Melbourne is Australia’s second-largest city and a dynamic business hub for finance, retail, technology, healthcare, and professional services. Victoria’s payroll tax structure and Melbourne’s commercial property market add specific tax dimensions for local businesses. These are the top tax and accounting firms serving Melbourne small businesses.
★ HL Recommended
iCompass Accounting
Melbourne accounting firm providing small business tax planning, ATO compliance, and financial consulting for entrepreneurs and growing businesses across Greater Melbourne.
Great for: Melbourne small businesses needing proactive ATO compliance and tax planning
Bizally
Melbourne accounting and advisory firm offering business tax preparation, bookkeeping, and strategic financial services for local entrepreneurs and SMEs.
Great for: Entrepreneurs wanting comprehensive bookkeeping and strategic tax support
Bruce Edmunds & Associates
Melbourne accounting firm serving small and mid-size businesses with tax compliance, superannuation, and business advisory services tailored to Victorian businesses.
Great for: Growing businesses needing reliable Victorian compliance and advisory support
Melbourne businesses pay Australian corporate tax at 25% (base rate entities) or 30% (larger companies). GST at 10% applies to most goods and services, with BAS lodgement required quarterly. Victoria imposes payroll tax on employers with total Australian wages above AUD 700,000 (one of the lower thresholds among Australian states), at a rate of 4.85%. Victoria also imposes land tax on commercial and investment properties, and the Victorian government has introduced a temporary land tax surcharge for certain properties. Superannuation contributions of 11.5% of ordinary time earnings are required for eligible employees.
Victoria’s relatively low payroll tax threshold of AUD 700,000 catches many Melbourne businesses that are growing quickly. The Victorian Commercial Tenancy Relief scheme created significant accounting complexity for retail and hospitality businesses, and ongoing lease adjustments continue to affect financial reporting. Melbourne’s large healthcare sector faces specific issues around practice income structuring, trust arrangements, and professional service entity rules. The technology sector has significant R&D Tax Incentive potential. Victorian land tax, including surcharges on absentee owners and windfall gains tax, requires specialist advice for business owners with commercial and investment property.
Xero and MYOB are widely used in Melbourne for cloud bookkeeping and BAS preparation. The ATO’s myTax handles simple sole trader returns. However, company tax returns, Victorian payroll tax, and Division 7A compliance require professional accounting support.
Many Melbourne businesses use Xero or MYOB for bookkeeping and handle BAS themselves, then engage a local accountant when company tax returns, Victorian payroll tax, or trust and property structuring needs arise.
Melbourne accountants serve businesses across Greater Melbourne including Fitzroy, Richmond, St Kilda, Clayton, Dandenong, and the broader Victorian market.
For help finding the right tax professional in Melbourne, Hustler’s Library is here to point you in the right direction.
Victoria has one of the lower payroll tax thresholds in Australia at AUD 700,000 in total Australian wages annually. The rate is 4.85% on wages above the threshold. Grouping provisions apply, meaning wages of associated businesses can be aggregated for threshold purposes. Monthly returns are required once registered. Melbourne businesses should monitor their total payroll carefully as growth can quickly push them above the threshold, creating a significant new tax obligation. A Melbourne accountant can advise on your obligations and help structure your business to manage payroll tax efficiency.
Victoria imposes land tax on owners of taxable land with a total taxable value above the threshold. The tax is assessed annually based on the total site value of all Victorian taxable land owned by the same owner. Exemptions exist for principal places of residence and certain primary production land, but commercial and investment properties are generally taxable. Victoria introduced a windfall gains tax on land value increases resulting from rezoning decisions. A Melbourne accountant or property tax adviser can assess your Victorian land tax obligations and advise on structuring to manage the cost.
Melbourne businesses registered for GST must lodge Business Activity Statements (BAS) quarterly, reporting GST collected on sales, GST credits on purchases, and PAYG withholding. Quarterly BAS are due 28 days after the quarter end, with extended deadlines for businesses lodging through a tax agent. Most Melbourne businesses use Xero or MYOB to automatically calculate GST and generate draft BAS returns. A Melbourne accountant can review and lodge BAS returns to ensure accuracy and take advantage of any available credits you may have missed.
Melbourne employers must pay superannuation contributions of 11.5% of ordinary time earnings for eligible employees. Payments are due quarterly, and late payments attract the Superannuation Guarantee Charge. Employers must offer eligible employees choice of super fund. From 1 November 2021, employers must make super contributions to an employee’s stapled super fund if the employee has an existing fund and does not choose a different fund. A Melbourne accountant or payroll provider can manage all superannuation obligations and ensure compliance with quarterly deadlines.
Trust structures are commonly used in Melbourne healthcare practices for asset protection and tax planning. Professional practitioners can use a discretionary trust to distribute income to family members in lower tax brackets, subject to the ATO’s professional services income rules. The ATO has specific guidance on service entity arrangements for medical, dental, and allied health professionals that set safe harbour benchmarks for service fees paid to related entities. Healthcare businesses should ensure their trust arrangements comply with current ATO guidance. A Melbourne accountant with healthcare sector experience can structure and review your arrangements to ensure compliance and efficiency.
More Melbourne Business Resources:
Australian Taxation Office (ATO) ↗ | Melbourne Chamber of Commerce ↗
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