Don’t wait until you’re thirsty to start digging the well. – Chinese Proverb
Cashflow is the lifeblood of a growth-minded business. Get it right, and you have the resources to invest, expand, and sleep well at night. Get it wrong, and you may be scrambling for funds just when you need them most.
One often-overlooked cashflow lever? When and how you lodge your business tax return.
At Bishop Collins, we help our clients time their lodgements strategically, so they pay income tax when it makes sense for their business, claim every eligible deduction, and keep more cash available for growth throughout the financial year– all while minimising ATO review risk.
Why It’s Important to Understand How to Lodge Your Business Tax Return
You need to lodge a tax return if you carried on a business – even if you didn’t earn any income. This applies to all business structures: sole trader, partnership, trust, or company.
The type of return you lodge depends on which entity your business operates under. These are some of the entities a business would operate under:
Sole trader → Report business income and deductions in your individual return.
Partnership → Lodge a partnership return showing net income from the business. The profit or loss is then reported in the partners personal returns.
Trust → Lodge a trust tax return for the net income or loss. The profit must then be distributed to the beneficiaries and reported in their returns.
Company → Lodge a company tax return as a separate legal entity.
💡 Why Bishop Collins? The right lodgement strategy isn’t just about compliance 0 it’s about keeping more money in your business to fuel your next stage of growth. Get in touch with us today here.
What Is a Tax Return for a Business?
A business tax return is a report to the Australian Taxation Office showing:
Assessable income (sales, services, dividends, other income)
Deductions (business expenses that are tax deductible)
Net profit or loss
Payments made and refunds owed
We often find that growth-focused businesses miss out on deductions simply because they weren’t captured or categorised correctly. Our role is to make sure you claim every legitimate dollar while avoiding claims that could raise ATO questions.
When Is the Due Date to Lodge Your Tax Return?
If lodging yourself: 31 October (individuals, sole traders, partnerships, trusts), or generally 28 February for small companies.
If using a registered tax agent: You may get an extended due date depending on your agent’s lodgement program.
💡 Benefit: Lodging through Bishop Collins gives you breathing room, better planning, and the ability to schedule payments in line with your cashflow cycle.
How Long Does a Business Have to Lodge a Tax Return?
If you use the ATO’s myTax or online services directly, you must lodge by 31 October. Miss the deadline, and you risk penalties and interest.
If you use a registered tax agent online, you may have until May of the following year – extra time that can be used for tax planning and cashflow forecasting.
Do Businesses Get a Tax Refund in Australia?
Yes. A “tax return” is the form you lodge. A “tax refund” happens if your payments during the year exceeded your income tax liability.
We work with clients to position their affairs so that refunds are optimised where possible – without artificially overpaying during the year.
How Much Can a Small Business Make Before Paying Taxes in Australia?
For individuals (including sole traders), the tax-free threshold is $18,200. However:
You must lodge a tax return even if your business earns less than this.
Companies and trusts don’t get a tax-free threshold – they pay tax on every dollar of taxable profit.
How Is Business Income Taxed in Australia?
Sole trader: Business income is taxed at your individual marginal rates.
Company: Pays company tax at 25% (base rate entities) or 30% (all others).
Trusts: Income is distributed and taxed in the hands of beneficiaries.
Partnerships: The partnership itself doesn’t pay tax, but partners do on their share.
💡 Insight: Choosing the right business structureisn’t just about tax – it’s about asset protection, cashflow, and long-term growth.
Sole Trader & Small Business Tax Returns
If you’re a sole trader, your business income and expenses are included in your individual tax return. You still need a tax file number and must report all income received.
For small businesses, year-round tax planning ensures you can claim all eligible deductions and plan for payments without disrupting your cashflow.
Can I Lodge My Own BAS?
Technically, yes – you can lodge your own BAS or business tax returns. But lodging yourself without professional oversight can mean:
Missing deductions you’re entitled to
Paying more tax than necessary
Raising red flags with the Australian Taxation Office
At Bishop Collins, we:
Minimise your tax payable through proactive planning
Check every figure for compliance accuracy
Avoid anything that could draw unwanted ATO review attention
Strategically time lodgements and payments to strengthen cashflow
How Much Does It Cost to Lodge a Company Tax Return?
