Effective and Easy Company and Trust Tax Returns​

Empowering Inner West Sydney and Northern Beaches Businesses

Starting a business is no easy feat. As a business owner, you have to deal with a lot of responsibilities, including accounting and tax compliance. It’s not uncommon for business owners to overlook these responsibilities, especially when they have a lot on their plate.

However, failing to comply with tax laws can lead to serious consequences like hefty fines, legal issues, tax audit, tax review and even the force closure of your business. That’s why it’s essential to work with an tax expert who can help you navigate through the complex world of taxes and accounting.

As the leading CPA accountant and registered tax agent in Inner West Sydney Ashfield, Belrose Northern Beaches, we are the business tax expert you need to look after your business’s company and trust tax returns. In this post, we’ll discuss some essential things you need to know about tax compliance as a business owner.

Easy Company
and Trust Tax Returns

As the director of your company, it’s your responsibility to ensure that your business’s tax return is lodged on time and accurately. This means that you need to keep accurate records of all your business transactions and expenses throughout the financial year.

When you work with us, we’ll help you prepare and lodge your company and trust tax returns on time. We’ll also help you identify any business related expense that you may be eligible for to minimize your tax liability.

Moreover, we’ll help you keep up-to-date with any changes in tax laws that may affect your business. This way, you’ll always be compliant with tax regulations, and you won’t have to worry about any legal issues or penalties. Do you know that the Superannuation Guarantee for the employee from 1 July 2023 would be 10.5% and follow by 11% to FY2024, and it will be gradually increase till 12% from 1 July 2025.

Do you know that the company tax rate for Fy2023 is 25% for base rate entity, and for other entity it is 30%.

Fringe Benefit Tax and Shareholder Loan

If you use your company’s resources for personal use, you may be subject to fringe benefit tax (FBT). FBT is a tax on the benefits that employees receive from their employers, such as cars, housing, or entertainment.

However, if you decided to use a shareholder loan instead of the company resources, it’s crucial to structure it properly to meet the requirements of division 7A. Division 7A is a set of rules that governs loans or payments made by a company to its shareholders or associates.

If you don’t structure the shareholder loan properly, there might be deemed dividend implications. This means that the loan will be treated as a dividend, and you’ll have to pay tax on it at your marginal tax rate. That’s why it’s essential to work with us to ensure that you’re complying with division 7A requirements and avoiding any tax implications.

Wistax will effectively manage all of your accounting and taxation needs for your business

As a business owner, it’s your responsibility to comply with tax laws and regulations. However, tax compliance can be overwhelming, especially when you have a lot on your plate.

That’s why it’s crucial to work with Wistax tax expert who can help you navigate through the complex world of taxes and accounting. As the leading CPA accountant and registered tax agent in Inner West Sydney Ashfield, Belrose Northern Beaches, we can help you with all your business tax needs.

From preparing and lodging your company and trust tax returns to helping you with superannuation guarantee and shareholder loans, we’ve got you covered. Contact us today to schedule a consultation and see how we can help you grow your business while staying compliant with tax regulations.

Frequently Asked Questions about Company Tax Return and Trust Tax Return

What is the company tax rate in Fy2024

From Fy2021-2022, the company tax rate for the base rate entity will enjoy the tax rate of 25%.  

What is the base rate entity?

The concept of Base Rate Entity has now been enacted in Treasury Laws Amendment (Enterprise Tax Plan Base Rate Entities) Act 2018. 

Under the Act, an entity is a Base Rate Entity for a year of income if: 

No more than 80% of its assessable income for the year of income is base rate entity passive income; and 

Its aggregated turnover for the year of income worked out as of the end of the year is less than $25 million. 

What is base rate entity passive income?

Base rate entity passive income is income that is generated on a passive basis. This would include 

Base Rate Entity Passive income is assessable income that is any of the following: 

  • Company dividend, other than a non-portfolio dividend 
  • Franking credits 
  • Non-share dividend 
  • Interest, royalties and rent 
  • Gain from a qualifying security 
  • Net capital gain 
  • Income from a partnership or trust estate that is base rate passive income 
What is a franking account?

As the director of a company, you need to ensure that your company tax return does have a franking account. A franking account is a return you need to lodge to the ATO to track how many company tax expenses you had paid to the ATO and how much you can get it back through 100% fully franking credit. As the leading accountant in Inner West Sydney Ashfield and Belrose Northern Beaches, we will help you to file the correct franking account. 

When is the deadline for the tax return?

The deadline for the tax return, if you are not using a registered tax agent, would be 31 October of the following financial year. For example, the deadline for the Fy2023 tax return would be 31 October 2024. However, if you engage a registered tax agent to lodge your tax return, and if your prior returns are lodged on time, you will get an extension until May of the following calendar year to lodge the return. For the FY2023 tax return, you will get to May 2024 to lodge the tax return. 

What is the minimum wage from 1 July 2023

The minimum wage had been increased from $21.38 to $23.23 from 1 July 2023 

What is the superannuation guarantee in Fy2024

From 1 July 2024, the Super Guarantee will increase to 11.5%. It will continue to increase by 0.5% on 1 July each year until it reaches 12% in 2025. 

 

Can company losses be carried forward?

The continuity test (COT) in ITAA 1997 s 165-12 requires that the shares of a company comprising more than 50% of all voting, dividend and capital rights be beneficially owned by the same persons at all times during the “ownership test period” This is the period between the beginning of the loss year and the end of the income year in which the loss is to be deducted. 

There are two tests for determining whether an entity has retained the same owners: the primary and alternative tests. A circumvention provision (pp. 165-180) prevents manipulation of ownership to circumvent the continuity of ownership test. 

Hence, if you want to change your company’s ownership, please come and talk to us. As the leading CPA accountant in Inner West Sydney Ashfield and Belrose Northern Beaches, we can guide you through the changes for you do not lose those tax benefits associated with the company tax losses. 

What are the two types of trust

The two types of trust are discretionary trust and fixed trust. Examples of discretionary trust would be family trust, and example of the fixed trust would be unit trust. In addition there is also a hybrid trust.

Should I review my family trust deed on a yearly basis

Yes, it is important to review your family trust deed on a yearly basis, else you might miss the important statutory changes which need to be reflected in the trust deed. For example, at the moment, you need to review whether your family trust deed excludes foreigner beneficiary, if not, then you are more likely to pay the land tax surcharge if you held property inside the family trust. 

Does trust needs to pay tax

Trust is a tax reporting entity, but a tax paying entity. If there are not beneficiaries presently entitled to the distribution, then the trustee needs to pay the highest marginal tax rate on the net profit of the trust. 

Does family trust deed needs to be stamped when established in NSW

Yes, the family trust deed needs to be stamped when first established, the cost of stamping is $500, and it must be done 90 days from the deed of the stamp. 

Does family trust deed needs to be stamped when established in other states

Other States have different jurisdictions when comes to stamping, for example, in Victoria, the stamping is $200, and it must be done 30 days from the date of the deed. In South Australia, Tasmania, Western Australia, Queensland, there is no stamping for the trust deed. In Northern Territory, the stamping is $20, which has to be done 60 days from the date of deed.