Tax compliance

Depending on your circumstances, prior lodgement history, and the size of your business, there is a range of dates when your business tax return could be due.

• For small businesses, the due date for your return will be 15 May, or the next business day if it falls on a weekend.
• If your business is classified as a medium or large business it’s likely that the ATO will have a much earlier due date for you. This will vary depending on the amount of tax you were required to pay in the previous year.
• Businesses with a history of late lodgements can often have their due date brought forward.

The information you need to report can vary greatly depending on your business structure and trading activities. As well as the standard business income and expenses, you may also need to report:

• The balance of any assets and liabilities. This includes outlining your trade debtors and creditors at the year’s end.
• Details of any tax offsets available. This can include tax withholding credits, franking credits, Early Stage Investor Tax Offsets, and more
• Businesses conducting foreign transactions may be required to outline the details of these activities.
• Details of any franking account transactions that occurred during the year.

Your business tax accountant can provide a comprehensive list of what you need to report on your business tax return.

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At minimum, a standard small to medium-sized business tax return will likely cost at least $4K plus GST to prepare. This enables your tax agent to consider all tax aspects of your business and help you make your return as tax-effective as possible.

The cost of preparing a business tax return varies depending on the scope and size of your business. Different tax applications need to be considered when compleAt a business tax return, as well as a series of schedules of adwill likelyormation that the ATO requires to be submitted each year.

Once a refundable tax return is lodged, it usually takes the ATO 10 to 14 business days to issue the refund. Your refund will usually be paid straight into your bank account.

As with most things, some hiccups can occur and the time frame could be extended. Some reasons why the refund might be delayed are:

• If you have other lodgement obligations that are late,
• If you have an outstanding debt on any other ATO account.
• If the details you entered are incorrect, such as your bank account,
• If the ATO is doing further data checks on your return.
• If the ATO is cross-checking your return with the Department of Human Services.

If you lodge through a tax agent, they will usually be able to check the status of your return with the ATO and when the refund is expected to be paid.

It depends. The general rule is that the law requires you to keep any tax records for five years after the tax returns are lodged. For a company, the Corporations Act 2001 requires receipts and records to be kept for seven years. For a superannuation fund, some records may need to be kept for ten years.

However, in addition to this general rule, there are some special rules that relate to record-keeping for particular cases.

• Documents detailing income.
• Documents detailing expenses.
• Asset register with receipts of purchase and sale of assets.
• Receipts for gifts and donations.
• General ledger and general journal records.
• Stock listings.
• Work in progress records.
• Wages and superannuation records.
• ASIC and other regulatory documentation.
• Minutes of meetings and any changes.
• Trust and other deeds.
• Loan and other borrowing records.

An associated receipt or evidential documentation must accompany any of the above records that need to be kept. Financial records are allowed to be kept as an electronic copy.

Payroll tax can be lodged either monthly or annually. The due dates for the 2021 Financial Year are as follows.

• VIC Monthly Lodgement Due Date: Returns must be lodged and paid within seven days after the close of the month to which the return relates. If the seventh day falls on a weekend or public holiday, your return and payment is due on the next business day.
• VIC Annual Lodgment Due Date: 21 July after each financial year. If that day falls on a weekend, your AR is due the next business day.
• NSW Monthly Lodgement Due Date: Each monthly payment or nil return is due within seven days after the end of each month. If the seventh day is a weekend or public holiday, the due date is the next business day.
• NSW Annual Lodgment Due Date: 30 October each financial year.
• ACT Monthly Lodgement Due Date: All monthly returns except December are required to be lodged and paid by the 7th of each month. December return is due on the 14th of January every year.
• ACT Annual Lodgment Due Date: 21 July after each financial year. If that day falls on a weekend, your AR is due the next business day.
• QLD Monthly Lodgement Due Date: Returns must be lodged and paid within seven days after the close of the month to which the return relates. If the seventh day falls on a weekend or public holiday, your return and payment is due on the next business day.
• QLD Annual Lodgment Due Date: 21 July after each financial year. If that day falls on a weekend, your AR is due the next business day.
• SA Monthly Lodgement Due Date: Your monthly return and payment of your tax liability for the return period is due on or before the 7th day of the month following the applicable return period (e.g. your payroll tax return and payment for the month of January will be due on 7 February).
• SA Annual Lodgment Due Date: The payroll tax annual reconciliation and payment of your tax liability for the financial year is due on or before 28 July of the year following the annual reconciliation period that you are reconciling. For example the 2019-20 South Australian payroll tax annual reconciliation lodgement and payment is due 28 July 2020.
• WA Monthly Lodgement Due Date: Monthly returns are due and payable by the 7th of the following month in which the taxable wages were paid or payable. The June return is due and payable by 21 July.
• WA Quarterly Lodgment Due Date: Quarterly returns are due and payable by 7th October, January and April and 21 July.
• WA Annual Lodgment Due Date: Annual returns are due and payable by 21 July.
• NT Monthly Lodgement Due Date: You must pay payroll tax within 21 days of the end of the month in which your total Australian wages reaches the threshold amount.
• NT Annual Lodgment Due Date: You must pay payroll tax within 21 days of the end of the month in which your total Australian wages reaches the threshold amount.
• TAS Monthly Lodgement Due Date: Returns must be lodged by the 7th of the month following - for example, the September return is due on 7 October.
• TAS Annual Lodgment Due Date: The Annual Adjustment Return (AAR) must be lodged by 21 July each year. If you lodge monthly, the AAR replaces the June monthly return.

If your Australian wages have exceeded your state’s tax-free threshold amount, then you’ll need to register for payroll tax in each state where you have employees. You can find the threshold and payroll tax rate for each state or territory here:

• ACT Revenue Office
• Northern Territory Revenue
• NSW Revenue
• Business Queensland payroll tax
• Revenue SA
• State Revenue Office of Tasmania
• State Revenue Office Victoria
• WA Office of State Revenue

The payroll tax-free threshold varies from state to state. Here are the thresholds for each state, current until 30 June 2021.

• VIC threshold: $54,166 (monthly), $650,000 (annually)
• ‍VIC rate: 4.85% or 2.02% for regional employers, and 1.2125% for regional employers based in bushfire-affected areas
• NSW threshold: $76,712 (28-day month), $82,192 (30-day month), $84,931 (31-day month), $1,000,000 (annually)
• ‍NSW rate: 5.45%
• ACT threshold: $166,666.66 (monthly), $2 million (annually)
• ‍ACT rate: 6.85%
• QLD threshold: $25,000 (weekly), $108,333 (monthly), $1.3 million (annually)
• ‍QLD rate: 4.75%
• SA threshold: $125,000 (monthly), $1.5 million (annually)
• ‍SA rate: variable from 0% to 4.95%
• WA threshold: $83,333 (monthly), $1,000,000 (annually)
• ‍WA rate: 5.5%
• NT threshold: $125,000 (monthly), $1.5 million (annually)
• ‍NT rate: 5.5%
• TAS threshold: $99,043 (28-day month), $102,459 (30-day month), $105,874 (31-day month), $1.25 million (annually)‍
• TAS rate: 4%, but wages bills over $2 million receive a subsequent rate of 6.1%