The 'ready for business' initiative comes as statistics show about half of businesses fail within their first three years, often due to mismanagement of ATO obligations.
Australian Business Number holders will receive a series of educational emails covering topics such as business structures, GST registration and employer responsibilities.
“Our goal is to provide small businesses with guidance, tools and tips, so new business owners can focus on growing their business with confidence,” ATO deputy commissioner Will Day said.
“Small businesses are vital participants in the tax and super system. As stewards for small businesses, our role in making it easy for small business owners to get their tax and super right is more important than ever.”
The ATO estimates that nearly $8 billion in GST goes uncollected annually due to non-compliance.
Businesses must register for GST when their turnover reaches $75,000 or if they provide taxi, limousine or ride-sourcing services.
“Don't be tempted to dip into GST, PAYG withholding or super to manage your cash flow — set up separate bank accounts for these funds so you're always prepared when it’s time to pay,” Mr Day said.
The initiative follows successful compliance action in early 2025 targeting ride-sourcing operators and taxi drivers, which resulted in over 3000 new GST registrations.
With more than 700,000 taxpayers now operating ‘side hustles’ in the gig or sharing economy, the ATO is emphasising the importance of understanding tax obligations when hobbies become profit-making ventures.
The ATO is also encouraging new business owners to consider voluntary Pay As You Go instalments to avoid large tax bills at the end of their first year.
Visit ato.gov.au/areyouinbusiness to learn more about whether your activities qualify as a business and understand your obligations.
