To start a business in Australia you validate the idea, choose the right structure (sole trader, company, partnership or trust), register an ABN, business name, GST and PAYG, open a separate business bank account, set up Xero and bookkeeping, arrange the right insurances, and plan your tax from day one. Getting the structure and registrations right first protects your assets and legally lowers your tax.

Most people starting a business are focused on the idea. The product, the service, the pitch. What they don’t realise is that the decisions made in the first 90 days, covering structure, registrations, insurance and tax planning, will determine whether the business is tax-efficient, asset-protected, and built to last. Get them right and you’re set up to grow. Get them wrong and you spend the next decade fixing expensive mistakes. If you would rather acquire an established operation than start from scratch, read our guide to buying a business in Australia.

Mina Baselyous, CPA and Chartered Tax Adviser, has worked with hundreds of Melbourne small business owners from before day one through to sale and succession, and Pinnacle Accounting & Advisory holds 81 five-star Google reviews from owners who set up the right way. The biggest differentiator between businesses that thrive and those that struggle? It’s rarely the idea. It’s the foundations.

This guide covers every step you need to take to start a business in Australia the right way — structure, registrations, legal setup, premises, insurance, employment, superannuation, finances, and tax planning. We’ve also put together a downloadable Business Startup Checklist covering every step in this guide so you can tick them off as you go.

Section 1: Validate Your Idea and Write a Business Plan

According to the ATO, the two most common reasons new businesses fail are a lack of validated demand and insufficient capital. In plain terms: nobody wanted what they were selling, or they ran out of money before they could find out.

Start With Simple Validation

Before you register anything, answer these questions honestly:

• Are people already paying for this? (If yes, the market exists. If not, you’re pioneering — much harder.)
• Who are your first five paying customers? Not hypothetical customers — real people who have committed, or would commit, money today.
• What is your unfair advantage? Why would someone choose you over the alternatives?

If you can’t answer these questions, you need more validation before you commit capital to registrations, fit-outs, equipment, or stock.

Writing a Business Plan That Actually Works

A business plan is not a document you write once and file away. It’s a living reference that keeps you honest. At minimum, it should cover:

• Mission and target market — who you serve and what problem you solve
• Revenue model and pricing — how you make money and what you charge
• 12-month cash flow forecast — projected income, outgoings, and the point at which the business becomes cash flow positive
• Competitive advantage — what makes your offer meaningfully different
• Key risks and how you’ll mitigate them

At Pinnacle, we help clients build realistic financial projections and stress-test their numbers before they commit capital. If you’re serious about getting this right, book a consultation before you start — it’s the highest-leverage conversation you’ll have.

Section 2: Choose the Right Business Structure

This is the most consequential decision you’ll make. The structure you choose determines how you’re taxed, how your assets are protected, and how difficult it is to bring in partners, investors, or sell the business one day. Most accountants gloss over this. At Pinnacle, it’s the conversation we insist on having before anything else is registered. For a deep-dive comparison, see our guide to types of business structures in Australia.

Sole Trader

The simplest and cheapest structure to set up. There is no separation between your personal assets and your business — you are the business. This means unlimited personal liability: if the business is sued or can’t pay its debts, your home, savings, and personal assets are at risk. All profit is taxed at your personal marginal rate, which can reach 47% (including the Medicare levy). Suitable for early-stage testing, very low-risk activities, or where annual turnover is modest.

Partnership

Two or more individuals sharing a business. Each partner is jointly and severally liable — meaning you can be held personally responsible for your partner’s actions and debts. A partnership agreement is essential. This structure is rarely recommended for growing businesses due to the liability exposure and complexity it creates.

Company (Pty Ltd)

A company is a separate legal entity. Your personal liability is generally limited to your shareholding (though directors have personal obligations — more on that below). The flat tax rate for base rate entities (small businesses with passive income under 80% of total income) is 25%. All other companies pay 30%. For a direct comparison of the two most common structures for established owners, see our guide to company vs trust.

