GST for Small Business: All Your Questions Answered

What’s in a name? Everything when it comes to business. In this guide, we explain what you need to consider when choosing a trading name and answer all your questions about registering a business name, from costs to renewals, transfers, and trademarks.   What is the difference between applying for an ABN and registering a business name? When you apply for an Australian Business Number (ABN ), you are declaring your intention to run a business. When you apply for an ABN without also registering a business name, then your business name will automatically be your first and last name (eg. John Smith). If you plan on trading under a name other than your own name (eg. ‘John’s Car Cleaning’), then you will need to register the business name. While ABNs are managed by the Australian Business Register and business names are managed by ASIC , you can still register for both at the same time using the Australian Government Business Registration Service . Similarly to ABNs, business names are registered nationally, so if your business expands, you will not need to register again with other states or territories. Why do I need to register a business name? First and foremost, if you plan on trading under any name that is not your own, you will be legally obliged to register a business name. Beyond its administrative purpose, having a recognisable business name is also a great way for your customers to identify you and distinguish you from your competitors. A good business name will also give your operation more legitimacy and professionalism when written on invoices or social media for example. How to choose a business name Whether you’ve already got a name in mind or you’re in the process of brainstorming, there are a number of factors you need to consider when deciding on your business name. Relevance and memorability: Your business name either needs to reflect the nature of your business and the products or services your offer (eg. ‘Wedding Cakes by Jessica’) or it needs to be simple and memorable (eg. ‘Google’). Ideally it will be both! Uniqueness: Do some market research to ensure your name sets you apart from the competitors. You cannot register a business name that is identical or too similar to the registered name of another Australian business or company. You can check whether your business name is available using the business name check tool , and the TM Tracker to check whether the name has been trademarked. Branding potential: Consider how the name fits with your overall branding strategy, including logos and slogans. If your name is too long, it will be harder to create simple, identifiable marketing materials. Domain availability: If you plan on building a website, it’s important to know that the domain name (the URL or web address that people use to access your site) is available before deciding on it. Your web address needs to accurately reflect your business name as this will make it easier for your customers to identify you online. One quick way to check for the availability of a domain name is to do a simple web search. Type in the name you want to use, including domain extensions, such as .com, .com.au, or .net. Search engine optimisation (SEO): A business name that includes relevant keywords related to your product or service can improve your visibility in search engine results. If your business just serves a local area, including the location in your business name can also boost your rankings in local search results. Social media handle availability: In certain industries, an Instagram or TikTok account can be just as powerful as a website, therefore checking the availability of a social media handle (the “@” symbol followed by the username) is as important as a domain name. The simplest way to check this is to enter your proposed business name into the social media’s search bar. Appropriateness: Culturally and socially speaking, it’s important to consider whether the name is appropriate, ensuring it doesn’t include any potentially offensive language. There are also certain words, characters, and expressions that are restricted. You can learn more about these on the Australian Securities and Investments Commission (ASIC) website. How do you register a business name? There are three ways to register a business name: The Australian Government Business Registration Service – this service combines several business and tax registrations in one place. If you haven’t yet applied for an ABN, then you can do so and register your business name online at the same time. ASIC Connect – If you already have an ABN, you can apply for a business name directly with ASIC Connect . Private service provider - You can choose to register or renew your business name with a private service provider (PSP). This could be an accountant, solicitor, or another business that provides online services with ASIC. They will usually charge a fee for their services above what ASIC would charge. Note that when you register for a business name, you’ll need to choose a business structure (a sole trader, company, partnership, or trust, for example). It is therefore important that you do your research before applying to ensure you know what kind of structure is most suitable for your business. If you’re not sure, click here to take the ‘help me decide’ quiz. How much does it cost to register a business name? The fees to register your business name with ASIC are: $42 for 1 year $98 for 3 years How long does it take to have your business name registered? Completing an online business name application should take approximately 12 minutes. If you have an ABN, have submitted the required documents, and made payment, you can expect confirmation within: 2 business days for credit card payments Up to 5 business days for payments made via BPay, EFT, or bank transfer Can you have multiple business names under one ABN? You can register multiple businesses under the same ABN, provided they share the same business structure. If a business has a different structure, you will need to apply for a new ABN. For example, if you are a sole trader working as a carpenter, and you plan on