As a small business owner operating through a company structure, the Australian Taxation Office (ATO) requires you to report the company’s financial position and business activities for the financial year within the Company Tax Return.

Your company needs to report the following in the Company Tax Return;

• Profit & Loss items
• Balance Sheet items
• Adjustments
• Tax offsets & credits

Your Company Tax Return will report your company’s taxable income and also your company’s tax payable or refundable position.

The income in the company is considered separate from your personal income. Therefore, any net profit in the company will be taxed within the company at the relevant company tax rates.

To accurately report your company’s financial position, you will first need to have all the accounts reconciled and the financial statements prepared.

The team of expert business accountants at DK Partners can professionally prepare, review and lodge your Company Tax Return with a fast turnaround time of 5 business days.

For the 2021-22 financial year, if your business is classed as a base rate entity, then the company tax rate is a flat rate of 25%.

A base rate entity is defined as a company having;

• An aggregated turnover of less than $50 million, and;
• More than 80% of the revenue of the company is derived through business trading activities

Companies that don’t meet the above and don’t qualify as a base rate entity will be taxed at a flat rate of 30%.

Example: XYZ Pty Ltd is a company that sells products online. The owner is looking to expand the business. The capital required to grow the business is invested into a term deposit while he negotiates with suppliers.

In the 2021-22 income year, XYZ Pty Ltd has an aggregated turnover under the $50 million aggregated turnover threshold. The assessable income of the company is $106,000, comprising;

• $100,000 trading income from running the business
• $6,000 interest income from term deposit (passive income)

XYZ Pty Ltd meets the base rate entity criteria. The aggregated turnover is less than $50 million, and 94.3% of its assessable income is made up of income from business activities.

XYZ Pty Ltd is a base rate entity for the 2021-22 income year, and the 25% company tax rate applies.

If your company is classified as a base rate entity (see above), then the company tax rate is a flat rate of 25% for the 2021-22 financial year.

Your company’s tax liability is calculated on the net profit (in other words, the income less the expenses).

Any tax credits and offsets will also affect the company’s tax position.

For example, if a company’s net profit is $100,000, the total company tax would be $25,000.

Reducing company tax bills are one of our specialties.

The team of expert small business accountants at DK Partners implement various strategies for legitimate ways to cut down your company tax bill while ensuring that you’re meeting your tax obligations.

Just some ways we can reduce your company tax bill may include:

• Claim asset depreciation
• Claim instant asset write-off
• Make concessional superannuation contributions
• Keep a business vehicle logbook
• Defer income and bring forward expenses
• Claim deductions for expenses not paid by EOFY
• Write-off bad debts
• Pay tax-effective wages and dividends

Some of the typical company deductible expenses include;

• Insurance premiums
• Tools and equipment
• Repairs, maintenance and replacement costs
• Motor vehicle expenses
• Office supplies and consumables
• utility charges for your business premises
• Depreciation of assets owned by the company
• Council rates for company properties
• Interest to finance the purchase of company assets
• Wages and salaries

Larger companies that do not meet the above eligibility are taxed at 30%.

The team of expert business accountants at DK Partners can professionally prepare, review and lodge your Company Tax Return with a fast turnaround time of 5 business days.

Company Tax Returns are usually due on the 28th of February. This includes the lodgement of the Company Tax Return, along with the payment of tax if there is an outstanding balance.

Below you will find Company Tax Return due dates;

Add: Sales

Add: Fees for service

Add: Interest & capital gains

Less: Business operating expenses

Simply fill in the ‘Talk To A Specialist’ form on this page, and our friendly team will be in touch within 24 hours to assist you.

Welcome to the new way of accounting.

We are online small business accountants, and we offer Australia-wide Company Tax Return services adapting to the transition towards a digital world.

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We live in a fast-paced environment where things can change at any moment. That’s why we believe that your accountants should be a stable and dependable presence – one that provides certainty.

Our modern approach combines cloud-based systems, entirely paperless processes and a proactive team of accountants, ready to service you Australia-wide, anywhere, anytime.