No matter what you do, taxes are an unavoidable part of making money. The government takes its share of your income, whether you’re just starting out or growing your company. Understanding the taxes that apply to your business is essential to stay compliant and avoid unexpected surprises. Here’s a breakdown of the key taxes you need to know:

1. Goods and Services Tax (GST)

If your business revenue exceeds $75,000 in a 12-month period, you’re required to register for GST. This means you’ll need to collect 10% GST on all sales and remit it to the Australian Taxation Office (ATO). GST applies to most goods and services in Australia, though there are some exemptions, such as basic food items.

🔗 Want to dive deeper? Check out our detailed blog post on how GST works and what you need to know when registering your business.

2. Pay As You Go (PAYG) Withholding

When you have employees on payroll or pay yourself a wage as a director, you’re responsible for withholding PAYG tax from their earnings. This ensures income tax is paid progressively throughout the year.

Key Points:

• PAYG withholding amounts need to be reported and paid as part of your payroll and your Business Activity Statement (BAS).
• Even if you’re a sole trader, if you draw a wage from your business, PAYG withholding may apply.

3. Business Activity Statement (BAS)

GST and PAYG are often combined in a BAS, which is submitted to the ATO quarterly (or monthly for some businesses). It summarises the taxes your business owes and any credits you can claim back, such as GST on expenses.

Acronym Clarification:

• BAS: Business Activity Statement
• PAYG: Pay As You Go

4. Income Tax

For companies registered as Pty Ltd, income tax rates are as follows:

• Base Rate Entities: Companies with an aggregated turnover of less than $50 million and no more than 80% of passive income are taxed at 25%.
• Other Companies: The standard company tax rate is 30%.

5. Payroll Tax

In Western Australia, if your annual taxable wages exceed $1 million, payroll tax applies. The current rate is 5.5% on the taxable wages paid by employers or groups of employers.

Key Details:

• Annual Threshold: $1 million
• Tax Rate: 5.5%

6. Fringe Benefits Tax (FBT)

FBT applies to non-cash benefits provided to employees, such as:

• Entertainment (meals, events, etc.)
• Company cars
• Gym memberships or other perks

If you offer these benefits to your staff, make sure to calculate and report FBT accurately.

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Final Thoughts

Yes, there are many taxes to keep track of—GST, PAYG, BAS, IAS, FBT—but staying on top of them is critical to running a compliant and financially healthy business. If you’re feeling overwhelmed, consider seeking help from a registered BAS Agent or accountant to ensure everything is accounted for correctly.

Need help? Let’s make tax less taxing! Get in touch to learn how we can take the stress out of your bookkeeping and compliance.