1. Introduction

As a small business owner in Melbourne, you juggle countless responsibilities. From managing staff to serving customers, the Annual Tax Return can often feel like another overwhelming challenge. But what if it wasn’t just about compliance, but about optimising your business’s financial health?

At Tax Savers, your local Melbourne tax accounting firm, we see your small business tax return as a valuable opportunity. Done right, it ensures you claim every eligible deduction, understand your financial performance, and set your business up for future growth.

2. What is a Small Business Tax Return?

Each year, most small businesses in Australia are required to lodge an income tax return with the Australian Taxation Office (ATO). This return summarises your business’s income, expenses, and other relevant financial activities for the financial year (1 July to 30 June). It calculates your business’s taxable income and determines the tax you owe or any refund you may be entitled to.

3. Why Is It So Important to Get It Right?

Beyond just meeting your ATO obligations, a well-prepared small business tax return offers several benefits:

1. Maximise Deductions: Many small businesses miss out on legitimate deductions simply because they’re unaware of what can be claimed or lack the proper records. This directly affects your taxable income and may result in paying more tax than necessary.
2. Avoid Penalties: Incorrect or late lodgement can lead to significant ATO penalties. Staying compliant protects your business’s bottom line and reputation.
3. Financial Insight: Your tax return provides a snapshot of your business’s profitability. Reviewing it with an expert can offer valuable insights into your financial performance, helping you make smarter decisions.

Future Planning: Understanding your tax position from the previous year is crucial for effective tax planning in the year ahead.

4. Key Areas to Focus On for Your Small Business Tax Return

To prepare for a smooth and effective tax return, here are some essential areas for small businesses to focus on:

• Accurate Record-Keeping: This is the foundation of any good tax return. Keep meticulous records of all income and expenses, including invoices, receipts, bank statements, and payroll records. Good bookkeeping throughout the year makes end-of-financial-year (EOFY) processes much easier.
• Eligible Deductions: Don’t leave money on the table! Common small business deductions include:
  • Operating expenses (rent, utilities, phone, internet)
  • Wages and superannuation for employees
  • Vehicle expenses (logbook method often preferred for accuracy)
  • Depreciation of assets (such as the instant asset write-off for purchases under $20,000 for eligible businesses)
  • Professional fees (including your accountant’s fees)
  • Insurance premiums
  • Marketing and advertising costs
• Business Income: Ensure all income—including sales, grants, and other revenue—is accurately recorded.
• Goods and Services Tax (GST): If registered for GST, make sure your BAS statements have been lodged correctly throughout the year and that GST collected and paid is fully reconciled.
• Payroll & Superannuation: If you have employees, confirm all PAYG withholding has been remitted to the ATO and that employee superannuation guarantee contributions have been paid on time.
• Capital Gains/Losses: If your business has sold any assets (such as property, shares, or significant equipment), understand the Capital Gains Tax (CGT) implications.

5. Don't Go It Alone: The Tax Savers Advantage for Your Business

While DIY options exist, a small business tax return can be complex. Rules change, and missing an opportunity can cost you. This is where Tax Savers, your dedicated Melbourne tax accountant, makes all the difference.

We specialise in helping small businesses like yours thrive. Our services go beyond just lodging your return:

• Expert Advice: We stay up-to-date with the latest ATO regulations and tax laws, ensuring your return is accurate and compliant.
• Maximise Your Refund/Minimise Your Tax: We meticulously review your financial data to ensure you claim every eligible tax deduction and maximise your tax return.
• Strategic Planning: We help you understand your business's financial health and identify opportunities for future tax planning.
• Time-Saving: Free up your valuable time to focus on what you do best – running your business.
• Comprehensive Services: Beyond tax returns, we offer bookkeeping, business registration services, and ongoing accounting advice.

Your small business tax return doesn't have to be a headache. Let the experienced team at Tax Savers turn it into a tool for your success.

Ready for a stress-free and optimised Small Business Tax Return? Contact Tax Savers today at taxsavers.com.au or give us a call. Let's make your business's financial future brighter!