The short answer
As businesses grow, tax obligations increase. Learn key tax considerations and how to manage GST, PAYG, and super.
As your business grows, so do your tax obligations: bigger GST bills, PAYG instalments, withholding tax from staff wages and superannuation. The simplest way to stay ahead is to set money aside as you earn it, using separate bank accounts for GST, tax and super, and to review your numbers in Xero with your accountant every quarter.
What changes as revenue grows?
GST: once your turnover reaches $75,000 you must register for GST. From then on, GST you collect isn’t your money; it gets paid to the ATO with your BAS.
PAYG instalments: after your first profitable tax return, the ATO usually puts you into instalments, so you prepay next year’s income tax each quarter.
PAYG withholding: when you hire staff, you withhold tax from their wages and report it through Single Touch Payroll.
Superannuation: you pay super for eligible employees. From 1 July 2026, Payday Super requires super to be paid at the same time as wages.
Payroll tax and WorkCover: larger payrolls bring state obligations too.
Why do growing businesses get caught out?
Because cash comes in before the tax is due. A strong quarter feels like spare money until the BAS arrives. Without a plan, owners end up paying large bills from cash they’ve already spent, or setting up payment plans with the ATO.
How do tax buckets work?
Open separate accounts and move money into them every time you’re paid:
GST account: transfer the GST portion of every invoice (one-eleventh of GST-inclusive sales).
Tax account: set aside a percentage of profit for income tax and PAYG instalments.
Super account: set aside super for every pay run.
When BAS or super is due, the money is already there.
A typical Melbourne scenario
Amira runs a growing marketing agency in Richmond. Revenue jumped from $180,000 to $420,000 in a year and she hired three staff. Her first big BAS, with GST, PAYG instalments and withholding, came to over $40,000. Now she transfers GST and tax into separate accounts weekly and her bookkeeper sets aside super each pay run. Her next BAS was paid in full on the due date with no stress.
How often should you review?
At least quarterly, alongside your BAS. Check your profit and loss in Xero, compare it to last year, and ask your accountant whether your instalments and tax buckets still match your profit. Before 30 June, book a tax planning meeting.
Key takeaways
Growth brings GST, PAYG instalments, withholding and super obligations.
Set money aside in separate accounts as you earn it.
Review quarterly and plan before 30 June.
Payday Super changes when super is due from 1 July 2026.
General information only. Talk to your accountant about your circumstances.
Explore our tax compliance, tax planning and cash flow management services, or see payroll services.
Oz calls accounting "the great art", and his clients would agree. A CPA member and Xero specialist, he joined Elephant to provide a more holistic service that covers every base of building wealth. He believes long-term relationships are the only way to get clients real results. When he's not at his desk, he's at the gym, on his bike, or fishing - ideally all three.
