Generally, there are five types of business structures that you can use to conduct business in Australia.
Each structure has a number of benefits and disadvantages, so it is important to ensure you understand the differences between them, as they have different tax, legal and compliance requirements.
An ABN is an 11 digit number issued by the Australian Business Register.
All businesses carrying on an enterprise in Australia are required to have an Australian Business Number (ABN). This provides some certainty that the entity carrying on business is registered with the Government and also prevents withholding on payments made to it.
Australia has a robust and highly regulated business and consumer environment. This provides confidence in the Australian marketplace and enhances investment. The major regulators in Australia are:
Both direct and indirect taxes are levied in Australia by the:
A majority of taxes payable are levied and collected in Australia by the Federal Australian Government. The Federal tax collection authority is the ATO. These taxes are applied consistently across Australia. Examples are income tax and Goods and Services Tax (GST).
The State/Territory and Local Government where you operate your business may also levy taxes on and each State/Territory’s taxing points can vary in terms of rates, thresholds and exemptions. Examples are stamp duty on transfer of property and payroll tax.
Section 292 of the Corporations Act 2001 (Cth) (Corporations Act) sets out the types of entities required to prepare and file financial reports with ASIC. Some of the more common entities required to report are: