BUSINESS SERVICES
In today's fast-paced business environment, managing daily operations while striving for success can be overwhelming. At BB4U, our goal is to streamline your tax obligations, ensuring accuracy and compliance, so you can focus on growing your business and achieving your financial goals.
We offer a range of services designed to support your business, helping you implement effective practices to improve cash flow, maintain meticulous attention to detail, and fulfil your tax responsibilities.
Business Activity Statements (BAS)
Business Activity Statement (BAS) is an Australian Taxation Office form used by GST-registered businesses to report their Goods and Services Tax (GST) and Pay As You Go (PAYG) Withholding Tax activities for a given period.
Any business registered for GST must lodge a BAS to pay their GST; depending on your business situation you might need to also lodge PAYG installments, PAYG withholding tax, and other taxes on your BAS.
1. Goods and services Tax (GST)
Goods and services tax (GST) is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia.
Find more information on GST here.
2. PAYG Withholding Tax (PAYGW)
In Australia, you must withhold tax from payments to an employee in most circumstances, but only from a contractor under specific conditions.
You are required to withhold tax from payments to all Employees, including company directors and office holders. Payments subject to withholding include:
● Wages and salaries, including allowances and leave loading.
● Employment termination payments and payments for unused leave.
● Superannuation income streams.
● Back payments, commissions, and bonuses.
● Payments to foreign resident employees, with different tax rates applying.
You are generally not required to withhold tax from payments to Contractors, as they are typically responsible for their own tax obligations. However, there are three key exceptions:
● Failure to quote ABN: You must withhold at the top tax rate if a contractor fails to provide their Australian Business Number (ABN). This applies to any payment over $75 (excluding GST).
● Voluntary agreement: You must withhold tax if you and the contractor enter into a voluntary agreement to do so.
● Labour-hire arrangement: Labour-hire firms must withhold tax from payments to workers, whether they are employees or independent contractors, who are performing work or services for their clients.
How is PAYG Withholding Tax lodged to ATO?
PAYG Withholding (PAYGW) is lodged with the Australian Taxation Office (ATO) primarily through Single Touch Payroll (STP) with each pay run (PAYROLL), and the amounts are also reported periodically on a Business Activity Statement (BAS) or an Instalment Activity Statement (IAS).
When processing the Payroll, you withhold this tax on behalf of your employees. Tax is collected progressively from each paycheque throughout the year, preventing the employee from facing a large, unmanageable tax bill at the end of the financial year.
3. PAYG Instalments
PAYG instalments are a system for regular prepayments of income tax on business and investment income, designed to help taxpayers avoid a large tax bill at the end of the financial year.
If you meet these three conditions, they'll require you to pay provisional tax across the next financial year:
● Instalment income (gross business and investment income) is $4,000 or more.
● Tax payable on your last notice of assessment was $1,000 or more.
● Estimated (notional) tax for the current year is $500 or more.
The ATO will automatically enter you into the PAYG instalments system once you meet certain criteria based on the information in your latest tax return. You will be notified when this happens.
You also have the option to voluntarily enter the PAYG instalments system if you expect to earn business or investment income over the threshold before the ATO automatically enrols you. This can help you proactively manage your tax payments and cash flow.
How does it work?
You make regular payments (instalments) during the year, usually once every 3 months. The amount you pay is based on your business and investment income.
When you lodge your tax return, the PAYG instalments you have paid during the year are offset against your tax, leaving you with little or no tax to pay.
Don’t get caught up on a web of debt and frustration. Ask us to get your PAYG Instalments registered, and prepay your taxes at ease.
Payroll Set Up & Obligations
Do you have employees, contractors or intend to start employment within your business?
Directors payments
If you are a:
● director, or
● shareholder of a company you can be paid salary, wages or directors fees depending on your arrangements with the company. If the company is paying money out in these ways it must pay the wage, salary, or directors fees through its payroll system.
Contractors x Employees
The critical differences between an employee and independent contractor are:
● an employee serves in your business, and performs their work as a representative of your business
● an independent contractor provides services to your business and performs work to further their own business.
Superannuation
Obligations still may apply to certain independent contractors.
These circumstances include if the worker:
● works under a contract that is wholly or principally for their labour
● performs work that is wholly or principally of a domestic nature for more than 30 hours per week
Some workers are always employees:
● Apprentices
● Trainees
● Labourers
● Trades assistants.
Companies, trusts and partnerships are always contractors.
To initiate your payroll, please submit a request for the Payroll Set Up using the link provided below.
Super Lodgements
Super is money you pay for your workers to provide for their retirements. If you have employees, you generally need to pay super guarantee contributions to your employees regardless of how much they are paid.
All employees are covered by the superannuation guarantee. It applies to full-time, part-time and casual workers.
The super guarantee (SGC) is the minimum amount of super you must pay to your employees to avoid the super guarantee charge. The SG is currently 12% of your employee’s base earnings (ordinary time earnings).
Due to the complexities surrounding employee vs. contractor classifications in Australia, I cannot emphasize more the importance of clear contracts, understanding legal obligations, and seeking professional advice to avoid potential penalties.
Here are your options…
● Don’t contract with an individual
● Contract with an individual but withhold SGC
● Contract has delegation clauses
● PCF Very Low Risk - Communication and specific advice
● OR WAIT TILL THE ATO CALLS
See more info on the FairWork page.
"PayDay Super" - is now Law from July 2026
From 1 July 2026, new "Payday Super" rules mean employers must pay employee superannuation contributions at the same time as they pay wages or salaries. This is a big change from the current system, which generally allows employers to pay super just four times a year (quarterly).
Meaning...employers must pay their employees super each time they get paid their wages (e.g., weekly, fortnightly, or monthly). The super money must arrive in the employee's super fund's bank account within 7 business days of your payday.
The ATO's free Small Business Superannuation Clearing House will close from 1 July 2026, so you will need to find another way to pay (usually through the payroll software you use).
If an employer fails to pay the required superannuation contributions in full and on time (within 7 business days of payday from 1 July 2026), they will be liable for the Superannuation Guarantee Charge (SGC), which involves the original super amount plus significant penalties and interest.
The ATO has real-time visibility through Single Touch Payroll (STP) data matching and will proactively identify missed or late payments sooner than the current quarterly system.
Already registered for Payroll and need help lodging you Super obligations? Book it on the link below.
TPAR Lodgement
Taxable payments annual report (TPAR) must be lodged by some type of industry, containing the information about the payments made to contractors for services.
The TPAR is a critical data-matching tool for the ATO. If you do not lodge it, the ATO cannot cross-check the income you paid to your contractors with the income they reported.
To lodge a TPAR the business must report the contractor's ABN, total amount paid and if the contractor is registered or not for GST.
The industries required to lodge a TPAR are:
● Building & Construction Services
● Cleaning Services
● Road Freight & Courier Services
● Information Technology Services
● Security, investigation or surveillance Services
The due date for this annual lodgement is on the 28th August each year.
Although, if you do not need to lodge it because you haven't contracted anyone during the financial year, you can submit a NON-LODGEMENT ADVICE.
Or book your Service on the link below.
Bookkeeping Services
By hiring an accounting and bookkeeping services it:
● ensured accurate financial records,
● helps manage cash flow, and
● ensures compliance with tax regulations.
Accountants and Bookkeepers can identify cost-saving opportunities, improve financial decision-making, and reduce errors.
At this stage we are only offering this service for existing clients who do either BAS Lodgements or Tax Services with BB4u.
Introduce Yourself
Are you interested in introducing your business and learning about my services?
Book a quick, no-cost introductory chat using the link below.
Please note: This meeting does not include tax advice.
Schedule a Consultation
If you need tax advice, please select the appropriate option:
Please note: A fee applies for these consultations.
Frequently Asked Questions
What do I need to start a new business?
Starting a business in Australia involves several key steps: research and planning, choosing a suitable business structure, securing funding, registering your business, launching, and establishing your presence.
What type of Funding can I use?
Personal savings: Start with your own capital
Loans: Consider bank loans or government grants.
Investors: Seek funding from angel investors or venture capitalists.
What will I need to register a business?
● Australian Business Number (ABN): Required for all businesses.
● Register with ASIC: If you are starting a company, register with the Australian Securities & Investments Commission.