starting a private building company with a business partner, together you will need to apply for a new ABN and register a name for the new business structure. On the other hand, if you are a sole trader, working under the name, ‘Wedding Cakes by Jessica’ and you decide to open a small café under the same ABN and business structure, you simply have to register the name of the new venture through the ASIC website. Can I change my business name after registering? No, once you have registered your business name, you cannot change it. If you decide you’d like to trade under a different name, you will need to register a new one. When do I need to renew my business name? You’ll receive a notice to renew your business name by email at least 30 days before your renewal date. Once you receive your renewal notice from ASIC, you can renew your business name through ASIC Connect or ASIC’s ‘Pay now’ service. If you don't renew your business name, on time, the name may be cancelled. If you have multiple business names, or also have a registered company, you can ask ASIC to align the renewal dates for those registrations. How much does it cost to renew my business name? It costs the same amount to renew a business name as it does to register: $42 for one year $98 for three years How do you transfer a business name? If you are selling your business and need to transfer the business name to the new owner, you can do so on the ASIC Connect website by following these steps . Do I need to trademark my business name? While ASIC works to ensure that no two businesses can register the identical name, it cannot prevent another business from registering a name that is similar . What’s more, when you register a business name with ASIC, it does not grant you exclusive rights to that name, meaning that someone else could still trademark the name. If you would like to protect your business name, you can do so with a trademark. A trademark is an intellectual property (IP) right that sets your distinctive brand, product, or service apart from competitors in the market. It gives you exclusive rights to use your business name in connection with the goods or services for which it is registered, helping prevent others from using a similar name that could confuse customers. It also gives you legal recourse to take action against anyone who infringes on your trademark, including stopping them from using your business name and potentially seeking damages. Starting a business? Zeller has your finances covered. We know you’ve got a lot on your to-do list, but thanks to Zeller you can cross off ‘open a business transaction account’ in as little as six minutes. Plus, with a suite of tools to help you accept payments, manage your expenses and track your cash flow, Zeller will ensure you start your business on solid financial footing.

What is an ABN? An ABN (Australian Business Number) is an 11-digit number issued by the Australian Business Register that identifies your business to the government. It 's used for tax and other business purposes, and it can also be used by the general public to find your business on the ABN Lookup website. Who needs an ABN? Anyone who is running or starting a business or enterprise in Australia needs an ABN. If you’re not sure if your activity is regarded as a business, ask yourself the following questions: Will it involve commercial sales of products or services? Is the activity more than just a hobby? Ie. Do you intend to make a profit from it? Will you be repeating the activity? Will you keep records of the activity in a business-like way? If you answered ‘yes’ to the above questions, you will almost certainly require an ABN. An ABN is essential for various reasons. It allows businesses to register for GST if their annual turnover exceeds $75,000, enabling them to claim GST credits and comply with tax obligations. Having an ABN also ensures you can issue valid tax invoices, making it easier to manage transactions and maintain professionalism with clients. Additionally, an ABN is often required to work with other businesses, apply for government grants, or secure financial assistance. Other situations may also require creating ABN, such as acting as the trustee of a deceased estate, super fund or a Self-Managed Superannuation Fund (SMSF), operating a charity, or leasing an investment property. Why do you need an ABN? When running a business in Australia, there will be many instances where you will be required to provide an ABN. These may include (but are not limited to) the following: Applying for a business bank account: banks or financial services providers often request an ABN as part of the documentation needed to open a business bank account as it helps them verify the legitimacy of the business. Business tax deductions: to claim tax deductions on business-related expenses, the ATO generally requires that your business have an ABN. Similarly, businesses that want to claim fuel tax credits for fuel used in business activities need to have an ABN. Identifying your business: when invoicing or placing orders, many clients and suppliers may require your ABN to help them verify your business's legitimacy and ensure smooth and transparent dealings. To get an Australian domain name: to register for a web address that ends in “.au”, you must be able to prove eligibility in Australia and it’s recommended that you have an ABN to do so. Registration as a charity: charities and non-profit organisations seeking registration with the Australian Charities and Not-for-profits Commission (ACNC) generally require an ABN. Government contracts: businesses engaging in contracts with the Australian government or its agencies usually need an ABN. Claim GST credits: to claim money back on GST that you’ve been charged on business supplies and expenses, the ATO will require that you have an ABN. Employer obligations: if you have employees, you need an ABN to meet your employer obligations, such as withholding taxes from employee wages. When do you need to register for an ABN? You need to register for an ABN prior to incurring income or expenses relating to the business. When you fill out the application form, you will be