Accounting & tax — Company

Company Tax Return Accountant

Pty Ltd financial statements, company income tax return, Division 7A tracking, franking account, PAYG instalments and BAS coordination — prepared by a Chartered Accountant and registered tax agent.

Book a Company Tax Review See Our Process

Small Pty Ltd
Family company
Investment company
Trading company
Director-owner

Eternity Group Accountants is a registered tax agent (TPB 25523469). Information on this page is general in nature and does not constitute personal tax advice. Before acting, consider whether the information is appropriate to your circumstances and seek advice from a qualified tax professional.

What is a company tax return?

A company tax return is the annual income tax return a company (Pty Ltd) lodges with the ATO, reporting the company’s taxable income and the tax payable or refundable for the year. A company is a separate legal entity, so it lodges its own return separate from its directors and shareholders — but the two connect through salary, dividends, franking credits and any Division 7A loan accounts. Preparing one means settling the financial statements, reconciling accounting profit to taxable income under the tax rules, maintaining the franking account, reviewing Division 7A where loans or payments to shareholders exist, and lodging through a registered tax agent. The applicable rate and treatment depend on the company’s circumstances and the rules for the relevant income year — this is general information only, not personal tax advice.

How the numbers fit together

What a company tax return reconciles.

A company return is more than the accounting profit. It reconciles the profit in the financial statements to taxable income under the tax rules, and ties in the company tax rate, the franking account, loan accounts and instalments — so the tax position is supported rather than estimated.

Accounting profit shown in the financial statements
Add-backs for expenses that are not deductible for tax
Timing differences — for example accounting versus tax depreciation
Taxable income worked out under the tax rules, which can differ from accounting profit
The company tax rate for the year, which can depend on base rate entity status
PAYG instalments already paid during the year, credited against the assessment
The franking account — opening balance through every distribution and tax payment
Division 7A loan accounts with shareholders or associates, where they exist
Carried-forward losses, tested before any are recouped

Because these figures rarely line up on their own, the return reconciles them until the company’s accounting profit, its taxable income and the tax already paid all agree — the treatment of each item depends on the company’s circumstances and the relevant rules.

Scope of work

What's included in your company tax return.

A clean, defensible company return — financial statements, return, schedules and supporting workpapers — built on careful Division 7A and franking-account hygiene.

Financial statements

P&L · balance sheet · notes

Preparation of the year-end financial statements from your MYOB or Xero file (or trial balance). Reconciliations against bank, BAS, payroll and prior-year accounts.

Company income tax return

Form CTR · all required schedules

Full company return with depreciation schedules, capital gains schedule, franking account schedule, R&D schedule (if applicable), International Dealings Schedule (if applicable) and Reportable Tax Position schedule (if applicable).

Division 7A & shareholder loans

Loan agreements · MYR tracking · benchmark interest

Tracking of loans from the company to shareholders or associates, complementary loan agreements where needed, minimum yearly repayments, benchmark interest calculations, and documentation of the year-end position.

Franking account · PAYG · BAS

Year-round consistency

Franking account maintained from opening balance through every distribution and tax payment. PAYG instalments reconciled. BAS lodged quarterly (or monthly) consistent with the annual return.

What to gather

Documents usually needed for a company tax return.

Having the company records ready up front keeps the financials and return on schedule and the fixed fee accurate. Not every item applies to every company — we confirm the list for your situation at the scoping stage.

Prior-year company return and financial statements
Current-year accounting file — Xero or MYOB — or a trial balance
Bank, loan and lease statements for the full year
All BAS lodged during the year, for reconciliation
Payroll summaries and superannuation records
Asset and equipment purchases, with dates and amounts, for depreciation
Dividend and distribution records, and the franking account position
Shareholder and director loan-account movements, for Division 7A
Details of any company assets sold during the year, for capital gains
ASIC company statement and current director and shareholder details

Send through whatever you already have — we will request anything still outstanding before the financials and return are prepared. Clean source data is what keeps the return defensible.

Suited to

Company returns we prepare.

Small trading Pty Ltd

Single-director consulting, professional services and small trading businesses with revenue typically up to $5M. Annual financials, return, BAS coordination and director tax planning in one engagement.

Family-owned companies

Multiple directors and shareholders in the same family. Distribution decisions, franking strategy, Division 7A loan accounts and intergenerational planning considered together with each shareholder's individual return.

Investment companies

Companies holding portfolios of shares, managed funds or property. Capital gains, franking credit flow-through, retained earnings strategy and corporate tax rate testing each year.

Service / bucket companies

Service entities used alongside a trust or partnership, and bucket companies used to cap distribution tax rates. Inter-entity transactions documented, Part IVA awareness applied, and Division 7A loan accounts kept clean.

Worked example

Accounting profit can differ from taxable income.

A simple illustration of why a company’s taxable income can differ from its accounting profit. The figures are general and for explanation only — your result depends on your facts and the rules for the income year.

Accounting profit: $180,000
Add: non-deductible expensesExpenses in the accounts that are not deductible for tax: $6,000
Add: temporary timing adjustmentFor example a difference between accounting and tax depreciation: $14,000
Taxable income: $200,000

Illustration only — figures are general and not personal tax advice.

Here the taxable income ($200,000) is higher than the accounting profit ($180,000) because some expenses are not deductible for tax and a timing difference has been added back. Tax is then applied at the company rate for the relevant income year — which can depend on whether the company is a base rate entity — so the rate should be confirmed for the year and the company’s circumstances rather than assumed.

This is general information only and not personal tax advice. The add-backs, timing differences, franking and any Division 7A or loss positions that apply depend on the company’s circumstances and the relevant rules, which we review inside an engagement.

Process

From engagement to lodgement — typically 3–6 weeks.

Predictable, document-driven sequence. You always know what is next, what the fee covers, and when lodgement happens.

Scoping and engagement

A scoping call sets the engagement, the fixed fee and a tailored document checklist. We confirm director and shareholder details and the lodgement timeline.

Books cleanup

Trial balance reviewed, reconciliations confirmed, BAS positions verified, payroll summaries checked. Any open items are resolved before we draft the financials.

Financials & return

P&L, balance sheet and notes prepared. Company return drafted with all required schedules. Division 7A and franking account positions documented.

Director review

Draft sent with a clear summary of the company's tax position, any Division 7A balances, and indicative dividends or distributions. You review, ask questions, and confirm before lodgement.

Sign-off and lodgement

Signed return lodged through the tax-agent portal. Lodgement confirmation, finalised financials, and a copy of the workpapers issued for your records.

Forward planning

A short forward-look conversation: PAYG instalments for next year, anticipated distributions, refinance or expansion plans that affect the next return.

Before we lodge

Company tax risk areas before lodgement.

Company returns turn on a few recurring questions — Division 7A, the applicable rate and the franking account. The notes below cover what we test before lodgement — general information, not advice on your situation.

Division 7A & shareholder loans

Loans, payments and forgiven debts

Loans, payments or forgiven debts from a private company to a shareholder or associate may be treated as deemed dividends under Division 7A unless they are on complying terms with the required minimum yearly repayments. We review loan accounts each year rather than assuming they are safe.

Company tax rate & base rate entity

Not every company pays the same rate

The rate a company pays can depend on whether it is a base rate entity for the year, which turns on its aggregated turnover and the proportion of its income that is passive. The rate should be confirmed for the relevant income year and the company’s circumstances rather than assumed.

Franking account

Franking only up to the available balance

Dividends can generally be franked only up to the balance available in the franking account, and over-franking can have consequences. We maintain the franking account through the year so the position is accurate before any dividend is paid.

Carried-forward losses

Continuity tests may need to be met

A prior-year loss does not always carry forward automatically. A company generally needs to satisfy a test such as continuity of ownership or the business continuity test before a loss can be recouped, so we test the position rather than assuming it carries forward.

Other areas — private use of company assets, unfranked distributions and inter-entity transactions with Part IVA awareness — may also need review depending on the company’s circumstances and the rules for the relevant income year.

Frequently asked questions

Company tax return — common questions.

Common questions

What is included in a company tax return engagement?

A company return engagement typically includes preparation of the financial statements (P&L and balance sheet), the company income tax return, tracking of the franking account, review of Division 7A loan accounts where applicable, PAYG instalment reconciliation, and coordination with BAS lodged during the year. A fixed fee covering scope is confirmed in writing before work starts.

When is a company tax return due?

Most small private companies lodge through a registered tax agent. Standard due dates are 15 May the following year if the company is up to date with prior-year lodgements and not on the ATO's lodgement compliance list. New companies and large companies have different dates. We confirm your specific due date in the engagement and track it through the tax-agent portal.

What is Division 7A and how does it affect my company return?

Division 7A is the part of the tax law that treats certain loans, payments and debt forgiveness from a private company to a shareholder or associate as deemed dividends — taxable in the recipient's hands at marginal rates. We track loan accounts, complementary loan agreements, minimum yearly repayments and benchmark interest rates each year, and document the position so the return is defensible.

Do I need separate accountants for my company return and my personal return?

No. We can prepare both in the same engagement. Dividends, salary, franking credits, Division 7A loan balances and director-related items naturally cross between the two returns. Doing both together avoids reconciliation gaps and inconsistent positions between the company and the individual.

How do you handle franking credits and dividends paid during the year?

We maintain the franking account from opening balance through every distribution, tax payment and refund event. The franking account balance at year-end appears in the company return and feeds the dividend statements you issue to shareholders, which in turn appear in their individual returns.

Can you also prepare the BAS and bookkeeping for the company?

Yes. We offer quarterly BAS preparation and monthly bookkeeping as separate services that integrate with the annual company return. Doing them together keeps the trial balance clean year-round and avoids end-of-year clean-up costs.

How do you price a company tax return?

Fees depend on company size and complexity — number of transactions, condition of the bookkeeping, number of directors and shareholders, Division 7A exposure, and whether financial statements need preparation from scratch. We quote a fixed fee in writing after a short scoping call. See the Fees page for indicative ranges.

What documents do you need to start a company tax return?

Typically: the prior-year company return and financials, current-year MYOB or Xero file (or trial balance), all BAS lodged during the year, bank statements for the year, loan and lease statements, payroll summaries, asset purchases over the instant-asset-write-off threshold, and any documents relating to dividends paid or shareholder loans.

Where this fits in the bigger picture

A company return rarely sits in isolation. The director's individual return, the company's tax-planning posture, and any lending against the company or its assets all connect.