Important: a company cannot access the individual 50% CGT discount. If you sell the business or a business asset held in a company, the capital gain is taxed at the full company rate with no discount. Director obligations — particularly around ATO lodgements, PAYG, and super — come with personal liability. Failing to meet these obligations can trigger a Director Penalty Notice from the ATO, making you personally liable for the company’s tax debts.

Discretionary (Family) Trust

The most flexible structure for tax planning. A discretionary trust allows the trustee to distribute income to beneficiaries in proportions decided each year — enabling income to be directed to lower-income family members to minimise the overall tax burden. Assets held in the trust are generally protected from business creditors. Individual beneficiaries who receive capital gains distributions from the trust can access the 50% CGT discount — a significant advantage over a company. A corporate trustee (a company acting as trustee) adds an additional layer of asset protection and is strongly recommended.

Unit Trust

Units (like shares) represent fixed entitlements to trust income and assets. Less flexible than a discretionary trust for income splitting, but commonly used in joint ventures or where outside investors are involved, because the ownership interests are clearly defined.

Multi-Level Group Structures: Pinnacle’s Speciality

Most sophisticated Australian business owners don’t operate through a single entity. They use layered structures — and the design of that layering determines how efficiently the business is taxed, how well it’s protected, and how much is available to you after tax. Here are the most common configurations:

• Family Trust → Trading Company: The trust holds shares in the trading company. Business profits flow up from the company (as franked dividends) to the trust, which distributes to beneficiaries at their marginal rates. The franking credits attached to the dividends offset the tax beneficiaries owe.
• Family Trust → Holding Company → Trading Company: A holding company sits between the trust and the trading entity. The holding company receives dividends from the trading company and retains earnings at the lower company tax rate (25% where it is a base rate entity). This is additional asset protection — the trading company runs operations; the holding company accumulates value away from operating risk.
• Investment/Bucket Company: A bucket company can receive distributions from the family trust and pay company tax at 25–30%, effectively “capping” the tax on income that would otherwise push individual beneficiaries into the top marginal rate. Retained earnings in the bucket company then grow at the lower rate.

Which entity holds the stake in your trading entity determines everything: how profits are taxed, how capital gains are treated when you sell, and how well your personal assets are protected if the business faces a claim. This is why the structure conversation must happen before you register anything. For more on CGT outcomes, see our guide to CGT small business concessions.

⚠️ Important — Proposed Legislative Changes (May 2026 Budget):

The May 2026 Federal Budget proposed material changes to the taxation of trust distributions in Australia. These include potential minimum tax rates on distributions from discretionary trusts, and significantly higher effective tax rates — potentially exceeding 60% — on investment and bucket companies that receive distributions from family trusts. These proposals are subject to legislative finalisation and, if enacted, could materially change the after-tax efficiency of trust-based structures. The information in this section reflects current law. Before establishing or changing any business structure, seek current qualified tax advice. This is exactly why proactive planning and regular structure reviews matter — call us before you decide.

Section 3: Registrations — What You Need and When

ABN (Australian Business Number)

Apply via abr.gov.au — it’s free and usually issued within minutes. You need an ABN before you start trading; suppliers and clients will ask for it before paying you. Sole traders apply in their personal name; companies and trusts apply in the entity name (after the entity is established).

TFN (Tax File Number) for the Entity

Each entity — company, trust — needs its own TFN, completely separate from your personal TFN. Apply via ato.gov.au after the entity is established. The entity’s TFN is used for lodging its own tax returns.

Business Name Registration

If you trade under any name other than your own legal name, you must register a business name with ASIC. Costs from $44 per year (1-year registration) or $102 for 3 years. Renewal is mandatory — don’t let it lapse, as you lose the name. See our guide to ASIC annual review fees and business registrations for full compliance details.

Trade Mark Registration — Not the Same as a Business Name

Registering a business name with ASIC is not the same as protecting your brand. A business name registration simply records that you are trading under that name — it gives you no exclusive right to use it, and it does not prevent a competitor from operating under an identical name in another state or in a different industry. A trade mark registration through IP Australia gives you exclusive legal rights to use your brand name, logo, or slogan across the nominated goods and services class in Australia. The application fee is approximately $250 per class, and registration is valid for 10 years (renewable). If your brand is core to your business — as it is for almost every consumer-facing operation — file your trade mark application before you launch, not after a competitor has beaten you to it.