asked for the date that you expect to start your business. This date, however, cannot be more than six months in the future when you apply. Prior to applying for an ABN number you will need to have undertaken some relevant ‘commencement activities’ to prove that you are serious about setting up your business. These activities could be as simple as setting up a social media account or website, or purchasing business cards and stationery, or they could be more substantial steps such as purchasing a business; leasing a premises; obtaining insurance, equipment or stock; or applying for finance. It’s not essential to have undertaken all these activities prior to applying for an ABN number, but a certain number will be necessary to prove the legitimacy of the business. One thing you do need to do before applying for an ABN however, is to decide on the right structure for your business, for example, a sole trader, partnership, or trust. Read our article on how to structure a new business here. What documents are required to apply for an ABN? To apply for an ABN you will require the following documents: A tax file number (TFN) and the TFNs of any associates – for example, partners, directors, and trustees The date your ABN is required (the date you expect to start any business activities) An entity legal name, which will appear on all official documents or legal papers Business contact details including an address, postal address, email address and phone number The business’ physical location(s) Depending on your circumstances, there may be additional documents that you need to provide: If you are using the services of a professional advisor, you will need to provide their Australian Financial Services licence number If you are using a registered agent for your tax or BAS preparation you will need to provide their registered agent number. If they are authorised to make changes or update information on behalf of the entity, you will also need to provide their contact details If you have previously held an ABN, Australian company number (ACN) or Australian registered body number (ARBN) you will need to provide these. What’s the difference between an ABN and an ACN? Unlike an ABN, which is legally required for all Australian businesses, an Australian Company Number (ACN) is only required if your business is registered as a company. If this is the case (read our article on structuring a business here), then you'll need both an ABN and an ACN. This unique nine-digit number is issued by ASIC and must be displayed on all company documents. Click here to learn more about registering a company . How much does an ABN cost? Registering for an ABN through the Australian Government’s Business Registration Service is completely free. Of course if you choose to use a tax practitioner or another service then that may involve fees, but the process is actually very straightforward, so it's worth having a look yourself before asking for help. How do you apply for an ABN? There are two ways to register for an ABN: Via the online application form on the Australian Business Register website Via the online application form on the Business Registration Service’s (BRS) website . The advantage to applying through the BRS is that you can register a business name at the same time as your ABN application. If you don’t, you’ll need to go back to the Business Registration Service to register your business name. How long does it take to receive an ABN? If you have provided all the relevant information, and your application is successful, you will receive your 11-digit ABN immediately. If, after applying, you receive a reference number it means that the ABR may require additional details or information. Applications are usually received within 20 business days and they will contact you if further information is needed. How do you update your ABN details? To update your ABN details, including your business addresses, contact details, and business activities, simply log in to the Australian Business Register (ABR) online services. Once logged in, select 'Update ABN record' and follow the prompts. Changes made online take effect immediately. If online access isn't available, you can update your details by contacting the ABR directly, consulting your registered tax professional, or completing and mailing the appropriate form. It's important to update your ABN details within 28 days of any changes to your business. What if I forget to update my ABN details? Everyone makes mistakes every now and again, but it really is best to do your best to keep your ABN details up to date. If you forget, the Australian Taxation Office (ATO) could impose a fine ranging from $220 to $4,400, depending on the severity and frequency of the oversight. Also, outdated ABN information can hinder your access to government assistance, especially during emergencies. Government agencies rely on current ABN details, so inaccurate information may result in missed opportunities for support. Starting a business? Zeller has your finances covered. We know you’ve got a lot on your to-do list, but thanks to Zeller you can cross off ‘open a business transaction account’ in as little as six minutes. Plus, with a suite of tools to help you accept payments, manage your expenses and track your cash flow, Zeller will ensure you start your business on solid financial footing. Open a free Zeller Account today and you’ll gain access to: Zeller Transaction Account : a free account to store your funds. Zeller EFTPOS Terminal : the smart way to accept in-person payments. Zeller Debit Card : an expense card that helps you stay on top of business spending. Zeller Invoices : a platform for sending unlimited invoices and getting paid online. Tap to Pay with Zeller App : the easiest way to take payments with no hardware required. Zeller Virtual Terminal : a simple solution for taking payments from a web browser. Zeller App : one convenient app for managing all your business finances from anywhere. And there’s more! We’re constantly updating our tools and features, so stay up to date by signing up to our newsletter . You'll get all the latest Zeller news and updates straight to your inbox.

