When starting a new business, one of the most important responsibilities is managing your small business tax compliance obligations, and a big part of that is filing your business tax return every fiscal year. The structure of your business determines how and when you file your tax return with the Australia Taxation Office (ATO).
Every year, your company must file a tax return, and you may be required to file business activity statements on a more regular basis. Your business structure will determine how you file your taxes. Learn how to file returns and your tax payment options.
A Comprehensive Guide to Lodging Your Business Tax Return
Here is our small business tax return help guide for each business structure.
1. Determine the tax requirements for your business type.
Even if you make a loss or do not meet the tax threshold, your company must file a tax return each year. Make sure you understand the rules that apply to your business structure before filing your return:
Sole Trader
– As a sole trader, you only need to file one individual tax return. This will include both your personal and business earnings. You can file your individual tax return in one of three ways:
- Fill out your tax return online using the ATO’s my Tax portal;
- Via a registered tax agent and;
- Fill out a paper tax return and send it to the ATO.
When filing your tax return as a sole trader, use a separate business schedule to include all of your business income on your tax return. You are not required to file a separate tax return for your business.
Partnership
– Although your partnership has its own tax file number (TFN), it does not pay income tax on its profits. Each partner declares their portion of the partnership income on their individual tax return. In addition, your partnership must file a separate partnership return under its own TFN.
If you run your business as a partnership, you must file a partnership tax return in one of three ways:
- Making use of SBR-enabled software;
- Through a registered tax agent and;
- Fill out a paper tax return and send it to the ATO.
Company
– A corporation is a distinct legal entity. You must file a company tax return and pay income tax on the company’s earnings, and you must also file your personal tax return if you are a director.
If you run your business as a company, you must file a company tax return in one of the following ways:
- Using software that supports Standard Business Reporting (SBR);
- Via a registered tax agent (there are a lot of expert accountants who offers cheap business tax return) and;
- Fill out a paper tax return and send it to the ATO.
Trust
– A trust has its own TFN and is required to file a trust income tax return. If your company is organised as a trust, the trustee must file a trust tax return in one of three ways:
Making use of SBR-enabled software.
- Hire a registered tax agent (there are a lot of experts who offer cheap business tax return lodging services) and;
- Fill out a paper tax return and send it to the ATO.
- You may be eligible for tax concessions if you run a not-for-profit (NFP) organisation. You can find a summary of tax concessions for non-profit organisations on the Australian Taxation Office (ATO) website.
2. Recognise the requirements for business activity statements.
When you register for an ABN and GST, the ATO will automatically send you a business activity statement (BAS) when the time comes to lodge. Your BAS enables you to report and pay certain taxes, such as:
- Goods and Services Tax (GST)
- Luxury Car Tax (LCT)
- Wine Equalisation Tax (WET)
- Pay-As-You-Go (PAYG) Withholding
- Pay-As-You-Go (PAYG) Installments
- Fringe Benefits Tax (FBT) Installments
There are several options for lodging your BAS, but most businesses that lodge their own BAS choose the online option.
3. Find out when to lodge your business tax return.
Tax returns are due every October 31st unless lodged through a registered tax agent for the following:
- sole proprietors
- Partnerships
- trusts.
Company returns for self-preparers are typically due on February 28th. If you lodge through a registered tax agent, they will notify you once your tax return has been lodged.
BAS due dates vary; they can be quarterly or monthly.
4. Lodge your tax return or BAS.
Depending on the complexity of your business and taxes, you can file your own return or hire a professional to do it for you.
You can file your tax return in the following ways:
- With the assistance of a registered tax agent
- If you are a sole trader, you can file your taxes online with myTax.
- You can use standard business reporting software if you are a corporation, trust, or partnership.
- By paper.
You can file your BAS in the following ways:
- By using a registered tax or BAS agent
- Online (online services in myGov, online services for business or SBR-enabled software)
- Via phone (for nil BAS statements only)
- Via mail
Ensure your tax or BAS agent is registered with the Tax Practitioners Board (TPB). Look them up in the TPB register to see if they’re registered.
5. Pay your taxes.
To assist you in managing your tax, the ATO provides a variety of self-service tools, including an external website and online services.
You can use BPAY or a credit/debit card to pay.
If you are concerned that you cannot lodge or pay on time, contact the ATO for assistance. The ATO can provide information to assist you in managing your taxes.
EZY Tax Online Helps You with Your Tax Obligations!
Managing your business tax return becomes a hassle for small-and large-scale businesses, especially when dealing with internal business affairs. It takes great effort and time to juggle scaling your business and managing your business tax return.
That’s where EZY Tax Online comes in! EZY Tax Online offers cheap business tax return lodging services and can help manage your tax obligations.
EZY Tax Online is a service for all Australian taxpayers provided by EZY Tax Solutions Pty Ltd, a public practice accounting firm and registered tax agent.
We are a tax back online specialist accredited by two of Australia’s most significant tax expert bodies, The Tax Institute and the National Tax and Accountants’ Association (NTAA).
