Know what to prepare, what you can claim, and what the deadlines are - so your tax return gets done right, every year.
Know Your Obligations
Your lodgement obligations depend on how your business is structured. Here is a quick overview of each.
As a sole trader, your business income is reported in your personal individual tax return. There is no separate business return. You report your business income and claim your business deductions in the business schedule attached to your individual return. Your tax is calculated at individual income tax rates.
A company is a separate legal entity and lodges its own company tax return. The company pays tax on its net profit at the corporate tax rate - currently 25% for base rate entities (most small businesses). Directors may also need to lodge individual returns for any salary or dividends received.
A partnership lodges a partnership tax return to report the partnership's income and expenses, but the partnership itself does not pay tax. Each partner then includes their share of the net income in their own individual tax return and pays tax at their personal rate. Both the partnership return and each partner's individual return need to be lodged.
A trust lodges a trust tax return each year. The trust generally does not pay tax itself - instead, the net income is distributed to beneficiaries, who each include their distribution in their own individual or company tax return. Both the trust return and each beneficiary's return need to be lodged. Trust tax obligations can be complex, so contact us to discuss your specific situation.
Deadlines
Missing a deadline can mean penalties and interest. Know your dates before the end of financial year.
What to Prepare
Click each section to expand. The more complete your information, the faster we can turn it around.
This is the foundation of your return. Make sure all of these are current and correct before we start.
All income needs to be declared, regardless of how it was received or which bank account it went into. This is one of the most common areas where things get missed.
Deductions reduce your taxable income, so missing them costs you money. The most common issue we see is business owners who paid for work expenses through their personal bank account and never kept a record of it. If you spent money for your business, it may be deductible - even if it came from a personal account.
If you own a rental property, there are specific documents your accountant needs to claim all available deductions and report the income correctly.
Offsets directly reduce the amount of tax you pay, not just your taxable income. They are worth checking every year.
These are less common but important if they apply to you. If the ATO has been in contact with you during the year, that correspondence is always relevant.
Watch Out For
These come up regularly. Being aware of them before you gather your documents can save you money.
The most common issue we see. If you paid for a business expense from your personal bank account or personal credit card, it is still potentially deductible. Keep receipts and note what each expense was for, even if it did not go through your business account.
If you use your car for work, a logbook is the most accurate way to calculate your deduction. Without one, you are limited to the cents per kilometre method, which caps at 5,000 kilometres per year. A properly maintained logbook almost always results in a larger deduction.
The fees you paid AffordBooksTax last year to prepare your tax return are deductible this year. It is a small item but often forgotten. Dig out last year's invoice and include it.
Selling shares, property or crypto during the year triggers a capital gains event that must be reported. Even if you made a loss, it needs to be declared because capital losses can be used to offset future gains. Crypto is an area where many people assume it does not need to be reported - it does.
Since 2024 the fixed rate method for home office claims changed to 70 cents per hour. You need to keep a record of actual hours worked from home, not just an estimate. A simple log or diary entry is enough, but you need to have it.
The financial year ends 30 June. If you wait until July to start gathering documents, some records will be harder to find and some deductions may not be claimable because the evidence is missing. Start a folder in June and drop documents in as they arrive.
Pricing
Pricing is based on your annual business revenue and is the same regardless of business structure. All prices exclude GST.
| Annual Revenue | Tax Return | Financial Statements |
|---|---|---|
| Tier 1 -- $0 to $50K | $478 / year | $190 / year |
| Tier 2 -- $51K to $100K | $598 / year | $298 / year |
| Tier 3 -- $101K to $150K | $718 / year | $358 / year |
| Tier 4 -- $151K to $200K | $838 / year | $418 / year |
| Tier 5 -- $201K to $250K | $993 / year | $478 / year |
| Tier 6 -- $251K to $300K | $1,197 / year | $598 / year |
| Tier 7 -- $301K to $500K | $1,449 / year | $838 / year |
FAQ
We handle tax returns for sole traders, companies, partnerships and trusts. Send us your documents and we will take care of the rest -- usually within 1 to 2 weeks. No lock-in contract.