Follow our small business checklist to help get your new idea off the ground . If you’ve decided to start your own business, it’s likely you’re feeling as excited as you are nervous. Running your own business is an extremely rewarding experience — choosing your own hours, following your passion, and having the freedom to express your creativity are just some of the many benefits. But nothing comes easy, which is why it’s important to equip yourself with as much knowledge as you can before launch day. Being prepared will mitigate the challenges that are part and parcel of entrepreneurship, and will allow you to make the best decisions to set your business on the right trajectory. Coming up with a profitable idea, understanding your target market, and sussing out the competition are all essential first steps, but there’s more to it than that. To give your business the best chance of success, we’ve summarised the ten important steps every Australian business owner needs to take prior to launching. The ultimate business checklist for getting started in Australia 1. Come up with an idea All the most successful businesses solve a problem. No coffee shop close to your local school? That’s a problem for parents. No gluten-free salad dressings on the market? That’s a problem for celiacs. No sustainably-made dog collars? That’s a problem for eco-conscious pet owners. Your ability to fill a gap in the market better than anyone else will be the key to your business’s success. Remember that often, customers won’t even know a problem exists until you present them with the solution. If you’ve never heard of a Portuguese tart before it’s likely that you don’t know that a bakery specialising in Portuguese tarts is missing from your life. So, when searching for or refining your business idea, consider the following: Does my business solve a problem? Does my business improve upon the current product or service offering? Is there an underserved demand for my product or service? Does my product or service bring a new perspective to an existing industry? If you answered yes to one or more of these questions, you’re off to a great start. 2. Research the competitive landscape In order to gauge the size of the market you are entering, you’ll need to research the competition. Look for local competitors that sell the same, or similar, products or services. If there are many, you’re going to need to develop a unique value proposition, that is, an offering that sets you apart from the rest and gives customers a reason to visit your business over an established competitor that they know and trust. This research will allow you to identify gaps in the market and potential opportunities upon which you can capitalise. Additionally, it will help you to develop your own pricing strategy that is competitive and attractive to customers, and will give you an idea of the marketing tactics being used in your space. To stay up to date on the latest developments and announcements, join the mailing lists of your competitors, follow them on social media and set up Google alerts for business names or topics related to your industry. 3. Apply for an ABN and register for GST While these steps won’t apply to every business, the majority of businesses operating in Australia will be required to apply for an Australian Business Number (ABN) and Goods and Services Tax (GST). An ABN is a unique 11-digit identifier that is issued by the Australian Business Register (ABR) to businesses and organisations operating in Australia. It is free to apply and can be done through an online application or by submitting a paper form. It’s important to note that businesses are required to have an ABN before they can register for GST, claim business tax deductions, or access other government services and programs. If your projected annual turnover exceeds $75,000 (or $150,000 for non-profit organisations), you will also need to register for GST. Once registered, businesses must charge GST on their goods and services sold, and remit this amount to the Australian Taxation Office (ATO) on a regular basis. The current rate of GST in Australia is 10%, which means that businesses must add 10% to the price of what they are selling. 4. Understand your legal requirements At best, regulatory requirements are a headache. At worst, they’re a major roadblock. To ensure that you are across all your legal responsibilities and restrictions as a business, it is imperative that you check the Australian Business Licence and Information Service . This online service will help you find any licences, permits, and/or registrations you might need to operate legally in Australia. It may also be a good idea to check with your local council, as some restrictions may only apply to a very small area. For example, in some areas of Melbourne, you are able to roast your own coffee beans on-site, whereas in others, regulations will prevent you from doing so. If you’re ever unsure, it’s a good idea to seek expert legal advice. While it may cost you upfront, it will save you money and stress in the long run. Doing your research early will reduce the burden of compliance later on. 5. Find a name Your business name needs to effectively communicate your brand identity, resonate with your target audience, and help your business stand out amongst the competition. What’s in a name you ask? All of the following. Brand identity: Your business name should be unique, memorable, and reflect your brand identity. Consider what image