Running a business: tax obligations

Question 1 of 7

Running your business

When you go into business, it is important to understand your tax obligations. You may be liable for various Australian, state or territory, and local government taxes depending on the size and location of your business.

Paying taxes is an important community responsibility for a business. Governments use tax revenue to provide the community with services. Infrastructure such as roads, ports, water, power and communication are important for many businesses to operate effectively. Tax provides the major revenue for the development and maintenance of infrastructure.

  • Fact 19

    Australia’s growth and prosperity after World War II meant that, in 1959, the ATO collected £823.37 million in revenue - more than double the amount collected in 1949.

PAYG instalments

A system used by individuals and businesses to pay tax, such as tax on investment and business income.

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