Knowing Victoria’s banking, tax and legal requirements is part of the planning process of doing business in Victoria.
Most banks and credit unions in Victoria offer a variety of business products, such as:
- business accounts
- cheque accounts
- business loans
Products, fees and charges, and interest rates differ from bank to bank. Research which banks offer the best products for your banking needs.
To make the process of setting up your business banking much faster, register your business name (if required) and obtain an Australian Business Number (ABN) before you apply for a business account.
Learn more about opening a business bank account.
The Australian tax year runs from 1 July to 30 June. Once you have your ABN, you may need to register with the Australian Taxation Office (ATO) for certain tax payments. These include:
|Goods and services tax (GST)
||GST is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia.
|Fringe benefits tax (FBT)||FBT is a tax employers pay on certain benefits they provide to their employees.
|Pay as you go (PAYG) withholding
||PAYG instalments require you to pay incremental amounts towards your expected end of year income tax liability.
||Payroll tax is a state tax calculated on wages paid, or payable, by employers and applies in all Australian states and territories.
To find out more about your tax obligations, you can:
- speak to your accountant
- visit the Australian Government’s business.gov.au website
- visit the Australian Taxation Office website.
The ATO provides some introductory information about tax for small business, but we strongly recommend you seek the advice of an accountant or other professional business consultant.
There are certain legal and ethical obligations associated with employing staff, such as:
- meeting at least minimum rates of pay and conditions
- withholding PAYG tax
- paying superannuation (see below)
- maintaining a safe working environment.
The Business Victoria website has a step-by-step guide on your obligations to your employees.
Victorian law says that you must provide a safe and healthy workplace for your workers and contractors. WorkSafe Victoria undertake regular checks of businesses to ensure they are providing a safe working environment.
Workplace health and safety in Victoria is governed by a system of laws, regulations and compliance codes which set out the responsibilities of employers and workers to ensure that safety is maintained at work.
The WorkSafe Victoria website has more detailed information about workplace health and safety legal requirements.
Most businesses will also have some legal obligations to their customers, suppliers, government and the broader Victorian community.
It is vital to know what the legal requirements of running your particular business are. The Australian Business Licence and Information Service website has more information and we highly recommend that you also consult a solicitor or lawyer about your business’s legal obligations.
Retirement savings (superannuation)
Australia has a compulsory retirement savings scheme known as superannuation (also known as ‘super’), which requires all employers to pay their employees an additional 9.5% of their wages into an approved superannuation fund. You can find out more about how super works.
The Australian Securities and Investments Commission (ASIC) website also has an informative section about recent changes to the superannuation system.
Small business support
Small Business Victoria provides low-cost, practical seminars and workshops across a variety of topics for business operators in Victoria.
Visit the Small Business Victoria section of the Business Victoria website for more information, including useful workshops and events.
Get professional advice
Ensure you have good financial and legal advice from consultants familiar with Australian business regulations.
To find an accountant or business consultant in Victoria visit the Significant Investor Services Directory.