Lodge your company tax returns online with POP Business

As a small business owner, the Australian Taxation Office (ATO) requires you to report the company’s financial position and business activities for the financial year.

Your company needs to report its annual income, expenses, balance sheet items, tax offsets and credits. 

Your company tax return will report your company’s taxable income, and also your company’s tax payable or refundable position. 

The company income is considered separate from your own personal income, and therefore any profit may be taxed within the company.

You will need to have your accounts reconciled and financial statements prepared in order to report the company’s financial position.

Our POP Business Accountants can prepare and lodge your company tax return with a fast turnaround time of 5-10 business days.

If your business is classed as a small business, then company tax rate is a flat rate of 27.5%.

A small business is defined as having:

• Revenue <$25m, and;
• >80% of revenue is derived through business trading activities

Companies that don’t meet the above criteria will be taxed at a flat rate of 30%.

If your company is classified as a small business (see above), then the company tax rate is a flat rate of 27.5%.

Your company’s liable tax is reported against its net profit (in other words, the business’s income less the business’s expenses).

Any tax credits or offsets will also affect the tax position.

As an example, if your company’s net profit is $100,000, then your company tax would be $27,500.

A creative accountant is a good accountant.

There are plenty of simple and legitimate ways we can cut down on your small business tax bill while still meeting your tax obligations. 

Some methods may include:

• Claim asset depreciation
• Claim instant asset write-off – up to $30,000 per asset
• 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

Because our passion is helping people build their dream business.

Perhaps your small business is behind on your annual tax obligations?

Maybe you’d like know if there’s other smart ways you can minimise your tax?

Or, it could be you’re looking for expert advice on how to growth-hack your business.

Good news. POP Business are the pros at all three.

Tax-time shouldn’t have to be so… well, taxing. Drop us a line and you’ll never look back.

• Insurance premiums: eg. business public liability insurance NOT personal life insurance.
• Tools and equipment: eg. a carpenter could claim a hammer but NOT a gadget to fix his mum’s computer.
• Repairs, maintenance and replacement costs: eg. repairs to company vehicles NOT painting your husband’s boat.
• Motor vehicle expenses: eg.  fuel for the company car NOT your private vehicle.
• Office supplies and consumables: eg. printing supplies for the business NOT for your daughter’s uni assignments.
• Utilities charges for your business premises: eg. phone bill for the business landline and mobiles NOT your son’s home WIFI.
• Depreciation of assets owned by the company: eg. depreciation of a production printing press NOT the family caravan.
• Council rates for company properties: eg. rates on the factory property NOT your holiday unit down the coast.
• Interest to finance the purchase of company assets: eg. interest to purchase a commercial block of land NOT to refinance your home mortgage.
• Wages and salaries: eg. salary and superannuation contributions for your office manager NOT your unemployed teen.

You’ve chosen a Registered Tax Agent, now what can you expect from them? From the get go, they should be asking you questions to better understand your business and advising you of your tax and reporting obligations.

A reputable tax practitioner will:

• Give you reliable advice about the tax issues affecting your company.
• Get your tax affairs in order and up to date — especially if you’ve missed a few tax returns.
• Ensure you receive every available tax deduction or concession for expenses.
• Accurately depreciate capital items (e.g. cars, production machinery) for maximum tax advantage.
• Help you claim for complex items like bad debts, deferred income, and instant asset write-off.
• Make sure you have the correct receipts, documentation, and schedules to support all your tax claims.
• Lodge your company tax return and associated paperwork.
• Arrange payment plans and penalty reductions (if available) on your behalf.
• Deal with the Commissioner of Tax if there is a dispute or issue with your company tax.

REMEMBER: your tax agent is not a financial advisor and can only advise you on the tax implications of financial advice and associated transactions.

A business tax return can be prepared on a paper form, via your accounting software, or your Tax Agent can do it for you. Whichever lodgment method you use you must first ensure that:

• Payroll is finalised with deductions, superannuation, and PAYG taxes correctly recorded.
• All income and expenses are recorded and up to date.
• Bank Accounts are reconciled.

In the next 12 months the company tax rate for smaller companies will reduce as follows — note the increase in threshold: