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Tax basics for your business

Getting Started

Firstly, you should see a Financial Adviser, an Accountant or a Solicitor (or all three) for assistance in selecting an appropriate business structure. Then you will need to register your business for taxation purposes:

  • Tax File Number (TFN): if you are a sole trader you can use your existing personal TFN.
  • Australian Business Number (ABN): if your business is operating as a partnership, company or trust, it might be better for you to register for an ABN and a different TFN. This would make it easier for you to register for GST and PAYG withholding tax.
  • Goods and Services Tax (GST)- You will need to register for GST if:
    • your annual turnover is over $75,000 ($150,000 for non-profit organisations)
    • you provide taxi travel
    • you claim fuel tax credits
  • PAYG withholding tax: generally, if your business operates under a partnership, company or trust, you will need to register for PAYG withholding tax for paying wages, salary, commissions or bonuses.

You can easily register the above information online at the Australian Business Registration website.

  • Australian Business Number (ABN): if your business is operating under a company structure, you will also need to register for an ABN with ASIC.

Employee or Contractor? 

Is your worker an employee or a contractor? Use the ATO's Employee/Contractor Decision Making tool.

  • For contractors, you will need their ABN number for taxation purposes
  • For employees:  
    • You need their TFN
    • You need to pay a minimum of 9% Super Guarantee Contribution to your employees' superannuation fund
    • If you provide your employees benefits such as; health insurance, club membership and private use of a work car, you may need to register for Fringe Benefits Tax (FBT).

Annual tax obligation

 

I want to speak to an Adviser about my tax obligations

Contact Us to arrange for an Adviser to call you back when it suits you.

 

Last updated on 11th December 2011