9 Most Googled Tax Questions by SMBs This Year (And the Right Answers)

EOFY may have officially passed, but for Australia’s 2.5 million small and medium-sized businesses, tax time is far from over.

New analysis by accounting software provider QuickBooks reveals the most commonly Googled tax questions from Australian small business owners in the lead-up to June 30, and what the trends say about where confusion is highest. From claiming deductions to understanding business tax rates and return lodgements, the data highlights ongoing knowledge gaps and shifting priorities among business owners.

To help clarify things, Tish Bhagwandeen, a seasoned QuickBooks accountant and founder of Infinance Solutions in Melbourne, answers the top tax questions using plain, practical language. This guide is especially valuable as small businesses continue to lodge, review their finances, and plan for the new financial year.

1. What are the new tax changes for 2025?

(37,990 monthly Google searches in Australia)

One of the biggest questions on SMB owners’ minds this year is how the Federal Government’s Stage 3 tax cuts will affect them. While changes won’t begin until 1 July 2026, it’s worth planning ahead.

Key confirmed changes:

From 1 July 2026, the 16% tax rate drops to 15%
From 1 July 2027, it drops again to 14%
The $20,000 instant asset write-off has also been extended for eligible businesses with a turnover under $10 million

These cuts are designed to ease the cost of living and help address bracket creep.

2. What can I claim as a business tax deduction?

(4,230 monthly Google searches in Australia)

You can generally claim a tax deduction for most expenses you incur while running your business, as long as they are directly related to earning your assessable income.

Assessable income refers to the income you earn that is subject to tax. This includes revenue from sales, fees for services, interest income, and other earnings from your business activities.

However, not all expenses are deductible. You cannot claim a deduction for:

Private or personal expenses (e.g. groceries, personal clothing)
Entertainment costs (e.g. client lunches or staff parties, with limited exceptions)
Fines or penalties (e.g. parking tickets)

3. How much tax does a small business pay?

(2,430 monthly Google searches in Australia)

You will be a small business entity if you’re an individual, partnership, company or trust that is carrying on a business and has an aggregated turnover of less than $10 million.

Your business structure determines your tax rate.

Sole traders: Taxed at marginal rates, meaning your income is taxed in brackets, and the rate increases with income.

Partnerships: Not taxed as separate entities. Income or loss is split between partners and reported on each partner’s personal return.

Example: If a partnership earns $100,000 profit and there are two equal partners, each will declare $50,000 as personal income and pay tax at their own marginal rate.

Trusts: Income is distributed to beneficiaries, who include it in their tax returns and are taxed at their individual marginal rate. If a trust retains income, the trustee is taxed on that amount at 45% plus Medicare levy.

Companies: Companies are taxed as separate legal entities. Most small businesses pay 25% tax on company profits (base rate entity).

4. How do I do my business tax return in Australia?

(2,110 monthly Google searches in Australia)

If you are a sole trader and confident preparing your own return, you can lodge via MyGov. Other structures must lodge via standard business reporting-enabled software or by paper.

It is recommended that you use a registered tax agent because they can:

Ensure accuracy and compliance
Maximise deductions
Offer extended lodgement deadlines
Handle ATO communications and disputes
Provide support for complex tax scenarios
Help avoid errors and penalties
Save time and reduce stress

5. Do businesses have to pay taxes?

(1,810 monthly Google searches in Australia)

Yes. Businesses pay tax if they earn taxable income.

Taxable income = assessable income – allowable deductions

Who pays tax:

Sole traders and partnerships: taxed at the owner’s personal rate
Companies: taxed separately, typically at 25% for small businesses
Trusts: income is taxed in the hands of the beneficiaries

If a business has no taxable income (e.g. due to a loss), it may not owe tax and can carry the loss forward to offset future profits.

6. When is business tax time?

(1,200 monthly Google searches in Australia)

The Australian financial year runs from 1 July to 30 June. That marks the beginning of tax time for businesses.

Lodgement deadlines:

Without a tax agent: 31 October of the same year
With a registered tax agent: 15 May of the following year (if registered before 31 October and lodgement history is on track)

7. How do I get or find my business Tax File Number?

(640 monthly Google searches in Australia)

You can find your TFN through:

The Business Portal via Relationship Authorisation Manager (RAM)
The MyGov portal (for individuals)
Contacting the ATO directly

8. How do I lodge my business tax return?

(530 monthly Google searches in Australia)

It’s always recommended to use a registered tax agent. If you choose to self-lodge:

Sole traders: use the MyGov portal
Partnerships, trusts, companies: use standard business reporting-enabled software or post a paper return to the ATO

9. How long do I need to keep business tax records in Australia?

(480 monthly Google searches in Australia)

You must keep business records for five years. These must:

Explain your transactions
Be in writing (digital or paper)
Be in English or easily translated

Failure to meet these standards may result in penalties or a mandatory record-keeping course.

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