The ATO has issued a notice for new businesses to reinforce the importance of understanding their registration, reporting and record-keeping responsibilities.
“New businesses sometimes make mistakes…It’s important new business owners understand their obligations to ensure they’re getting it right from the start,” the Tax Office said.
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“If your hobby has turned into a profit-making business, you are responsible for your tax, super and registration obligations. Setting up your business correctly from the start will make it easier to meet these obligations.”
To help new businesses or those looking to start a business, the ATO recommended seven key areas that it believed all business owners should be aware of and aim to fulfil.
These key areas included the use of digital tools to maintain accurate records, registration requirements, business expense tax deductions, business structures, employer responsibilities and obligations, pay-as-you-go instalments and how to avoid specific errors and penalties.
The ATO also said it was increasingly important for employers to know and comply with their specific responsibilities.
“Whether you’re hiring your first worker, or you’re an experienced employer, it’s important you understand and meet your employer obligations,” it said.
All employers needed to report tax and super information through Single Touch Payroll-enabled software each time workers were paid, withhold a portion of workers’ pay for tax and ATO payment, pay the right amount of super guarantee on time and to the right fund, as well as report and pay fringe benefits tax on time.
The ATO said if small businesses were struggling to maintain or keep up with their obligations, they should contact a tax professional to obtain advice specific to their business needs.
Imogen Wilson
AUTHOR
Imogen Wilson is a journalist at Accountants Daily and Accounting Times, the leading sources of news, insight, and educational content for professionals in the accounting sector. Imogen is also the host of the Accountants Daily Podcasts, Under the Hood and Accountants Daily Insider.
Previously, Imogen has worked in broadcast journalism at NOVA 93.7 Perth and Channel 7 Perth. She has multi-platform experience in writing, radio, TV presenting, podcast hosting and production.
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