Company Tax Return
Professional online company tax return services for Australian small businesses, company directors, contractors, consultants, and growing business owners.
Running a company in Australia involves more than lodging a company tax return once a year. Directors need to understand company tax, GST, PAYG withholding, superannuation, director wages, dividends, retained profits, bookkeeping, and ATO compliance.
At Ezy Tax Online, we help Australian companies prepare and lodge company tax returns accurately and efficiently through our online tax portal. Whether your company is newly established, actively trading, behind with tax lodgements, or growing quickly, our accountants can help you stay compliant and make informed tax decisions.
What Is Company Tax in Australia?
Company tax is the tax payable by a company on its taxable income. A company’s taxable income is generally calculated as business income minus allowable deductions, depreciation, tax losses, and other tax adjustments.
Unlike sole traders, a company is a separate legal and tax entity. This means the company lodges its own tax return and pays tax at the company tax rate. Directors and shareholders may also have separate tax obligations if they receive wages, director fees, dividends, loans, or other benefits from the company.
This is why company tax should not be viewed in isolation. Good tax planning considers both the company and the individuals behind the company.
Australian Company Tax Rates
The Australian company tax rate depends on whether the company qualifies as a base rate entity.
For the 2025–26 income year, the general company tax rate is 30%. A company that qualifies as a base rate entity may be eligible for the lower 25% company tax rate.
A company generally needs to satisfy the base rate entity requirements, including aggregated turnover of less than $50 million and no more than 80% of assessable income being base rate entity passive income. Passive income can include items such as interest, rent, dividends, royalties, and net capital gains.
| Company type | Tax rate |
|---|---|
| Base rate entity | 25% |
| Other companies | 30 |
Getting the company tax rate right is important because it can also affect franking credits and dividend planning. A company may be small but still not qualify for the 25% rate if its income is mainly passive income.
Company Tax Return Service
Our company tax return service can assist with the preparation and lodgement of your company tax return, including review of financial information, income, deductions, depreciation, GST treatment, director payments, and other tax matters relevant to your business.
We can assist with:
| Area | What we review |
|---|---|
| Business income | Sales, service income, online income, contractor income, platform income |
| Expenses | Operating costs, subscriptions, rent, motor vehicle expenses, travel, home office and business expenses |
| Depreciation | Business assets, equipment, computers, tools, vehicles and tax depreciation treatment |
| Director payments | Wages, director fees, dividends, reimbursements and loan accounts |
| GST/BAS | GST coding, BAS consistency, GST registration and reporting issues |
| PAYG withholding | Employee wages, director wages and ATO reporting obligations |
| Superannuation | Super Guarantee obligations and deductibility timing |
| Tax losses | Prior year losses and whether they may be available |
| ATO compliance | Late lodgements, ATO queries and payment arrangement support |
Company Tax Is Not Just About 25% or 30%
Many business owners focus only on the company tax rate. However, company tax planning is often more complex than simply applying 25% or 30%.
A company may also need to consider:
| Issue | Why it matters |
|---|---|
| Director salary | Affects company deductions, personal tax, PAYG withholding and super |
| Dividends | May carry franking credits and affect shareholder tax |
| Retained profits | Can help business growth but may create future extraction issues |
| Director loan accounts | Poorly managed loans can create tax problems |
| GST | Incorrect GST coding can lead to BAS errors |
| Superannuation | Late super can become non-deductible and create penalties |
| Payroll tax | May apply when wages exceed state thresholds |
| Division 7A | Can apply when private companies provide loans or benefits to shareholders or associates |
| PSI rules | May affect contractors operating through a company |
| Business structure | Company may not always be the best structure depending on risk, income and future plans |
Director Salary vs Dividends
One of the most common questions company owners ask is whether they should pay themselves a salary, director fee, dividend, or simply leave money in the company.
There is no single answer. The best option depends on the company’s profit, the director’s personal income, cash flow, superannuation strategy, franking credits, and future business plans.
Salary or director fees may create a tax deduction for the company, but they also create PAYG withholding and superannuation obligations. Dividends are paid from after-tax company profits and may include franking credits. Retaining profits in the company may help fund business growth, but the money still belongs to the company and must be handled correctly.
Ezy Tax Online can help you understand the tax impact before making a decision.
GST, BAS and Bookkeeping Review
Company tax return preparation is much easier when bookkeeping is accurate. If GST codes, income categories, loan accounts, wages, or asset purchases are incorrectly recorded, the company tax return may also be incorrect.
We can assist with reviewing accounting data from cloud accounting software such as Xero and other systems. Common issues we check include:
| Common issue | Example |
|---|---|
| Wrong GST code | GST claimed on expenses that are GST-free or not creditable |
| Wrong category | Loan repayments recorded as expenses |
| Asset purchases | Equipment posted fully to expenses instead of depreciation |
| Director payments | Personal expenses paid by the company |
| Superannuation | Late or unpaid super not handled correctly |
| Income reconciliation | Sales not matching bank deposits or platform reports |
Employee, PAYG and Super Obligations
If your company pays wages to employees or directors, it may have PAYG withholding and Single Touch Payroll obligations. The company must withhold tax from wages and report payroll information to the ATO.
