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Paying tax is part of every business commitment. No matter the size of the business or the industry, you have tax obligations. These need responsible and accurate management to ensure regulatory compliance and financial stability over the long term.
As a business owner, it is important to understand that taxation is not only about adhering to deadlines. It helps you make financial decisions based on real data, identify opportunities to increase the bottom line and manage business risks.
In other words, tax plays a crucial role in the success of your business.
What taxes do businesses pay?
Business tax is a range of taxes that businesses must pay to the Australian Taxation Office (ATO). Depending on the structure of your business, revenue and industry, your tax obligations may include:
• Goods and Services Tax (GST). Being a registered for GST means you collect GST on all sales. The amount collected is reported using a Business Activity Statement (BAS) on a monthly or quarterly basis,
• Income tax. You must pay tax on the net profit of your business. The amount you pay depends on your business structure.
• Fringe Benefits Tax (FBT), where applicable. You need to pay FBT on particular benefits (for example, on non-cash benefits such as paying a gym membership or allowing personal use of a company car) you provide employees or their family members. FBT is completely separate from income tax and based on the taxable value of any fringe benefits you provide.
• Pay As You Go (PAYG) instalments. Business owners often report their investment income or profits from their business in instalments, These are quarterly PAYG instalments to the ATO based on the previous year’s income.
• PAYG withholding. You must withhold tax from the wages you pay and lodge it with the ATO so an employee can complete their tax return based on how much tax you collected on their behalf.
Ben’s tax services for businesses can help you manage your tax obligations and reporting so you maintain compliance. By working with a tax accountant, they can help with strategic tax planning and ensure that compliance responsibilities are handled efficiently and correctly.
Business tax plays a role in your long-term success
Paying business tax is not just about compliance. It directly affects the financial performance of the business and long-term financial success; for example, it:
1. Helps minimise tax. When you use the right business strategies, it is possible to identify legal ways to minimise tax through financial structuring, deductions and planning.
2. Makes sure you comply. Complying with your tax obligations is critical. It means you can avoid audits, penalties and interest charges.
3. Allows for better financial decisions. When you report your financial position accurately, it gives you clear insight into the company financials. This means you can make smart, informed decisions about the business operations, growth and investment.
4. Minimises your financial risk. Managing tax obligations can lead to problems with compliance and unexpected problems. Taking a structured approach to your business tax increases your financial stability and minimises financial risks.
5. Boosts cash flow management. Complying with tax regulations such as income tax, GST and PAYG can have a significant impact on your cash flow. When you plan properly, it helps you manage your tax obligations so you avoid financial hardship.
Work with an expert
Working with a tax expert helps you manage tax obligations and get better financial outcomes. They can help you:
• Manage GST and compile BAS reports.
• Prepare accurate tax returns and lodge them into the ATO on time.
• Determine the potential for reducing tax legally.
• With tax planning strategies.
• By encouraging financial management and cash flow planning.
• By ensuring that you comply with the tax department’s regulations.
When you work with a tax expert, they can help you:
• Stay informed of changes in the ATO regulations.
• Plan cash flow when tax payments are due.
• Handle numerous competing tax requirements.
• Keep accurate financial records.
Last thoughts
Taxation laws and regulations often change, which is why it is important for many businesses to seek expert assistance. If you do not have an in-house accountancy team—then Ben’s services are what you need.
Ben can assess your business taxation obligations and rebates. He can help you manage your taxation requirements efficiently and stay up to date with the latest tax changes that may impact your business.
If you need help managing your business taxation, Ben can provide the assistance you require.
To find out more about the taxation support services Ben offers, contact us today for an appointment to discuss your needs.
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Contrary to popular opinion, tax time is not the only time an accountant is useful to your business. While they are busy at tax time, their value extends well beyond taxes.
Choosing to work with a financial expert throughout the year provides you with a valuable, deep understanding of market and business trends. It can also help you make better decisions, set up financial procedures for new and operational businesses, and reduce your administrative burden.
Whether you want to grow your business or start a new one, having an accountant on board is an invaluable partner that can help you to achieve success. Following are just some of the reasons you should work strategically with an accountant all year round.
Business strategic planning
Working with an accountant to strategically plan your business finances allows you to see more clearly where you want to take the business and how to achieve your ultimate goals. An accountant can help you to plan hiring more team members, increasing your profits or even growing your business.
