It’s Tax Time again!
Your business has to lodge its income tax return for the 2019-20 tax year by 31 October 2020 – unless you use a registered tax agent (your tax agent will be allowed to lodge your return at a later date, even as late as May next year in some cases).
There are some tax changes for 2019-20 to be aware of, and a few tax tips to help adjust.
Lodging a tax return
Are you a sole trader?
- Even if your income is below the tax-free threshold of $18,200, you still need to lodge a tax return.
- Do you pay PAYG instalments? Lodge your activity statements and pay all due PAYG instalments before you lodge your tax return so your income tax assessment takes into account the instalments you’ve paid throughout the year.
Are you a partnership?
If you operate your business in a partnership:
- the partnership lodges the partnership tax return, reporting the partnership’s net income or loss (assessable income less allowable deductions).
As an individual partner, you report on your individual tax return:
- your share of any partnership net income or loss, and,
- any other assessable income, such as salary and wages, dividends, and rental income. The partnership doesn’t pay income tax on the income it earns. Instead, you and each of the partners pay tax on the share of net partnership income you receive.
Are you a trust?
- If you operate your business through a trust, the trust reports its net income or loss (this is the trust’s assessable income less allowable deductions).
- The trustee is required to lodge a trust tax return.
- As a trust beneficiary, you report on your individual tax return any income you receive from the trust.
Are you a company?
- If you operate your business through a company, you need to lodge a company tax return.
- The company reports its taxable income, tax offsets and credits, PAYG instalments, and the amount of tax it is liable to pay on that income or the amount that is refundable.
The company’s income is separate from your personal income.
Tip! Registered tax and BAS agents can help you with your tax obligations. For assistance with preparing and submitting your tax obligations, get in touch with avance today.
|21 June 2020*||May monthly BAS due|
|30 June 2020||Super guarantee contributions must be paid by this date to qualify for a tax deduction in 2019-2020|
|14 July 2020||Issue PAYG payment summaries if not reporting through STP|
|21 July 2020||June 2020 BAS due|
|28 July 2020||Lodge and pay June 2020 quarterly BAS
Pay June 2020 quarterly PAYG instalment
Employee super guarantee contributions due
June quarter SG due
|31 July 2020||Finalisation declaration due if reporting through STP|
|1 Aug 2020*||Fuel tax credit rates change|
|21 Aug 2020||July monthly BAS due
PAYG withholding annual report due if not reporting through STP
|28 Aug 2020||June quarter SG charge statement due
Taxable payments report due
|7 Sep 2020||Deadline for application for superannuation guarantee amnesty|
|14 Sep 2020||August JobKeeper monthly business declaration due|
|21 Sep 2020||August monthly BAS due|
|30 Sep 2020||Finalisation due date by payers of PAYG withholding payments reporting through STP for closely held payees where the employer has 20 or more employees.
Small employers (19 or fewer employees) who only have closely held payees have until the payee’s income tax return due date to lodge their STP finalisation for the financial year ended 30 June 2020.
|6 Oct 2020||2020-21 Federal Budget|
|14 Oct 2020||September JobKeeper monthly business declaration due|
|21 Oct 2020||September monthly BAS due
Payment of annual PAYG instalment for 2019-20
|28 Oct 2020||September quarter BAS due
Payment of first PAYG instalment for 2020-21 by quarterly payers
|31 Oct 2020*||2019-20 income tax return due
PAYG withholding annual reports due (no ABN withholding; interest, dividend and royalty payments paid to non-residents; and payments to non-residents)
|14 Nov 2020*||October JobKeeper monthly business declaration due|
|21 Nov 2020*||October monthly BAS due|
*Next business day.