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.

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