A 12-month plan designed for new business owners who may want some extra guidance around business structure, accounting software setup and training, and more.

We will provide you with guidance and support on what you'll need to do to establish and commence running your new business

We can provide advice on the best business structure for your needs and take care of establishment and registrations

Set up your Xero file so it's optimised for you and give you initial training so you start off in the right way

Preparation of a budget tailored to your business and input into Xero so you can track how you're going

Starter pack

We prepare your BAS returns ready for you to review and pay. We also remind you of when and how much to pay, and even send an alert if you forget! Requires Xero.

Prepare BAS

If you would rather be doing something else, let us do your bookkeeping for you. We love coding and checking and you can relax knowing it's all done right, and on time. Requires Xero.

Bank reconciliation

Input and review of crypto investments per report generated by platform. If not managed/self-managed, please get in touch with our support team for further details.

Crypto

We'll set up your Xero file from scratch, then give you the training you need to use it to its full potential.

Xero setup & training

Input and review of rental activity per agent statement and additional receipts not included in statement e.g. home loan statements, depreciation report. 

If not managed/self-managed, speak to our support team for further details.

Property

Don't know what fringe benefit tax is? Learn about it in our FBT guide.

FBT return (annual)

We set you up with the right Xero subscription and manage your payments.

Xero monthly subscription

We set up your Xero file so it is optimised for you and your business.

Xero setup

An hour of training on how to use Xero to it's full potential.

Xero training

If you would rather be doing something else, let us do your bookkeeping for you. We love coding and checking and you can relax knowing it's all done right, and on time.

Large bank reconciliation

A simple guide on PAYG Instalments, how they're calculated and what it means at tax time.

Understand how PAYG instalments work, who needs to pay, and how much to set aside for income tax. A simple guide for Australian business owners and investors.

Income Tax & PAYG Instalments Guide

Paying income tax is a part of life, regardless of whether you operate a business or are an individual earning a wage, business income or investment income.

Managing your income tax isn’t always as simple as lodging a return once a year. Depending on income levels, you may also need to pay tax in advance rather than a lump sum payment at the end of the financial year.

This guide explains everything you need to know about Pay As You Go Instalments (PAYGI), from who needs to pay it, to how to calculate the instalments, and what that means for your tax return lodgement.

Quick overview of how income tax works in Australia

The amount of income tax you pay depends on your structure and taxable income:

Sole traders - taxed as individuals using personal income tax rates

Companies - pay a flat rate of company tax on their profits

Partnerships / Trusts - income is distributed to partners/beneficiaries who pay tax based on their tax rates

In all cases, income tax is based on net profit (income minus allowable expenses). This is reported each year in a tax return, and based on this, the ATO may require you to start paying tax in advance through PAYG Instalments.

PAYG Instalments are prepaid amounts of income tax that you make to the ATO (usually quarterly) towards your expected tax liability for the year.

After your annual tax return is lodged, the instalments are then credited towards the total amount of income tax owed. If you’ve overpaid, you’ll get a refund. If you’ve underpaid, you’ll pay the difference.

It’s designed to help businesses (and individuals with income that hasn’t been taxed at the source) ease cashflow by prepaying smaller amounts throughout the year.

How does this differ from PAYG Withholding?

PAYG Withholding (PAYGW) is where income tax is deducted at the source. For example, if you’re earning a salary/wage, the employer will deduct PAYGW and forward that tax to the ATO on your behalf.

Some income sources don’t have PAYGW deducted, which is where PAYGI may apply.  For example, if you have rental properties and the net profit you make from those meets the qualifying criteria (outlined below), you’ll be required to enter the PAYGI regime.

The ATO will usually notify you if you need to start paying PAYGI, based on your last lodged tax return.

You’ll be required to enter the PAYGI regime if:

You’ve reported $4,000 or more in business or investment income, or

Your tax payable was more than $1,000 in your last return, or

Your estimated tax per year will be more than $500

Generally, this will apply to most companies, plus individuals who earn income from sources not covered by PAYG Withholding (e.g. business or investment income such as sole trader/partnership income, beneficiary income from a trust, or rental income).

The ATO calculates a set dollar amount for each quarter based on the most recent tax return. This is the easiest method and often used by individuals or businesses with predictable income.

Tax bill for year ended 30 June 2025 = $46,000
The ATO will calculate the quarterly instalment based on $46,000 plus a growth factor equal to GDP.  This is currently 4%.  Therefore, the ATO will estimate that you will have an estimated $47,840 tax payable for 2026 and will request this is paid in quarterly instalments of $11,960.

Please note, depending on when you lodge your return, the ATO may request a higher instalment for one quarter if the previous quarter has already passed.  For example, if you enter the PAYG Instalment system in November, the ATO may request you pay $23,920 for the December quarter and then $11,960 for the subsequent two quarters.  This is because you have missed the September quarter instalment.

The ATO works out your instalment rate and you apply this percentage to your actual income for the period. This gives you more flexibility if your income fluctuates.

Tax bill for year ended 30 June 2025 = $46,000
Total instalment income for the year ended 30 June 2025 = $920,000 ​

The instalment rate is 5%  [$46k divided by $920k].

Instalment income for the quarter ending 30 September 2025 = $204,000
PAYGI payment is 5% of $204,000 = $10,200 ​

Your BAS or Instalment Notice will show the method and amount or rate you’re expected to use. If you’re eligible to choose between the two methods, the ATO will give you both options.  

We recommend using the Instalment Rate Method if you run a business or have fluctuating income.  This way your payments are matched to your income levels.

PAYGI is included in quarterly Business Activity Statements (BAS) for businesses registered for GST or PAYGW, or in quarterly Instalment Activity Statements (IAS) if you’re not registered for GST.

Payments for PAYGI are made together with any other payments in the Activity Statement. The due date is dependent on your lodgement frequency and whether a tax agent is lodging on your behalf.

For quarterly BAS/IAS lodgement via a tax agent the dates are as follows:

BAS period ending 30 June - due 25 August

BAS period ending 30 September - due 25 November

BAS period ending 31 December - due 28 February

If you file quarterly without a tax agent, the due dates are 28 April, 28 July, 28 October and 28 February.

When your tax return is lodged, the instalments you’ve paid to the ATO during the year are credited against your total tax bill.

Based on the assessment of your total tax liability, you’ll either receive a refund to your nominated bank account or get a Notice of Assessment requiring you to pay a remaining balance.

Total tax owed based on lodged tax return = $100,000

Total tax owed based on lodged tax return = $50,000

Review your instalments regularly, especially if your income changes

Work with an accountant to manage or vary instalments (when needed)

PAYG Instalments are a way of pre-paying income tax so you’re not hit with a giant bill at the end of the year. While it can feel like an annoying admin task, it’s designed to be helpful and avoid overwhelm following the end of the financial year when you lodge your return.

If you’re unsure about your obligations or want help managing tax payments, it’s worth having a quick chat with your accountant.

If you're not working with one or looking to change, book a call with us to discuss your business accounting requirements and explore how we can help.

Beany Resources delivered straight to your inbox.

A guide to income tax and PAYG Instalments for Australian business owners

Learn how depreciation works, what assets can be depreciated, and how it affects your tax position.

FINANCIAL LITERACY  •  4 JULY 2025  •  7 MIN READ

Learn how depreciation works, what assets can be depreciated, and how it affects your tax position. Clear advice for business owners in Australia.

What is Depreciation? A Guide for Australian Businesses

As an Australian business owner you’ll often buy assets (i.e. stuff) to help run your business. For example, a laptop, car, office furniture, and machinery. These things all cost significant sums of money. While they’re all vital for your business operations, their value isn’t static. Over time they wear out, become obsolete, lose their original worth or get replaced.

In simple terms, depreciation is an accounting method that allows businesses to spread the cost of an asset over a period of time (also known as ‘its effective life’).

Instead of claiming the full cost of the asset as a deductible expense in the year it was purchased, you claim a portion of the cost each year based on its estimated lifespan.

For example, if you bought a piece of machinery for $50,000 and it’s expected to last 10 years, you might claim $5,000 each year for 10 years, rather than claiming $50,000 in 1 year.

Depreciation helps acknowledge that your assets contribute to your business’s income over its entire lifespan rather than only in the year it was purchased.

Depreciation might feel like just another technical term, but it's very useful in the world of business.

Reasons include: possible tax savings, knowing the real value of assets, better reporting, asset management and planning.

