New small business owners to get compliance support
The Australian Taxation Office is providing additional support for new small businesses to help them better understand and meet their tax, superannuation and registration obligations.
As part of its “Ready for Business” campaign, the ATO will soon be contacting new holders of Australian Business Numbers (ABNs) by email. These messages will include practical guidance on topics such as:
Meeting your ABN obligations
When and how to register for Goods and Services Tax (GST)
Restructuring your business
Understanding employer responsibilities such as tax withholding and superannuation
Understanding GST Registration
If you operate a business with an annual GST turnover exceeding $75,000, registration for GST is compulsory. For not-for-profit organisations, the threshold is $150,000 per year. However, businesses that offer taxi or ride-share services must register for GST regardless of turnover.
Even if your business earns below the threshold, voluntary registration may be beneficial in some cases. We can help assess whether GST registration makes sense for your circumstances.
Plan Ahead with PAYG Instalments
The ATO is encouraging new business owners to avoid large tax bills when lodging their first income tax return by prepaying tax through Pay As You Go (PAYG) instalments. You can opt in voluntarily and begin making quarterly instalments based on estimated profit. This helps manage tax gradually, rather than facing a lump sum at year-end.
Employer Obligations: PAYG Withholding and Superannuation
If you employ staff or contractors, you may be required to withhold tax from payments and make regular superannuation contributions. The ATO warns against using these withheld funds to manage business cash flow. These amounts must be set aside and paid to the ATO and superannuation funds by the relevant deadlines.
Side Hustles May Be Businesses Too
If you operate a side hustle or generate income outside your main business activity, it is important to consider whether it qualifies as a business in its own right. You may have separate obligations for GST, PAYG and superannuation. If in doubt, we can help you assess your situation.
We Are Here to Help
According to the ATO, small businesses that work with a registered tax adviser are more likely to stay compliant and avoid issues with tax, superannuation and registration.
If you are starting out or growing your small business and need help navigating your obligations, we are here to support you. Whether you have questions about compliance, payroll, GST, restructuring or business operations — simply give us a call, email or message us.
Let us help you get it right from day one.
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