Filing 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:​

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

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.​

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:​

*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.​

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:​

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

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.​

Some common deductible expenses are:​

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.​

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.​

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.​

If you’ve incurred a loss​

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.​

If you weren’t trading​

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.​