Small business taxUnderstanding what small business tax terms apply to your business can be confusing and complicated. So we have put together a list of some terms that will help you better understand how to manage your small business tax:

Goods and Services Tax (GST)

GST is a broad based consumer tax of 10% that is applied to most supplies of goods and services in Australia. If a small business is registered for GST, they are required to submit a Business Activity Statement each quarter. Businesses registered for GST use this statement to report their business tax entitlements and obligations to the ATO.


A dividend is a distribution of the profits of a company to its shareholders. What is important to small business owners is that they can also claim franking credits when they pay a dividend. A franking credit is an income tax credit that a corporate tax entity can pass on to its shareholders. What this means is that when you pay a dividend with a franking credit, you can claim the franking credit in your personal income tax return to offset any tax payable on the dividend.

For more information on taking money out of a company, you can read our post here.

Australian Business Number (ABN)

All small businesses in Australia are required to register for an ABN. An ABN allows you to be identified with Government departments and it is a requirement that you include it on all tax invoices issued to customers.

Super guarantee contributions

A super contribution is the amount an employer must contribute to super on behalf of their eligible employees. The rate is currently equal to 9.5% of an employee’s ordinary time earnings.

For more information about superannuation for small business, read here.