It’s tax time again!

Your business’ income tax return for the 2021–22 income year must be lodged by 31 October 2022, unless you have a substituted accounting period. If your business’ tax return is lodged through a registered tax agent, the due date for lodgment is likely to be later than 31 October, possibly even as late as May next year.

Lodging a tax return

Are you a sole trader?

• Even if your taxable income is below the tax-free threshold ($18,200), you still need to lodge a tax return.
• Do you pay PAYG instalments? Lodge your activity statements and pay all your PAYG instalments before you lodge your tax return so your income tax assessment takes into account the instalments you’ve paid throughout the year.

Are you a partnership?
If you operate your business in a partnership:

• the partnership lodges the partnership tax return, reporting the partnership’s net income or loss (assessable income less allowable deductions).

As an individual partner, you report on your individual tax return:

• your share of any partnership net income or loss
• any other assessable income, such as salary and wages, dividends and rental income.
  The partnership doesn’t pay income tax on the income it earns. Instead, you and each of the partners pay tax on the share of net partnership income (if any) you receive.

Are you a trust?

• If you operate your business through a trust, the trust reports its net income or loss (this is the trust’s assessable income less allowable deductions).
• The trustee is required to lodge a trust tax return.
• As a trust beneficiary, you report on your individual tax return your share of the trust’s net income based on your share of the income of the trust to which you are presently entitled from the trust.

Are you a company?

• If you operate your business through a company, you need to lodge a company tax return.
• The company reports its taxable income, tax offsets and credits, PAYG instalments and the amount of tax it is liable to pay on that income or the amount of tax that is refundable to the company.
  The company’s income is separate from your personal income.

As a Registered Tax Agent and Chartered Accountant, we can help you with your tax. Contact us if you have questions on tax or if you just want to understand your tax situation better.