Business Tax Guide - Australian Tax Guide

Company Tax Rates

Entity Type	Tax Rate
Base rate entity (turnover < $50 million)	25%
All other companies	30%

Goods and Services Tax (GST)

GST is a broad-based tax of 10% on most goods, services, and other items sold or consumed in Australia. You must register for GST if your business has a GST turnover of $75,000 or more.

BAS Reporting

If registered for GST, you must lodge Business Activity Statements (BAS). Depending on your turnover, you may lodge monthly or quarterly. Quarterly BAS due dates are the 28th of the month following the end of each quarter.

Tip: Small businesses with a turnover of less than $10 million can use the simpler BAS reporting method, which only requires reporting on GST amounts at G1, 1A, and 1B.

Sole Trader vs Company

Sole Trader: Business income is included in your personal tax return and taxed at individual rates. Simple structure, full personal liability.
Company: Separate legal entity taxed at flat company rate (25% or 30%). Provides limited liability but more compliance requirements and costs.
Trust: Income distributed to beneficiaries and taxed at their individual rates. Flexible for tax planning but complex to establish and maintain.