Registering your business for tax

In this guide:

Getting the right licences and registrations

You need to consider your tax requirements and register your business with the Australian Taxation Office (ATO). Which taxes you pay will depend on the type of business you run and the number of employees you have.

Australian business number (ABN)

An ABN is a unique 11-digit number that identifies your business to the ATO and other areas of government. It lets you:

lodge business activity statements
confirm your business identity to others when ordering and invoicing
claim GST credits
claim energy grants credits
register an Australian domain name.

ABN registration is not mandatory. Your business can trade without an ABN, but any businesses you deal with may withhold 46.5% of their payments to you (i.e. the current top marginal tax rate) and pay this amount to the ATO.

Learn more about registering for an ABN on the ATO website.

Fringe benefits tax (FBT)

If you provide certain benefits to your employees or to people associated with your employees, you may be liable to pay FBT. If so, you must register for FBT with the ATO and lodge a return each year.

Learn more about fringe benefits tax on the ATO website.

Goods and services tax (GST)

GST is a tax of 10% on most goods and services sold or consumed in Australia. You must register for GST if:

your gross annual business turnover is $75,000 or more ($150,000 or more for a non-profit organisation)
you provide taxi or limousine services - regardless of your gross annual turnover.

To register for GST, you need an ABN.

Learn more about GST essentials on the ATO website.