A Quick Overview of Small Business Compliance
No matter what size your business is, it is still susceptible to the Australian Taxation Office (ATO) for a number of responsibilities. When it comes to taxes and financial legislation, not knowing you were required to pay is not an excuse and your business could face steep penalties for non-compliance.
In this post, we’ll give you a quick rundown of small business compliance, so you are better informed for your end of month reporting and when filing your end of year statements.
What Are Your Obligations?
Each business will have different obligations, so it’s important to consult with a professional to ensure you’ve covered all bases. The most common responsibilities of small businesses in Australia include:
Business Registration
Any company operating in Australia is required to have a business name and an Australian Business Number. You will need to notify the Australian Securities & Investments Commission (ASIC) if you change your business name and you must renew your business name periodically.
Tax Registration
Your business will need a Tax File Number (TFN) and if your company turns over more than $75,000 a year, you will need to register for Goods and Service Tax (GST). Additional taxes you may need to register for include Pay as You Go withholding tax, Payroll tax and Fringe benefits tax.
Licenses
This will be different for every business but you may need to apply for a licence to operate. Visit the Australian Business Licence and Information Service for more information.
Lodgements
Throughout the year you will need to lodge statements and make tax payments to the ATO. This will include a variety of taxes so be sure to research what you need to pay and when to pay.
For more information about starting a small business in Australia, visit the government’s website which is full of useful information. If you are ever in need of bookkeeping services or advice, don’t hesitate to contact us!
Joe Boyd & Tony Barakat
ABJ Business Solutions
M: +61 401 991 495
M: +61 405 534 934
