Getting ready for business
The ATO advises new business owners that they need to understand their obligations to ensure they are “getting it right from the start.”
These are the top tasks taxpayers need to know when starting a business:
- Use digital tools and maintain accurate records to help manage daily activities and cash flow.
- There are some registrations that need to be completed when starting a business (for example, registering for an ABN or a business name).
- Claim a tax deduction for most business expenses if the expense is directly related to earning income. Taxpayers should remember to keep records and only claim the business portion of mixed-use expenses.
- The type of business structure will affect tax and registration requirements, so choose the right business structure and understand the related obligations.
- Employers have extra responsibilities and obligations (e.g. super guarantee and Single Touch Payroll).
- Lodge and pay their taxes on time and prepay estimated income tax liability through PAYG instalments.
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.
For detailed information and resources, visit the ATO’s official Ready for Business page or contact Omnis Business Advisory in West Perth on 08 9380 3555.
