Tax basics for small business

A quick tax guide for your business

Obligation	Do you need to apply or register?		How do you apply or register?	What ongoing reporting responsibilities will you have?	When do you lodge and pay, or claim a refund?
Tax file number (TFN)	Individuals in business use their individual TFN. Partnerships, trusts and companies need to apply for a separate TFN.		Individuals cannot apply for a TFN online. You can complete and lodge an application for an Australian business number (ABN) and TFN for a company, partnership or trust online at www.abr.gov.au You can also obtain TFN and ABN applications forms: online, refer to TFN application form ABN application form by phoning 13 28 66 for a paper application.	You only have to apply for a TFN once. If you carry on a business, you must lodge annual tax returns.	Not applicable
Australian business number (ABN)	If you are in business, you can register for an ABN.			If you operate a business as a sole trader, partnership, company or trust, you only need to apply for an ABN once. If you carry on a business, we will send you activity statements. You must complete and return them by the due dates.	Not applicable
Pay as you go (PAYG) income tax instalments (towards your income tax)	You don't need to register.		You don't need to register. After you lodge a tax return, we will tell you if you need to make PAYG instalments towards your income tax.	You report instalments on your activity statement and also have to lodge an annual tax return.	You report and pay PAYG instalments by the due date shown on your activity statement. You may have to make a balancing payment when you lodge your annual tax return, which is usually due by 31 October.
Goods and services tax (GST)	If you are carrying on a business (enterprise), you must register for and collect GST if either of the following apply: your annual turnover is $75,000 or more ($150,000 or more if you are a non-profit organisation) you are otherwise required to register. You can choose to register if your turnover is less than this amount.		The ABN application form contains a section for registering for: GST wine equalisation tax (WET) luxury car tax (LCT) PAYG withholding FBT. If you already have an ABN and need to register for any of these other obligations, you can do so: online if you have an AUSKey by obtaining the form Add a new business account (NAT 2954) by phoning us on 13 28 66.	If you are registered for GST, you must lodge an activity statement.	You report and pay GST, and claim any GST credits, by the due date shown on your activity statement. Most small businesses report GST quarterly, but some choose, or are required, to report monthly. Others may be eligible to report annually and pay by instalments, or report and pay annually.
Wine equalisation tax (WET) and luxury car tax (LCT).	You have to register only if you are in the wine industry or sell luxury cars.			You report any WET or LCT liabilities on your activity statement.	You pay WET or LCT by the due date shown on your activity statement.
PAYG withholding	You must register for PAYG withholding if you make payments you have to withhold from - for example, payments of salary or wages to employees.			You report amounts you withheld from payments on your activity statement. You also have to lodge an annual payment summary statement.	You pay amounts withheld quarterly (smaller businesses) or monthly, when your activity statement is due. You may have to make a balancing payment when your annual PAYG payment summary statement is due by 14 August.
Fringe benefits tax (FBT)	You have to register for FBT only if you provide benefits to employees and have to pay FBT.			You may have to: lodge an annual FBT return pay quarterly instalments on your activity statement.	You may have to pay quarterly instalments when your activity statement is due. You may have to make a balancing payment when you lodge your FBT return, which is due by 21 May.
Superannuation guarantee	You don't need to register, but every quarter you must pay a minimum level of super for eligible employees. This includes directors and some contractors you engage. The minimum level is 9% of an employee's ordinary time earnings.		Not applicable	If you don't meet your super obligations, you must pay the superannuation guarantee charge.	If you have not met your obligations in any quarter you must lodge a Superannuation guarantee charge statement - quarterly (NAT 9600) by the relevant due dates in the following quarter (28 November, 28 February, 28 May and 28 August).
Fuel tax credits	You may be able to claim fuel tax credits for taxable fuel you used in your business. There are some exceptions. To claim, you need to: register for fuel tax credits be registered for GST.		The ABN application form contains a section to register for fuel tax credits. If you already have an ABN, phone: our automated service on 13 72 26 at anytime (have your ABN and TFN) phone us on 13 28 66.	You can claim fuel tax credits on your business activity statement (BAS).	You need to lodge your BAS by the due date shown on the form.