Industry-Specific Licences and Permits

Depending on your industry, you may need additional licences or permits before you can legally trade — these are entirely separate from your ABN and business name registration. Common examples in Victoria include: a builder’s or tradesperson’s licence (Victorian Building Authority), a food business registration (local council), a liquor licence (Victorian Commission for Gambling and Liquor Regulation), an Australian Financial Services Licence (ASIC), or a real estate agent’s licence (Consumer Affairs Victoria). Operating without the required licence can void contracts, attract significant penalties, and in some cases result in criminal liability. Check requirements with your state regulator and industry association before you open for business.

GST (Goods and Services Tax)

GST registration is mandatory once your annual turnover reaches $75,000 (or $150,000 for non-profits). If you drive Uber, taxis, or other rideshare, you must register from day one regardless of turnover. Below the threshold, registration is optional — but voluntary registration lets you claim GST credits on your business purchases. Once registered, you lodge a BAS (Business Activity Statement) quarterly (or monthly if your turnover exceeds $20 million), and remit 1/11 of your GST-inclusive sales to the ATO.

PAYG Withholding

Register for PAYG withholding when you employ staff or engage contractors under a voluntary withholding agreement. As a registered withholder, you deduct tax from wages and contractor payments on the ATO’s behalf and remit it via your BAS. Failing to register and remit is a serious compliance issue.

PAYG Instalments — Don’t Confuse This With Withholding

PAYG instalments are different. This is the system for prepaying your own income tax quarterly, rather than facing a large lump-sum bill after your annual return is lodged. The ATO automatically enrols you after your first tax return shows a tax liability above the threshold. You pay quarterly instalment amounts — either the ATO’s calculated figure or a varied amount you nominate if your income has dropped. Varying your instalment down must be done before the due date. Understanding this from day one prevents the “surprise” tax bill that catches so many new business owners in their second year.

Payroll Tax — A State Tax That Grows With You

Payroll tax is a state and territory tax on wages paid by employers — it is entirely separate from the PAYG withholding you remit to the ATO. In Victoria, payroll tax applies once your total Australian taxable wages exceed $900,000 per year (the 2024–25 threshold). Most new businesses are well below this level at the start, but the threshold can be reached faster than expected — particularly once certain contractor payments are counted, as arrangements where contractors are effectively engaged on a labour-hire basis can be grouped with wages for payroll tax purposes. The rate and threshold differ by state: NSW, QLD, and SA each operate different settings, and if your business operates across multiple states, you may need to register in each relevant jurisdiction once combined wages exceed the applicable threshold. In Victoria, payroll tax is reported and paid to the State Revenue Office (SRO). Plan for it as you grow — the liability can appear suddenly and be material.

Fringe Benefits Tax (FBT) Registration

If your business provides benefits to employees or their associates that are not cash salary — including a company car available for private use, payment of personal expenses such as school fees or gym memberships, or loans at below-market interest rates — you may be liable for Fringe Benefits Tax. FBT is paid by the employer at a flat rate of 47%. Crucially, the FBT year runs from 1 April to 31 March — not the standard 1 July to 30 June tax year — and FBT returns are due 21 May (or later when lodged through a registered tax agent). Register for FBT with the ATO before you provide any such benefits. The motor vehicle decisions discussed in Section 10 are one of the most common FBT triggers — getting advice on vehicle arrangements before purchase is essential, not an afterthought.

Fuel Tax Credits

If your business uses fuel in heavy vehicles (over 4.5 tonnes) or in off-road machinery and equipment, you’re entitled to claim fuel tax credits. These are claimed on your BAS and can be substantial for trade businesses, transport operators, and those with diesel-powered machinery.

Section 4: Legal Setup — Get It Right Before You Trade

Registering a Company

Register your Pty Ltd company with ASIC via ASIC Connect ($576 registration fee). You’ll need to adopt a constitution (you can use ASIC’s replaceable rules or a solicitor-drafted custom document), establish a share register, issue shares, and appoint directors and a secretary. Your obligations as a director begin immediately — ATO lodgements, PAYG, superannuation — and failing to meet them can result in a Director Penalty Notice making you personally liable for the company’s debts.

