What to Prepare Before Lodging Tax Returns in Australia - PDF Submission

1. What to Prepare Before Lodging Tax Returns in Australia Lodging tax returns in Australia can be a stressful time for many individuals and businesses like yours. Proper, accurate, and thorough preparation is required to take advantage of tax benefits and incentives and avoid legal consequences. Whether you own a startup or a medium enterprise, you must file an annual tax return with the Australian Taxation Office (ATO). The due date for tax returns is usually 31 October for individuals and 28 February for businesses. This blog will discuss what you need to prepare before lodging your tax returns in Australia. It will help you avoid potential errors and penalties and ensure that your taxes are filed correctly and on time. Why Is Filing Tax Returns Important? Several reasons you need to lodge a tax return include the following: ● Compliance – Lodging a tax return in Australia is a legal requirement. ATO may impose fines and penalties (e.g., failure to lodge [FTL] on time penalty) when you fail to meet your tax lodging obligations on time. However, if you get a registered tax agent or BAS agent to lodge your refunds, you may not be liable for FTL provided that you showed your agent all relevant tax information and your agent’s failure to lodge the return or statement was not because of intentional disregard of the law and recklessness. ● Record keeping - Tax returns serve as a record of your business's financial transactions and can be used to track your business’s financial health. ● Determine tax liability - Filing tax returns allows your business to determine its tax liability and make any necessary payments to the government. ● Claim refunds – You may be entitled to a refund if your company overpaid its taxes during the financial year. ● Obtain credits - You may also be eligible for tax breaks and incentives, such as R&D tax credits and instant asset write-offs, which can help reduce your tax liability. ● Maintain good standing - Keeping up-to-date with tax obligations and lodging tax returns on time can help maintain your company's good standing with the ATO. ● Improve financial visibility - Lodging tax returns provide a clear picture of your company's financial position, making it easier to plan for the future and make informed financial decisions.

2. Filing tax returns demonstrates your business’s compliance with tax laws. It can improve its credibility with stakeholders, such as lenders and investors. What to Prepare Before Filing Tax Returns in Australia Whether you’re a sole trader, business partner, trustee, or company, it’s imperative to know how to lodge your tax returns in Australia. Similarly, knowing what you should prepare is beneficial, regardless of whether you plan to lodge it through a registered tax agent, by paper return, using standard business reporting (SBR) enabled software, or online with myTax. Here's a list of what you need to prepare before you can file your business’s tax return: Business structure You need to determine your business structure, whether it is a sole trader, partnership, company, or trust. This will affect the tax treatment of your business. Tax file number (TFN) You also need to make sure you have your business's TFN and that it is registered with the Australian Taxation Office (ATO). You should only supply your TFN to the ATO, your bank, or your registered tax agent. Financial statements You need to prepare an accurate record of your business's financial activities for the financial year. Your financial statements show your income and expenses, which helps determine your taxable income. This may include balance sheets, profit and loss statements, and other financial statements. Preparing financial statements is also essential in ensuring accurate and compliant tax filings because it helps reconcile amounts reported to tax authorities with amounts recorded in your company’s books. Receipts and invoices You must keep all receipts and invoices for expenses incurred by your business, as these may be required to support your tax return. This helps you to allocate business and personal expenses, ensuring only business-related expenses are claimed. Business activity statements (BAS)

3. You must have a BAS record for the financial year if your business is registered for goods and services tax (GST). This will help you report and pay your goods and services tax (GST), pay-as-you-go (PAYG) instalments, PAYG withholding tax, and other taxes. Payroll information If your business has employees, you must keep records of their salaries, wages, and other amounts paid. Employer payroll taxes, such as Social Security and Medicare, and employee benefits, such as health insurance, may also be included. Depreciation schedule Depreciation schedules help you allocate the cost of your assets over their useful life. If your business has depreciable assets, you must keep a record of their cost, date of purchase, and any depreciation amounts claimed. This will affect the calculation of your business’s taxable income, cost of goods sold, and potential tax credits. Our Registered Tax Agents Are Ready to Assist You with Your Tax Return When preparing to lodge tax returns in Australia, it’s advisable to seek advice from a tax professional to ensure compliance with all tax obligations and to maximise tax savings. Astute Services offers trusted and effective bookkeeping and business taxation services to help you properly manage your taxes and prepare your tax return filing. We also assist you in organising your business and advise you on making smarter financial decisions in the coming year. From tax planning to payment, our certified tax experts will be with you every step of the way. Make your lodging tax returns simple, straightforward, and accurate. Partner with Astute Services! Get in touch with us at 0434 086 444 or admin@astuteservices.net.