or impression you want to convey to customers and make sure your name aligns with that vision. Clarity and simplicity: Your business name should be easy to spell, pronounce, and remember. Avoid using complex or obscure words that may confuse or alienate potential customers. Conversely, it should not be so vague that it cannot be easily found when customers search it on Google. Domain availability: Your business name should be available as a domain name so that you can create a website that matches your business name. Check for domain availability before finalising your business name. Legal considerations: Make sure your business name is not already trademarked or being used by another business. Scalability: Consider whether your business name will still be appropriate if your business expands or evolves over time. Avoid using a name that limits the potential growth or diversification of your business. Industry relevance: Consider how your business name relates to your industry or niche. Your business name should be relevant to what you do and appeal to your target audience. Cultural sensitivity: Be mindful of cultural and social sensitivities when selecting a business name. Avoid names that could be offensive or insensitive to certain groups of people. 6. Test your idea Market research, surveys and feedback from small business communities are all valuable. Yet the best way to confirm your business idea is a good one is to start selling your product or service. Paying customers will always be the best source of feedback. A soft launch is a good way to see how people will react to a product before making it available to the greater public. Invite a small pool of people to test your offering. If possible, use the opportunity to take pre-orders and generate some initial funding to cover your first inventory. If you’re selling products such as homemade goods, clothing, homewares or coffees, consider renting a stall at your local market. It’s a cost-effective way to get your business out there and market your product without investing heavily. Additionally, having the opportunity to speak directly with customers lets you gain insight from them and allows you to spread the word about your upcoming opening. If you’re planning on running a service business, consider starting with a discounted trial. Make sure to ask your first customers for a testimonial that you can use in your initial advertisements on social media, or a review on  Google My Business . 7. Write a business plan Whether or not you are looking for investors, lenders or partners, writing a business plan is a highly valuable exercise for any budding business owner. Writing out a detailed overview will help you to articulate and refine your business idea, which will in turn help you to communicate it to anyone you’d like to get on board. It will be a very useful asset to have on hand, at least during the initial stages, as it will serve as a roadmap to keep you on track and to not lose sight of your objectives. It doesn’t matter if you haven’t got all the answers just yet, you can always review and change it later. The first iteration of your business plan should include the company's goals, strategies, and financial projections. While it might be daunting at first, going through each step will likely uncover questions or blind spots and will help you know which tasks to prioritise. Keep the plan manageable and succinct, as you may have to deviate and review it as your business grows. Click here for our step-by-step guide on how to write a business plan . 8. Decide on a legal structure There are a number of ways to legally structure a business in Australia. Knowing the difference now will save you a lot of time and effort down the track as your legal structure impacts critical parts of your business — such as your personal liability and tax obligations. It can also be difficult to change later on. There are five main types of  business structures  to consider when setting up a new business. Sole trader:  an individual trading on their own. Partnership:  a business owned by two or more people who share profits and losses. Company: a legal entity that is separate from its owners (shareholders). Trust: an entity that holds property or assets for the benefit of others (beneficiaries). Co-operative:  a business owned and operated by its members, who share profits and decision-making authority and usually established for recreational, cultural, or charitable purposes. Choosing the right legal structure for a business depends on factors such as the number of owners, liability protection, tax implications, and management structure. It is important to consult with a lawyer or accountant to determine which legal structure is best for your business. 9. Set up a business bank account and organise your finances From tax compliance to accessing funding, planning investments and managing cash flow, there are countless reasons why every business owner needs to organise and streamline their finances from the get-go. It doesn’t have to be as complicated as most of the mainstream banks make it though. Zeller is an Australian provider that simplifies the process in all of the following areas: Business Bank Account: Whether you’re at the very first stages of planning, or are about to launch, having a financial account specifically for your business transactions is essential. Thankfully, at Zeller, setting up a business bank account doesn’t require lining up at a bank branch and filling out reams of paperwork. A free  Zeller Transaction Account  can be set up online in a matter of minutes. From here, you can create as many Transaction Accounts as you need, for allocating money to different business locations, setting aside savings or assigning petty cash. Discover how the Zeller Transaction Account compares to the best business bank accounts in Australia. Business Debit Card:  From purchasing stock to paying bills, suppliers or employees; starting a business means spending money. So, naturally you’re going to need a debit card that is linked to the funds you’ve allocated to your business.  