New Business? Here’s Your First Tax Checklist

Starting a new business is exciting—but it also comes with responsibilities, especially when it comes to tax. Here’s a simple checklist to help you stay compliant and avoid surprises at tax time.

1. Choose Your Business Structure

Decide whether you’ll operate as a sole trader, partnership, company, or trust. Your structure affects your tax rate, reporting obligations, and liability.

2. Register for an ABN

An Australian Business Number (ABN) is essential for invoicing, claiming GST credits, and registering for other tax obligations.

Apply for an ABN

3. Register for GST (if required)

You must register for Goods and Services Tax (GST) if your turnover is expected to exceed $75,000 annually.

4. Set Up PAYG Withholding (if hiring staff)

If you employ people, you need to withhold tax from their wages and report it to the ATO under the Pay As You Go (PAYG) system.

5. Keep Good Records

Use accounting software like Xero or a spreadsheet to track:

Income and expenses
Receipts and invoices
Bank statements
Asset purchases

ATO requires records to be kept for at least 5 years.

6. Understand Your Tax Obligations

Depending on your structure, you may need to lodge:

Business Activity Statements (BAS) monthly or quarterly
Annual tax returns for your business and yourself
Fringe Benefits Tax (FBT) if you provide perks to employees

7. Set Aside Money for Tax

Avoid cash flow shocks by setting aside a portion of your income for:

Income tax (set aside 25% on Net Profit)
GST (set aside 10% on all income)
Superannuation contributions

8. Consider Super Contributions

If you're self-employed, you can make personal super contributions and potentially claim a deduction.

9. Get Professional Advice Early

A registered tax agent can help you:

Choose the right structure
Maximise deductions
Stay compliant with ATO rules

10. Know Your Lodgement Deadlines

Missing deadlines can lead to penalties. Tax agents can help extend lodgement dates and keep you on track.

New Business Tax Checklist

Step	Action	Why It Matters
1	Choose your business structure	Decide whether you’ll operate as a sole trader, partnership, company, or trust. Affects tax rates, liability, and reporting obligations.
2	Register for an ABN	An Australian Business Number (ABN) is essential for invoicing, GST, and business identity.
3	Register for GST (if turnover > $75,000)	Enables GST collection and credit claims.
4	Set up PAYG withholding (if hiring)	If you employ people, you need to withhold tax from their wages and report it to the ATO under the Pay As You Go (PAYG) system. Ensures correct tax is withheld from employee wages.
5	Keep good records	Use accounting software like Xero or a spreadsheet to track Income & Expenses, Assets & Liabilities. Required by ATO for at least 5 years; helps with deductions and compliance.
6	Understand your tax obligations	Know what to lodge: BAS, income tax returns, FBT, etc.
7	Set aside money for tax	Avoid cash flow issues and late payment penalties. Set aside: Income tax (set aside 25% on Net Profit) GST (set aside 10% on all income) Superannuation contributions
8	Consider super contributions	Boost retirement savings and claim deductions.
9	Get professional advice early	Helps optimise structure and stay compliant.
10	Know your lodgement deadlines	Avoid fines and access extensions via a tax agent.