Company Tax

COMPANY TAX STRUCTURE – GENERAL TAX ISSUES

The extract below is from the Australian Taxation Office. This information provides a basic summary of general company tax return and associated company tax and business tax reporting obligations.

Company

A company is a distinct legal entity with higher set-up and administration costs because of additional reporting requirements.

Companies are regulated by the Australian Securities & Investments Commission (ASIC).

A company is run by its directors and owned by its shareholders. A company provides some asset protection but directors can be legally liable for their actions and, in some cases, the debts of a company.

The main features of a company business structure are:

a company must apply for a Tax File NumberExternal Link (TFN) and use it when lodging its annual tax return
a company registered under the Corporations Act 2001 is entitled to an Australian business number (ABN). A company not registered under the Corporations Act may register for an ABN if it’s carrying on an enterprise in Australia
a company can register for Goods and Services Tax (GST) if it’s carrying on an enterprise. A company must be registered for GST if its annual turnover is $75,000 or more ($150,000 for non-profit organisations)
the money a business earns belongs to the company, not individuals
companies must lodge an annual company tax return showing income, deductions and income tax liable to pay
companies usually make Pay As You Go (PAYG) instalments, credited against total annual income tax. The amount of tax it’s liable to pay is reduced by any PAYG instalments paid during the year
companies have no tax-free threshold
a company pays income tax on its assessable income (profits) at the company tax rate and may be eligible for tax concessions
a company may treat income and deductions relating to personal services income (PSI) differently
if the company has any eligible workers, it must pay them super guarantee contributions. This includes you, if you are a director of the company, and any other company directors.

Personal services income

A company may treat income and deductions relating to personal services income (PSI) differently. The income may be treated as your individual income for tax purposes.

Small business company tax rate

The small business company tax rate has been reduced from 30% to 28.5% for income years commencing on, or after, 1 July 2015. This lower rate also applies to small businesses that are corporate unit trusts and public trading trusts.

The corporate tax rate will remain at 30% for all other companies that are not small business entities.

Taxopia online tax accountants can assist you with any structural company tax questions. We have very cheap company tax return solutions for your business. Contact us today on 1300 829 674

Annual Tax Lodgement Packages

$190 _{exc gst *}

LITE

Annual Tax Reporting Company Tax Return

* Taxopia Fastlane Service available

See Conditions Here

* Basic Package pricing conditions: ($425+ GST):

Includes up to 15-minutes of call support to assist you. Taxopia reserves the right to bill for any additional support that exceeds this time.
Excludes businesses with turnovers of more than $300,000 per year.
Excludes Companies or Trusts who hold property or share portfolios.
Excludes preparation of depreciation schedules and calculations.
Under this package, we do not accept summarised excel spreadsheets, unless your company turnover is below $30,000 per year. Financial data must come from an Accounting platform where either you can grant us access to generate the reports from, or you create the reports yourself and send them through to us.
Can accommodate Companies or Trusts who have carried forward losses in excess of $100,000 for an additional fee of 85$
Fixing Bookkeeping errors: an additional $85/hour will be charged

If you do not qualify for this option, you will need to consider our Standard Package ($850+ GST).

$425 _{exc gst *}

BASIC

Annual Tax Reporting Company Tax Return

Email Support (Fair use conditions apply)
Phone Call Support (15min)
Annual Business Turnover <$300k
Tax return lodged via Taxopia
We Act As Your Tax Agent So You May Be Eligible For Tax Extensions
Fixing Bookkeeping Errors $85 / hr
Companies who have carried forward losses in excess of $100,000 ($55 additional)

* Taxopia Fastlane Service available

See Conditions Here

* Basic Package pricing conditions: ($425+ GST):

Includes up to 15-minutes of call support to assist you. Taxopia reserves the right to bill for any additional support that exceeds this time.
Excludes businesses with turnovers of more than $300,000 per year.
Excludes Companies or Trusts who hold property or share portfolios.
Excludes preparation of depreciation schedules and calculations.
Under this package, we do not accept summarised excel spreadsheets, unless your company turnover is below $30,000 per year. Financial data must come from an Accounting platform where either you can grant us access to generate the reports from, or you create the reports yourself and send them through to us.
Can accommodate Companies or Trusts who have carried forward losses in excess of $100,000 for an additional fee of 85$
Fixing Bookkeeping errors: an additional $85/hour will be charged

If you do not qualify for this option, you will need to consider our Standard Package ($850+ GST).

Best Deal!

$850 _{exc gst *}

PREMIUM

Annual Tax Reporting Company Tax Return

Email Support (Fair use conditions apply)
Phone Call Support (30min)
Support by a dedicated accountant
Annual Business Turnover <$1M
Tax return lodged via Taxopia
We Act As Your Tax Agent So You May Be Eligible For Tax Extensions
Preparation Of Full Financial Statements (For Bank Use)
2 Asset Finance Schedule Reconciliations
Includes Depreciation schedules & calculation
Includes Companies or Trusts who hold property or share portfolios
Fixing Bookkeeping Errors $85 / hr
Companies who have carried forward losses in excess of $100,000 ($55 additional)

* Taxopia Fastlane Service available

See Conditions Here

* Basic Package pricing conditions: ($425+ GST):

Includes up to 15-minutes of call support to assist you. Taxopia reserves the right to bill for any additional support that exceeds this time.
Excludes businesses with turnovers of more than $300,000 per year.
Excludes Companies or Trusts who hold property or share portfolios.
Excludes preparation of depreciation schedules and calculations.
Under this package, we do not accept summarised excel spreadsheets, unless your company turnover is below $30,000 per year. Financial data must come from an Accounting platform where either you can grant us access to generate the reports from, or you create the reports yourself and send them through to us.
Can accommodate Companies or Trusts who have carried forward losses in excess of $100,000 for an additional fee of 85$
Fixing Bookkeeping errors: an additional $85/hour will be charged

If you do not qualify for this option, you will need to consider our Standard Package ($850+ GST).

Please note that ALL our plans exclude the following:

Capital Gains Tax events
Share Trading activities

Fixing GST errors
Companies who have Director(s) or Shareholder(s) loans owing to the company. (Division 7a)

Please contact us for a customised quote if you require help on any of the excluded items.

Company Tax

Company

Personal services income

Small business company tax rate

Annual Tax Lodgement Packages

LITE

* Basic Package pricing conditions: ($425+ GST):

BASIC

* Basic Package pricing conditions: ($425+ GST):

PREMIUM

* Basic Package pricing conditions: ($425+ GST):

Please note that ALL our plans exclude the following:

Additional Information:

Taxopia Fastlane Service