Our focus
It’s important for new business owners to understand their tax, super and registration obligations to ensure they're getting it right from the start.
If your hobby has turned into a profit-making business, you are responsible for your tax, super and registration obligations. Setting up your business correctly from the start can make it easier to meet these obligations.
How to get it right
If you're planning on starting or have recently started a new business, we have Ready for business information to help you navigate your tax, super, and registration obligations.
Here are the top 7 things you need to know when starting a business:
- When setting up your new business, using digital tools and maintaining accurate records can help manage daily activities and cash flow. Explore our key rules and free resources to strengthen your business practices.
- There are some registrations you will need to complete when you start a business, for example registering for an ABN or a business name.
- You can claim a tax deduction for most business expenses if they are directly related to earning your income. Remember to keep records and only claim the business portion of mixed-use expenses.
- The type of business structure you set up will affect your tax and registration requirements. It's important to choose the right business structure and understand your obligations.
- If you're an employer, it's important you know you have extra responsibilities and obligations.
- It’s important to lodge and pay your taxes on time. You can prepay your estimated income tax liability through pay as you go (PAYG) instalments. You can voluntarily enter PAYG instalments to help avoid a large tax bill when you lodge your tax return.
- Businesses that maintain accurate records, lodge and pay on time and avoid errors not only steer clear of penalties and general interest charge but also become more resilient when facing challenges.
Keep up to date
Learn more by taking our free self-paced online courses at Essentials to strengthen your small businessExternal Link.
You can also:
- find more information for businesses in your language
- subscribe to our free Small business newsletter to get updates that might impact your business
- contact your tax professional to obtain advice specific to your business needs.