Your tax time questions answered

You need to lodge a tax return for the 2023-24 financial year, even if your business hasn't earnt any income.

What you need to report and how you lodge your tax return depends on your business structure:

• Sole traders need to lodge an individual tax return. You don’t need to lodge a separate tax return for your business. In your return, report your business income and all other income, and the Australian Taxation Office (ATO) will work out the amount of tax you are liable to pay when you lodge.
• A partnership has its own tax file number (TFN) but doesn't pay income tax on the profit it earns. Each partner reports their share of the partnership income in their own tax return. Your partnership must also lodge a separate partnership return under its own TFN.
• If your business is a company you must lodge a company tax return and pay tax on the company’s income. If you’re a director, you’ll still need to lodge your own personal return as well.
• A trust has its own TFN and must lodge a trust income tax return.

Individual tax returns can be lodged online with myTax, but most businesses will need to lodge using standard business reporting enabled software or through a registered tax agent.

You can claim a tax deduction for most expenses you incur in running your business if they are directly related to earning your income. The ATO advises that there are 3 'golden rules' to consider when it comes to business deductions:

1. The expense must have been for your business, available as an allowable deduction, and not for private use.
2. If the expense is for a mix of business and private use, you can only claim the portion that is used for your business.
3. You must have records to substantiate what you claim, either in paper or electronic form.

Common types of deductions include motor vehicle expenses, travel expenses, digital product expenses and workers' salaries, wages and super contributions.

If you're an employer, you need to lodge your Single Touch Payroll (STP) finalisation declarations by 14 July (later for closely held payees). Remember to finalise all employees you’ve paid in the financial year, even those you haven’t paid for a while, like terminated employees.

If you want help with your business tax, there is assistance available:

• Engage a registered tax agent. They are experts who can help you prepare and lodge your tax return.
• Access help and support from the ATO, who can advise on more specific queries regarding tax for businesses.

• Check out our list of yearly financial tasks. We've outlined important dates and tasks to be aware of throughout the financial year, to help make tax time easier.
• Practice good record keeping throughout the year, to ensure you have everything you need when tax time comes.
• Speak to a business adviser to find areas of improvement when it comes to operating your business.