Your accountant can:
• Determine the best business structure for you—partnership, sole trader, company or trust—right from the start. They all have different tax implications and features. Choose the one that best suits your situation.
• Assess the resources allocated to your business operations to identify areas where you can save money.
• Let you know of the latest business trends in your industry. This allows you to stay abreast of the changing expectations and needs of consumers.
• Set your budget so it aligns with how you want to grow the business. This ensures you are spending money where it counts.
Using your accountant to help you strategically plan can also increase the value of your business. With the right structure and accurate financial records, potential investors or buyers can clearly see how you operate. This can make it simpler to sell the business in the future or obtain funding if needed.
Monitors financial health
It is a smart business person than regularly monitors the financial health of their business. While you may think you know it all, and you probably do, an accountant monitoring the financial health of your business can pick up things you may not see.
For example, you accountant can:
• Measure the business performance against your goals and discuss improvements.
• Estimate the break-even point for the business.
• Make sure that key financial documents (for example, balance sheet, profit and loss statements) are up to date and correct.
• Identify risks and liabilities.
• Analyse cash flow projections and profit margins.
• Review the key drivers behind your business performance.
• Assess how your business performs financially compared to the market conditions.
The insights of an accountant can help you to see possible issues early on. This allows you to make decisions based on solid data to improve the long and short-term business performance.
Saves you time
Juggling everything alone as a business owner can be overwhelming. And you are probably spending too much time on administration instead of actually working in the business. Outsourcing the financial side of the business means you can focus on actually working in the business.
Your accountant can help with key business tasks, including:
• Writing business plans
• General bookkeeping
• Completing tax audits
• Producing vital financial reports
• Preparing documents for lodgment
• Generating cash flow forecasts
• Assistance in setting up a new business.
Not only does working with an accountant save you time, it improves your efficiency. It also helps to ensure that your financial reports are accurate and lodged on time, which minimises the risk of receiving penalties for late lodgments.
Wait, there is more
These are only a few reasons why an accountant can help your business throughout the year.
If you want to find an accountant who can truly help grow and develop your business, Ben can help you. His business support services offer you what you need. Make an appointment to talk to Ben about your needs and the business strategies that can help you today.
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It is important to set goals for your business. Why? They give you something to strive for, allow you to track your business performance and measure growth, and help motivate your team
By setting SMART (specific, measurable, achievable, relevant and time-bound) goals you can control the direction your business takes so you achieve your larger business goals.
Setting SMART goals
SMART goals are actionable. Structure your business goals using the following points:
1. Make them Specific. Make sure your goals are specific. These are more likely achievable than setting goals using vague statements (for example, change “I want business turnover to increase” to “I want business turnover to increase by $10,000 in the next year”). Think about:
a. Why the goal is important.
b. What you want to accomplish.
c. Who you need to involve.
d. How you will achieve it,
e. When you will work on the goal.
2. Measurable goals. By setting measurable goals, you can track your progress which then allows you to know when you meet that goal. You can use data such how much money you save or an increase of customers. Or you may want customer feedback using surveys. Think about:
a. How you will know when you achieve each goal.
b. What you want to achieve.
c. What metrics to use to measure your progress.
3. Realistically Achievable. Each goal needs to be realistically achievable based on your time, resources and money. If it is not, try changing the goal to something you can actually achieve. Consider:
a. What it will take to achieve the goal.
b. Whether you or your team have the right skills.
c. The resources you need.
d. If you have the right resources. If not, how you can access the right resources.
e. What external factors could stop you from achieving a goal.
4. Relevant goals. Make sure your goals are relevant to the big picture for your business. Consider:
a. Whether it aligns or is consistent with what else you are doing or working towards in your business.
b. Whether it supports broader business goals.
c. Whether this goal is suitable for this time or should you wait for a better time.
5. Time-bound goals. Set strict deadlines or target dates to keep you and the team on track to achieve each goal. Break larger goals down into smaller milestones to achieve along the way. Consider:
a. In what timeframe you should achieve each goal.
b. Whether the timeframe is achievable.
c. If breaking the goal into smaller milestones or steps would be worthwhile.
Plan how to achieve your goals
You need an action plan to help achieve your goals. They are not going to come true just because you set them. You need to work towards success. Here are some points to consider when putting an action plan in place:
1. Write it down. Write down the goal and the steps in your plan. Put it somewhere you will see it every single day—on the fridge in the break room or a sticky note on your computer, for example.
