Key considerations when starting a business.

Ok, ready to take the plunge? Branch out and start doing what you love on your own terms?

Here’s what you need to know:

• Choosing the right entity structure to start off with

• Registering for an ABN

• Registering for and understanding GST

• Choosing appropriate accounting software

• Understanding your BAS reporting and superannuation obligations

• Record keeping

1. Choosing the right entity structure

This is possibly the most crucial decision you'll make, as it affects how much tax you’ll pay, how secure your personal assets are, and the level of paperwork and compliance you'll have to deal with.

I've written a blog on the different types of entities available – feel free to check it out [insert link], as it’ll help you better understand what I’m about to say next.

It’s always better to be overprepared when it comes to choosing a structure, but at the same time, you don’t want to overburden yourself with compliance.

For example, Sole Traders – the most common starting point for small businesses – are fully liable to creditors. If you get sued, your personal assets may be at risk. That said, it’s not a bad structure overall – it's light on compliance, and rollover relief is available for Capital Gains Tax if you choose to move your business into a wholly owned company down the track. Just keep in mind that transfer duty might still apply depending on your state.

This is just one example of the complexities that can come up.

2. Registering for an ABN

This is a relatively straightforward process and is compulsory if your entity is a trading business. The steps and requirements vary slightly depending on your chosen structure.

3. Registering for and understanding GST

You’re required to register for GST when your aggregated turnover exceeds $75,000 in a financial year. In simple terms, if you're consistently earning more than $1,500 a week, it's time to register.

Understanding how GST applies to your business can take time – for example, some items like financial supplies or certain food items may be GST-free.

You’ll also need to decide whether you’ll report GST on a cash basis or accrual basis, depending on what suits your business best.

4. Choosing appropriate accounting software

There are a few key factors when choosing accounting software: affordability, ease of use, and reporting functionality.

For most small to medium businesses (under 100 employees), I recommend Xero. It’s user-friendly, has strong reporting features, and can save you countless hours on bookkeeping. The only downside is its cost – it’s the market leader, so naturally, it comes with a higher price tag. But it’s at the top for a reason.

If you’re looking for alternatives, Reckon, MYOB, and Intuit (QuickBooks) are still solid options.

If you're running a larger organisation (100+ employees) and need multiple users accessing the software simultaneously, you’ll likely need an enterprise solution. These systems are more complex to implement and require training, but there are dedicated teams that can assist with setup and ongoing support.

5. Understanding your BAS reporting and super obligations

Your Business Activity Statement (BAS) and superannuation obligations depend on your turnover.

Most businesses lodge a quarterly BAS, which is due on the 28th of the month following the end of each quarter. If you're lodging through a tax agent, they typically receive a one-month extension.

Super is similar – if paying quarterly, it's due by the 28th of the following month. Depending on your turnover, you may also be required (or choose) to lodge and pay monthly.

6. Record keeping

So, how are you going to file all those receipts and invoices?

Please don’t say you’re going to shove them in a shoebox and wait for the end of the year. That’s every accountant’s nightmare!

It’s important to have a structured filing system – whether electronic or paper-based – so you’re organised and compliant from the get-go.

Disclaimer: The information in this blog is general in nature and is not intended as advice.

Blurb - Introduction to Entity Structures

There are four main types of entities you can choose from when setting up a business:

Sole Trader – Simple – You trade under your own name, are fully entitled to profits, and carry full legal liability.

Partnership – Simple – You trade with one or more partners, share profits, and share full legal liability. Yes, full—if your partner can't pay their share of the debts, the responsibility falls back on you.

Trust – Complex – You trade through an entity that distributes profits either at a fixed rate or at the discretion of the trustee. Depending on how it's set up, you may have full or limited legal liability.

Company – Complex – You operate through a separate legal entity, retain control over it, but are not personally entitled to profits. Liability is limited, provided the company remains solvent.

Sounds simple, right? Not quite.

There are five key factors to consider when choosing the right structure for your business:

• Ease of Administration – Including setup and ongoing costs

• Liability – How well your personal assets are protected

• Succession – What happens to the business if you leave or pass on

• Taxation – Such as income tax, capital gains tax, and other applicable taxes

• Purpose – Whether you're running a for-profit or not-for-profit entity

These are the main considerations, but they're not the only ones. Your choice might also depend on where your business is in its lifecycle—are you just starting out, in a growth phase, well-established, or looking to wind things up? And what are your key goals: reducing tax, protecting assets—or both?

If you'd like a quick chat about your business structure and whether it still meets your goals, feel free to reach out.

Disclaimer: The information in this blog is general in nature and is not intended as advice. Please do not rely on it. Business structuring is a complex area that requires tailored advice based on your specific circumstances.

2025 Tax Brackets

Hi All.

Welcome to a New Tax Year! What comes with a new Tax year, new tax brackets.

This years 2025 Resident Tax Brackets are as follows:

Taxable income Tax on this income

0 – $18,200 Nil

$18,201 – $45,000 16c for each $1 over $18,200

$45,001 – $135,000 $4,288 plus 30c for each $1 over $45,000

$135,001 – $190,000 $31,288 plus 37c for each $1 over $135,000

$190,001 and over $51,638 plus 45c for each $1 over $190,000

These tax rates show an easing back of income tax in all brackets from the 2024 financial year. A clear winner are the people earning below $135 000 with potential tax savings of roughly 8-9%. Case example being someone earning 120,000 paying $29,467 in 2024 to $26,788 in 2025 or a year on year tax saving of $2,679.  

It’s important to factor into your tax strategies this year the rise of the middle tax bracket from 120,000 in 2024 to 135,000 in 2025. If you have the ability to spread your income through means of a trust structure you may be able to get the full benefit of the 30c rate in this bracket depending on your circumstances.

If you have any questions or concerns regarding your 2025 Tax’s don’t hesitate to reach out.

Disclaimer: The above statement is for informational purposes only and is not intended to be personal taxation advice of any kind.

5 Key Take Aways from the 2025-2026 Budget

The 2025 - 2026 Budget has dropped, releasing with it a swath of cost of living improvements.

Here are my 5 takeaways from the budget:

1. It must be nearing an election, as there are tax cuts for low-income earners. The proposed 2nd tax bracket ie, $18,201 to $45,000 will be dropping from 16% to a proposed 15% in 2027 financial year and 14% in the 2028 financial year for residents.

2. The ATO has been given increased funding for its audit activity and compliance, specifically it has been give 999 million over 4 years “to extend and expand tax compliance activities. Not sure why it wasn’t a clean billion really…

3. The help to buy home scheme has been expanded up by 800 million to 6.3 billion with the aim of assisting 40,000 first home buyers to purchase a new or existing home. Honestly this doesn’t really fix the supply problem that the nation is experiencing but I expect to see some first home buyers benefit from it.

4. The current government if re-elected will cut balances of HELP by 20%, which seems to be more of an election promise as it hasn’t been introduced to parliament at this stage.

5. Foreign ownership ban on established properties - the government has identified this as one of the drivers in the price increase in recent years so will give the ATO 5.7 million over 4 years from 2025 to 2026 to enforce the ban.

Disclaimer: This information is only commentary on the budget and shouldn’t be used as taxation or financial advice.