Company Tax Return Instructions 2025 & 2026: The Complete Guide to Filing Corporate Taxes in Australia

Estimated reading time: 9 minutes

Key Takeaways

• Every resident company must file an annual tax return unless specifically exempt by the ATO.
• Company tax return instructions are updated annually; using 2025 and 2026 guidance is crucial for compliance.
• Most companies use the standard Australian financial year (1 July – 30 June). Ensure this is correctly selected.
• Essential information includes the company’s legal name, ABN, TFN, and details of an authorised signatory (e.g., a director).
• Digital lodgement is now standard. Ensure all records are legible, organised, and supporting documents are correctly attached electronically.
• Be aware of key tax measures like the instant asset write-off threshold and the correct company tax rate (25% or 30%).
• Properly record PAYG instalments and other tax credits to ensure correct calculation of tax payable or refundable.
• Always review any legislative changes before lodging your 2025 and upcoming 2026 tax returns.

Understanding Your Company Tax Return Obligations

Every company that is an Australian resident or a foreign resident carrying on a business in Australia must file an annual company tax return, unless specifically exempt. The requirements depend on your company’s structure and circumstances. For the latest official overview, always review the official company tax return instructions published by the Australian Taxation Office (ATO) for the relevant year.

Standard Financial Year vs. Substituted Accounting Period

Your first step is confirming your reporting period. The standard Australian financial year runs from 1 July to 30 June. Companies can apply to the ATO to use a different 12-month period, known as a Substituted Accounting Period (SAP), if it aligns with their global corporate group’s reporting cycle.

• Ensure you are lodging for the correct period on your tax return (e.g., for the year ended 30 June 2025).
• Tip: Consistency is key. Using the wrong period can lead to compliance issues and penalties.

Essential Information Required for All Corporate Returns

Several fields are mandatory on every company tax return:

• Legal Name and Address: Must match the details on the Australian Business Register (ABR).
• ABN/TFN: Accurately enter your Australian Business Number and Tax File Number.
• Authorised Signatory: The return must be signed by an authorised public officer or director. All directors must have a Director Identification Number (Director ID).

An unsigned or unauthorised return is invalid and will not be accepted by the ATO. For more information, refer to the ATO’s compliance guides.

Key Considerations for the 2025-2026 Tax Years

Tax laws evolve. Key areas to focus on for the 2025 and 2026 returns include:

• Company Tax Rate: The company tax rate is 25% for ‘base rate entities’ (companies with an aggregated turnover under $50 million and 80% or less of their assessable income is passive income). All other companies are taxed at 30%. Ensure you apply the correct rate.
• Instant Asset Write-Off: The temporary full expensing measure ended on 30 June 2023. For the 2025 income year (1 July 2024 – 30 June 2025), small businesses with a turnover under $10 million can generally claim an immediate deduction for eligible assets costing less than $20,000. Check the ATO website for the latest legislated thresholds.
• Digital Record Keeping: The ATO’s focus on digitalisation continues. Maintaining high-quality digital records and considering e-invoicing is crucial for streamlined reporting and compliance.

Tracking Tax Payments and Refunds

Keep accurate records of all Pay As You Go (PAYG) instalments made during the year.

• Include all PAYG instalment payments and any prior-year credits applied.
• For refunds, direct deposit is the fastest and safest method. Ensure your company’s bank account details are up-to-date with the ATO. Refer to the ATO’s instructions for more details.

Proper Filing Procedures and Document Preparation

Most companies lodge electronically using Standard Business Reporting (SBR) enabled software. This ensures efficient and accurate processing.

• Digital Lodgement: Use ATO-approved software for lodgement. This is mandatory for many companies and tax practitioners.
• Supporting Documents: Attach all required schedules and financial statements in the correct digital format. This includes details for any deductions, credits, or specific tax treatments claimed.
• Paper Lodgement: If you are exempt from electronic lodgement, use blue or black ink on the official ATO form. Do not mark, staple, or write over barcodes.

• Name/address changes: Update your details on the Australian Business Register (ABR) first.
• Final returns: Tick the ‘final return’ box and attach evidence of company deregistration or liquidation.

Payment Methods and Procedures

• Electronic Payments: The easiest methods are BPAY or using the ATO’s online services. A payment reference number (PRN) is required.
• Credit/Debit Card: Payments can be made online via the ATO’s approved service provider.
• Always make payments by the due date to avoid interest and penalties. Payment details are provided on your Notice of Assessment.

Frequently Asked Questions

• What are the lodgement deadlines for the 2025 company tax return?

  For companies with a 30 June balance date, the deadline is typically 28 February 2026 if you lodge yourself. If you use a tax agent, you may be eligible for later deadlines. The general deadline for all other self-lodgers is 31 October 2025.

• What are the key new rules in company tax instructions for 2025 and 2026?

  The main points of focus are applying the correct company tax rate (25% for base rate entities, 30% otherwise) and understanding the current instant asset write-off rules (e.g., the $20,000 threshold for small businesses in 2025, subject to legislation). Always check the ATO website for the most current information.

• What supporting documents should I attach with my return?

  While you don’t attach all receipts, you must attach specific schedules like an International Dealings Schedule, Reportable Tax Position Schedule, or depreciation schedules if applicable. Financial statements should be prepared but are not always required to be lodged with the return itself.

• How do I handle returns for a company being dissolved?

  You must file a final return for the period up to the date of dissolution. Indicate it is a ‘final’ return on the form and attach evidence of deregistration or liquidation as required.

• Do trusts follow the same tax return instructions as companies?

  No, trusts have separate filing requirements and must lodge a Trust tax return. Consult the ATO’s guidelines for trusts.

Important Disclaimer:
The information provided in this content is for general informational purposes only and does not constitute legal, financial, or professional advice. Tax laws are complex and subject to change. You should always seek advice from a qualified professional, such as a registered tax agent, solicitor, or financial advisor, before making any decisions or taking any action.