Guides
Your EOFY Survival Guide for Australian Small Business/Companies
9 September, 2025 · 5 mins
A simple guide to company income tax in Australia. Learn tax rates, lodgement rules, and key tips to manage your business tax obligations effectively
Quick Summary:
- Company tax rate: 25% on net profits for most small company businesses
- Company Income Tax due dates: The due date may vary. Generally, 28 Feb (self-prepared with no pass return outstanding) or up to 15 May with a tax agent
- How to lodge: Submit your company income tax return via a SBR-enabled software, or through your accountant
- Penalties: Late tax returns can mean fines from $330 plus daily compounding interest
What is Company Income Tax?
It’s the tax your company pays on its business profits - that means the total income minus your business expenses. For the 2025 financial year (1 July 2025 to 30 June 2026), the Company Income Tax rate is 25% for small businesses.
Every company in Australia needs to lodge a Company Income Tax Return once a year.
What goes in a Company Income Tax Return?
Here are the key things you’ll need to include in your Company Income Tax Return:
- Total income: Such as sales, services, and any other money coming in
- Business expenses: Such as rent, wages, subscriptions, the usual suspects
- Any losses from previous years: Sometimes previous losses can be used to offset the profit your business has made in current period profit. So include any previous tax losses, they may help you reduce the tax you’ll have to pay
- Tax instalments already paid: Tax instalments are pre-paid taxes that ATO may need in certain circumstances. When you’re filling in your final year end assessment, make sure to include the taxes you’ve already paid so you’re not taxed twice
Need a clearer picture? See a sample return for FY 2025.
When is Company Income Tax due?
Generally, the lodgement and payment date for small companies is 28 February if you lodge it yourself, rather than using a tax agent. If you have any previous year returns still outstanding, the due date will be 31 October. If you’re using a tax agent or ask for a deferral, you might get a bit more time to file your Return.
Stressed about deadlines? Your ANNA tax calendar’s got your back with deadline reminders tailored just for you.
Quick Tips:
- Keep it Clean No cents. No rounding up. Whole dollars only on Income Tax.
- Nothing to Report? Just lodge a NIL Income Tax Return through ANNA.
- Oops! Made a mistake? Lodge a Company Income Tax Amendment to fix the error. However, you may incur interest and penalties if the amendment increases the money you owe.
- Stay on top of it Keep solid records of sales and expenses. ANNA can help you by sorting and categorising your records, matching your transactions and keeping track of your uploaded evidence. So your return will be neat and tidy, and you can claim everything you’re entitled to.
- Stash that tax cash Set aside estimated tax as you go - your future self will thank you. Use ANNA pots (coming soon) and real time tax estimation (also coming soon) to automatically put money aside for tax payments.
Got questions? Reach out to us in the app chat. You can also find more info about Income Tax on the ATO website.
Register a Company with ANNA
ANNA +Taxes is available for newly registered companies – first 1,000 customers get 6 months free. We auto-categorise your transactions and take care of your lodgements.
Register NowFrequently asked questions
What Business ID do I need to file a Company Income Tax Return?
To lodge your company tax return, you’ll need:
• Your Company’s ABN (Australian Business Number)
• Your Company’s TFN (Tax File Number)
• You will also need to access SBR-enabled software or a registered tax agent to lodge online
Need ABN and TFN? Message us in the app chat and we will help you sort them out
How do I calculate my Company Income Tax?
Start with your taxable income (total income minus allowable deductions), then apply the small business company tax rate – currently 25% for the 2025 financial year. ANNA helps estimate this in real time (coming soon)
How do I lodge a Company Income Tax Return?
You can lodge in one of three ways:
• Online using SBR-enabled software
• Through a registered tax agent
• By paper
Unlike BAS, companies can’t lodge their income tax return in the ATO online service account (ATO business portal)
Can I claim every business expense?
Not quite. You can only claim expenses that are directly related to earning your business income and you need proof when the ATO asks for it. ANNA helps match your transactions and track your receipts, so you won’t miss a beat
What happens if I lodge late?
The ATO may hit you with a Failure to Lodge (FTL) penalty. The later you are, the more it can cost, especially if you owe tax. Interest may also apply. Best to stay ahead of it
Can I request more time to lodge?
Yes! you can request a lodgement extension, but you’ll need a valid reason and ATO approval. You can lodge an extension request by logging in to the ATO’s Online Services for Business using your myID
Need a hand? Let's just ping us in the app chat and sort it out for you
Why is my income tax return rate 30%?
Your business likely doesn’t qualify as a “base rate entity”. That means either:
• Your turnover is over $50 million, or
• More than 80% of your income is passive (like rent, interest, or dividends)
In that case, the standard 30% company tax rate applies. Not sure where you land? Ping us in the app, we’ll help you figure it out
How do I pay the ATO?
You can pay via BPAY, credit card, Direct Debit or bank transfer. Using ANNA? Just pay with your ANNA business card. We’ll match the payment to your ATO bill, easy as that. Can’t find your income tax return reference number? No stress, just message us in the app chat and we’ll track it down for you
Is ANNA a SBR-enabled software?
ANNA is not currently SBR-enabled, but we’re actively working on integrating Standard Business Reporting (SBR) functionality. We’re aiming to launch this capability by Q4 2026 to support seamless ATO Income Tax lodgements directly through the platform
Disclaimer:
This content is general information for small businesses. You can only use the document for your noncommercial purposes. In no event shall we be held liable for any claims arising due to, or dependencies on the accuracy and completeness of the content provided. ANNA+Taxes does not provide personal or professional financial, accounting or tax advice and you should consult with external professionals for advice tailored to your situation prior to making any decisions.
