Business

Tasmania has a positive business environment due to political and economic stability, low establishment and operating costs, a skilled and reliable labour force and excellent support and infrastructure.

Business costs, such as taxes, labour costs, and wage inflation, are significantly lower in Tasmania than other areas of Australia.

Getting Started in Business

The Department of Economic Development and Tourism is the first point of contact for companies wishing to establish, relocate, diversify or expand business in Tasmania. They offer information, advice and referrals to all Tasmanian businesses including information about economic activity for investment options.

Business Enterprise Centres are located throughout Australia and can assist with a wide range of advice and support. Many government and private resources are available to anyone conducting or starting a business.

Licensing for your business

Comprehensive information on the required Local, State and Commonwealth business licences is available from the Business Licence Information Service.

For information regarding the most common approval processes required for development in Tasmania, please see the Planning and Development section. Flowcharts and supplemental information covering the following processes are available: planning permits/development applications, prohibited developments, major infrastructure development approvals, historic cultural heritage works and dam permits.

Registering your business name

Information on registering a business name in Tasmania is available from Consumer Affairs and Fair Trading. Application forms for registering a new business name and other associated forms can be downloaded and lodged at any Service Tasmania shop. An application fee is applicable.

Basic Taxation Information

The Australian Taxation Office is the Commonwealth Government's principal revenue collection agency, whose role is to manage and develop tax, excise and superannuation systems that fund services for Australians.

In Tasmania, the State Revenue Office is responsible for collecting and administering State taxes, conducting audits to ensure all taxpayers pay the correct amount of tax; and providing advice and assistance to taxpayers in regard to all state taxation matters.

Tax File Number (TFN)

Partnerships, companies and trusts need their own Tax File Number (TFN), a unique number issued by the Australian Taxation Office. While it is not compulsory to have a TFN, if you do not have one you may:

• have more tax withheld than necessary
• not be able to receive government benefits you are entitled to receive
• experience delays in the processing of your documents by the Tax Office.

Australian Business Number (ABN)

You may need to register for an Australian Business Number (ABN). The ABN is a unique 11 digit identifying number that businesses use when dealing with other businesses. For example, you generally need to put your ABN on your invoices, or other documents relating to sales. If you do not, other businesses may withhold 48.5% from any payment to you. You also need an ABN in certain dealings with the Tax Office and other areas of government. Registering for an ABN is not compulsory, but you will need one to register for the Goods and Services Tax (GST).

Goods and Services Tax (GST)

Australia has a Goods and Services Tax (GST) of 10%, applied to most goods and services consumed in Australia. Businesses both charge and pay GST. When they lodge tax returns or Activity Statements, the difference between GST paid and collected is either owed to or due from the Australian Taxation Office.

If the annual turnover of your business is AUD $50,000 or more you must register for the GST.

Pay As You Go Withholding

You will need to register with the Australian Taxation Office for Pay As You Go (PAYG) withholding. PAYG withholding is a legal requirement to withhold amounts for income tax purposes. You must send all withheld amounts to the Tax Office.

You can apply for a TFN and/or ABN, register for GST and PAYG withholding online through the Australian Business Register.

State Taxation

Tasmania's overall tax regime is highly competitive, with the second lowest tax severity of all Australian states and territories, as measured by the independent Commonwealth Grants Commission (CGC) in February 2007. One of the key components of tax competitiveness from a business perspective is payroll tax. Tasmania has one of the most competitive payroll tax regimes in Australia for small to medium sized businesses.

Tasmania imposes a range of state taxes, including:

• payroll tax
• land tax
• duties on certain transactions and documents.