Tax and compliance for business accounts in Australia

Snapshot

A business account in Australia is not a tax in itself, but it underpins your tax records. Clean bank records support your GST reporting through business activity statements, and the Australian Taxation Office requires records to be kept for at least five years.

GST threshold: Registration generally compulsory at 75,000 dollars turnover, or 150,000 dollars for not for profit bodies. As of 24 March 2026.
Record keeping: Keep bank records, tax invoices, and BAS for at least five years.
Separate account: Required for companies and trusts, strongly helpful for sole traders.
Most providers: Offer statements and accounting feeds that aid compliance

Fees and features as of 24 March 2026Last reviewed 24 March 2026

General information, not financial, legal, or tax advice. Verify current terms and eligibility with the provider before applying.

In Australia your business account is the backbone of your tax records rather than a tax obligation on its own. Once your GST turnover reaches 75,000 dollars, or 150,000 dollars for a not for profit body, registration for GST is generally compulsory, and from then you charge GST, lodge business activity statements, and keep records. The Australian Taxation Office generally requires records, including bank records, to be kept for at least five years. A separate business account makes this far easier. This is general information, so verify your position with the ATO or a registered tax professional.

How a business account relates to tax in Australia

The account itself does not create a tax, but it produces the records that tax compliance relies on. The main obligations to be aware of are the Goods and Services Tax and the regular business activity statement, both administered by the Australian Taxation Office. Registration for GST is generally compulsory once turnover reaches 75,000 dollars, or 150,000 dollars for not for profit organisations, and you must register within 21 days of knowing you will pass the threshold. You need an ABN before you can register. As of 24 March 2026.

GST and BAS

Once registered for GST, a business charges GST on its sales and lodges a business activity statement on a regular cycle to report and pay what is owed and to claim credits. The figures on a BAS are substantiated by your records, so clean and complete bank records make reporting more reliable. As of 24 March 2026. Verify the current rules with the ATO.

Record keeping

The Australian Taxation Office generally requires GST registered businesses to keep records for at least five years, including tax invoices issued and received, BAS, bank records, and expense receipts. Mixing business and personal money in one account complicates record keeping and GST attribution, which is why a separate business account is recommended and is generally required for companies and trusts. As of 24 March 2026.

What to keep on top of

For tax and compliance tied to your business account in Australia, watch these, as of 24 March 2026. Verify with the ATO

Whether your turnover has reached the GST registration threshold, and registering within the required time.
Lodging your business activity statements on time and keeping the records that support them.
Keeping bank records, tax invoices, and statements for at least five years, ideally with an accounting feed from your account.

How to keep your account compliant

Keep business money in a dedicated business account, separate from personal funds.
Connect your account to accounting software so transactions feed your GST and BAS records.
Confirm your obligations with the ATO or a registered tax professional, since thresholds and rules can change.

Compare business accounts available in Australia

These providers accept business customers in Australia. Fees and eligibility shown as of 24 March 2026. Confirm current terms with the provider before applying.

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Questions about tax and compliance in Australia

When must an Australian business register for GST?

Registration is generally compulsory once GST turnover reaches 75,000 dollars, or 150,000 dollars for not for profit organisations, and you must register within 21 days of knowing you will pass the threshold. You need an ABN first. As of 24 March 2026. Verify with the ATO.

How long must business records be kept in Australia?

The Australian Taxation Office generally requires business records, including bank records, tax invoices, and BAS, to be kept for at least five years. As of 24 March 2026. Verify the current rules with the ATO.

Do you need a separate business bank account for tax in Australia?

A company or trust generally needs its own account, while a sole trader is not always required to have one. A separate business account makes record keeping and GST reporting easier, and mixed accounts complicate compliance. As of 24 March 2026. Verify your situation with a registered tax professional.

What is a BAS?

A business activity statement is the form GST registered businesses lodge to report and pay GST and other obligations to the Australian Taxation Office on a regular cycle. Clear bank records support the figures you report. As of 24 March 2026. Verify with the ATO.

Fees, features, and eligibility change and vary by region. This page was last reviewed on 24 March 2026. Confirm current terms with the provider before applying.

Tax and compliance in Australia