Most business taxes are administered and collected by the Australian Government via the Australian Tax Office (ATO). A business can save money by ensuring that it pays the correct amount of tax on time and by taking advantage of any tax concessions that it may be entitled to. The main taxes that affect businesses in Australia are:
- Company (Income) Tax – a resident company in Australia is subject to company tax at a rate that has been set by the Government. On the other hand, a non-resident company is taxed on its Australian source of income at the same rate as that of a resident company.
- Goods and Services Tax (GST) – is a national, broad-based consumer tax placed on the majority of goods and services sold and consumed in Australia. As a business, you are required to register for GST with the Australian Taxation Office.
- Capital Gains Tax – this form of tax applies to any capital gain made via the disposal of assets. It is important to note that capital gains tax is often paid as a part of income tax.
It is important to observe that to file your company return, you must first possess a tax file number (TFN) to ensure that all payments reflect the correct account. If this is your company’s first tax return, then you must first apply for one. The application for the Tax File Number can be found here. Now that we have got the basics of taxation ready, this article will guide you on how to file your company tax return when living in Australia.
When filing your company’s tax return, you will need to report:
- The taxable income
- Tax offsets and credits
- PAYG (Pay As You Go) Withholding Tax installments
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How To File Company Tax Returns
There are three main ways to file your company tax return;
1. Making use of standard business report (SBR) enabled software.
The SBR software serves as the standard approach to digital record keeping that is meant to simplify a company’s reporting obligations. File returns can be prepared and lodged to the Australian Tax Office from SBR-enabled business software. Digital service providers often program standard business reporting rules into the software, making it ‘SBR-enabled.’
The benefits of the software include but are not limited to:
- It can be reused.
- It is built into the company’s accounting/business software, reducing the time that could have been spent on collating information, filling forms, and having to submit tax reports to the Government.
- SBR makes use of a company’s business transactions to prepare reports. Thus, a business would not need to re-enter information for multiple reporting obligations.
2. Registered Tax Agent
This is a qualified and professional individual or company that can prepare and lodge your tax return. Services of a registered tax agent could be provided via online/digital forms or face-to-face. In Australia, a tax agent must be registered with the Tax Practitioners Board (TPB). You can verify if the tax agent is registered by paying a visit to the official TPB website.
Advantages of using a registered tax agent include but are not limited to:
- They are verified to have met and maintained the required qualifications and have the experience necessary
- They comply with the Code of Professional Conduct.
The majority of registered tax agents have got a special lodgment program. This means that they have the privilege of lodge returns for the clients after the tax deadline of 31 October. If you plan on working with a registered tax agent, it is advised to contact them before 31 October. Doing so will help you take as much advantage as available of their lodgment program dates.
3. By Paper
There are two main ways in which you can order a paper to file your company’s tax return:
- By Using the Australian Tax Office automated self-help publications ordering service.
- By Calling the Australian Tax Office Publications Distribution Service on 1300 720 092. You can be able to speak to a representative between 8 am and 6 pm, Monday to Friday.
If the above are not convenient for you, then you can file your company tax return via mail within Australia to the below address:
Australian Taxation Office
GPO Box 9845
[include name and the postcode of your capital city]
An example of the above format would be:
Australian Taxation Office
GPO Box 9845
SYDNEY NSW 2001
Final Takeaway
Filing your company’s tax returns does not have to be a long and tedious process that drains you out. With options such as SBR-enabled software or a registered tax agent, you get to save you time. If you do decide to file your taxes via a paper copy, ensure that you know the full title of each publication that you order.