Establishing a Trust

A trust deed must be prepared by a solicitor. The deed names the trustee (ideally a corporate trustee — a Pty Ltd company set up for this purpose), the appointor (who has the power to change the trustee), and the classes of beneficiaries. In Victoria, the trust deed must be stamped with the State Revenue Office. The trust’s bank account is opened in the trustee’s name “as trustee for [trust name]” — not in the trust’s name directly, as a trust has no legal personality of its own.

Shareholders’ Agreement — Essential If You Have More Than One Owner

If your business has two or more owners — whether through a company share structure or a trust with multiple unit holders — a shareholders’ agreement (or unitholders’ agreement for a trust) is one of the most important documents you will sign, and it must be in place before you start trading together, not after a disagreement has already begun. This document governs what happens in the situations business partners never want to think about at the start:

• Exit: If one owner wants to leave, what is the process? How is the price determined? Does the remaining owner have first right of refusal before shares can be sold to an outside party?
• Death or incapacity: A buy-sell clause — typically funded by life and TPD insurance on each owner’s life — allows the surviving owners to buy out a deceased or incapacitated partner’s interest at a pre-agreed price, rather than suddenly finding themselves in business with that person’s estate or family.
• Deadlock: When equal shareholders cannot agree on a material decision, what is the resolution mechanism?
• Restraint of trade: If an owner exits and immediately sets up a competing business, what protections apply to the remaining operation?

Have a commercial solicitor draft this before you begin trading. A well-drafted shareholders’ agreement costs a fraction of what a shareholder dispute costs to resolve — and in the absence of one, the Corporations Act default rules apply, which rarely reflect what the parties actually intended.

Set Up Separate Business Bank Accounts — From Day One

Mixing personal and business money is one of the most common and costly mistakes new business owners make. From the moment you start trading, you need at minimum the core business bank accounts every owner needs:

• Business operating account — all income flows in, all business expenses flow out. Nothing else.
• Tax reserve account — transfer approximately 30% of every payment received into this account immediately. This covers GST liability and income tax. This money is not available to spend. Treating it as available is how businesses end up with ATO debt.
• Payroll account (if you have employees) — wages are paid exclusively from this account, keeping payroll visible and auditable.

Watch Mina walk through business bank account setup for Australian small business owners:

https://www.youtube.com/watch?v=GInudl6jcBg

Section 5: Your Premises — Home, Lease, or Own It?

Working From Home

There are two ways to claim home office expenses as a tax deduction, and the difference between them is significant:

• Running costs only (67c per hour method): Covers electricity, internet, stationery, and similar costs. Calculated at 67 cents per hour of business use. This method has no capital gains tax impact on your home.
• Occupancy expenses (proportional method): Covers rent, mortgage interest, rates, and insurance — apportioned by the percentage of the home used for business. This provides a higher deduction but comes with a serious catch: it partially erodes your main residence CGT exemption. When you eventually sell your home, the ATO will tax a proportional share of the capital gain — the share attributable to the period and area used for business.

Many business owners don’t discover this until they’re sitting at a settlement and find a CGT liability on what they believed was a tax-free family home sale. Get advice before you decide which method to use.

Capital Gains: Sole Trader vs Company or Trust — A Critical Difference

This is one of the most important distinctions in Australian tax law, and it’s almost always overlooked at the beginning of a business

Sole trader using personal property commercially: The property sits in your name. Any capital gain on sale is taxed at your marginal rate (up to 47%), although the 50% CGT discount applies if the property was held for 12 months or more. More critically, if you’ve been claiming occupancy expenses, you’ve been progressively eroding your main residence exemption year by year. That exemption could have sheltered 100% of the gain had you not claimed those deductions. Even without formal occupancy claims, if part of your home was exclusively and dedicated to business use (a sealed home office, a workshop), the ATO can still apportion the exemption. The key word is “exclusive” — a room that doubles as a family study does not trigger this.

