Tax can be one of the more complicated parts of running a small business in Australia. Business owners may be focused on customers, sales, employees, and day-to-day operations while tax obligations continue to accumulate in the background.

Many tax mistakes are not intentional. They can happen because of poor record keeping, mixing personal and business expenses, misunderstanding deductions, incorrect GST treatment, missed deadlines, or simply not setting enough money aside to meet tax obligations.

The Australian Taxation Office (ATO) has identified common problems among small businesses including bookkeeping errors, missing supporting documentation, incorrect apportionment of expenses and claims for non-deductible expenses. Good systems, accurate records, and professional advice can help businesses reduce these risks.
Understanding the most common mistakes can help Australian small business owners stay organised, improve cash flow and avoid unnecessary tax problems.

From 1 October 2026, Australians will no longer face separate card payment surcharges when paying with major card networks including Visa, Mastercard and eftpos. American Express has also announced that it will remove surcharging from the same date.

The change is designed to make card payments simpler and more transparent. However, while consumers may no longer see a separate surcharge at the checkout, businesses will still incur costs when accepting electronic payments. Some businesses may therefore choose to incorporate these costs into their standard prices.

For Australian businesses, the change represents more than simply removing a surcharge from a payment terminal. Businesses may need to review pricing, payment processing costs, profit margins, payment systems and customer communications before the new rules take effect.

Receiving an ATO tax debt can be stressful, particularly for small business owners who may not have enough cash available to pay the full amount by the due date.

An ATO of debt can arise for several reasons, including an income tax liability, GST, PAYG withholding, PAYG instalments or other business tax obligations. Having a tax debt does not necessarily mean you need to pay the entire amount immediately if you are experiencing genuine financial difficulty. The Australian Taxation Office provides payment arrangements for eligible individuals and businesses who cannot pay their debt in full by the due date.

However, an ATO payment plan is not a way to make the debt disappear. General interest charge (GIC) continues to accrue on unpaid amounts, including while a payment plan is in place. Paying the debt as quickly as your cash flow allows can therefore reduce the amount of interest that accumulates.
The key is to address the debt early, understand your cash flow, and communicate with the ATO rather than allowing the debt to remain unmanaged.