Business Tax Services - Company Tax Return

All businesses in Australia are required to lodge an annual company tax return. The different business structures and entities have different reporting and lodgement requirements. 

Sole Traders:

As a sole trader you are required to lodge your income (or loss) from the business as an individual income tax return. You tax return should include:

• The income of your business, minus any acceptable business related deductions.

• Plus any other income received from outside of the business (of a personal nature), minus deductions.

Partnership: 

A business operating as a partnership must lodge a partnership tax return - made up of income minus deductions and expenses. However, when it comes to the income (or loss) that you made as an individual from the partnership, this is to be reported in your individual income tax return.

Trusts: 

A trust structure has its own trust tax return that is to be lodged - it is made up of income minus any deductions and expenses. If you are a beneficiary of a trust, you need to include any income that you receive from the trust in your individual income tax return.

Assessment: 

Being a sole trader/partnership/trust your tax return will only include taxable income as well as the net income (or loss) - hence, you don't need to figure out your tax liability, as the ATO does that part for you; this will be stated in your annual assessment that is sent out after the tax return has been lodged.

Company: 

A company will need to lodge a company tax return - made up of income and its tax liability. This is worked out in the following way:

[assessable income - allowable deductions = taxable income]

x 30%(company tax rate)

= tax liability

PAYG instalments: 

PAYG instalments get credited against the sum of income tax payable for the financial year.

As part of a partnership or trust, there is no need to pay PAYG instalments - though in regards to your personal income from the business/trust it may be necessary.

PAYG is generally paid quarterly - the exact date being the last day of every September, December, March and June. Though some entities, such as primary producers, may be able to pay either yearly or twice yearly.

It is important not to forget that even though you are reporting PAYG instalments quarterly, you still need to include it in the income tax return.

It is possible in some circumstances to minimise the amount of tax that you are liable to pay by employing the use of tax offsets or credits. A sole trader/partnership/trust can have its tax on taxable income reduced if the ATO includes the specific credits and tax offsets that you are eligible for when calculating the tax payable. In the case of a company, you need to figure out how much tax you're liable to pay, and then consider it with the tax offsets or credits in mind.

The world of tax can be extremely complex and if obligations are not adhered to it can often become quite stressful, not to mention costly. The accountants, lawyers and tax agents at The Quinn Group are able to assist you with all tax and ATO related matters. For advice or more information contact us now by submitting an online enquiry form or call 1300 QUINNS or on +61 2 9223 9166.

Back to Business Tax Services

The Quinn Group - Providing the Total Solution

As both a legal and accounting firm The Quinn Group are able to offer business legal and accounting services in one location. Visit our Business Legal Services page to see our range of legal services available to your business.

Visit our Business Accounting Services page for more information on the wide range of Accounting Services that The Quinn Group can provide to you as an individual.

View all our office locations to find The Quinn Group office nearest you, or call us on

1300 QUINNS (1300 784 667) or on +61 2 9223 9166 to arrange an appointment.

Whilst we have 5 offices located in Sydney, we are also able to meet you at location convenient for you. Additionally, we have web and teleconferencing available for regional, interstate or international clients.