Quick answer
As an Australian business grows, obligations switch on at milestones. Register an ABN when you start. Register for GST within 21 days of reaching $75,000 in GST turnover. Register for PAYG withholding before you first pay an employee, report through Single Touch Payroll and pay super at 12%. From 1 July 2026, Payday Super means super is paid with wages. Payroll tax and workers' compensation depend on your state.
Key points
- GST registration is required within 21 days of reaching $75,000 in GST turnover.
- Register for PAYG withholding before your first payment you withhold tax from.
- Super is 12% of ordinary time earnings, and Payday Super started on 1 July 2026.
- Each milestone changes your cash flow — plan for it before you cross it.
Growth sneaks up on you. One month you’re doing everything yourself from the kitchen table; a year later you’ve got a team, a premises and a BAS that takes a whole afternoon. Somewhere along the way, a series of invisible lines got crossed — and each one switched on a new obligation that affects your cash flow.
This checklist maps those lines. Use it to see which milestones you’ve already crossed, which ones are coming up, and what each one will do to your money. Every item links to the official source so you can check the detail for your situation.
Milestone 1: You start trading
What switches on:
- An ABN. Register for an Australian Business Number when you start carrying on a business. It’s free through the Australian Business Register.
- A business name, if you trade under anything other than your own name (sole traders) or your company’s exact name.
- Record keeping. Keep records of income and expenses from day one.
- A business bank account. Not a legal requirement for sole traders, but one of the most useful things you can do for your future funding options.
Cash flow impact: Small. But the habits you set now decide how easy funding is later. Mixed personal and business spending is one of the most common reasons early applications stall. Our starting out stage guide covers what lenders look for at this point.
Milestone 2: You reach $75,000 in GST turnover
What switches on: GST registration. Once your GST turnover reaches $75,000 or more, you must register within 21 days. You’ll then charge GST on taxable sales, claim GST credits on business purchases and lodge a BAS.
Cash flow impact: Significant, and often underestimated. The GST you collect isn’t your money — it belongs to the ATO at your next BAS. Many growing businesses get caught out in their first few quarters because the bank balance looks healthier than it really is.
Coaching tip: Open a separate account and move the GST portion of every sale into it. Our cash runway guide shows how to exclude it from your available cash.
Milestone 3: You hire your first employee
What switches on:
- PAYG withholding registration. You must register before you make the first payment you withhold tax from.
- Single Touch Payroll. You report wages, withholding and super to the ATO each pay run through STP-enabled software.
- Super guarantee. Currently 12% of ordinary time earnings.
- Payday Super. From 1 July 2026, super must be paid at the same time as wages, so it reaches the employee’s fund within 7 business days. There’s a longer window for a new employee’s first contribution.
- Workers’ compensation insurance, arranged through your state or territory scheme.
- Fair Work obligations: the right award or agreement, pay slips, leave entitlements and the Fair Work Information Statement.
Cash flow impact: Large. Wages are usually your biggest cost from here on, and Payday Super means super now leaves your account every pay cycle rather than quarterly. A new hire also has a ramp-up period before they fully pay their way.
Planning a hire and wondering how to cover that ramp-up? Our guide to funding a new hire walks through the numbers, or you can ask a real person what fits — there’s no credit check when you first enquire.
Milestone 4: You start paying contractors
What might switch on: If your business pays contractors for certain services — building and construction is one of the best-known examples — you may need to lodge a Taxable payments annual report by 28 August each year.
Cash flow impact: Mostly administrative, but getting the contractor/employee distinction right matters. Misclassifying employees as contractors can create super and tax liabilities later.
Milestone 5: You buy significant equipment
What’s available: For businesses with aggregated turnover under $10 million, the $20,000 instant asset write-off lets you claim an immediate deduction for the business portion of eligible assets costing less than $20,000 in the year they’re first used or installed ready for use. It was extended for 1 July 2025 to 30 June 2026 and made ongoing from 1 July 2026.
Cash flow impact: The write-off reduces tax, but the benefit arrives when your return is assessed, not when you buy. Don’t let a tax deduction drain your runway today. Our equipment funding guide compares paying cash, leasing and borrowing.
