Understanding The Basics of Business Taxes

Understanding The Basics of Business Taxes

Do you own a business, or are thinking of starting up or changing one? We can make sure you have the appropriate tax registrations. 

Agilis CA can help you manage and plan for the relevant taxes your business will need to pay, and we can claim the right tax concessions.


Business Income



Different business structures pay taxes in different ways. 


Although there are many taxes that a business might be affected by, the main ones to remember and keep in mind include: 


Other taxes that a business could encounter, include: 


As well as property, vehicle and other duties and levies administered by State or Local Governments.



Taxes Paid on the Business Activity Statement 


Once your business is registered for the relevant taxes, several are reported and paid as part of the monthly or quarterly activity statement.

    • GST is collected from customers and paid to suppliers, and you pay the difference between GST on sales and purchases.
    • PAYG Withholding for employees or suppliers that don’t provide an Australian Business Number.
    • PAYG Instalments contribute towards an expected income tax bill.
    • Other taxes paid on the BAS (if applicable) are fringe benefits installments, fuel tax credits, wine equalisation tax and luxury car tax.


Taxes and Other Fees Paid to State Revenue Offices


Some business taxes are paid directly to the state revenue office, such as land tax for property purchases and payroll tax once the state threshold of reportable wages is reached.

Other common government duties include stamp duty on property transfers and land tax.


Income Tax for Businesses 


Income tax is calculated after the end of the financial year, considering any PAYG installments already paid. Tax deductions for business expenses reduce your taxable income and therefore, your tax bill. 

If financial gain is made on the disposal of assets, such as property or shares, capital gains tax is paid on the amount of financial gain and is paid as part of income tax.

Income tax for business is calculated differently according to the type of entity.


Small Business Tax Concessions 


Your tax agent can make sure you are claiming all the small business tax benefits that you are allowed through concessions that reduce the amount of tax liability.

For example – there are specific concessions for asset write-off, primary producers, fringe benefits or start-up expenses.

Concessions also apply in some situations to reduce the amount of capital gains tax payable.


Talk to Agilis CA About Your Business Tax Responsibilities 


Contact Agilis CA today about adding or cancelling tax registrations, concessions and planning for the various taxes your business will need to manage, this financial year. 

Tax Planning is about seeing what taxation / business changes you can make right now, to leave more cash in your pocket at the end of this financial year. 



This blog was originally published by BOMA, but has had edits made by Agilis CA for the benefit of our readers. 

Agilis Chartered Accountants

Agilis Chartered Accountants

Agilis Chartered Accountants provides tailored accounting services, offering clients a high level of personalised advice and support - from individual tax to business consultancy. With a commitment to driving success, we provide comprehensive accounting and advice solutions that ensure every stage of your journey is met with the utmost efficiency. From startup through expansion and growth, our services make it easier for you to achieve business objectives – ultimately leading towards greater financial stability.