This information is brought to you by business.gov.au
Franchisee businesses can operate under various structures (for example a partnership or company). Like any business, your structure, earnings and assets will determine your taxation obligations.
Ongoing franchise fees are often deductible in the year you pay them. You might be able to deduct other payments including training fees and loan interest from your taxable income.
When you buy, sell, transfer or terminate a franchise there may be taxes applicable, including Capital Gains Tax (CGT) and Goods and Services Tax (GST).
What to do…
- Download the Franchising and tax -Tax facts for new small business guide for further information on your tax obligations.
- Download the Australian Competition and Consumer Commission’s Franchisee start-up checklist .
- Visit our Taxation topic for more general tax information.
- See our Business finances topic for information on improving your financial knowledge.
- Consult a business adviser, accountant or solicitor for advice.
- Find out about buying a franchise in your state or territory.