Employers must also pay Superannuation Guarantee for eligible employees. From 1 July 2025, the Super Guarantee rate is 12% of ordinary time earnings.
Superannuation is not just a payroll matter. Late super payments can affect tax deductibility and may lead to Superannuation Guarantee Charge issues. This is why payroll, BAS, and company tax should be reviewed together.
Behind With Company Tax Returns?
If your company has overdue tax returns, it is better to deal with them before the ATO takes further action. Late lodgement can lead to penalties, interest, director penalty notices, or increased ATO scrutiny.
We can assist with overdue company tax returns, including:
| Situation | How we can help |
|---|---|
| One or more late company tax returns | Prepare and lodge outstanding returns |
| Poor bookkeeping records | Help organise income and expense information |
| No accounting software | Work from bank statements and supporting records where possible |
| ATO reminders or penalties | Help you understand the next steps |
| Company no longer trading | Assist with final tax return issues |
Why Choose Ezy Tax Online for Company Tax?
Company tax is different from a simple individual tax return. It requires an understanding of financial statements, accounting records, GST, payroll, director accounts, asset depreciation, tax planning and ATO compliance.
Ezy Tax Online provides a practical online service for Australian companies that want professional support without unnecessary office visits.
| Benefit | What it means |
|---|---|
| Online process | Submit information through our online portal |
| Accountant review | Your company tax return is prepared or reviewed by tax professionals |
| Business focus | We understand small business, contractors, companies and growing businesses |
| Cloud accounting experience | We can work with Xero and other accounting data |
| Tax compliance support | We help identify issues before lodgement |
| Australia-wide service | Suitable for clients across Australia |
| Clear communication | We explain what is required and what happens next |
How Our Online Company Tax Return Process Works
Our process is designed to be practical and efficient.
| Step | What happens |
|---|---|
| 1 | Start your company tax return online |
| 2 | Upload your accounting records, financial statements or bookkeeping data |
| 3 | Our accountant reviews the information |
| 4 | We identify missing items, tax issues or questions |
| 5 | Your company tax return is prepared |
| 6 | You review the tax return before lodgement |
| 7 | We lodge the return with the ATO |
| 8 | You receive confirmation and next-step guidance |
What Information Do You Need to Provide?
The information required depends on your company’s situation. Common documents include:
| Document or information | Purpose |
|---|---|
| Profit and loss statement | To calculate business profit |
| Balance sheet | To review assets, liabilities and equity |
| General ledger | To check accounting details |
| Bank statements | To verify income and expense |
| BAS records | To reconcile GST and income |
| Payroll reports | To check wages, PAYG and super |
| Asset purchase invoices | To calculate depreciation |
| Loan statements | To review interest and liabilities |
| Director loan account details | To identify possible tax issues |
| Prior year tax return | To check losses, depreciation and opening balances |
Common Company Tax Mistakes
Small companies often make tax mistakes not because the owner is careless, but because company tax has many moving parts.
Common mistakes include:
| Mistake | Possible issue |
|---|---|
| Treating company money as personal money | Director loan or Division 7A issues |
| Recording loan repayments as expenses | Profit may be understated |
| Claiming GST incorrectly | BAS amendments may be required |
| Not recording wages correctly | PAYG and STP issues |
| Paying super late | Deduction and penalty issues |
| Ignoring depreciation rules | Incorrect deductions |
| Using the wrong company tax rate | Incorrect tax payable and franking issues |
| Not reconciling BAS to tax return | ATO data mismatch |
| Not reviewing balance sheet accounts | Hidden errors in company records |
Company Tax Return FAQ
Q. What is the company tax rate in Australia?
For the 2025–26 income year, the company tax rate is generally 30%. A base rate entity may qualify for the lower 25% company tax rate.
Q. Does every small company get the 25% tax rate?
No. A company generally needs to satisfy the base rate entity rules, including the turnover test and passive income test. A company with mainly passive income may not qualify for the lower rate.
Q. Can I pay myself from my company?
Yes, but it must be done correctly. Common methods include wages, director fees, dividends, reimbursements or properly managed loan accounts. Each option has different tax consequences.
Q. Is company profit the same as my personal income?
No. A company is a separate tax entity. Company profit belongs to the company until it is paid or distributed to shareholders or directors in an appropriate way.
Q. Do companies need to lodge a tax return every year?
Generally, yes. An Australian company usually needs to lodge a company tax return even if it made a loss or did not trade, unless specific circumstances apply.
Q. Can Ezy Tax Online help if my company tax return is late?
Yes. We can assist with overdue company tax returns and help you understand what records are required.
Q. Can you review my Xero file?
Yes. If your company uses Xero or other accounting software, we can review the information needed for tax return preparation.
Q. Do you help with BAS and GST?
Yes. Company tax, BAS, GST and bookkeeping are connected. We can help identify issues that may affect the company tax return.
Ready to Lodge Your Company Tax Return?
Company tax can become complicated when GST, payroll, director payments, dividends, depreciation, retained profits and ATO obligations are involved. Ezy Tax Online helps company owners manage their tax return with professional support and a practical online process.
Whether your company is new, growing, behind with lodgements, or simply looking for a reliable tax accountant, we can help.