Zeller Debit Card links to your Zeller Transaction Account and can be used to make purchases in-store or online, for any business-related expenses. EFTPOS Terminal for In-Person Payments: If you’re planning a bricks-and-mortar shop front or mobile business, you’ll need a fast and easy solution for accepting card and contactless payments.  Zeller EFTPOS machine is the next-generation solution for in-person payments that processes all cards — including American Express — at a single low rate, with no monthly rental fees. It can be integrated with point-of-sale systems and also offers you the ability to pass on the merchant fee to customers through surcharging. The Zeller Terminal ultimately gives business owners more flexibility and peace of mind knowing they won’t be stung with a hefty fee at the end of the month. Invoicing Software for Online Payments: If you’re planning an online service business, you need to make it as easy as possible for customers to pay you. Zeller Invoices is a great way to get money into your business quickly, and hassle-free. When a customer pays your  online invoice with Zeller, by simply using their credit card — no bank transfers necessary — the funds are settled into your Zeller Transaction Account nightly, 365 days a year (or into a third party bank account the next business day) so you can spend your money as you earn it. Financial Tracking & Reporting System:  At its most basic, this could be an Excel spreadsheet. But, as you’ll soon find out: business owners need to save time wherever possible. This starts with eliminating manual data entry. With a Zeller Transaction Account, all your transactions and expenses will be instantly synced to your Zeller Dashboard and  Zeller Mobile App  where you can track all the money coming in and going out, in real time. Being able to see the net balance of your funds over time allows you to quickly identify spending patterns and make informed business decisions: from rostering to inventory orders or when to push marketing. It will also allow you to calculate the length of your cash cycle, that is, the time it takes for your business to convert its spending (inventory, resources etc.) into cash inflows from sales. 10. Market your business To get your business noticed and draw in potential customers, you’re going to need to do some marketing. What strategies work is going to entirely depend on your product or service and your target market. Therefore, understanding your customer is going to be key in getting your business name in front of their eyeballs. There’s seemingly endless possibilities when it comes to marketing, but here are the major tactics you need to consider: Social media marketing: Facebook, Instagram, Twitter, and LinkedIn are great places to start promoting your business and connecting with potential customers. Content marketing:  Creating and sharing valuable and informative content, such as blog posts or videos related to your product or service is a great way to demonstrate your expertise and attract customers. Search engine optimisation (SEO):  While a little technical, having a basic knowledge of SEO will help your website and content rank higher in search engine results pages. Print marketing: This could include flyers, brochures, business cards, posters, billboards, direct mail, and newspaper or magazine advertisements. Pay-per-click (PPC) advertising: This involves placing ads on search engines and social media platforms, and paying each time a user clicks on your ad. Influencer marketing: Find influencers or partners in your industry who can help to promote your brand and products to their followers. Local marketing:  Target customers in your local area through tactics like local SEO, online directories, and community events. Once your business is up and running and you have a pool of engaged customers, you can also try the following tactics: Email marketing:  If you have a subscriber base, send regular email newsletters and promotional messages to your subscribers to alert them to new products or special offers. Referral marketing:  Encourage your existing customers to refer their friends and family to your business in exchange for rewards or discounts. Get started We understand you’ve got a lot to think about. So, to make life easier for yourself, Zeller will help you out with everything finance and payments related. We’ve worked with thousands of businesses in industries spanning hospitality and retail, beauty, tourism, medical and everything in between. Our Sales Team loves speaking to new business owners to guide them through the weeds and help them get set up. Whether you’re ready to press “launch” or are still in the early stages of developing your idea, our team is always happy to answer any questions you may have. Contact Zeller Sales, or visit our website to learn more about how we can streamline your business.