Company or trust holding commercial premises: At entity level, a company pays 25–30% on any capital gain with no individual 50% discount. A trust, however, can distribute capital gains to individual beneficiaries who do have access to the 50% discount — often producing a dramatically better tax outcome on the sale of commercial property. This is why the entity holding your business premises matters enormously. Get advice before you acquire commercial property, not after. Once the property is in the wrong name, restructuring is expensive and may trigger its own CGT event.

Renting Commercial Premises

If you’re leasing a commercial space, have a commercial lawyer review the lease before you sign. Make-good clauses (obligations to restore the premises at lease end), personal guarantees from directors, and rent review mechanisms are common traps that can cost significantly more than they appear to at the outset. The rental payments themselves are fully deductible business expenses. Note that most commercial leases attract GST for GST-registered landlords — confirm whether the rent quoted is GST-inclusive or exclusive.

Buying Business Property Via Your SMSF

Your Self-Managed Super Fund (SMSF) can purchase commercial property — including a warehouse, office, or retail space — and lease it back to your business at market rent. This is one of the most powerful wealth-building strategies available to established business owners:

• Rent paid by the business is fully tax-deductible
• Rent received by the SMSF is taxed at just 15% (or 0% in pension phase)
• When the SMSF sells the property after holding it for 12+ months, CGT in accumulation phase is 10% — in pension phase, potentially 0%
• You’re effectively renting from yourself while building retirement wealth inside a tax-advantaged structure

This strategy requires specialist SMSF advice and careful compliance with superannuation laws. Seek qualified SMSF guidance before proceeding.

Section 6: Insurances — Non-Negotiable Protection

Insurance is not optional. It’s the difference between a problem and a catastrophe. Here are the key insurances every new business owner should have in place before trading:

Public Liability Insurance

Covers injury or property damage caused to third parties — a client who slips in your office, a customer whose property you damage during a job. Most landlords, councils, and large clients require evidence of public liability cover before you can even start work. This is almost always the first insurance a new business needs.

Professional Indemnity Insurance

Covers claims arising from professional advice, design, or services — a client who suffers a financial loss as a result of advice you gave. Essential for consultants, accountants, architects, engineers, financial planners, and IT professionals. Often required by professional bodies as a condition of membership.

Workers Compensation

Mandatory in Victoria as soon as you employ any worker — full-time, part-time, or casual. Workers compensation covers employees injured at work, including medical costs and lost wages. Managed through WorkSafe Victoria. Premiums are calculated based on your payroll and industry classification. Failing to hold a policy is a serious offence.

Key Person Insurance

If you are the primary revenue generator in the business, what happens if you’re hospitalised for three months? Key person insurance pays the business a benefit to cover lost revenue, loan repayments, or the cost of bringing in a replacement while the key person is unable to work. This is particularly critical for sole-owner professional services businesses where the entire revenue stream is dependent on one person’s capability and availability.

Income Protection (Personal)

Protects your personal income if you’re unable to work due to illness or injury. Unlike employees, business owners have no sick leave, no employer-funded total and permanent disability cover, and no workers compensation for themselves. Income protection is often most cost-effective when held inside superannuation. Business owners are uniquely exposed — this cover should be in place from day one.

We can refer you to trusted specialist insurance brokers in our network. Speak with us at your strategy consultation.

Section 7: Employing People — Staff vs Contractors

The ATO’s Worker Classification Test

The distinction between an employee and a contractor is not determined by what you call them, whether they have an ABN, or whether they invoice you. The ATO applies a multi-factor test that looks at the whole relationship:

• Degree of control: Who directs how and when the work is done?
• Integration: Is the worker integrated into the business, or are they running their own operation?
• Financial risk: Who bears the financial risk if the work is unsatisfactory?
• Tools and equipment: Who supplies them?
• Ability to subcontract: Can the worker delegate the work to someone else?

Misclassifying a worker as a contractor when they are legally an employee exposes you to back-payment of superannuation, PAYG withholding, and penalties. The ATO actively audits this area.

Superannuation Guarantee Obligations for Employees

The Superannuation Guarantee (SG) rate for FY 2025-26 is 11.5%, rising to 12% from 1 July 2026. Super must be paid quarterly by the due dates — 28 October, 28 January, 28 April, and 28 July. Paying even one day late triggers the Super Guarantee Charge (SGC), which is not tax deductible and attracts additional penalties. From 2026, the payday super reforms change when super must be paid, so it is worth getting your payroll cycle right. Understand the consequences — read our full guide to the Super Guarantee Charge.

Super Obligations for Contractors

This is one of the most commonly misunderstood areas of employment tax law. If a contractor works principally for your business and is operating as an individual or sole trader (not through their own company or trust), you likely owe them superannuation at the SG rate — even if they invoice you, even if they have an ABN. If the contractor operates through their own company or trust, SG generally does not apply to the company or trust. Get this wrong and you face the same SGC consequences as a missed employee super payment. For a detailed breakdown, read our guide to super obligations for contractors and subcontractors.

The Paperwork: What You Need Before Day One of Employment

• TFN declaration form from each employee
• Superannuation Standard Choice Form
• Fair Work Information Statement (mandatory to provide to all new employees)
• Single Touch Payroll (STP) registration — mandatory for all employers from their first pay event

Fair Work Obligations

You must understand your industry award or enterprise agreement and pay at minimum the award rates for the relevant classification. The National Employment Standards (NES) set minimum entitlements that apply to all employees — including notice periods, annual leave, personal leave, and redundancy entitlements. Unfair dismissal protections apply after a qualifying period — document any performance issues and follow a fair process.

Section 8: Your Own Superannuation as a Business Owner

Business owners are acutely focused on growing their business — and almost universally neglect growing their super. This is one of the most common retirement planning failures we see. Unlike employees, no one is automatically paying super on your behalf unless you set it up yourself.

If You’re a Director Drawing a Salary

If you pay yourself a salary or wage through your company, the company must pay SG contributions on that salary — the same obligation as for any employee. Beyond the mandatory SG, consider salary sacrificing additional amounts into super up to the concessional contributions cap of $30,000 per year (including the SG amount). Contributions within this cap are taxed at just 15% inside super — significantly lower than most business owners’ marginal tax rates.

Personal Deductible Contributions

If you’re self-employed or your employer contributions fall short of the $30,000 concessional cap, you can make personal contributions to super and claim them as a tax deduction. Submit a valid notice of intent to your fund before lodging your tax return. The deduction reduces your assessable income — an effective way to fund your retirement while reducing your tax bill.

SMSF for Business Owners

A Self-Managed Super Fund gives you full control over your investment strategy — including the ability to purchase business real property and lease it back to your business (as discussed in Section 5). Setup and ongoing compliance costs are higher than retail or industry funds; an SMSF generally becomes cost-effective from approximately $250,000 in total member balances. An SMSF requires a licensed auditor annually and comprehensive record-keeping. The flexibility and tax efficiency available to business owners through an SMSF are unmatched — but it must be managed properly.

Section 9: Set Up Your Finances

Accounting Software: Before You Trade, Not After

Set up cloud accounting software before your first transaction, not six months in. At Pinnacle, we recommend Xero to every new business client — and for good reason. Xero connects directly to your Australian bank accounts via automated bank feeds, so transactions flow in automatically and you’re reconciling in real time rather than scrambling at quarter end. BAS preparation is largely automated, your bookkeeper and accountant can access the same live file simultaneously without emailing spreadsheets back and forth, and you have a clear snapshot of your profit and cash position any time you log in. It also makes it straightforward to give your accountant direct access to your books — no file transfers, no version conflicts. For a step-by-step look at how Xero’s core reconciliation workflow operates, see our Xero bank reconciliation guide for Australian businesses. Clean, real-time records from day one give you:

• Instant visibility of your profit and cash position at any time
• Automated BAS preparation — no scrambling at quarter end
• Meaningful management reports that tell you where the business actually stands
• A clean audit trail if the ATO ever asks questions

Engage a Bookkeeper From Day One

DIY bookkeeping is one of the most expensive forms of false economy in small business. A competent bookkeeper costs $500–$1,500 per month depending on complexity. The cost of fixing 12 months of incorrect bookkeeping — and the consequential cost of tax decisions made on the basis of wrong numbers — is almost always significantly higher. Your time spent doing your own books is time not spent generating revenue. Outsource it from the start.

ATO Record-Keeping Requirements

The ATO requires business records to be kept for five years. This includes all invoices, receipts, contracts, bank statements, and payroll records. Cloud storage linked directly to your accounting software is the modern standard — attach receipts as they happen via mobile apps, rather than trying to reconstruct everything at tax time from a box of paper.

Understanding Your Business Activity Statement

If you’re registered for GST, you lodge a BAS quarterly (or monthly for turnovers over $20 million). Your BAS summarises GST collected on sales, GST paid on purchases (input tax credits), PAYG withholding you’ve deducted from employee wages, and PAYG instalments you’re prepaying on your own income. The net figure is what you pay or receive. BAS is due 28 days after the end of each quarter — this deadline is extended by one month when you lodge through a registered tax agent, which is a practical reason to engage one from day one.

Section 10: Tax Planning, Digital Presence and Other Essentials

Tax Plan From Day One — Not June

The single biggest tax planning mistake new business owners make is waiting until after 30 June to think about tax. By then, almost every strategy is off the table. Effective tax planning happens throughout the year — particularly in the March-to-June quarter. Work with your accountant quarterly to understand your estimated tax position, make informed decisions about distributions, super contributions, timing of deductible asset purchases, and prepayments. Our tax planning service is built specifically for business owners who want to be proactive, not reactive.

Division 7A — The Trap Inside Every Company

Division 7A is one of the most frequently triggered — and most expensive — tax traps for new Pty Ltd directors. If you take money from the company for personal use without a formal complying loan agreement, the ATO treats it as an unfranked dividend — taxable at your full marginal rate, with no franking credits to offset it. This applies even to informal “I’ll put it back” arrangements. Establish proper loan agreements from day one. Review them annually with your accountant. The consequences of getting this wrong are significant.

Motor Vehicle Decisions

Who purchases the vehicle, how it’s financed, what it’s used for, and what logbook records you maintain all affect what you can legitimately claim. The differences between personal and business ownership, chattel mortgage and novated lease, and the logbook method vs the cents per kilometre method can add up to thousands of dollars in additional tax annually. See our detailed guide to car tax deductions for the full breakdown.

Digital Marketing — Be Findable

Once your structure, registrations, and finances are in place, your next priority is visibility. In 2026, a business without a strong digital presence is effectively invisible to potential customers doing online research. A professional digital marketing agency that understands small business can build your Google presence, social media strategy, and paid advertising — ensuring the business you’ve worked hard to set up actually gets found. We work closely with trusted digital marketing partners and can refer you to professionals who understand your market.

Build Your Advisory Team Early

Certain decisions require specialist legal, financial planning, or insurance advice — structuring, SMSF setup, business sale, partnership agreements, and key person coverage all fall into this category. The business owners who navigate these decisions best are the ones who built their advisory team before they needed it. The combination of a trusted accountant, solicitor, financial planner, insurance broker, and digital marketing specialist is the infrastructure of a well-run business. We can connect you with professionals we trust across all of these disciplines.

Starting a business is one of the most significant financial decisions you will ever make. Getting the foundations right — structure, registrations, insurance, superannuation, and tax planning — from the very beginning saves years of expensive corrections. Mina and the team at Pinnacle Accounting & Advisory work with Melbourne small business owners from before day one through to sale and succession. Book a consultation to get your foundations right.

General Advice Warning: The information provided in this article is general in nature and does not constitute personal financial, tax or legal advice. It has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on this information, you should consider its appropriateness having regard to your own circumstances. Pinnacle Accounting & Advisory is not a licensed financial adviser. For advice tailored to your situation, please contact us directly.

Frequently Asked Questions

This article contains general advice only and does not take into account your specific circumstances. Please speak with a qualified accountant or tax adviser before making financial decisions.

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