All Australian businesses have obligations towards the Australian Tax Office. The obligations are many, but the most important are related to Goods and Services Tax and tax on profits.
The bigger the business gets, the bigger the risk of non compliance gets, if there is not a Financial or Accounting Department in place. Many businesses that are in the phase of growth opt for outsourcing their tax compliance obligations to dedicated accountancy firms that specialise in the field.
Tax compliance alo covers employee contributions and superannuation deposits. One of the most overlooked aspects of tax compliance is related to Fringe Benefits, which is an area that needs real attention in any business.
All businesses must fulfil their obligations with the ATO and not being aware of these requirements will not excuse any infractions. Any businesses that are found not be in compliance will face hefty fines and possibly other penalties.
Tax compliance can be described as the obligations that a business has in contributing to the economy through regular channels without knowingly or unknowingly withholding information or payments that should be going into the system.
In Australia you may be required to register for monthly IAS if you withhold more than $20,000 per annum and you register for BAS (GST) if you have a GST turnover of greater than $75,000 per annum.
Payroll Tax is something that is payable if you business employees a high number of staff and the threshold varies according to what state you are in.