Costs vary depending on the complexity of your finances. At Bishop Collins, we provide fixed-fee quotes so you know exactly what you’ll pay – and our fees are usually tax deductible.
Maximising Cashflow When You Lodge
Use a Registered Tax Agent – for extended due dates and strategic payment planning.
Know Your Payment Dates – schedule tax payments when your bank balance can handle it.
Delay Lodgement (Legally) – if you expect a bill, use your agent’s extended deadlines.
Lodge Early for Refunds – if you expect a refund, lodge as soon as your accounts are ready.
Online Services and Standard Business Reporting
You can lodge through the ATO’s online servicesor standard business reportingsoftware. While convenient, these systems won’t review your tax position, check deductions, or ensure your structure is optimised. That’s where the value of a tax partner shines.
You’re Not Alone in Business with Bishop Collins
Whether you run a business or have complex affairs with multiple entities, when and how you lodge your return can make a big difference to your cashflow.
At Bishop Collins, we handle the numbers, timing, and strategy so you can focus on growth – not tax deadlines.
Our clients enjoy stronger cashflow, optimised tax outcomes, and peace of mind knowing their lodgements won’t trigger unnecessary ATO attention.
📞 Call us today to plan your next lodgement with confidence.
Business Tax Return FAQs (Australia)
Can I lodge my own BAS?
Yes. Most businesses can lodge their own BAS (Business Activity Statement) via the ATO’s Online services for business, through SBR-enabled accounting software, or with help from a registered tax agent.
The risk with DIY BAS is usually not “lodging” – it’s coding errors (GST, PAYG withholding, adjustments) or missing credits. If your BAS is complex or your figures are material, having a tax agent – like one from Bishop Collins – review it can reduce ATO risk and improve accuracy.
How much does it cost to lodge a company tax return?
Costs vary based on complexity, including the quality of bookkeeping, number of transactions, payroll, asset purchases, multiple entities, and whether tax planning is required. Many firms provide fixed-fee quotes so you know the cost upfront.
In most cases, tax agent fees for preparing and lodging a company tax return are tax deductible.
How long does a business have to lodge a tax return?
It depends on your business structure and whether you lodge yourself or use a registered tax agent. If you lodge yourself, many returns are due by 31 October (commonly for individuals/sole traders and many trusts), while companies often have different due dates depending on circumstances.
If you use a registered tax agent, like Bishop Collins Chartered Accountants, you may be eligible for extended lodgement deadlines under the agent’s lodgement program, sometimes into the following year. That extra time can be used for tax planning and cashflow forecasting.
What is a tax return for a business?
A business tax return is the annual report lodged with the Australian Taxation Office (ATO) that declares business income, claims eligible deductions, and calculates tax payable (or a refund).
The type of return you lodge depends on whether you operate as a sole trader, partnership, trust, or company.
How much can a small business make before paying taxes in Australia?
There isn’t one universal “small business” tax-free threshold. For sole traders (individuals), the personal tax-free threshold is $18,200, but you may still need to lodge a tax return if you carried on a business.
Companies and trusts don’t receive the personal tax-free threshold and may pay tax on taxable profits from the first dollar, depending on how the entity is taxed.
How is business income taxed in Australia?
Business income is taxed differently depending on your structure:
Sole trader: taxed at the owner’s individual marginal tax rates.
Company: taxed at the company tax rate (commonly 25% for base rate entities, otherwise 30%).
Trust: net income is generally distributed to beneficiaries and taxed in their hands.
Partnership: the partnership lodges a return, but profits are generally taxed in the partners’ individual returns.
Because structure affects tax, risk, and cashflow, it’s worth reviewing regularly as your business grows.
Sole Trader & Small Business Tax Returns
If you’re a sole trader, your business income and expenses are included in your individual tax return (alongside any other income). You still need to keep good records, report all income received, and claim only legitimate deductions.
For many growth-minded businesses, the biggest wins come from year-round tax planning – not just “doing the return” – so deductions are captured correctly and tax payments can be forecast without disrupting cashflow.