It’s crucial to know about essential business registration, including ABN, GST, and PAYG. Opting for business accountants Melbourne is a great way to ensure your business meets Australian tax and compliance requirements.
Registering for GST
How it works: Not every business or organisation needs to be registered for GST, but penalties may apply if you don’t register when required to do so. Once you are liable to register for GST, you need to do so within 21 days. Before you register, you must have an Australian Business Number (ABN). You can get an ABN when you first register your business name or at a later time. You only need to register for GST once, even if you run more than one business. You can also cancel your GST registration if you are no longer required to be registered. If you are a non-resident, based on your business activities, you may have to register for GST.
When you need to register for GST:
You need to register for GST:
- When your business has a GST turnover of $75,000 or above.
- When you start a new business and expect your turnover to reach the GST threshold in the first year of operation.
- If you are already in business and have reached the GST threshold.
- If your non-profit organisation has a GST turnover of $150,000 per year or more.
- When you provide limousine or taxi travel for passengers, irrespective of your GST turnover, this applies to both the owner and drivers and if you rent or lease a taxi.
- If you want to claim fuel tax credits for your enterprise or business.
Registering for GST is optional if your business doesn’t fit into one of these categories. If you choose to register, you must stay registered for at least 12 months.
Pay As You Go Withholding
When to register: You need to register for pay-as-you-go (PAYG) withholding before you first need to make a payment that is liable to withholding. You can engage small business accountants Melbourne to deal with PAYG withholding. This is required even if you don’t withhold any amount from a payment made. If you need to withhold tax but don’t need an ABN, you need to register for a PAYG withholding account.
You can register for or cancel PAYG withholding:
If you have an ABN
If your business has an ABN, you can register or cancel your PAYG withholding business account:
- Online through Online services for business
- Through your registered tax agent or BAS agent
- Using your Standard Business Reporting (SBR) compatible software
Registered tax agents can also use Online Services for agents to update or cancel a client’s tax registration.
If you don’t need an ABN but have to withhold tax
You need to register for a PAYG withholding account if you don’t need an ABN but have to withhold tax from a payment.
Registering for an Australian Business Number (ABN)
If you are starting a new business, you may need an Australian Business Number (ABN). Not every business is liable for an ABN, so the registration process will ask specific questions to determine whether you are entitled to an ABN. To work as a business, you must have an ABN, which means you:
- Provide services and products directly to your customers, whether that’s the public or other businesses.
- Source your own customers, for instance, by advertising your products and services.
- Invoice and quote for work, including negotiating prices.
- Have a separate business bank account and your own business insurance, such as WorkCover and public liability.
- File and report all business income, even if the business earnings are below the tax-free threshold.
An ABN has its own set of obligations. You may be required to:
- Register for goods and services tax (GST)
- Lodge activity statements to the ATO
- Register for PAYG withholding and meet your super obligations for eligible employees
- Meet other state, federal, and territory regulatory obligations, such as workers’ compensation, payroll tax, and operating licences.
Conclusion
You need to know how and when your business needs to register for ABN, GST, and PAYG. For more information, you can get in touch with Reliable Melbourne Accountants.