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How do I file my Australian Company tax return 2019?

The financial year for 2019 has ended which means your company tax return 2019 will need to be prepared and lodged with the ATO. In this article we will explore what you will need and key information.

What information you will need

If you are operating a company, it would be best if you are using an online accounting software to maintain the financial records of your company. You will need the following prepared;

  1. Bank reconciliations done to 30 June 2019
  2. All sales and purchase invoices recorded at 30 June 2019
  3. All assets and liabilities correctly stated 30 June 2019
  4. Equity reported
  5. Wages recorded and up to date
  6. Dividends processed if applicable
  7. Year-end adjusting entries performed

Your accounting software will create reports including a
Profit and Loss Statement, and a Balance Sheet (a.k.a. Financial Statements).

This information will be recorded into the company tax return and declared to the Australian Taxation Office.

If you do not use an accounting software, you will provide
your bank statements to your accountants who will prepare your financial
statements.

Company tax return 2019

Due date for lodgement of 2019 company tax return

When you are lodging through a Registered Tax Agent like POP Business, the due date is normally between February and May 2020. With this in mind, a POP tax accountant can check on the exact due date once they are appointed as your tax agent.

If you had lodged late in the prior year, the ATO may bring
forward your lodgement due date to 31 October 2019.

Company Tax Rate for 2019

When your company has revenue of less than <$10m, and over 80% of income is from the course of doing business, the income tax rate is capped at 27.5%.

Should the company have revenue of >$10m, the tax rate is capped at 30%.

If the company is an investment company which holds assets and derives passive income (>20% of total from assets), the tax rate is capped at 30%.

Most businesses will fall into the 27.5% tax rate.

Tax minimisation

Under the government’s small business instant asset
write-off, if you are a small business (Revenue <$10m), you can write off any assets in whole as opposed to depreciating them if they meet the following cost criteria;

  • <$30,000 from 7.30pm AEDT on 2 April
    2019
  • <$25,000 from 29 January 2019 until
    before 7.30pm AEDT on 2 April 2019
  • <$20,000 before 29 January 2019

Paying wages vs dividends is another effective tax planning
tool to minimise the overall tax rate and get the cash out of the company.

How do I lodge my 2019 company tax return?

POP Business are Chartered Accountants that are experts in preparing and lodging your 2019 company tax return. If you have outstanding years prior to 2019, the team can facilitate these lodgements as well.

What are common company tax return deductions for 2019
for my business?

  • Advertising costs
  • Bank fees and charges on business banking products
  • Interest on business loans
  • Business travel expenses
  • Hiring or leasing plant and equipment
  • Renting or leasing business premises
  • Decline in value of depreciating business assets (depreciation)
  • Electricity costs
  • Phone and Internet expenses
  • Website expenses
  • Wages paid to employees
  • Super contributions for your employees
  • Motor vehicle expenses
  • Home office costs, such as computer equipment and stationery
  • The cost of any fringe benefits you provided, and fringe benefits tax (FBT) 
  • Business repairs
  • Business Insurance costs
  • Contractor costs
  • Uniform costs
  • Trading stock
  • Transport and freight costs
  • Fees charged by your registered tax agent

Key take-outs

It is important to speak with your registered tax agent who can optimise your company’s 2019 tax position.

The tax savings using a professional tax accountant will be substantially different to using a less qualified accountant, so you need to trust you are getting the right advice and services.

POP Provides fast, affordable and high-impact company tax return services.

If you have any questions or would like to get in touch, please fill out the contact form below

Patrick Sargent

Patrick Sargent

Patrick Sargent is a Chartered Accountant and registered Tax Agent who is passionate about helping business owners and individuals achieve their goals. He co-founded the cloud and tech-focused accounting firm POP Business back in 2018. Since then, Patrick and his team have won numerous awards and accolades including the 30 Under 30 ‘Tech Innovator of the Year’, and coming in as a finalist in the Australian Accounting Awards 2020.   He has expertise in helping small businesses with a range of accounting services, including tax preparation, financial advisory, accounting and bookkeeping, and personal tax planning, as well as company, trust, and partnership tax returns and more.

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