Starting a Business in Melbourne: Accounting Checklist

Do you need an ABN before you start trading?

Yes — you need an Australian Business Number before you invoice anyone. Registration is free through the Australian Business Register and usually takes 24–48 hours. You'll need your tax file number, business structure decided, and a description of your main business activity. Without an ABN, customers are legally required to withhold 47% of any payment to you.

Which business structure is right for you?

The three most common structures for Melbourne businesses each have different liability, tax, and cost profiles. A sole trader is the simplest — your income is taxed at personal rates, setup costs nothing, but you carry unlimited personal liability. A company pays a flat 25% tax rate (for small base entities with aggregated turnover under $50 million) and limits liability to company assets, but costs around $600 to incorporate and carries ongoing ASIC annual review fees. A discretionary trust offers the most flexibility for income splitting among family members but requires a trust deed, a corporate trustee, and proper annual minutes — total setup typically runs $2,000–$3,500 through a good accountant.

Many Melbourne professionals start as sole traders and restructure into a company or trust once revenue justifies it. Getting the structure right early avoids the cost and complexity of restructuring later.

When do you need to register for GST?

Registration is compulsory once your annual turnover reaches $75,000 (or $150,000 for non-profit organisations). You have 21 days from the date you exceed — or expect to exceed — that threshold to register. Register voluntarily before you hit the threshold if your customers are GST-registered businesses, as they can claim your GST as an input tax credit. Waiting too long costs you credibility and can trigger back-dating obligations with the ATO.

When is your first BAS due?

If you're on quarterly reporting, your first BAS covers the quarter ending 30 September and is due by 28 October. Many new businesses miss this deadline simply because they didn't know they were registered. If you lodge through a registered tax agent, extended deadlines apply — typically an additional 4 weeks. Monthly reporting is required if your GST turnover exceeds $20 million; most small Melbourne businesses use quarterly.

What bookkeeping system should you set up?

Cloud-based accounting software — Xero, MYOB, or QuickBooks — is essential from day one. The key is connecting your bank account via a live feed so transactions import automatically. Set up your chart of accounts to match your industry before you start coding transactions; reclassifying hundreds of entries later is painful. Separate your business and personal banking immediately — commingling is the single most common problem we see in new business accounts.

What first-year mistakes do Melbourne businesses most often make?

Not setting aside GST from day one. If you collect GST, that 10% is not your money — hold it in a separate account. The second most common mistake is treating drawings as wages: if you're operating as a company, you need a formal salary arrangement or director's fees, not informal transfers. Finally, many new business owners overlook superannuation obligations for employees, including themselves if paid a salary. The current rate is 12% of ordinary time earnings, payable quarterly, with a penalty unit of $330 per 28-day period for late lodgement of the Superannuation Guarantee charge.