2. Break large goals down. Break large goals into smaller goals that cumulatively will help you achieve a larger goal.
3. Describe the actions. Describe the actions you need to complete to achieve each goal.
4. Detail the resources required. Detail a budget, and the staff and resources required to achieve your goal.
5. Set a deadline. Set a realistic timeframe to reach your goal. Set any milestones to help get you there if required.
6. Make yourself accountable. Let your team or clients know what you want to achieve. They can help you stay on track and make you accountable.
7. Track your progress. Make decisions about how you will measure success and regularly review your progress—weekly or monthly using a notebook or digital tracker.
8. Make adjustments when needed. When you miss targets, treat it as feedback instead of failure. Adjust your strategy when you need to.
Talk to Ben about setting goals. He offers this as part of his business support service. Ben can help you grow your business and achieve long-term stability. In consultation with you, he can help you set realistic goals, create milestones and set up an action plan to achieve your business goals.
Contact Ben to find out how he can support your business needs.
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In June 2026, the government announced changes to the tax reforms announced in the 2026 budget. This was after an intense backlash from the small businesses and a period of consultation.
The announced changes include:
* Raising the eligibility for the 50% discount on Capital Gains Tax (CGT) for small businesses from $2 million turnover to $10 million.
* Innovative startup investors and founders can formally go through a consultation process to receive a 50% CGT discount.
* Donations that are deductible will reduce the capital gains you need to pay a 30% tax on.
* Genuine Testamentary Trusts (such as for deceased estates) are fully exempt from the new 30% tax.
* Certain CGT adjustments (such as donations to charities) will be incorporated into the legislation as amendments instead of implementation through legislative instrument.
Raising the small business threshold
For small businesses to access CGT concessions, they need to meet certain conditions. Originally a small business had to have under a $2 million turnover across the group or net wealth (not including superannuation, personal assets or the family home) of under $6 million. You only needed to meet either one, not both.
The latest changes increased the $2 million threshold to $10 million, which allows small businesses to receive a 50% discount on the capital gains of business assets. Or, depending on the timing, there could be a base inflation adjustment on the business profit and then a reduction of 50%.
Discount for innovative start-ups
A consultation paper, Innovative Business CGT Concession, sets out a 50% CGT discount for early business investors and founders of innovative businesses. The eligibility criteria includes:
* A turnover of less than $50 million.
* New shares issued by companies less than 10 years old (or 15 under specific circumstances; for example, biotech companies).
* You cannot sell the shares for at least five years.
* The organisation has to meet criteria for an innovative start-up.
* The discount has a lifetime cap and once reached, the company pays CGT according to the normal rules.
Deductible charitable donations
There were concerns about the 30% CGT impacting the ability or reduction of making charitable donations after paying the tax. The government now allows for donations or gifts to reduce capital gains before assessment for the 30% minimum tax.
Testamentary trust exclusion
Originally the government included testamentary trusts in the new 30% tax. Now they are excluded as long as the trust is set up for genuine reasons. However, there is a limit to the exclusion. It is only covers any income from the assets of a deceased estate.
Keep in mind that the exclusion will only apply to entities that are tax exempt or trusts that benefit individuals after 1 July 2028.
New tax on discretionary trusts
After much debate about the new 30% tax for discretionary trusts from July 2028, the government released a consultation paper on July 8.
While the government will go ahead with the tax reforms, the following were some observations that came out of the paper:
* A 30% credit that is not refundable will not offset the Medicare levy, so that means the real minimum tax rate is 32% not 30%.
* Discretionary trusts that have corporate beneficiaries will need to restructure before the new tax commences to avoid the possibility of paying up to a 70% tax rate.
* There is no indication of CGT relief.
These tax reforms are complex with more changes to come as the government continues its consultation. Ben will continue to monitor these changes so he has the latest information available. Feel free to contact Ben with any questions about how the new tax reforms affect small businesses and trusts.
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As of January 1, 2021, new insolvency reforms for small businesses became law. These changes are the most significant made to insolvency laws in the last 30 years. The new processes reduce the complexity and costs.
These updated laws allow small businesses to restructure quickly to respond to the challenges of COVID-19. Where restructuring is not feasible, businesses can wind up quicker, which means that creditors and employees will be left better off.