● Register for GST: If you are likely to exceed the GST threshold.
● Register for licences and permits: Depending on your industry, you may need specific permits.
What are the other main considerations to establish a business?
● Choose a business name: Ensure it is available and suitable for your brand. You must register it with ASIC to secure the name chosen.
● Set up your finances: Open a business bank account and set up accounting software.
● Develop a marketing plan: Reach out to your target audience and build brand awareness.
● Obtain business insurance: Protect your business from potential risks. We recommend using BizCover to protect your business.
● Manage your cash flow: Track your income and expenses to ensure profitability.
● Understand your legal requirements: Stay compliant with all relevant laws and regulations.
● Stay compliant: Keep records correctly from the start.
● Leverage technology: Use technology to automate tasks and improve efficiency. We recommend the use of Xero Accounting Software.
● Hire the right people: If you need to, find the right employees to support your business. Check on WorkForce regulations and find out if you must process payroll or can pay subcontractors.
● Market your business: Promote your products or services to attract customers. We recommend the services of GonXLevel
What are the Business Structures I could choose from?
● Sole trader: Simple structure, but you are personally liable for business debts.
● Partnership: Two or more people share ownership and liability.
● Company (Pty Ltd): Separate legal entity, offering limited liability to shareholders.
● Trust: Used for asset protection and can be complex.
What is a Sole Trader?
A sole trader business is run by one person who is legally responsible for all aspects of the business.
Advantages
● Inexpensive, simple to set up and easy to maintain
● Greater privacy than other types of structures—sole traders do not have to disclose their profits to the public
● Simple ownership and tax considerations—you personally own the business profits and assets. Profits are taxed at your personal income tax rate
Disadvantages
● Personal liability for all business debts in their entirety—in some cases, you can risk losing personal assets if your business fails
● Few tax concessions are available—tax is paid at your marginal tax rate (this may be higher than a company rate)
● Limited expansion opportunities
What is a Partnership?
A business structure that comprises two or more individuals is known as a partnership. In this type of structure, all the partners share the business's profits, losses, and decision-making. The Partnership Act 1891 governs partnerships and sets out the rules and obligations for the partners, including joint liability for all business debts.
Advantages
● Partnerships are a cost-effective alternative to establishing a company.
● They offer simplicity in administration, with profits and losses shared among partners.
● Collaboration within a partnership allows for the pooling of resources and diverse expertise.
● Compared to other business structures, partnerships provide enhanced privacy as they are not obligated to disclose financial information publicly.
Disadvantages
● Unlimited liability: Partners are personally liable for all business debts.
● Pass-through taxation: Business profits are taxed at the partners' individual tax rates, which can increase as earnings grow.
● Restricted transferability of ownership: Transferring ownership requires unanimous agreement from all partners.
● Potential for conflict: Disagreements among partners can disrupt business operations.
What is a Company?
In Australia, a company is a legal entity that is separate from its owners (shareholders) and directors. This structure allows the company to own assets, incur debts, enter into contracts, sue, and be sued. It also means that shareholders are generally only liable for the value of their shares if the company fails, while directors may be personally liable if they breach their legal duties. All companies in Australia must be registered under the Corporations Act 2001 and are regulated by the Australian Securities and Investments Commission (ASIC).
Advantages of a Company Structure
● Limited liability for shareholders: Generally, shareholders are only liable for the value of their shares.
● Separate legal entity: The company can enter into legal arrangements in its own name.
● Transferable ownership: Shares can be transferred to others.
● Lower tax rates: The tax rate for companies is generally lower than the highest individual tax rate.
Disadvantages of a Company Structure
● Increased regulation: Companies are subject to more regulations than other business structures.
● Less privacy: Some companies must disclose their financial information publicly.
● Higher costs and complexity: Companies are generally more complex and expensive to establish and operate than other business structures.
● Potential for personal guarantees: Directors or shareholders may be required to provide personal guarantees for company debts.
● Personal liability for directors: Directors can be held personally liable for company debts if they fail to meet their legal obligations.
● Double taxation: Company profits are taxed, and shareholders may also be taxed on dividends.
What is a Trust?
