• Australian Business Number (ABN) – sole traders, partnership, company, trust

• Australian Company Number (ACN) – company structures

• Director ID – if you’re the director of a company, Aboriginal and Torres Strait Islander corporation, registered Australian body or registered foreign company. Visit the Australian Business Registry Services (ABRS) website to find out how to apply for your director ID.

• Business name – most businesses need to apply for a registered business name unless you use your own name as the business name. For example, John Smith or J Smith doesn’t need a registered business name. John Smith Landscaping does need a registered business name.

• Tax File Number (TFN) – for partnership, company and trust structures; sole traders use their individual tax file number

Goods and services tax (GST)
 

• GST is compulsory if any of the following apply to your business.
  • It has an aggregated annual turnover of $75,000 or more ($150,000 for not-for-profit businesses)
  • Your business provides taxi or limousine travel for passengers (including ride-sourcing) 
  • You want to claim fuel tax credits
• GST is optional if your business doesn’t fit into one of these categories.
   

Fuel tax credits

You can claim credits for the fuel tax (excise or customs duty) included in the price of fuel you use in your business activities. Some fuels and activities aren’t eligible for fuel tax credits, including:

• fuel used in light vehicles of 4.5 tonne gross vehicle mass (GVM) or less travelling on public roads
• aviation fuels
• some alternative fuels.
   

Wine equalisation tax (WET) 

WET applies to wine manufacturers, wholesalers and importers. It’s only payable if you are registered or required to be registered for GST.

Luxury car tax (LCT)

LCT applies to all supplies and importations of luxury cars where the GST-inclusive value exceeds the LCT threshold. The value generally also includes the value of any accessories, parts or attachments supplied, or imported, at the same time as the car.

If you employ workers you will need to register for:

• Pay as you go withholding (PAYGW) to withhold tax from employees’ wages or salary
• Fringe benefits tax: if you provide benefits to employees

Planning ahead is important to help you keep a healthy cash flow and avoid ‘bill shock’. Bill shock is when you receive a bill you weren’t expecting or for an amount higher than you can comfortably afford.

Pay as you go (PAYG) instalments help you prepare for future income tax. Under this system you make regular payments, instalments, throughout the year toward your future tax obligation. When you lodge your tax return, all instalments you’ve paid will be offset against any tax you owe for the year.

It’s a good idea to organise a secure online credential so you can use the ATO digital services.

Sole traders

Sole traders can complete tax transactions for their business online using the ATO’s Online services for individuals and sole traders. This is done by registering for a personal myGov account and linking it to the ATO.

Other business structures

If your business is a different structure, you will need a secure way to verify your business identity online such as myID and Relationship Authorisation Manager (RAM). Then you can do tax transactions online using the ATO’s online services.