Small Business Checklist: Essential ATO & Financial Steps Before You Launch in Australia

by | 21 May 2026

Thinking of starting a small business in Australia? Having the right financial and tax foundations from day one can save you time, money, and stress later.

At Stellar Accounts, we speak with new and existing business owners every day. This small business checklist covers the 7 most important things you need to know from a taxation and compliance perspective.

Read on to make sure you’re covering all your bases before you launch.

7-Point Small Business Checklist Australia

1. Apply for an ABN

Every sole trader, company, partnership or trust needs an Australian Business Number (ABN).
This is your first and most important step when starting a small business in Australia.

2. Understand Your GST Obligations

  • If your annual turnover is $75,000 or more, you must register for GST.
  • Once registered, you’ll need to lodge a Business Activity Statement (BAS) — monthly, quarterly, or annually.
  • You can voluntarily register for GST even if you’re under the threshold — this can be beneficial if you claim large GST credits.

3. Set Clear Financial Goals and Budgets

Don’t wait until the end of the financial year to see how your business performed.


Create a realistic budget with expected income and expenses. Track your results monthly so you can make timely adjustments and stay in control of your cash flow.

4. Get Professional Advice Before You Start

One of the best investments you can make is speaking to a small business accountant before you launch.
A good advisor will help you choose the right business structure (sole trader, company, trust, etc.), explain your tax obligations, and set up systems that save you money long-term.

💡 Stellar Accounts offers 45-minute consultations from only $75 (in-office or phone). Request a consultation here https://stellaraccounts.com.au/appointment-booking/

5. Implement Strong Record Keeping

“No receipt = no deduction” is the ATO’s golden rule.


Keep clear records of all income and all expenses. Use accounting software (such as Xero or MYOB), spreadsheets, or a simple folder system — whatever works for you. The key is consistency.

6. Keep Proper Logs for Deductions

Maintain records for:

  • Business kilometres travelled
  • Home office usage (hours)
  • Business portion of phone and internet bills

These logs are critical when claiming deductions and can significantly reduce your tax bill if done correctly.

7. Employing Staff?

Know Your Responsibilities

  • Check the correct pay rates under the relevant Modern Award via Fair Work.
  • Decide on employment type: casual, part-time or full-time.
  • Register for PAYG Withholding with the ATO.
  • Pay Superannuation (currently 12%) quarterly for all eligible employees.
  • Issue payslips every pay cycle and keep accurate employee records.

Need Help Getting Started?

Stellar Accounts specialises in small business accounting, bookkeeping, BAS preparation, tax returns, and ongoing business advisory services across Australia.

Whether you’re just starting out or already operating, we can help you set up properly and stay compliant while minimising tax where possible.

Ready to take the next step? Request a 1:1 Business Consultation or call us today.