Ensuring your business pays the correct amount of tax is essential to meeting your tax obligations and avoiding penalties.
It’s important to understand which taxes your business needs to register for, as tax requirements can vary across different Australian states and territories.
On this page, you’ll find helpful information about tax obligations specific to Tasmania, along with simple explanations of commonly used tax terms like GST and BAS.
We’ll break down what they mean, why they matter, and whether they apply to your business.
Useful information:
All Australian businesses need a tax file number (TFN).
Your business will need to lodge a tax return with the Australian Tax Office (ATO) each financial year (1 July - 30 June).
Unless you are using a tax agent or accountant to lodge your tax return, your tax return will need to be lodged with the ATO by 31 October each year.
You can pay your tax online with BPAY or through the ATO website.
Paying your tax on time can help avoid penalties.
Some businesses also need to lodge Business Activity Statements (BAS) yearly, quarterly, or monthly, depending on their GST turnover.
Legally, you must keep records of all business tax-related transactions.
An employer's total wages paid in Australia are greater than $1.25 million per annum.
Your business is a member of a group with total Australian wages exceeding $1.25 million per year.
Payroll tax is a state tax, and each state and territory has its own regulations and thresholds.
A Tasmanian business may still have interstate payroll tax obligations where its payroll is less than $1.25 million, if it has interstate employees.
Additional tax registrations are dependent on your business structure, the products/services you provide, or whether you employ people.
If you are unsure, contact an accredited accountant or tax specialist for advice.
The Australian Taxation Office is an excellent resource for information on which details and records you need to keep, the deductions you are entitled to, and the relevant taxes for your business.
To find a registered tax agent in your area, search the Australian Government’s Tax Practitioners Board
What is the Goods and Services Tax (GST)?
The Goods and Services Tax (GST) applies to most goods and services sold in Australia.
GST is a tax of 10 per cent on most goods, services and other items sold or consumed in Australia.
If your business is registered for GST, you will need to collect this extra money from your customers at the time of their purchase. You are then required to pay this money to the Australian Tax Office (ATO) when it is due.
The GST threshold is calculated based on a rolling 12-month period, not based on a fixed financial year.
Useful information:
You need to register for GST if:
Your business has a turnover of $75,000 or more in a 12-month period.
You are a non-profit organisation with turnover of $150,000 or more in a 12-month period.
You provide taxi or limousine travel, or ridesharing services, regardless of your GST turnover.
You want to claim fuel tax credits for your business, regardless of your GST turnover.
Your business must register for GST within 21 days of exceeding the threshold or at any point you expect it will exceed $75,000 in a 12-month period. Otherwise, GST registration is optional.
Certain types of turnover such as residential rent and financial transactions.
Certain sales made as part of a business sale.
GST turnover includes your gross (before tax) business income (excluding GST) and is not based on profit.
GST still applies in this case. Here’s a handy example which explains it.
Let’s say that you're starting a small café in Tasmania and expect to sell more than $75,000 in your first year, you'll need to register for GST.
This means adding 10 per cent GST to the price of your menu items, issuing tax invoices (receipts) to customers, and regularly lodging Business Activity Statements (BAS) to report the GST you’ve collected and paid.
Even if your turnover ends up being below $75,000, understanding GST from day one helps you price your products correctly, track your finances, and avoid unexpected tax surprises.
If you do turn over less than $75,000 in the end, you can cancel your GST registration, but it’s better to plan ahead than be caught out later
Not exactly, but you can claim back the GST you’ve paid on business expenses.
When your business is registered for GST, you collect GST from your customers (usually by adding 10 per cent to the price of your goods or services).
You then report this through your Business Activity Statement (BAS).
At the same time, you can claim credits for the GST you’ve paid on eligible business purchases; things like stock, supplies, equipment or even electricity bills, if they include GST.
The difference between what you’ve collected and what you’ve paid is what you either pay to the ATO or get refunded if you’ve paid more GST than you collected.
So, you’re not paid back all the GST, but you do get credited for what you’ve paid out and that can make a big difference to your cash flow.
What is the difference between a business activity statement and a tax return?
A Business Activity Statement (BAS) is a report that some Tasmanian businesses will need to complete and report to the Australian Tax Office (ATO).
BAS is lodged quarterly or monthly, depending on your business's GST turnover.
In certain circumstances where you voluntarily register for GST and your turnover is less than $75,000 you can apply to the ATO to lodge annually.
It will include information such as:
How much GST your business collected from the sales of your goods or services.
How much GST your business paid on things you bought for your business.
Other tax-related information, like how much tax you have withheld from your employees' wages (if you have them) and sometimes other things like Pay As You Go (PAYG) income tax instalments.
Grants can give a much-needed boost to your business. However, tax implications can still apply to them.
Before you apply for a grant, be sure you understand what tax obligations are required if you are successful.
For grant payments where GST is applicable the amount of the grant is increased to compensate for the GST payable
A valid tax invoice must be provided by you if you are a successful applicant to receive the grant amount plus the applicable GST
It is important to note that the receipt of grant funding may be treated as taxable income by the Australian Taxation Office
While grants are typically treated as assessable income for taxation purposes, how they are treated will depend on the recipient's individual circumstances
It is strongly recommended that potential applicants seek independent advice about the possible tax implications for receiving a grant from a tax advisor, financial advisor and the ATO, prior to submitting your application.
Grants may attract GST, so if you’re unsure always check the terms with your grant provider if successful.
The National Tax Clinic
This is a government-funded initiative to help people who may not be able to afford professional advice and representation with their tax affairs.
The service is delivered through the University of Tasmania and is a community service focused on providing eligible taxpayers with free tax assistance and advice while allowing students studying tax-related courses the opportunity to develop their skills.
Supported by the ATO, and under guidance from experienced tax professionals, students can provide clients with quality tax advice or assistance related to everything from:
