The Australian Taxation Office (ATO) has launched its Ready for Business campaign, aimed at providing support to ABN holders through a series of informative emails over the coming months. These updates will offer practical tips on ABN compliance, business restructures, GST registration, and employer responsibilities.
- Understanding GST Registration Requirements: Small businesses are reminded to stay informed about their GST obligations to avoid surprises at tax time. GST registration is mandatory for businesses with a GST turnover of $75,000 or more per annum. For not-for-profit organisations, the threshold is $150,000.Businesses below these thresholds may register voluntarily. However, businesses providing taxi, ride-sourcing, or limousine services are required to register for GST irrespective of turnover.
- Planning Ahead with PAYG Instalments: New business owners are encouraged to consider entering the PAYG instalments system voluntarily to manage their tax obligations throughout the year. Prepaying tax liabilities via instalments can help reduce the risk of an unexpected tax bill when lodging the first return.
- Employer Obligations: PAYG Withholding and Superannuation: Businesses that employ staff must ensure they are meeting PAYG withholding and superannuation guarantee obligations. The ATO advises against using withheld amounts or super contributions to fund cash flow, as non-compliance may lead to penalties and enforcement action.
- Side Hustles May Trigger Tax Obligations: Individuals running side ventures should determine whether these activities qualify as a business. If so, they may be subject to GST, PAYG, and superannuation requirements. Clarifying the nature of these activities early can help avoid unintentional non-compliance.
According to the ATO, small businesses that seek advice from registered tax or BAS agents and stay informed about their tax, super, and regulatory obligations are more likely to remain compliant and financially healthy.
If you have questions about your tax or employer obligations—or if you need guidance on setting up new business structures—please get in touch with us by phone or email. We’re here to support you every step of the way.
