First Steps
| Step | Action | Why? |
| 1 | Decide on the right entity structure | This is important as this will dictate the tax rates in Australia and how you can extract profits made from the entity. |
| 2 | Obtain an Australian Business Number (“ABN”) from the Australian Taxation Office | In Australia all businesses require an ABN in order to trade. In many cases you will not be able to do a number of things such as set up a bank account for the business without an ABN |
| 3 | Obtain a Tax File Number(“TFN”) from the Australian Taxation Office | All entities in Australia are required to obtain a TFN for the purposes of lodging income tax returns. |
| 4 | Register for the Goods and Services Tax (“GST”) from the Australian Taxation Office | The GST is a transaction tax on goods and services sold in Australia. It is similar to VAT in most other countries. If your turnover is going to be over A$75,000 per year you need to register and pay GST on a periodic basis. |
Calibre’s Business advisors and Virtual CFOs assist with all of these. Our Virtual CFO service in particular partners with your team to help invest in Australia. A virtual CFO service treats your business goals as its own, so you can start your foreign investment in Australia on the right foot.
Employing Staff and Payroll
| Step | Action | Why? |
| 5 | Register for Pay As You Go Withholding (“PAYGW”) from the Australian Taxation Office | If you are employing staff you need to register for PAYGW in order to deduct tax from employee wages and remit them to the ATO. |
| 6 | Understand labour requirements in Australia including the relevant awards from the Fair Work Australia | It is important to understand the minimum wages and allowances that are required in Australia which varies according to the type of work. It is also important to understand other employee entitlements. |
| 7 | Make Superannuation Contributions for employees to the Australian Taxation Office | Employers are required to contribute 9.5% of an employee’s salary to a complying superannuation fund. The purpose is to provide for the employee on retirement. |
| 8 | Arrange workers compensation insurance from relevant state authority | All employers regardless of size must have a valid workers compensation insurance policy to protect workers in case of injury in the workplace. |
| 9 | Payroll Tax administered by relevant state tax authority | Payroll tax is a state administered tax in which businesses are required to pay the tax in each state where annual wages exceed a threshold, which is $750,000 in NSW. As an example, if the business’ wages exceed $750,000 in a year, the business must pay payroll tax at 5.45% of the amount over the threshold. |
| 10 | Fringe Benefits Tax (“FBT”) from the Australian Taxation Office | If your business provides benefits to employees other than wages then your business must register for FBT. |
Our virtual CFOs and tax accountants appreciate the complexities of managing employees and tax compliance. This is particularly the case when it comes to multiple employees and offices, yet our virtual CFOs and advisors can create a long-term compliance strategy for you.
Accounting Requirements
| Step | Action | Why? |
| 11 | Balance Date | Australia normally has a balance date of 30 June for accounting and income tax purposes. |
| 12 | Select accounting software for your business operations, such as MYOB, QuickBooks, Xero | The are many software platforms available. Some industries require specific needs such as manufacturing and property development. |
| 13 | Prepare a budget or forecast of the operations | Cash flows are critical in the first years in a new country. It is important to plan required outlays as well as have a forecast revenue based on the marketing strategy. |
| 14 | Audit requirements and financial statement lodgments with Australian Securities and Investments Commission | Public companies, defined as “large” companies and majority foreign owned companies are required to have annual financial statements audited and submitted to ASIC. |
| 15 | Financial Reporting and Accounting Standards with the Australian Accounting Standards Board | Australia has its own accounting standards which are essentially harmonised with International Accounting Standards |
Our audit and assurance team and Virtual CFOs are experts at analysing your business structure, cash-flow, and reporting needs.
Federal and State Tax Compliance
| Step | Action | Why? |
| 16 | Lodge Instalment Activity Statements (“IAS”) and remit PAYGW on employee wages with the Australian Taxation Office | These are generally monthly lodgments and remittances which need to be completed by the 21st day of the following month. |
| 17 | Lodge Quarterly or Monthly Business Activity Statements to report GST collected from sales and GST paid on purchases with Australian Taxation Office | Periodic lodgments are based on turnover level. Monthly lodgments are due by the 21st day of the following month while quarterly lodgments are due by the 28th day of the following month. |
| 18 | Annual income tax returns with Australian Taxation Office | These are due at varying dates depending on the size, type and balance date of the entity. |
| 19 | Fringe Benefits Tax Returns with Australian Taxation Office | The FBT year in Australia ends on 31 March and returns are due by 21 May. |
| 20 | PAYG Payment Summaries Australian Taxation Office | Employers have an obligation each year to provide their employees with a PAYG payment summary. |
| 21 | Lodge and remit monthly payroll tax returns with the relevant state authority | Relevant if you are required to register for payroll tax. |
| 22 | Payment of annual land tax to the relevant state authority | Ownership of land above a threshold is subject to land tax which is payable annually. |
We assist with all lodgments. Our virtual CFOs and accountants make doing business in Australia more straightforward with a personalised, detailed lodgement and compliance plan that meets the expectations of all relevant Australian authorities.