Tax deadlines have a habit of feeling a long way away… Until suddenly they aren’t. The 31st of October is the date many people associate with tax return deadlines, and if you haven’t lodged your tax return yet, you may be starting to wonder whether you’re running out of time.

The first thing to understand is that there isn’t one tax return deadline that applies to every Australian business. Your due date can depend on your business structure, lodgment history, circumstances and whether you’re lodging yourself or through a registered tax agent.

So, before panic sets in, here’s what you actually need to know.

After This Article, Read Next:

• Explore our Tax Compliance and Advisory Services
• What You Need to Prepare Before Tax Lodgment Time
• Tax Deductions Business Owners Might Miss
• What Triggers a Tax Audit
• Do You Need a Tax Accountant Year Round

When Is Your Business Tax Return Due?

Your tax return deadline depends on your business structure and whether you lodge yourself or use a registered tax agent.

If you’re a sole trader, partnership or trust lodging your own return, the standard deadline is 31 October. For companies that self-lodge, the deadline is generally 28 February of the following year, although different dates can apply depending on the company’s circumstances and lodgment history.

However, things can look different when you use a registered tax agent. Registered tax agents operate under an ATO lodgment program, which means eligible businesses may receive an extended deadline — potentially as late as 15 May.

But that doesn’t mean you should wait until the deadline to find an accountant. If you want to use a registered tax agent and potentially access an extended lodgment date, it’s important to engage them early so they can add you to their client list in time to receive the extended lodgment deadline.

Don’t Assume You Have Until the Same Date as Last Year

It’s easy to assume that because you lodged a certain time last year, you’ll have the same deadline again. That isn’t necessarily the case.

The ATO says due dates can change depending on factors including your entity type, when you were added to a tax agent’s client list, whether you’re a new registrant, whether you have overdue returns and whether your previous return was taxable or non-taxable.

In particular, outstanding prior-year tax returns can affect your current lodgment deadline. Rather than working from memory, confirm the date that actually applies to your business through ATO online services or with your registered tax agent.

What If You Haven’t Started Preparing Your Return?

This is where procrastination can start to compound.

The longer you leave your tax return, the less time there is to deal with missing information, reconcile discrepancies or answer questions that arise while your accountant is preparing your accounts.

Depending on your business, getting ready might involve:

• reconciling income and expenses;
• checking bank and credit card accounts;
• reviewing debtors and creditors;
• confirming payroll and superannuation records;
• completing stock or inventory records;
• reviewing asset purchases and disposals;
• gathering loan and finance information; and
• identifying business expenses that may be deductible.

You don’t necessarily need to have everything perfectly organised before contacting your accountant. In fact, if you’re behind, getting them involved earlier can help you establish exactly what is missing and what needs to happen next.

What If You’ve Already Missed Your Tax Return Deadline?

Ignoring an overdue return won’t make the obligation disappear.

The ATO specifically encourages taxpayers with outstanding prior-year returns to get up to date as soon as possible, noting that doing so may help avoid further interest on tax debts and late-lodgment penalties.

If you’re already overdue, the priority should be understanding what is outstanding, what needs to be lodged and whether there is an associated tax liability.

And if you’ve fallen behind across several obligations, don’t let the size of the problem prevent you from starting.

Getting visibility over the situation is the first step towards resolving it.

What If You’re Worried About the Tax Bill?

Sometimes it isn’t the paperwork that’s causing a business owner to delay lodging. It’s knowing there could be a significant bill waiting on the other side.

But delaying the return doesn’t solve the underlying cash-flow problem.

Knowing your actual tax position gives you something concrete to work with. It also provides an opportunity to look at why the liability has created pressure in the first place.

For example, is the business setting enough aside for tax throughout the year? Are PAYG instalments adequately reflecting business performance? Is cash flow being forecast around upcoming tax obligations?

PAYG instalments are designed to progressively prepay tax on business and investment income throughout the year, reducing the amount that may otherwise become payable after the annual return is lodged.

A large unexpected tax bill can therefore be more than a tax problem. It can highlight a need for better cash-flow forecasting and financial planning.

Your Tax Return Is Also an Opportunity to Look Back at the Business

Getting the return lodged is the immediate priority, but the information behind it can tell you much more.

How did revenue compare with the previous year? Have margins improved or deteriorated? Which costs increased disproportionately? How much profit did the business actually retain? Is debt increasing or decreasing? And is business growth translating into stronger cash flow?

A tax return is necessarily historical — it tells us what has already happened.

Good financial management takes that information and asks what should happen next?

That might mean revisiting pricing, building a budget, forecasting cash flow, changing the way money is set aside for tax or simply creating better visibility over financial performance throughout the year.

Don’t Wait Until the Deadline to Find Out You’re Not Ready

If your tax return is still sitting on the to-do list, now is the time to move it up. Waiting until the last possible moment leaves very little room to deal with missing records, unexpected issues or a tax position you weren’t prepared for.

At The Co., our Business Accounting and Tax Services help business owners understand their obligations, prepare and lodge their returns, and get greater clarity around the numbers behind them.

Getting in touch now can make the process significantly easier than waiting until the deadline is staring you in the face.