If you run a Pty Ltd company in Victoria and you’re not sure exactly what your company tax obligations are — or you’re not certain your last return was done correctly — you’re not alone. Company tax returns are one of the areas where we see the most confusion, and where the cost of getting it wrong is highest.
We’re based in Epping and we look after company tax returns for businesses across Melbourne’s northern suburbs and beyond. Here’s everything a company director needs to understand about the process.
What Is a Company Tax Return and Who Has to Lodge One?
Every Pty Ltd company registered in Australia must lodge an annual company tax return with the ATO, regardless of whether it made a profit. That includes companies that:
- Made a loss for the year
- Had no trading activity
- Are dormant (though there are specific rules around dormant companies)
- Are family investment companies or holding structures
The company tax return reports your company’s taxable income, calculates the tax payable at the corporate tax rate, and reconciles any PAYG instalments already paid throughout the year.
Most small Pty Ltd companies in Melbourne’s northern suburbs — the trades businesses, retailers, service providers, professional practices — fall into the base rate category. But it’s worth confirming your rate each year, because the rules around what qualifies as a base rate entity have changed over recent years.
When Are Company Tax Returns Due?
This is the question we hear most often, and the answer depends on how your company lodges.
If you self-prepare (lodge directly through ATO business portal):
The standard due date is 31 October following the end of the financial year (30 June).
If you lodge through a registered tax agent (like RPS Accountants):
You’re typically eligible for an extended due date. Registered tax agents have a lodgement program with the ATO that gives clients later deadlines — often ranging from 31 January to 15 May of the following year, depending on your situation and prior compliance history.
This is a genuine and significant benefit of using a registered tax agent. A company that had a $20 million turnover last year may have a different deadline to a new company in its first year of trading. We manage all of this on behalf of our clients.
Important: If your company has outstanding lodgements from prior years, the ATO’s extended deadlines don’t automatically apply. Bringing your lodgements up to date is the first priority.
What Does a Company Tax Return Cost?
The most common question after “when is it due?” is “how much does it cost?”
For a small Pty Ltd with straightforward financials — one income stream, properly maintained books, no complex transactions — professional preparation of a company tax return in Melbourne typically ranges from $800 to $2,500 . For larger or more complex companies — those with multiple directors, property assets, trusts, or international transactions — costs can be significantly higher.
At RPS Accountants, we always quote upfront before starting any work. We don’t issue invoices that surprise clients. The quote depends on:
- Whether your books are reconciled and up to date (Xero, MYOB, or spreadsheet)
- The number of transactions and complexity of income streams
- Whether you have related-party transactions, loans to directors, or Division 7A considerations
- Prior year issues that need to be resolved
If you come to us with clean, reconciled accounts, your job is faster and your cost is lower. We’re always happy to have that conversation upfront.
What Information Do We Need to Prepare Your Company Return?
When you engage us to prepare your company tax return, you’ll need to provide:
- Profit and loss statement for the financial year
- Balance sheet (statement of financial position) as at 30 June
- Bank reconciliations for all accounts
- Fixed asset register (or list of assets purchased and disposed of during the year)
- Details of any loans to or from directors or related entities
- PAYG payment summaries or STP finalisation details for employees
- Details of any distributions from trusts received by the company
- Prior year tax return and notice of assessment (if we haven’t worked with you before)
If your books are in Xero or MYOB, we can access them directly once you grant permission. This saves time and reduces the risk of errors.
Division 7A: The Issue Most Small Companies Miss
Division 7A is one of the most misunderstood and most consequential areas of company tax for small Pty Ltd companies. It applies when a private company makes a payment, loan, or forgives a debt to a shareholder or their associate (which includes family members).
If a director takes money from the company — cash, pays a personal expense through the company, or transfers an asset — and it’s not properly structured as salary, wages or a genuine loan agreement meeting specific terms, Division 7A can deem that amount to be an unfranked dividend. The tax consequences can be severe.
We see Division 7A issues come up regularly with small companies in the northern suburbs — often because no one explained the rules when the company was set up. If you’re not sure about your situation, this is worth a specific conversation before your return is lodged
Should You Be Using a Company Structure at All?
This is a question worth revisiting regularly. A company structure offers real benefits — the 25% corporate tax rate, limited liability protection, and the ability to retain profits in the company — but it also comes with ongoing compliance costs, directors’ duties, and restrictions on how you access profits.
For sole traders earning above approximately $100,000 who are considering incorporation, the tax savings can be material. For a business with very low profits or one that the owner draws out entirely each year, the compliance cost can outweigh the benefit.
We regularly review clients’ structures as part of their annual tax return process and flag when a change might benefit them.
How We Handle Company Tax Returns for Northern Melbourne Businesses
Every company we look after gets a dedicated point of contact. Your return isn’t processed by a rotating team — the same person who discusses your situation with you is the person who prepares your return.
We’re registered tax agents and we deal with the ATO directly on your behalf. If there’s a query on your return, we handle it. If you receive an audit notice, we represent you.
Ready to sort out your company tax return? Call us on 1300 110 120 or email admin@rpsaccountants.com.au. Our Epping office is at 136 Gateway Boulevard — you can walk in, or we can handle everything remotely.
Frequently Asked Questions
Can a company lodge its own tax return without an accountant?
Yes — companies can self-lodge via the ATO’s Business Portal. However, the lodgement due date is 31 October (vs up to May for agent-lodged returns), and there’s no buffer if you make an error or the ATO has a query. For most small companies, the cost of professional preparation is offset by the extended deadline and the reduced risk of errors or omissions.
What happens if my company tax return is late?
The ATO applies failure-to-lodge (FTL) penalties for returns lodged after their due date.
For small companies, FTL penalties currently start at $313 for the first 28 days and increase by $313 per 28-day period after that, up to five penalty units. Persistent late lodgement can also affect your eligibility for agent concessions in future years.
Can I backdate expenses to reduce my company’s tax?
No. Expenses must be recorded in the period they were incurred. Backdating is a form of tax fraud and carries serious penalties. There are legitimate strategies for timing deductions before year-end — but these need to be planned before 30 June, not after.
Does my company need to pay PAYG instalments?
Most companies that had a tax liability in their prior year return will be entered into the ATO’s PAYG instalment system. This means quarterly payments based on estimated current-year income. We review these with clients each year to ensure the instalment amounts are appropriate.
