Business tax reference
Tax Facts: A Comprehensive Guide for Australian businesses
Clear explanations of common tax topics, written to help business owners understand their obligations and opportunities
We’ve created a practical library of tax explanations covering the most common areas affecting small and medium-sized businesses.
Browse the summaries below or click through for detailed guidance on each topic.
GST + Indirect + Other Taxes
Transaction-based taxes and government levies.
-
Businesses use Activity Statements to report and pay a range of tax obligations, including GST, PAYG instalments, PAYG withholding and fringe benefits tax.
Individuals who pay quarterly PAYG instalments may also be required to lodge an Activity Statement.
-
GST is a broad-based tax applied to most goods and services in Australia. Businesses registered for GST must include GST in their pricing, lodge activity statements and report the GST they collect and pay.
-
Fuel tax credits may be available to eligible businesses that use fuel in their operations. Claims are generally made through the Business Activity Statement and depend on how and where the fuel is used.
-
The Medicare levy is generally payable by individuals to help fund Australia’s public health system. The amount payable depends on taxable income and individual circumstances.
-
PAYG instalments allow individuals and businesses to prepay income tax throughout the year. Instalments are generally calculated based on income and are reported through activity statements.
-
In addition to federal taxes, businesses and individuals may be subject to various state-based taxes and duties. These can include payroll tax, land tax and transfer duty, depending on the state and the nature of activities.
-
Penalties may apply if tax obligations are not met on time or if incorrect information is provided. The Australian Taxation Office may also apply interest charges to unpaid amounts.
Income + Capital
Key tax areas affecting business profits, investments and capital assets.
-
Income tax is payable on assessable income earned by individuals, companies and other entities. The amount payable depends on taxable income and applicable rates.
-
Capital Gains Tax applies when certain assets are sold or otherwise disposed of for more than their cost base. CGT forms part of income tax and may be reduced in some circumstances.
-
Capital allowances allow businesses to claim deductions over time for certain depreciating assets. The rules determine how and when deductions can be claimed.
-
Australia’s dividend imputation system allows company tax paid to be passed on to shareholders as franking credits. These credits may reduce the income tax payable on dividends received.
Employment + Superannuation
Obligations related to employees and entitlements.
-
PAYG withholding requires businesses to withhold tax from certain payments, such as wages or contractor payments, and remit those amounts to the ATO.
-
The Superannuation Guarantee requires employers to make minimum superannuation contributions for eligible employees. Contributions must be paid into a complying super fund by the relevant due dates.
-
Fringe Benefits Tax applies to certain non-cash benefits provided to employees or their associates. FBT is separate from income tax and is generally reported annually.
Business Structures + Registrations
Essential registrations and classifications that determine how your business operates and is taxed.
-
An Australian Business Number (ABN) is a unique business identifier that allows you to deal with the Australian Taxation Office (ATO) and other government agencies under one registration.
-
Eligible small businesses may access various tax concessions, including simplified depreciation and other reporting benefits. Eligibility is generally based on turnover thresholds.
*The information provided on this page is general in nature and does not take into account your individual circumstances. We recommend seeking professional advice tailored to your specific situation.You might also like
Practical insights for QLD businesses
Ready to strengthen your business finances?
Let’s talk about your business goals. Book a consultation with our Gladstone team.