A trust business structure is a legal relationship where a trustee (individual or company) conducts business on behalf of beneficiaries.
Advantages
● Asset Protection and Limited Liability: Protects business assets and limits liability.
● Separation of Control and Ownership: Beneficial for protecting assets or income, especially for young people or families.
● Beneficiary Protection: Generally, beneficiaries are not liable for trust debts and pay tax on income at their individual marginal rates.
Disadvantages
● High Establishment Costs: More expensive to set up than sole traders or partnerships.
● Complexity: Requires professional advice due to intricate legal structures.
● Strict Trustee Obligations: Extensive regulations and obligations for the trustee.
● Profit and Loss Limitations: Losses cannot be offset by beneficiaries, and retaining profits for expansion may incur penalty tax rates.
What are the main costs of running a business?
When starting a business, it is crucial to have a clear understanding of your start-up costs and a realistic budget. A lack of funds, particularly in the initial 6-12 months, is a common reason for new businesses to fail. Careful planning and budgeting for expenses can significantly increase your chances of success.
Essential Start-Up Costs to Consider:
● Market research
● Preliminary financial advice or general business advice
● Compliance costs, such as licenses and registrations
● Tenancy or leasing bonds, transfer duty, and lease agreement advice
● Telephone and internet
● Insurance
● Power connection and bond
● Marketing and website development
● Equipment, fixtures, and fittings
● Staffing and wages
● Initial materials and stock purchases
Remember to include a 10% safety buffer when calculating your costs to account for unforeseen expenses. Your specific start-up costs will vary depending on your business type and industry.
What is a Labour Hire?
Labour hire involves a company (the "host employer") using workers from a labour hire agency (the "provider") to perform duties, where the agency employs the workers and the host employer pays the agency for their services.
What is the difference between labour hire and casual?
“Labour hire” refers to the practice where a company offers people long-term contracts. Usually, these employees have specific skills and knowledge which can benefit the business on an ongoing basis. “Casual labour hire” on the other hand, is the process where casual employees are employed for a short term only.
Do I need a labour hire license?
Any business in Queensland, Victoria or South Australia that provides labour hire services, including certain types of secondments, must now be licensed. Just as importantly, companies that host workers from a labour hire environment have a legal responsibility to ensure the provider is licensed.
Is labour hire the same as subcontractors?
Labour hire, however, involves a company supplying workers to another business (the host company) for temporary assignments. These workers are not hired to perform a specific contract like subcontractors but are used to fill immediate labour needs
Can I pay my labour hire contractors on their ABN?
No. The labour hire firm is responsible for pay as you go (PAYG) withholding, super guarantee and fringe benefits tax obligations to all the labour hire contractors.
Can I vary or Cancel my PAYG Instalments?
Yes you can vary or cancel your PAYG Instalments, HOWEVER, if you cancel (vary to zero) your Pay As You Go (PAYG) instalments and end up with a tax payable amount at the end of the year, the Australian Taxation Office (ATO) may charge you a General Interest Charge (GIC).
In addition to the GIC, the ATO can impose administrative penalties, especially if they determine you did not make a "genuine attempt" to estimate your income tax liability correctly, or if the underestimation was a result of recklessness or an intentional disregard of the law.
The best approach is to vary your PAYG instalments to an amount that genuinely reflects your expected income for the year. If your circumstances change during the year (e.g., your income significantly reduces), you can vary your instalments multiple times to avoid a large bill and potential charges at year-end.
If you are experiencing financial difficulties, it is recommended to still lodge your activity statement or instalment notice on time, even if you can't pay, and contact the ATO to discuss a payment plan.
What happens if I do not lodge my Taxable Payments Annual Report (TPAR)?
If you do not lodge your Taxable Payments Annual Report (TPAR) with the ATO, you will face penalties, increased scrutiny, and potential debt recovery action. The ATO actively enforces TPAR lodgment and has issued millions of dollars in penalties to thousands of businesses for non-compliance.
Unlike some other tax returns, the ATO may still apply FTL penalties for an overdue TPAR even if a nil report was due or if it doesn't result in a direct tax liability for your business, because it is a third-party reporting obligation used to ensure compliance of your contractors.
