With Australia’s end of financial year officially behind us, the real work is just beginning for the country’s 2.5 million small and medium-sized businesses.
While June 30 may be in the rearview mirror, tax season is far from over – and new data reveals exactly what’s keeping business owners up at night.
Fresh analysis from accounting software provider QuickBooks has uncovered the most commonly searched tax questions from Australian SMB owners in the lead-up to EOFY. The findings paint a telling picture of where confusion runs deepest and what priorities have shifted for business owners navigating an increasingly complex tax landscape.
Tax changes lead the pack
The search data reveals some fascinating trends about what’s top of mind for Australian business owners. Leading the pack with nearly 38,000 monthly searches is the burning question: “What are the new tax changes for 2025?” This massive search volume suggests business owners are already planning ahead, despite the fact that the most significant changes – the Federal Government’s Stage 3 tax cuts – won’t kick in until July 2026.
“It’s encouraging to see business owners thinking ahead,” says Tish Bhagwandeen, seasoned QuickBooks accountant and founder of Infinance Solutions in Melbourne. “Planning for tax changes early gives you a real advantage in structuring your business finances.”
The numbers tell a story of businesses grappling with fundamental questions about their tax obligations. Over 4,000 monthly searches for “What can I claim as a business tax deduction?” and 2,400 searches asking “How much tax does a small business pay?” suggest many owners are still unclear on basic tax principles.
Basic questions dominate
What’s particularly striking is how often business owners search for information that should be foundational knowledge. Questions like “Do businesses have to pay taxes?” (1,810 monthly searches) and “When is business tax time?” (1,200 searches) indicate significant knowledge gaps that could be costing businesses money.
The data also reveals a clear divide between business owners who go it alone versus those who seek professional help. While 530 people monthly search for “How do I lodge my business tax return?”, the complexity of the answers suggests why many eventually turn to registered tax agents.
The search trends highlight a key reality: tax compliance isn’t getting simpler. With different rules for sole traders, partnerships, trusts, and companies, plus varying rates and obligations, it’s no wonder business owners are confused.
Bhagwandeen notes that registered tax agents offer several advantages beyond just filing returns: “They ensure accuracy, help maximize deductions, provide extended lodgment deadlines, and handle ATO communications. For most businesses, the peace of mind alone is worth the investment.”
Your questions answered
Based on the most searched queries, here are the practical answers Australian SME owners need:
What are the new tax changes for 2025? The big news is the Federal Government’s Stage 3 tax cuts, though they won’t start until July 2026. From then, the 16% tax rate drops to 15%, then to 14% in 2027. The $20,000 instant asset write-off has been extended for businesses with turnover under $10 million.
What can I claim as a business tax deduction? You can claim most expenses directly related to earning your business income. This includes rent, wages, equipment, and professional services. However, you cannot claim personal expenses, entertainment costs, or fines and penalties.
How much tax does a small business pay? It depends on your business structure:
- Sole traders: Taxed at personal marginal rates
- Companies: Usually 25% for small businesses
- Partnerships: Income flows through to partners who pay personal rates
- Trusts: Beneficiaries are taxed on their share, or the trust pays 45% on undistributed income
Do businesses have to pay taxes? Yes, if you have taxable income (profit after deducting allowable expenses). If your business makes a loss, you may not owe tax and can carry the loss forward.
When is business tax time? The financial year runs July 1 to June 30. Returns are due October 31 if lodging yourself, or May 15 the following year if using a registered tax agent.
Essential admin details
Finding your Tax File Number: Check the Business Portal via RAM for companies and trusts, or MyGov for individuals. You can also contact the ATO directly.
Lodging your return: Sole traders can use MyGov. Other entities need business reporting software or paper returns. Most experts recommend using a registered tax agent for accuracy and extended deadlines.
Record-keeping requirements: Keep all business records for five years minimum. They must explain your transactions, be in writing (digital or paper), and be in English. Failing to comply can result in penalties or mandatory record-keeping courses.
The search data reveals a business community that’s engaged and trying to do the right thing, but often struggling with the complexity of the tax system. Whether it’s understanding deductions, navigating different business structures, or simply figuring out when and how to lodge returns, Australian SMEs are clearly hungry for clear, practical guidance.
As tax season continues and businesses prepare for the new financial year, these insights offer a roadmap for where education and support are needed most. For business owners feeling overwhelmed by the search results, professional help might be the smartest investment they make.
Analysis based on QuickBooks research data examining Google search trends for Australian small business tax queries. Expert commentary provided by Tish Bhagwandeen, QuickBooks accountant and founder of Infinance Solutions, Melbourne.
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