This is often the most compelling reason for business owners to understand depreciation. In Australia, the cost of most depreciating assets is tax-deductible over their effective life. 

Of course, a lower taxable income often translates to a lower tax bill, freeing up cash for other essential business activities. What business owner wouldn’t want that?

Depreciation provides a more accurate picture of your business's profitability over time. By allocating the cost of an asset across a longer period of time, your financial statements will better reflect the true cost of running your business, rather than showing a massive expense hit in the year of purchase. This is crucial for internal decision-making, as well as for attracting investors or securing loans.

A car bought for $30,000 isn’t worth $30,000 forever. Depreciation helps track how much its worth now, not just what you paid for it. 

This is also known as its book value, which is the original cost of the asset minus any accumulated depreciation.

Total accumulated depreciation (over the last few years): $20,000

Tracking depreciation can give you insights into the aging of assets. This can be extremely valuable for planning for replacements, upgrades or maintenance. It also helps ensure your operations remain efficient over time. Having an asset register that records this information is also useful for insurance purposes.

Generally, you can depreciate assets that:

You own (or have leased under a finance lease arrangement),

Are expected to decline in value over time, and,

You can’t depreciate things like stock, land, or everyday expenses like internet or electricity. (Land is generally not a depreciating asset as it typically doesn’t decline in value).

There are a few different ways depreciation can be calculated, but you don’t need to do all the maths yourself. That’s what your accountant is for.

Here are two common methods the ATO allows:

You claim more in the earlier years, and less as the asset gets older. It’s like how a car loses most of its value in the first few years.

You claim the same amount each year over the asset’s effective life. This is the simpler option for most people.

The ATO provides guidelines on the ‘effective life’ of different assets.

How does depreciation work with the instant asset write-off rules?

The rules around instant asset write-offs in Australia change fairly often. Sometimes, the government allows small businesses to claim the entire cost of an asset in the same year they buy it, rather than spreading it out.

For example, if the threshold is $20,000 and you buy a $15,000 piece of equipment, you might be able to claim the full $15,000 that year. But if you buy something worth more than the threshold, it has to be allocated to a pool and depreciated at a set rate.

These rules are often updated in the federal budget. In recent years, the instant asset write-off threshold has been set at $20,000, so many assets like phones and computers can be fully claimed in 1 financial year rather than over a longer period. Previously, the threshold was only $1,000, so most assets fell under depreciation rules.

If you’re looking to buy a high-ticket asset, it pays to check with your accountant on the current rules so you’re aware of whether the item will fall under the instant asset write-off or standard depreciation.

Depreciation is more than just an accounting term. It’s a valuable tool that can impact your business's profitability and tax position.

Understanding how it works and why it’s important is useful for effectively managing your business assets, operational efficiency, and finances.

For tailored assistance on how depreciation applies to your business assets and to ensure you’re maximising eligible deductions, its always recommended to consult your accountant.

Beany are an online accounting firm in Australia that delivers big firm expertise without the big cost. We handle everything accounting-related (such as annual compliance, bookkeeping, financial insights and strategy), and help business owners make smarter decisions for their business and lifestyle through our responsive, friendly expertise.

What is depreciation (and why does it matter)?

Financial literacy

A practical guide for Australian businesses on filing income tax returns, key deadlines, and what's required.

A practical guide for Australian businesses on filing income tax returns, key deadlines, and what to include. For companies, sole traders, and partnerships.

How to File Income Tax Returns in Australia

Whether you’re a sole trader, run a company or manage multiple income streams, tax time can feel like a drag. We’re here to help you understand your obligations and approach tax season with confidence.

This guide will walk you through what you need to lodge a return, important deadlines, how to get help and what to do if you’re not sure where to start.

If you’re running a business in Australia, you need to lodge a tax return even if you haven’t made a profit or aren’t trading. 

What you need to lodge depends on the type of structure your entity is:

Sole traders - lodge an individual tax return that includes business income and expenses

Companies - lodge a company tax return and pay tax on company profits

Trusts - lodge a trust tax return, and each beneficiary reports income received from the trust in their own tax return

Partnerships - lodge a partnership tax return, and each partner reports their share of the partnership income in their individual tax return

Most individuals in Australia need to lodge a tax return, especially if you’re:

Earning above the tax-free threshold ($18,200)

Receiving a salary or dividends from a company, partnership or trust

Earning investment or rental income (including cryptocurrency gains or losses)

The annual tax return process is a way for the ATO to calculate your yearly tax liability, accounting for all taxable income types and any deductions, offsets and rebates.

