Registering your Business for Tax in Sydney

When it comes to setting up and running a business in Sydney you need to make sure you are correctly structured to remain compliant with the ATO.

Here is a check list of what you need to register your business for Tax in Sydney :

1. Get a tax file number or TFN

  • If you are a sole trader (trade in your own name) you can use your personal TFN
  • For other business structures like partnerships, trading trusts and companies they need a separate TFN

2. Apply for an Australian Business Number (ABN)

  • An ABN is required when you are invoicing other businesses for services or products provided. If you do not provide an ABN invoice, you could lose 46.5 per cent of the payment due to you as the ATO can withold this.
  • Having an ABN makes it easier for trading so you can collect payments and calculate withholding taxes or GST.

3. Register for Goods and services tax (GST) registration

  • Registering for GST is only compulsory if you know or expect your projected business revenue to be $75,000 each year and above,
  • It will also allow you to provide  taxi travel and also claim fuel tax credits if applicable
  • If your turnover is below $75,000 then registering for GST is voluntary

4. Registering (PAYG) pay as you go withholding tax

  • If your business need to  pay wages/salaries, or has to make payments to directors or contractors then you need to register and pay withholding tax. This also applices if you need to withhold 46.5 per cent from those suppliers that have not porvides you with an ABN
  • Its important to note that if you are a sole trader or partner drawing down is typically not a wage, so registering for PAYG may be required although advice should be sought from your tax agent or accountant

5. Fringe benefits tax registration

  • If you plan to provide benefits to your employess such as a car lease then you need to register for fringe benefits tax
  • You may also need to register for fuel tax credits if vehicles are leased or owned by your business
  • and are only required if you use applicable approved fuel in your business.

If you want the best tax outcome in managing business and personal tax, you can’t beat professional tax accounting advice from someone who knows your situation and your business completely.

This is the the number one reason for having a good accountant or tax agent who can take care of all your tax return or tax compliance lodgement.

Call us now to make an obligation free appointment or ask us a question on02 9776 8866.

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Maxmillian Consulting is a registered Tax Agent with the Tax Practitioners Board and the Australian Taxation Office (ATO). Our accountants are full members of the Certified Practising Accountants (CPA Australia) association.