Tax registration for your business

Required

All businesses must have a TFN.

If you plan on running your business as a sole trader, you can keep your individual TFN.

If you're operating a partnership, company or trust, you'll need to get a separate TFN for the business.

Required for most businesses

Most businesses need an ABN. But it’s not compulsory for all of them.

However, getting an ABN is free and makes running your business easier, particularly if you have to register for other taxes. For example, you need an ABN to register for goods and services tax (GST).

Another good reason to get an ABN: if you don’t have one, other businesses must withhold 47% tax from any payments they make to you.

Required for companies

If you register your business as a company, the Australian Securities and Investments Commission (ASIC) will give you an ACN. You need your ACN before you can get an ABN for your company.

If you're operating as a sole trader or partnership and want to become a company, you'll need to cancel your existing ABN and get a new one.

Required for most businesses

You must register for GST if at least one of the following applies:

• your business turns over $75,000 or more in a 12-month period
• your non-profit organisation turns over $150,000 or more
• you provide taxi or limousine travel for a fare (including ride-sourcing services such as Uber or DiDi). This applies regardless of your turnover
• you want to claim fuel tax credits for your business, regardless of your turnover.

Otherwise, registering for GST is optional.

GST applies to most retail sales to Australian consumers of imported:

• services
• digital products (including movies, apps, games and e-books)
• goods worth A$1000 or less.

If your overseas business has a GST turnover of A$75,000 or more from these sales, you must register for GST. You may not need to register for GST if the only sales you make are through an electronic distribution platform.

Pay as you go (PAYG) withholding

Required

You must withhold tax from payments you make to:

• employees
• directors
• contractors who ask you to enter into a voluntary agreement
• businesses that don't tell you their ABN.

You need to register for PAYG before you can withhold tax.

You report and pay the tax you withhold to the ATO.

Required for some businesses

State and territory governments collect payroll tax on wages businesses pay their employees.

You only need to pay this tax if the total of your Australian wages is above the tax-free threshold of the state or territory your staff are in. The threshold varies between states and territories.

You must register for payroll tax in each state or territory where:

• you employ staff
• your total Australian wage bill is above that state or territory’s tax-free threshold.

Required for some businesses

Giving some benefits to your employees, their families or other associates will attract FBT.

This includes providing:

• a car for private use
• goods at a discount
• low interest loans
• Christmas parties
• reimbursement for private expenses, such as school fees

Register for FBT as soon as you decide to start giving fringe benefits to your employees.

You may need to register for other taxes that apply to your business, such as:

• fuel tax credits
• excise duties
• wine equalisation tax
• luxury car tax.

Superannuation is not a tax. But you need to pay it if you employ staff. Find out more about paying superannuation for your employees.

To access government online services, you'll need to:

• set up myID
• link your myID to Relationship Authorisation Manager (RAM) – an authorisation service that allows you to link your myID to an ABN and manage who can act on behalf of your business online.

Go to the ATO website to find out more about accessing online services with myID and RAM.