How to Lodge a Business Tax Return in Australia

Every business structure in Australia, sole trader, partnership, company and trust, has a lodgment obligation each year, even where the business made a loss or earned nothing. What changes between structures is which return gets filed, whose tax file number it goes under, and which due date applies. Getting the structure-specific detail right matters more than the mechanics of lodging itself.

Which return your business actually needs

Sole trader

You lodge one individual tax return and report business income and expenses in a separate business schedule within it. There is no separate business tax return to file.

Partnership

The partnership lodges its own tax return under its own tax file number, but a partnership does not pay tax itself. Each partner then reports their share of the partnership's income on their own individual return.

Company

A company lodges its own tax return and pays tax at the company tax rate on its taxable income. Directors still need to lodge this even if they take no salary from the company.

Trust

A trust lodges its own trust tax return under its own tax file number. Beneficiaries who receive a distribution report that amount on their individual return.

Before you lodge: review your BAS

If your business is registered for GST, you will have lodged a Business Activity Statement throughout the year. The figures on your business tax return need to reconcile with what was reported on your BAS lodgments, so check your BAS for errors before you start on the return itself, rather than after.

Documents to have ready

A complete business return usually draws on:

• 
  Purchase invoices and receipts for the year
• 
  Records of capital gains events, if any assets were sold
• 
  Income records, including any passive or investment income
• 
  Payroll records for any employees
• 
  Statements for shares held or trust distributions received

The ATO requires records to be kept for five years from the date the return is lodged, so a reliable record-keeping system matters well beyond lodgment day itself.

How to lodge

Online

Standard Business Reporting (SBR) enabled software lets a company, trust or partnership lodge electronically. Most Australian cloud accounting platforms now support SBR, and a machine credential is needed to communicate with the ATO through it.

Through a registered tax agent

A registered tax agent prepares and lodges on your behalf, and tax agents are not required to independently audit the figures you provide, the accuracy of what goes to your agent remains your responsibility. Agent clients also access the ATO's lodgment program, which extends most due dates well past 31 October, provided you are on the agent's client list before then. Always confirm your agent is listed on the Tax Practitioners Board register.

Paper

Paper lodgment is still available for those who prefer it, though processing can take significantly longer than an electronic lodgment. A separate business and professional items schedule is required for personal services income, business profits and losses, or non-commercial business losses, available only through the ATO.

Due dates by structure

If you cannot pay by the due date

Lodging on time and paying on time are two separate obligations, and the failure to lodge penalty applies regardless of whether you can pay in full. If a payment is going to be late, lodge the return anyway and set up a payment plan with the ATO. If you genuinely cannot meet the lodgment date itself, it is also possible to request a tax lodgment deferral.

Get your business return lodged correctly

The Kalculators prepares and lodges small business tax returns and company tax returns across South Australia, in person from Salisbury, Blair Athol and Morphett Vale, or fully online. Book a consultation or call (08) 7480 2593.