So, you’ve got a brilliant idea, taken the leap, and launched your small business. Before you get too carried away designing logos and dreaming of Shark Tank deals, the Australian Taxation Office (ATO) wants to make sure you’re not accidentally mucking things up when it comes to tax and super.
The ATO’s new ‘Ready for Business’ campaign is aimed at helping fresh business owners understand what they need to do from the get-go, especially when it comes to your tax and super obligations. Because let’s face it – running a small business is tough enough without the tax man knocking on your door. And with almost 50 per cent of small businesses folding within the first three years, getting your ATO obligations right early can make all the difference.
Emails, tax tips and tools incoming
If you’ve just registered for an ABN, keep an eye on your inbox. The ATO is rolling out a series of emails with bite-sized advice on everything from choosing the right business structure to figuring out whether you need to register for GST (Goods and Services Tax), and what to do if you’ve got staff on board.
ATO Deputy Commissioner Will Day says the goal is simple: help small business owners get it right from day one, so they can focus on growing their dream, not dealing with a tax-time headache.
Key points
- If you earn over $75k or drive for Uber/taxis, you must register and pay GST.
- Side hustle turning serious? You might need to register as a business and start paying tax and super.
- Start making PAYG tax payments early so you’re not hit with a huge bill later.
Don’t get caught out with GST
One big trap for new players is GST. According to the ATO, small businesses are a major contributor to an eye-watering $8 billion GST gap – that’s money not being collected due to non-compliance. And while not every small business needs to register for GST, if your annual GST turnover hits $75,000 or more, or you’re providing ride-sourcing services (like Uber or a taxi), you’ve got to register, charge GST, and pay it to the ATO.
The golden rule? Don’t dip into your GST stash to cover bills. Day suggests setting up a separate bank account just for GST, PAYG withholding and super. That way, when it’s time to pay, you’re sorted – no surprises, no stress.
Got a side hustle? The ATO is watching
Thinking your Etsy store or weekend photography gigs don’t count? Think again. Over 700,000 Aussies are earning extra coin through side hustles – and if you’re actively making a profit, the ATO wants to know about it.
If your hobby has turned into a legit money-maker, you’ve probably crossed the line into business territory, which means tax, super, and registration obligations kick in. Not sure where you stand? The ATO’s got a handy checker tool at ato.gov.au/areyouinbusiness to help you figure it out.
Don’t let your first tax bill be a whopper
Another tip for first-time business owners is to get ahead of your tax bill. New small business owners can opt in to pay-as-you-go (PAYG) instalments early. It’s a great way to smooth out your tax payments so you’re not staring down a massive lump sum come tax time.
“Our goal is to provide small businesses with guidance, tools and tips so new business owners can focus on growing their business with confidence,” says Day.
“Small businesses are vital participants in the tax and super system. As stewards for small businesses, our role in making it easy for small business owners to get their tax and super right is more important than ever,” Day concludes.
Source: Flying Solo May 2025
This article by Cec Busby is reproduced with the permission of Flying Solo – Australia’s micro business community. Find out more and join over 100K others https://www.flyingsolo.com.au/join.
Important:
This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business, nor our Licensee take any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s)
