Business Tax Preparation in Melbourne

What Business Tax Returns Does My Melbourne Business Need to Lodge?

The tax return you lodge depends on your business structure. A proprietary limited company lodges a company tax return. A discretionary or unit trust lodges a trust tax return, with income distributed to beneficiaries on individual or company returns. A partnership lodges a partnership return distributing income to partners. Sole traders report business income on their individual tax return. Each entity type has its own due dates, tax rates, and compliance obligations — mixing these up is a common and costly error.

What Is the Company Tax Rate in Australia and How Does It Apply?

There are two company tax rates in Australia. Base rate entities — companies with aggregated turnover under $50 million that derive 80% or less of their assessable income from passive sources — pay a reduced rate of 25% from the 2021–22 income year. All other companies pay the standard rate of 30%. For a Melbourne company earning $500,000 in taxable income, the difference between 25% and 30% is $25,000 per year — underscoring why confirming your eligibility for the lower rate is worth a conversation with your accountant before lodgement.

When Are Business Tax Return Lodgement Deadlines in Australia?

Company, trust, and partnership tax returns are due by 31 October if lodging without a tax agent. Clients lodged by a registered tax agent benefit from extended deadlines — typically 15 March to 15 May depending on the entity type and prior lodgement history. The ATO's lodgement program specifies these dates each year; failure to lodge by the relevant deadline attracts a failure-to-lodge penalty of $330 per 28-day period, up to $1,650 per return. For Melbourne businesses with multiple entities, managing lodgement deadlines across all entities requires careful scheduling.

What Are the ATO's Audit Risk Areas for Melbourne Businesses?

The ATO's Tax Gap data and compliance program publications identify several high-risk areas for small business: private use of business assets (particularly motor vehicles and travel), related-party transactions not at arm's length, trust distribution arrangements that the ATO considers tax avoidance under s100A, Division 7A loans from companies to shareholders, and deductions for expenses with a private element. We prepare returns with ATO audit risk in mind — ensuring positions are defensible and documentation is in place before lodgement, not after a review notice arrives.

How Can a Melbourne Business Legitimately Reduce Its Tax?

Tax planning for Melbourne businesses starts with timing: bringing forward deductions into the current year, deferring income where possible, and ensuring superannuation contributions are paid within the financial year (the ATO requires funds to receive super, not just for the payment to be sent, by 30 June). Small business entities can access the immediate deduction for assets under the temporary full expensing rules, the simplified trading stock rules, and the small business income tax offset. Trust distribution planning — deciding which beneficiaries receive income before year-end — can produce significant tax savings for family business groups.