Milestone 6: Your wages bill keeps climbing
What might switch on: Payroll tax. It’s a state and territory tax that applies once your total Australian wages exceed your state’s threshold. Thresholds, rates and grouping rules differ between states, and they’re reviewed from time to time.
Cash flow impact: Payroll tax is a new, recurring cost that arrives just as you’re growing. Talk to your accountant well before you expect to cross the threshold.
Milestone 7: You move beyond sole trader
What changes: Many growing businesses move from a sole trader structure to a company or trust. That brings company registration and director obligations, a separate tax return, and often a different way of paying yourself.
Cash flow impact: Setup costs, extra accounting fees and a change in how tax is paid. It can also make funding simpler in some ways (a clear business entity) and more complex in others (director guarantees).
Your milestone checklist at a glance
| Milestone | Key obligation | Official source |
|---|---|---|
| Start trading | ABN, records, business account | business.gov.au |
| $75,000 GST turnover | Register for GST within 21 days | ato.gov.au |
| First employee | PAYG withholding, STP, super, workers’ comp | business.gov.au, ato.gov.au |
| Since 1 July 2026 | Payday Super — super paid with wages | fairwork.gov.au |
| Paying contractors | Possible TPAR by 28 August | ato.gov.au |
| Buying equipment | $20,000 instant asset write-off (eligible businesses) | ato.gov.au |
| Wages over state threshold | Payroll tax | Your state revenue office |
Which milestones affect your funding options?
Each milestone leaves a trail that lenders can see — and that’s good news if you’ve kept on top of things:
- GST registration and regular BAS lodgements show consistent turnover and good habits.
- STP and payroll records show a stable team.
- Up-to-date lodgements across the board are one of the quiet signals lenders value most.
- Missed milestones — late GST registration, unpaid super, overdue BAS — are among the most common things that slow an application down.
If you’re partway through a growth stage, the growing stage guide explains which funding options tend to fit.
An illustrative example
Illustrative only. A dog grooming business run from a converted van crosses $75,000 in turnover in its second year, registers for GST, and a few months later hires its first groomer. The owner hadn’t planned for GST coming out of every booking or for super leaving with every pay run under Payday Super. Within a quarter, the bank balance feels tight despite record sales.
A quick runway check shows four weeks of buffer. The owner opens a tax savings account, moves to monthly GST reporting to make BAS amounts smaller, and uses the funding profile to see what a small buffer facility might look like for the second van she’s planning.
Which milestones do owners most often miss?
The easiest ones to miss are the ones that creep up gradually: GST turnover passing $75,000 part-way through a busy season, wages quietly edging past a state payroll tax threshold, or a casual worker’s hours growing until the role looks more like permanent employment. A quarterly check-in with your accountant, lined up with your BAS, catches most of them early.
Crossing a milestone? Let’s plan the money side
Every milestone on this list is a sign your business is growing — and each one changes how cash moves through it. We help owners plan for those changes, so growth feels exciting rather than stressful.
Enquiring takes around a minute and doesn’t involve a credit check. We don’t forward your details to a pile of lenders; a real person looks at your situation and calls you. Please answer the form accurately — trading time, monthly deposits and what’s coming up next — so we can match you properly first time.
Frequently asked questions
When do I have to register for GST?
When your GST turnover reaches $75,000 or more, you must register within 21 days. You can register earlier voluntarily. Non-profit organisations have a higher threshold.
What do I need to do before hiring my first employee?
Register for PAYG withholding before your first payment you withhold tax from, set up Single Touch Payroll reporting, arrange workers' compensation insurance for your state, and be ready to pay super with each pay run under Payday Super.
What is Payday Super?
From 1 July 2026, employers pay super at the same time as salary and wages, so contributions reach the employee's fund within 7 business days. There's a longer window for a new employee's first contribution.
When does payroll tax apply?
Payroll tax is a state and territory tax that applies once your total Australian wages exceed the threshold set by your state. Thresholds and rates differ, so check with your state revenue office or accountant as your team grows.
Can I still claim the instant asset write-off?
Eligible businesses with aggregated turnover under $10 million can use the $20,000 instant asset write-off, which was extended for 2025–26 and made ongoing from 1 July 2026. Check with your accountant for your situation.