You need to lodge a tax return if you carried on a business, even if your business hasn't earnt any income. There’s no threshold for business income, so you need to lodge an income tax return even if you only earn $1. What you need to report and how you lodge your annual tax return for your business depends on your type of business entity.
See also
- Income and deductions for business
- to help you get it right at tax time, whether you use a tax agent or lodge your own tax return
- Small business tax time checklists
- Small business – Top questions as tax time
Sole traders
If you operate your business as a sole trader, you must lodge a tax return, even if your income is below the tax-free threshold. This includes:
- tax return for individuals including the supplementary section
- business and professional items schedule for individuals.
In your return, report:
- your business income less the business deductions you can claim
- other income, such as salary and wages (from a payment summary or income statement), dividends and rental income, less any deductions against this income.
You don't have to work out the amount of tax you are liable to pay. We'll do this for you when you lodge and issue an assessment showing either the amount of tax owing to us or your refund. If you have paid PAYG instalments during the income year, we'll automatically credit these instalments to you in your assessment.
How to lodge
You can lodge your individual tax return:
- online with myTax
- with a registered tax agent
- by paper.
Lodging by myTax or through an agent is the fastest way to lodge your return. Most refunds for paper returns are finalised within 50 days of lodgment. If you need to lodge by paper, contact us.
Media: How to complete the business section in myTax
https://tv.ato.gov.au/ato-tv/media?v=bd1bdiubosijw7External Link (Duration: 02:51)
When to lodge
If you lodge via myTax your tax return is due by 31 October. If you lodge through a registered tax agent, they’ll tell you when they will lodge your tax return.
Partnerships and partners
If you operate your business as a partnership, the partnership lodges a partnership tax return, reporting the partnership's net income (assessable income less allowable expenses and 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 (shown on a payment summary), 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 you receive.
How to lodge
You can lodge your partnership tax return:
- using standard business reporting (SBR) enabled software – find out how at Online services
- with a registered tax agent
- by paper.
See also
When to lodge
If you lodge the partnership tax return yourself, it is due by 31 October. If you lodge through a registered tax agent, they’ll tell you when they will lodge your tax return.
Trusts and beneficiaries
If you operate your business through a trust:
- the trustee lodges a trust tax return
- each trust beneficiary lodges their own tax return, such as a company or individual tax return.
The trust reports its net income or loss. This is the trust's assessable income less deductions.
If you are the beneficiary of a trust, you report on your tax return:
- any income you receive from the trust
- any other assessable income such as
- dividends
- rental income
- salary and wages (on an individual's payment summary or income statement).
How to lodge
You can lodge your trust tax return:
- using standard business reporting (SBR) enabled software – find out how at Online services
- with a registered tax agent
- by paper.
See also
- Lodging trust income tax returns
- Trusts – registering and reporting for tax
- Individuals – lodging your tax return
When to lodge
If you lodge the trust tax return yourself, it is due by 31 October. If you lodge through a registered tax agent, they’ll tell you when they will lodge your tax return.
Companies
If you operate your business as 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 that is refundable.
The company's income is separate from your personal income.
Deregistered companies
You must lodge a final company tax return prior to being deregistered by the Australian Securities and Investments Commission (ASIC). Once a company has been deregistered, you can no longer lodge a company tax return – and we cannot process it.
To lodge a company tax return, you can consider reinstating the deregistered company with ASIC.
See also
- Changing, selling or closing your business – things to consider
- Reinstating a deregistered companyExternal Link
How to lodge
You can lodge your company tax return:
- online using standard business reporting (SBR) enabled software. You must use SBR enabled software to lodge online, you are not able to lodge directly in Online services for business.
- with a registered tax agent
- by paper.
When to lodge
If you lodge the company tax return yourself, you need to check the due date. Generally, the lodgment and payment date for small companies is 28 February. If you have any prior year returns outstanding, the due date will be 31 October.
If you lodge through a registered tax agent, they’ll tell you when they will lodge your tax return.