Understanding your taxation obligations is important when starting up a new business. Various federal, state and local government taxes and rates can apply, depending on the size and location of your business.
A number of federal government taxes apply to business, including Goods and Services Tax, Pay As You Go withholding tax and Fringe Benefits Tax.
State government taxes that may apply to your business include pay-roll tax, land tax, duties and debits tax.
Local council rates vary around Australia - you need to contact your local council to find out what applies to your business.
Under Australian taxation law you are required to keep records for all transactions for a minimum of five years so that your income and expenditure may be determined. 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 and deductions.
The ATO can help with information about business income tax, fringe benefits tax (FBT), goods and services tax (GST), pay as you go (PAYG) and activity statements, including lodgement and payment, accounts and business registration (including Australian business number and tax file number), and dividend and royalty withholding tax.
Find out about the different types of taxation, registration, deductions, payments, reporting; and how taxation might affect your business structure by contacting the Australian Taxation Office (ATO).
These free seminars, run by the ATO, are aimed at giving people a basic understanding of small business tax issues and obligations. They are designed primarily for people just starting out in business, although many existing small business operators have benefited from attending. Tax basics seminars are run in all capital cities and in some larger regional areas. Find out about local support and information networks.
Answer your tax questions, like:
From the multi-nationals to the smallest micro-businesses - everyone faces taxation issues. Therefore it is important that you establish a timely and cost-effective accounting system that is appropriate record keeping for the nature and scale of your business.
It is also in your best personal and future business interests to take advantage of the professional advice of qualified taxation consultants and certified accountancy services.
Contact the Australian Taxation Office directly for business help.
ATO Business Help Phone 13 28 66.
For your local tax basics seminar coordinator, call 1300 661 104.
Employers must pay superannuation contributions on behalf of all their eligible employees. This compulsory contribution is called the Superannuation Guarantee.
For more information on superannuation issues
ATO Superannuation
