How do small businesses pay tax?
Learn the main ways small businesses may pay tax, including income tax, GST, PAYG instalments, and PAYG withholding.
Summary
Small businesses may pay tax in different ways depending on their structure and registrations. Common tax payment areas include income tax, GST through BAS, PAYG instalments, and PAYG withholding if the business has workers.
What this means
There is no single tax payment process that applies to every small business.
The obligations depend on whether the business is a sole trader, company, partnership or trust, whether it is registered for GST, and whether it has employees or contractors.
Typical actions
- Identify your business structure and tax registrations.
- Check BAS and income tax lodgment obligations.
- Plan for PAYG instalments if they apply.
- Set aside cash for tax and super obligations.
- Keep records to support tax calculations.
Official ATO sources
Last checked: 20 June 2026
Payments to us
Explains ways to pay the ATO.
Business activity statements
Explains BAS reporting and payment obligations.
PAYG instalments
Explains prepayments of tax on business and investment income.
Related questions
- What is a BAS?
- What are PAYG instalments?
- What is PAYG withholding?
- What tax obligations does a small business have?
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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