What tax obligations does a small business have?
Understand common small business tax obligations including income tax, GST, BAS, PAYG, deductions, and records.
Summary
Small business tax obligations can include reporting income, keeping records, lodging returns or activity statements, registering for GST where required, and managing PAYG obligations.
What this means
The exact obligations depend on the business structure, turnover, registrations, and whether the business has workers. A sole trader, company, partnership, and trust may have different reporting requirements.
Small businesses should check obligations at setup and review them as the business changes.
Typical actions
- Identify your business structure.
- Check required registrations such as ABN, GST, and PAYG withholding.
- Keep accurate business records.
- Review lodgment and payment obligations.
- Seek professional advice for complex situations.
Official ATO sources
Last checked: 20 June 2026
Small business
ATO small business information hub.
Business structures — key tax obligations
Explains key tax obligations by business structure.
Record keeping for business
Explains business record-keeping obligations.
Related questions
- What is GST?
- What is a BAS?
- What business expenses can be claimed?
- What records does a business need to keep?
Important notice: Tax Clarity is an independent information tool. This page provides general information based on official sources. It does not provide tax, legal, financial, or accounting advice. Tax rules can change, and how they apply depends on your circumstances. For advice about your situation, speak with a registered tax agent or qualified professional.
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