 

Based on your business’ yearly turnover, you can lodge the BAS monthly, quarterly or annual. Most small businesses make the lodgement quarterly. You do not need to worry about the time because you will get an automated email from the ATO when the time comes to lodge, and you will find some already filled information for you, including the time period over which the report is constructed, BAS due date and the business details. After you get the form, you can fill in the remaining required information about expenses, sales, and taxes withheld following your records. This will help you determine the amount of money you have to pay in taxes to the ATO. A Perth tax accountant can help you in completing it.

PAYG Withholding

PAYG stands for Pay As You Go. Whenever you recruit other people, maybe as employees or contractors, you have to register for PAYG. You can register it along with your ABN, and if you already hold an ABN, you can register for PAYG online through the business portal of the ATO. Here, you can withhold a specific amount from their payments, and this percentage amount will be based on the information they give in their tax file number declaration.

Superannuation

Not just PAYG withholding, you have to also pay the superannuation guarantee (SG) to your staff. This amount will go into their nominated super account quarterly if their monthly payment is $450 or more. Currently, this guarantee values an amount equal to 9.5% of a staff’s available time earnings, but this will increase in the next few years. If you cannot maintain the quarterly payment frequency, then ATO will charge you an SG.

Payroll tax

This is another tax that is paid by the business in wages monthly. Relative to the other taxes, the payroll tax is a state or territory-based one. Thus, you will have to pay payroll tax to the revenue office of your state or territory government. Remember, you will require to pay this tax only when the paid wages in a given month will go above a specific threshold value.

Where can you get help?

To get professional help, you can contact Accountant Perth. They can provide necessary assistance in obtaining an experienced small business accountant in Perth.

Check out: Tax Breaks For Different Business Module In Australia

Recent Posts

Top Ecommerce Site Factors You Must Consider for Success

In the ever-expanding world of eCommerce, running a successful online store goes far beyond having great products. Your eCommerce website needs to offer a...

The Benefits of Using Conversational AI in CRM

Customer Relationship Management (CRM) systems have long been essential tools for businesses striving to improve customer service, track interactions, and build strong relationships with...

Time Management and Planning Apps for Students

Effective time management is an essential skill for students, enabling them to balance academic responsibilities, extracurricular activities, and personal life. As students face an...

Top CRM Software Features to Boost Customer Relationships

Customer Relationship Management (CRM software) is more than just a tool for managing customer interactions. It is a comprehensive platform that helps businesses streamline...

A Complete Guide to POS System Software Benefits

In the fast-paced world of modern retail and hospitality, businesses are always on the lookout for ways to enhance efficiency, improve customer service, and...

Olivia by Paradox: Makes Professional Recruiting Simple

Recruitment has become increasingly complex with evolving job markets, changing candidate expectations, and technological advancements. In 2025, Olivia by Paradox is revolutionizing recruitment processes...

How Car Rental Services Enhance Your Travel Experience

Car rental services offer superb flexibility and even more control and freedom on your journey. As it helps you get rid of the public...

More from Author

Read Now

The 6 Best Gaming Laptops to Buy

Gaming laptops provide powerful performance, portability, and versatility. Whether you’re a casual gamer or a professional eSports competitor, choosing the right gaming laptops to buy can make a world of difference. In this article, we will explore six of the top gaming laptops available today, detailing their...

What is Deepfake? What is It and How does It Work?

What is Deepfake? Deepfake uses artificial intelligence (AI) to manipulate media—images, videos, or audio—to make them appear real, though they are entirely fabricated. The term combines "deep learning" and "fake," highlighting the AI techniques used to create such content. This technology has rapidly advanced, making it increasingly...

Impacts of Quantum Cybersecurity on Digital Protection

Quantum computing is transforming data processing, creating both opportunities and risks for cybersecurity. The Quantum Cybersecurity Impact describes how quantum technologies could both strengthen and challenge existing cybersecurity frameworks. This article delves into the implications of quantum computing on digital security, exploring its potential threats and examining...

How MDM plays a vital role in Healthcare Technology?

In the ever-evolving healthcare sector, accurate data management is more critical than ever. With the increase in digital health systems, the need for robust systems to manage and streamline data has led to the widespread adoption of Master Data Management (MDM). MDM in healthcare technology ensures that...

Revolutionizing Security: The Role of Identity Verification with AI in Modern Systems

Identity verification with AI is changing the way organizations authenticate individuals. Traditional methods of verification, such as passwords or security questions, are increasingly vulnerable to hacking and fraud. AI-powered solutions use advanced algorithms, biometric data, and machine learning models. These technologies offer higher security and efficiency. AI...

Website Speed Optimization: Tools and Techniques

Website speed optimization refers to the process of improving the load time of a website. A fast website ensures that users have a smooth experience, increasing engagement and retention. Speed optimization involves technical improvements and tools that help your website load faster, improving both user experience and...

Top Integral Mobile Apps for Productivity

In today’s fast-paced world, mobile apps play a critical role in how we live, work, and connect with others. Among the vast array of apps available, some are considered essential tools, or integral mobile apps, for both productivity and entertainment. These apps seamlessly integrate into our daily...

Empowering Women in the Shipping Industry

The shipping industry has been traditionally male-dominated, but women are gradually making their presence felt. While progress has been made, the industry still faces significant challenges when it comes to gender equality. Women bring diverse perspectives and fresh ideas, which are essential for growth and innovation. For...

How to Protect SaaS Data Security Effectively?

As the adoption of Software-as-a-Service (SaaS) solutions grows, so does the need for robust data security measures. SaaS platforms often store sensitive data such as customer information, financial records, and intellectual property. Ensuring the safety of this data is critical for maintaining customer trust, complying with regulations,...

How to Scale Your SaaS Business: Tips from Industry Experts

Scaling a Software-as-a-Service (SaaS) business is a challenging yet rewarding journey. It requires not only a deep understanding of your market and product but also strategic planning and the implementation of efficient systems. Whether you're a startup or an established SaaS company, the principles of scaling are...

SaaS Customer Success: Best Practices for Retention and Growth

In today’s fast-paced Software-as-a-Service (SaaS) environment, customer success is more than just a support function. It is a vital strategy for retaining customers, ensuring satisfaction, and driving growth. SaaS companies that prioritize customer success are able to foster long-term relationships with their customers, reducing churn while expanding...

Discord App: How To Solve The Discord Login Problem on Mobile Phones and Different Browsers

If the Discord App has been causing login issues for you, you're not alone. Many users struggle to access their accounts. If you’ve been experiencing login issues with the Discord App, you’re not alone. Many users face difficulties when trying to access their accounts. Luckily, most login...