Understanding Australian business structures and taxation
If you’re starting business in Australia, one of the first decisions you’ll have to make is whether to structure your business as a foreign branch or Australian subsidiary. The decision will depend on different factors, such as how your business model is set up and the activities you want to pursue. Your business structure will influence how your profits are taxed, your income tax reporting requirements and international tax obligations.
It’s also essential to understand the tax and superannuation obligations that will apply before starting a business in Australia to avoid unforeseen tax charges impacting your budgets. As well as company tax (typically 30%), there are several other Federal and State taxes that affect companies in Australia. Key to your success is understanding how these taxes will affect your business structure and transactions. Enlisting experienced advisors to set your Australian business on the right path from the beginning will help you to achieve this.
Our services for starting a business in Australia
Taxation – including direct and indirect taxes and GST:
- Setting up a tax-effective business structure that will suit your industry, operations and minimise any double taxation
- Business incorporation and company registration – including Australian Company Number (ACN) Australian Business Number (ABN), Tax File Number (TFN) and Pay As you Go (PAYG) taxes
- Ongoing compliance with tax laws and lodgement of tax returns in Australia: income tax return, payroll tax return, fringe benefits return, international dealing schedule (for transfer pricing and thin capitalisation), Business Activity Statement (BAS) for GST, withholding tax on employee payroll, fringe benefits and income tax instalments.
Corporate compliance – Managing ongoing registrations covering taxation (ATO), corporate reporting (ASIC) and stock exchange (ASX)
Outsourced accounting – setting up procedures and accounting systems, custom software solutions and integration, KPI and budget monitoring, management reporting, payroll services and administration
CFO services – developing business plans and budget models, recruiting staff, raising working capital, business analysis, forecasting, valuations and financial decision-making.
