Perth Franchise Tax & Bylaw Guide - Western Australia

Taxation and Finance Western Australia 4 Minutes Read · published February 11, 2026 Flag of Western Australia

Perth, Western Australia franchises must navigate a mix of municipal bylaws, state taxation and federal tax obligations. This guide explains which local council requirements commonly affect franchised businesses in Perth, outlines the state payroll tax and federal GST issues that typically apply, and shows where to find official forms, compliance contacts and appeal routes. It is focused on practical steps for owners, managers and franchisees who operate within the City of Perth area or other WA local governments.

Overview of applicable taxes and bylaws

Franchises in Perth usually face three categories of obligations: local council requirements (business licences, signage, waste and rates), Western Australian state taxes (notably payroll tax for employers) and federal taxes (income tax and GST). Local councils do not levy a specific "franchise tax" but they do impose business-related charges and regulatory obligations that affect franchises. For City of Perth business licences and local regulatory requirements see the council guidance.[1]

Penalties & Enforcement

Enforcement is split by level: local compliance officers and by-law enforcement at the council level for municipal rules, state revenue officers for payroll tax, and the Australian Taxation Office (ATO) for GST and income tax. Specific monetary penalty amounts and fixed fines vary by instrument and are sometimes set at state rather than municipal level; where an exact figure is not shown on the cited official page this is noted below.

  • Monetary fines: not specified on the cited City of Perth pages for generic business licence breaches; specific amounts depend on the relevant bylaw or fee schedule and may be published with the individual offence or fee notice.[1]
  • State tax penalties (payroll tax): penalty rates and interest for late payroll tax payments are set by the WA State revenue authority; exact penalty figures are not specified on the high-level guidance pages cited here and should be checked on the state revenue pages.[2]
  • Federal tax penalties (GST/income tax): the ATO applies administrative penalties and interest for late lodgment and payment; specific penalty calculations are set out on ATO pages about lodgment and penalty regimes.[3]

Escalation and continuing offences

  • First versus repeat breaches: councils typically escalate from warnings to infringement notices and then to prosecutions or orders; exact escalation steps are defined in the relevant bylaw or enforcement policy (not specified on the cited City of Perth business overview).[1]
  • State revenue and ATO escalate using interest, penalty units or administrative penalties and may proceed to court action for serious or persistent non‑compliance.[2][3]

Non-monetary sanctions

  • Council orders: remedial notices (e.g., remove unauthorised signage), suspension of council approvals or cancellation of local approvals where the bylaw allows.
  • Operational restrictions: stop-work or compliance directions for building/health breaches enforced by the relevant municipal or state agency.
  • Court action and recovery: state agencies and the ATO may take matters to court to recover unpaid tax or enforce penalties.
Record and retain licences, signed franchise agreements and payroll records for at least five years to support compliance and appeals.

Applications & Forms

Typical forms and applications that franchised businesses in Perth may need include:

  • Local business licence applications or approvals (City of Perth business licences page lists application steps and contact points; specific form numbers may be published per licence type).[1]
  • State payroll tax registration and returns — employers must register if they meet WA thresholds; registration and return methods are set by the state revenue authority and online lodgment is typical.[2]
  • ATO GST registration and business activity statements — GST registration is done via ATO channels and lodgment/payment deadlines are set by the ATO.[3]

Practical compliance steps for franchise operators

  • Confirm whether your business model requires a City of Perth business licence or local approvals for signage, outdoor dining or waste services and apply before opening.[1]
  • Register for WA payroll tax if employer payroll exceeds the state threshold; use the state revenue online services for registration and returns.[2]
  • Register for GST with the ATO if turnover meets the GST registration threshold and lodge Business Activity Statements on time to avoid ATO penalties.[3]
  • Set up an internal calendar for licence renewals, council inspections and tax lodgment deadlines to reduce risk of fines.
If in doubt about a municipal requirement, contact the City of Perth by phone or the online enquiry form before committing to a fit-out or advertising spend.

FAQ

Do local councils in Perth charge a specific "franchise tax"?
No; local councils do not levy a specific "franchise tax" but may require business licences, rates and approvals that affect franchises. See the City of Perth business licences guidance for details.[1]
Will my franchise pay payroll tax in Western Australia?
If your payroll exceeds the WA threshold you must register and pay payroll tax to the state revenue authority; check the state registration guidance for thresholds, lodgment cycles and penalties.[2]
Does GST apply to franchise fees?
GST rules are federal; many franchise fees are assessable for GST depending on whether the supply is taxable. Register and consult ATO guidance on GST for businesses if turnover meets the threshold.[3]

How-To

  1. Confirm your business location and check the relevant local council business licence and signage rules for that LGA.[1]
  2. Register for an Australian Business Number (ABN) and, if required, register for GST via the ATO website.[3]
  3. Assess payroll obligations and register for WA payroll tax if payroll exceeds the state threshold; follow state lodgment and payment instructions.[2]
  4. Maintain payroll, BAS and licence records and lodge returns on time; correct errors promptly with the relevant authority.

Key Takeaways

  • There is no separate municipal "franchise tax" in Perth; compliance is a mix of local licences, rates and approvals.
  • State payroll tax and federal GST are the primary statutory tax obligations for franchised businesses.
  • Check official City of Perth, WA state revenue and ATO pages and act early to avoid escalation and penalties.

Help and Support / Resources

  1. [1] City of Perth - Business licences and approvals
  2. [2] Western Australia Department of Finance / payroll tax guidance and contacts
  3. [3] Australian Taxation Office - GST for businesses

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