When you start a new business you will need to register for:
Tax File Number (TFN)
Australian Business Number (ABN)
Goods & Services Tax (GST)
Pay as you go withholding tax (PAYG)
Your Business Name
To save time, you are able to apply for a TFN for Business GST, PAYG, Business Name business registrations as a part of your Australian business number (ABN) application .
Tax File Number
A Tax File Number (TFN) is a basic requirement for completing your annual Income Tax Return.
Sole traders can use their personal TFN for both their business dealings and their personal dealings with the Tax Office.
Partnerships, Companies and Trusts are required to have a separate TFN. This can be obtained at the same time as you apply for an Australian Business Number (ABN).
Australian Business Number
An Australian BusinessNumber (ABN) is compulsory for all businesses. An ABN is required to:
register for PAYG Withholding, GST, Fringe Benefits and other taxes
deal with other businesses where your ABN must be quoted
avoid having amounts withheld from payments to you from other businesses
confirm your business identity to others when ordering and invoicing
you may also be required to meet other federal, state and territory regulatory obligations such as payroll tax, worker’s compensation, and operating licences.
To register, go to the Australian Business Register website and follow the directions. https://www.abr.gov.au/business-super-funds-charities/applying-abn
Australian Company Number
Every company in Australia is issued with a unique, nine-digit number when registered through ASIC. This is an Australian Company Number (ACN) and must be displayed on all company documents,such as invoices and receipts.
. If you are a registered Company with an Australian Company Number (ACN), your ABN will usually be your ACN with two extra digits at the beginning.
To complete your ABN application – depending on your circumstances – you'll need your:
tax file number (TFN) and the TFNs of any associates – for example, partners, directors and trustees.
tax or BAS agents registered agent number, if you use a registered agent
professional adviser number – if you're using the services of a professional adviser, you can provide their license number, for example, Australian Financial Services license (AFS license)
previously held ABN.
Australian company number (ACN) or Australian registered body number (ARBN). Companies and registrable organisations can register for an ACN or ARBN through the Australian Securities and Investments Commission (ASIC)
date your ABN is required. This should be the date that you expect to start any business activities – for example, buying stock. This date can't be more than six months in the future when you apply
entity legal name – appears on all official documents or legal papers
authorised contacts – this can be a registered tax or BAS agent if they are authorised to make changes or update information on behalf of the entity
associates' details – associate requirements are different for each entity type.
business contact details including an address, postal address, email address and phone number.
business activity – usually the main source of income for your enterprise, for example, agriculture, construction, investment and manufacturing.
business locations – provide businesses’ physical locations for all premises operated by your enterprise, unless there's a risk to safety of individuals as a result of the disclosure, for example, a women's refuge.
Goods & Services Tax (GST)
Like your ABN and TFN applications, registering for GST can be completed at the same time on the Australian Business Register website. Your ABN will also be your GST registration number.
Registering for GST means you are required to complete a Business Activity Statement (BAS) at the end of each tax period. Small businesses generally lodge quarterly, but you can choose to report monthly to the Tax Office.
Register for PAYG Withholding
If you have employees, you must register for PAYG Withholding and withhold Income Tax for employees (including working Directors of a Company) including
46.5% from payments to suppliers who cannot quote an ABN.
Like GST Registration, this can be completed at the same time and means that you will have either quarterly or monthly reporting requirements.
If you are a Sole Trader or Partner, the Tax Office does not regard you as your own employee. You ‘draw’ money from the business to live on but this is not technically seen as normal ‘salary and wages’. As such, there is no need to register for PAYG Withholding and withhold amounts from your drawings.
If you employ staff, you will also need to have a payroll system with STP, and you will need to register for Workers Compensation Insurance, and Superannuation Guarantee.
Single Touch Payroll (STP)
Your accounting software, like Xero or MYOB, will also be used to do payroll, that is to pay your employees. When you employ someone, you’ll need to set up the Single Touch Payroll (STP) function on your accounting software. STP reports your employee’s payroll information – their wages or salary, Pay as You Go (PAYG) tax and their super - directly to the ATO each time they are paid. This information will automatically go to the employee’s MyGov account.
At the end of the financial year, you'll need to check that the STP information is correct and then make an STP finalisation declaration by 14 July each year so your employees can access their income tax information from their myGov account. In the past you would have provided a payment summary or even a group certificate to your employees showing their wages and PAYG tax, but that is no longer the case. The information is reported through STP each time the employee is paid and at the end of the year the full income statement is in the employee’s myGov account.
workers compensation
Insurance
You must have workers compensation insurance. Even if you only hire one person who doesn’t work often, you must have it. The cost and the companies where you can purchase the insurance varies in each state and territory and depending on the occupation. An employment lawyer could also assist with this.
Superannuation
You have to pay Super Guarantee (SG) on top of the your employees’ wages. You have to pay super for some contractors, even if they quote an Australian Business Number (ABN).
Each employee receives a minimum of 10.5% (correct as of Nov 2022) of their ordinary time earnings ( this does not include overtime) as superannuation from the day they start work with you. This is called the super guarantee. The rate may be higher under an award.
This amount is paid into the employee’s superannuation fund at least every quarter.
The money in the fund cannot be touched until the employee reaches a certain age, when they can then use their superannuation money to fund their retirement.
You can pay the super directly into your employee’s fund. The record of the payment will go through STP to the ATO. (That is, the information about the payment will go through the software that you use for payroll using the “single touch payroll” connection directly to the Tax Office.)
Registering Your Business Name
Business Names and Company Names are registeredwith the Australian Securities & Investments Commission (ASIC).
It is common for a Company to register a business name to be used as a trading name.
Unless you plan to run the business under your personal name or your business partner’s name (like Alex Smith), or initials and surname (like A. Smith), you need to register a separate business name. Your business name will be important for identifying and promoting the business, so you should consider choosing a unique name that distinguishes you from your competitors.
Your next step is to check the availability of the business name. The quickest way of doing this is an online check with the Australian Securities and Investments Commission (ASIC) - Check Name Availability Page.
You might also need to check with IP Australia - Australian Trade Marks Online Search System to check that your name is not infringing a registered or pending trademark. https://www.ipaustralia.gov.au/trade-marks/search-existing-trade-marks
To register your business name online, go to the ASIC website, follow the prompts and pay the fee. It is less than $100 to register the business name for 3 years. Note that the business name fee is not a one-off payment and to stay active you need to renew it every three years. You can also register your business name at the same time as applying for your ABN
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