Advice, Services & Information

Taxation

Understanding taxes and meeting your taxation obligations can save you money. By paying the right amount you can avoid late payment penalties. You may also be entitled to exemptions.

• How to register
  
  A range of taxes affect small business, so before you begin operating you'll need to know what you must do to comply with government taxation regulations.
  
  
  • Register for an Australian Business Number (ABN)
    
    The Australian Business Number (ABN) is a unique 11 digit identifying number that businesses use when dealing with other businesses.
    
    
  • Register for Fringe Benefits Tax (FBT)
    
    FBT is a tax payable by employers for benefits paid to an employee or the employee's associate in place of salary or wages.
    
    
  • Register for Goods & Services Tax (GST)
    
    The Goods and Services Tax (GST) is a broad-based tax of 10 percent on the sale of most goods and services and other things in Australia.
    
    
  • Register for Pay As You Go (PAYG) withholding
    
    Pay As You Go (PAYG) withholding is a legal requirement to withhold amounts for income tax purposes.
    
    
  • Register for a Tax File Number (TFN)
    
    A Tax File Number (TFN) is a unique number issued by the Tax Office to individuals and organisations.
    
    
  • Register for Pay-roll Tax
    
    Pay-roll tax is a state tax on the wages paid by employers. It is calculated on the amount of wages you pay per month.
    
    
• Taxes explained
  
  There are a number of different taxes that can apply to your business, depending on your location and business activity.
  
  
  • Capital Gains Tax
    
    Capital Gains Tax (CGT) is the tax that you pay on any capital gain you include on your annual income tax return.
    
    
  • Excise duties
    
    Excise duty is a tax levied on certain types of goods produced or manufactured in Australia.
    
    
  • Fringe Benefits Tax
    
    Fringe Benefits Tax (FBT) is a tax payable by employers for benefits paid to an employee or the employee's associate.
    
    
  • Goods & Services Tax
    
    The Goods and Services Tax (GST) is a broad-based tax of 10 per cent on the sale of most goods and services and other things in Australia.
    
    
  • Income tax for business
    
    Federal income tax is levied on the taxable income of a person or a business.
    
    
  • International tax
    
    Residents and non-residents have different tax rates, which is why you need to find out what international tax obligations apply to you.
    
    
  • Land tax
    
    Land tax is an annual state government tax payable by the owner of land.
    
    
  • Pay As You Go (PAYG) withholding
    
    Pay As You Go (PAYG) withholding is a legal requirement to withhold amounts for income tax purposes.
    
    
  • Pay-roll tax
    
    Pay-roll tax is a state tax on the wages paid by employers. It is calculated on the amount of wages you pay per month.
    
    
  • Rates
    
    Rates are property taxes charged by local government on properties in their municipal area.
    
    
  • Simplified Tax System
    
    The Simplified Tax System (STS) is an alternative method of determining taxable income for eligible small businesses with straightforward financial affairs.
    
    
  • Stamp duty
    
    State and territory governments impose taxes on a range of paper and electronic transactions.
    
    
• Taxes and superannuation for your workers
  
  If your business has employees or contractors then you'll need to know how to meet your tax obligations.
  
  
  • Determine the status of workers
    
    The status of your workers for tax purposes is important, as employees and contract workers involve different obligations.
    
    
  • Fringe Benefits Tax
    
    Fringe Benefits Tax (FBT) is a tax payable by employers for benefits paid to an employee or the employee's associate.
    
    
  • Pay As You Go (PAYG) withholding
    
    Pay As You Go (PAYG) withholding is a legal requirement to withhold amounts for income tax purposes.
    
    
  • Pay-roll tax
    
    Pay-roll tax is a state tax on the wages paid by employers. It is calculated on the amount of wages you pay per month.
    
    
  • Superannuation
    
    Running a business or employing people is likely to involve superannuation obligations. Most of your employees, whether full-time, part-time or casual, will be covered by the superannuation guarantee legislation.
    
    
• Tax deductions
  
  Deductions for costs incurred in running your business are allowable, provided the expenses are not of a private, domestic or capital nature.
  
  
• Record keeping and reporting
  
  Under tax law, you must keep records of all your business transactions. You're required to keep records relating to income tax, GST, payments to employees and business payments. Activity statements are used to report and pay your tax obligations, including PAYG, FBT and GST, and to pay deferred company and superannuation fund instalments.
  
  
  • Record keeping
    
    Good business records help you manage your business and make sound business decisions.
    
    
  • Reporting activity statements
    
    You make payments and report your obligations under the tax system using an activity statement.
    
    
• Paying your taxes
  
  Paying your tax online is a fast, convenient and secure way to do business. Find out how to pay your taxes, and which methods of payment are available.
  
  
• Ending your business
  
  You must tell the Tax Office if you have ceased trading or your business has been sold. You must also cancel your various registrations, such as Australian Business Number; Goods and Services Tax; Luxury Car Tax; Wine Equalisation Tax; Pay As You Go; or Diesel and Alternative Fuel Grant Schemes.