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Taxes that apply to your business

It’s important to know which taxes your business needs to register for. This helps you pay the right amount of tax and avoid penalties.

All businesses need a tax file number. Other tax registrations depend on things like:

  • your business structure
  • your state or territory
  • the products or services you sell
  • whether you employ people.

The Australian Taxation Office (ATO) administers most taxes. States and territories administer some others.

The taxes that may apply to your business include:

Federal taxes

State or territory taxes

Tax deductions

You can claim expenses to reduce your taxable income. When you do your tax return, you can claim most business expenses as tax deductions.

Register for taxes

Register your business for taxes through the Business Registration Service. You can register for different taxes at the same time.

You need to register with your state or territory revenue office for some taxes like payroll tax.

If you’re not sure which taxes to register for:

Put money aside for tax

Planning for your financial commitments (such as tax) is an important part of managing your cash flow. If you don’t plan for tax, you risk running out of money when it’s time to pay it.

It’s a good idea to put money aside for tax in a separate bank account. This helps you pay what you owe on time.

The ATO has calculators and tools to help you estimate your tax.

Lodge and pay tax

Your business needs to lodge a tax return with the ATO each year. Most businesses also need to lodge business activity statements (BAS). You may also need to lodge other reports or returns.

You can pay tax online. The quickest way to pay the ATO is with BPAY or through the ATO’s online services.

It’s important to lodge and pay your tax on time. If you don’t, you may have to pay penalties.

Keep good tax records

Under tax law, you must keep records of all transactions related to your business’s tax affairs. This includes records that substantiate the information you include in your tax returns and reports.

Good record keeping can help you manage your business and make sound business decisions. Business records are also useful if you decide to sell your business.

Tools to help you get your tax right

The ATO has a range of tools and services to support small businesses.

If you use a tax agent

Make sure your tax agent has registered with the Tax Practitioners Board (TPB).

There are 2 ways you can check:

  • Search the TPB register.
  • Look for the registered tax practitioner symbol on their website, collateral or business cards. The registered tax practitioner symbol includes the type of registration and their individual registration number.

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