Key deadlines for filing your 2025 tax return

The Australian financial year runs from 1 July to 30 June. Following the end of the financial year, businesses and individuals have a period of time to finalise their accounts and records for that year and get their information lodged with the ATO.

The standard filing deadline is 31 October. This is typically applicable to individuals and businesses filing themselves.

If you’re using a registered tax agent and are eligible for extension of time (EOT), you may automatically receive a later lodgement date. However, this is not a given.  If you’ve failed to lodge on time in prior years, the ATO may enforce the standard filing date of 31 October, even if you’re using an accountant or tax agent.

The extension deadlines vary depending on your entity's turnover or tax liability:

31 January - tax returns due for medium-large entities*

28 February - tax return due for newly registered medium-large entities*, or medium-large entities that were non-taxable in the latest year lodged

31 March - tax return due for entities whose latest return resulted in a tax liability of $20,000 or more and didn’t have an earlier lodgement date

15 May - tax return due for all entities that didn’t require earlier lodgement

*medium-large entities = annual income more than $10 million.  Whilst lodgement date is 31 January, payment is due 1 December.

The aim of the extensions is not only to give businesses more time and flexibility to get their information to their accountant, but also helps spread the workload for accountants/tax agencies and avoid system bottlenecks with the ATO from everyone lodging at the same time.

If you’re unsure whether you’re eligible for EOT or which deadline is applicable to you, we recommend consulting your accountant or tax agent.

Missing tax deadlines can lead to penalties and interest on unpaid tax.

The ATO may apply a Failure to Lodge penalty, which increases the longer you delay filing your return. Additionally, if you owe tax, interest will apply from the original due date of your return (not from the date you file).

If you can't pay on time, contact the ATO as soon as possible to discuss your options and avoid further penalties.

Information you need to lodge your tax return 

Being prepared for year-end can make tax time much smoother. The information you need handy for your tax return depends on the type of return you’re filing.

To file your business tax return, you’ll need the following:

Business details e.g. ABN, TFN, director information (if applicable)

Financial records such as bank statements, invoices, receipts

Other relevant info such as loan documents

To file your personal tax return, you’ll need the following:

Income information for all sources i.e. employment income, business/partnership/trust income, government or Centrelink payments, investment income, foreign income

When filing your 2025 tax return, you can claim business-related expenses such as rent, utilities, software, tools, and home office costs.

The golden rule is that the expense must be directly related to earning your business income.

Interest on borrowing money for the business

Work-related mobile phones and phone bills

The rules can be a bit fuzzy sometimes when it comes to claiming business expenses. That's where an accountant’s knowledge of all the regulations is invaluable. They’ll ensure you’re claiming all eligible expenses in order to minimise your tax bill.

Learn more: Beany’s guide to business expenses

There are three options depending on your comfort level and how complex your business is. You can lodge yourself, use a local tax agent or work with an online tax agent.

You can lodge online using myTax through the ATO website. This could be an option if you’re an individual taxpayer with straightforward income and deductions. However, keep in mind that often DIY lodgers miss out on deductions or make errors that could come under ATO scrutiny.

A registered tax agent in your area can take care of your return. This is ideal if you have time to get in-person help. 

Using an online accountant is a more convenient way of getting expert support. You can meet with your accountant without leaving your office or workplace. 

This is a great option for busy business owners and those who already use online tools (like Xero/MYOB) to run their business.

Additionally, online accountants typically don’t have an office as the team work from their home offices, so less overheads often means more affordable accounting fees.

Regardless of the option you choose, you’ll need to gather your income details, expense receipts, and any other relevant information (as outlined further up).

If you lodge yourself, follow the guided questions in myTax. Some questions will be pre-filled from information the ATO has received from your employer, bank etc. 

If you use a registered tax agent, they’ll have a questionnaire you complete which enables them to complete your return(s). 

