Company Accounting

Company Accounting, Most businesses in Australia are defined by the government as a small business:  a business with annual turnover of less than $2 M. At Hurstville Accountant majority of our clients are small businesses. If your business turnover is between $75000 and $2 M, you have to lodge BAS quarterly and must register GST, PAYG and pay employee superannuation.

 

1. BAS quarterly lodgement:

BAS must be lodged before the 28th of each month following the quarter, this does not apply to the month of January, whereby BAS must be lodged before February 28th instead. You have to remember that 28/2, 28/4, 28/7, 28/10 are the deadline dates for BAS lodgement. ATO might penalize you without warning if not lodged before the deadline. Hurstville Accountant advises all clients to not take any risks with unnecessary delays.

Hurstville Accountant provides bookkeeping and BAS lodgement services. You can just leave your bank statement and all source documents with us and we will ensure it is all done on time.

You can do your own bookkeeping by yourself, and we will lodge it for you after checking your work to make sure everything is done properly.

 

2. PAYG Tax with hold:

We have to lodge Tax with Hold quarterly as well.  Many clients might forget this issue. ATO are entitled to give warnings or penalties to late lodgement as well.

The company’s new employees must fill out the registration form. Employees have to provide TFN, DOB, Address etc. Some employers might ignore this especially for temporary employees. Therefore this part of wage cannot be deducted from expenses. And you cannot pay the full amount of payment to employee because the company has the duty to hold prepaid tax with the ATO.

3. Superannuation is 12% of wage, it may be subject to adjustments by the Australian government.  The company has to pay super if the employees wage is over a certain limit.

 

4. Company annual tax return:

Company annual tax return deadline is the end of March in the following year. Hurstville Accountant tries our best to maximize your earnings between company and director shareholder.

Currently the company tax rate is 25%. it means you have to pay 25% of your company profit as a company tax. Company tax is different with GST, many clients are often confused with the two different concepts

 

5. Financial Report:

Annual company financial report is a statement of the company assets, liabilities, and capital for a business over the financial year, it details the company’s balance of income and expenditure over the whole year. It is also very important to help continue the company accounts for next year.

It is the best way to hire an experience professional tax accountant to dealing with all of those complexities of tax issues. So you have more valuable time to focus on your own business.

Australia tax system is a complex system. Normally small business hires registered tax agent professional services to dealing with all tax issues. Registered tax agent is accredited for process all tax issues by ATO. Generally all registered tax agent are responsible and have update tax knowledge.  Of course you have to find a licensed professional accountant, not an accounting intern instead. Hustville Accountant is an accredited registered tax agent.

Company Tax Return – FAQ (Australia)

 

Do Australian companies need to lodge a Company Tax Return every year?

Yes. An Australian company must lodge a Company Tax Return for every financial year, even if the company had no income, no trading activity, or made a loss. The return is lodged with the Australian Taxation Office (ATO).

What is included in a Company Tax Return?

A Company Tax Return reports the company’s:

• Income and expenses
• Profit or loss
• Company tax payable or refundable
• Franking account details (if applicable)
• Capital gains, depreciation, and carried-forward losses

It is based on the company’s annual financial statements.

When is a Company Tax Return due in Australia?

• Self-lodged companies: generally due by 31 October
• Using a registered tax agent: Normally due date is second year 15/05. later deadlines may apply, depending on the company’s lodgement history

Using a tax agent often reduces errors and provides more flexible deadlines.

Does a company need to lodge a tax return if it made a loss or did not trade?

Yes. Even dormant or loss-making companies must lodge a Company Tax Return. Lodging allows the company to:

• Record tax losses correctly
• Remain compliant with ATO requirements
• Avoid late-lodgement penalties

What documents are required to prepare a Company Tax Return?

Common documents include:

• Profit & Loss statement and Balance Sheet
• Bank statements
• Payroll and superannuation records
• Asset purchases and depreciation schedules
• Details of dividends paid or received

The exact requirements depend on the company’s activities.

Is the Company Tax Return different from BAS or GST reporting?

Yes. A Company Tax Return is an annual income tax report.
BAS/GST lodgements are usually Yearly or quarterly and report GST, PAYG withholding, and other activity-based taxes. Both are required, but they serve different purposes.

What is the current company tax rate in Australia?

The company tax rate depends on the company’s turnover and type:

• Base rate entities (generally small businesses): 25%
• Other companies: 30%

Correct classification is important to avoid ATO adjustments.

Can a tax agent help reduce company tax legally?

Yes. A registered tax agent can:

• Ensure correct deductions and depreciation
• Apply tax losses properly
• Identify common compliance risks
• Prepare the return in line with current tax law

This helps minimise tax legally, not aggressively.