At Beany, our online questionnaire guides you through the process with explanations and space for you to attach any relevant documentation where needed. If you’re using Xero, it’s even quicker as some of our questionnaire is integrated with your Xero file so the data feeds through, reducing the amount of questions you need to answer.

What happens after submitting your information for your tax return?

If you lodge yourself, the ATO will review your information and let you know if you’re due a refund or owe tax.

If you work with an accountant, they will thoroughly review your information, and produce a set of accounts (tax return and financial statements) with the information you provide. If there’s any follow-up questions they’ll get in touch. If your accountant does draft accounts as part of their process, they’ll get you to approve your accounts before they finalise and lodge them with the ATO.

The timeframe varies depending on a number of factors, from time of year to your responsiveness in responding to any follow-up questions.

During peak times (roughly the 4-5 months following the end of financial year), it can take anywhere from 8-14 weeks as many taxpayers are getting their information to their accountant at the same time, so there’s always a backlog. During off-peak times when the busy period has calmed down a bit, the timeframe can be as short as 5-6 weeks.

Generally, it’s a good idea to get your info submitted as early as possible so you can plan for your tax payments and make use of the financial statements to make business decisions.

Once the ATO has finalised your return, they’ll assess whether you are due a refund or owe tax.

If you’re owed a refund, the ATO will deposit the money into your nominated bank account.

If you owe tax, the ATO will issue a Notice of Assessment.

If you need help with paying any tax owed, you can contact the ATO about setting up a payment plan.

Keep digital records and file receipts as you go. Don’t make it a chore where you get to year-end and have to sift through your emails and/or wallet for receipts. You’ll likely miss or forget about something and every missed receipt is a potential claimable tax deduction.

Reconcile your bank accounts and card statements regularly. The more you get behind, the more painful it is to catch up. Instead of only needing to reconcile a handful of transactions, it may suddenly be a thousand.

Work with an accountant year-round. Contrary to popular belief, an accountant can do a lot more than prepare income tax returns. They’re a valuable resource for many things related to business finances, from budgets and forecasting to strategic advice and tax planning.

Set aside money for tax in a separate bank account. Consider opening a savings account with another bank to reduce the temptation to dip into the ‘tax’ account.

What are my tax obligations as a business owner?

Tax obligations vary depending on factors such as business structure, whether you’re registered for GST, and whether you have employees.

For example, if you’re running a company with employees, you’ll have obligations such as Income Tax and PAYG Withholding. Depending on employee benefits and selling any business assets, you may also have other taxes to pay such as Fringe Benefit Tax (FBT) and Capital Gains Tax (CGT).

We recommend seeking professional advice for your situation to ensure you’re meeting all your compliance obligations.

What do I file if I haven’t made any money this year?

Filing a tax return when your business has incurred a loss allows you to carry the loss forward i.e. you’re able to offset the current year’s loss against future profits to reduce your tax liability in the following year, provided you meet certain tests.

You need to lodge a nil return to stay compliant. This lets the ATO know that your business is still active, even if you didn’t trade.

You can usually amend your return through myTax or your accountant. If you’ve forgotten something that the ATO will be able to track back to you or your business, it’s best to correct it before the ATO contacts you as penalties may apply if they discover an error first.

In Australia, PAYG Instalments is a requirement for most taxpayers who earn income not subject to PAYG Withholding.  It is aimed at making instalments towards the current year’s estimated tax liability.  That way self-employed individuals, or those with investment income, and companies can stay on top of their income tax obligations. By making incremental payments, taxpayers can effectively manage their tax liability rather than having a large tax bill once a year.

Read more: A guide to income tax and PAYG Instalments

We work with business owners across Australia to make filing your tax return easier. Our accountants handle both company and personal returns (they’re both part of our package) with fixed pricing and a friendly service. Book a call or get in touch to discuss your requirements and explore how we can help.

Not all work clothing is tax-deductible. Find out what qualifies and how to claim deductions for eligible workwear and laundry expenses.

EXPENSES  •  30 JUNE 2025  •  4 MIN READ

Not all work clothing is tax-deductible. Find out what qualifies, what doesn’t, and how to claim deductions for eligible workwear and laundry expenses.

Tax Deductibility of Work Clothing in Australia

Work clothing is an often-contested topic when it comes to tax deductibility in Australia. “But I only wear that item for work” is often not a good enough reason according to ATO guidelines. 

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