When is the company tax return due in Australia?
Company tax returns in Australia are generally due by 31 October following the end of the income year (30 June). Companies using a registered tax agent receive extended deadlines, typically to 15 January or 15 March depending on their prior year status.
Detailed Explanation
Understanding the due dates for your Australian company tax return is essential for avoiding penalties and managing your annual tax obligations. The Australian tax year runs from 1 July to 30 June, and the company income tax return must be lodged annually.
Standard lodgement deadlines
For companies lodging their own return (self-lodgers): The return is due by 31 October following the 30 June income year end. For example, the 2024-25 income year (ending 30 June 2025) return is due by 31 October 2025.
For companies using a registered tax agent: Registered tax agents have a lodgement program that provides extended deadlines, typically: - 15 January (for companies with a prior year tax liability) - 15 March (for certain other companies) - 5 June (for very large groups under specific programs)
Engaging a tax agent is one of the most common ways to manage cash flow and reduce the immediate time pressure of a 31 October deadline.
The payment date
The date your tax is due for payment is separate from the lodgement date: - For smaller companies (less than $2 million tax liability), payment is generally due on 1 December following the 30 June year end - For companies with larger liabilities, the payment date may align with the lodgement date
If you have been paying PAYG instalments throughout the year, these are credited against your final liability.
PAYG instalments and the tax return
Companies with annual turnover over $2 million (or those who have had a prior year liability over $8,000) are required to pay PAYG instalments on a quarterly basis throughout the year. The instalment rate is set by the ATO based on your prior year tax liability. If your business income has significantly changed from the prior year, you can vary your instalment. Varying your instalment without a reasonable basis can attract a 10% penalty if the varied amount is less than 85% of the actual liability.
Company substituted accounting periods (SAP)
Most companies use the standard Australian financial year (1 July to 30 June). However, foreign companies or subsidiaries of multinationals may apply to the ATO to use a substituted accounting period (SAP) that aligns with their global parent's financial year.
What the company tax return includes
The company tax return includes: - Summary of income (business income, capital gains, investment income) - Deductions claimed - Details of any distributions from trusts - Franking account balance (for dividends paid) - PAYG instalment credits - Details of related party transactions (for larger companies)
All companies must lodge through Standard Business Reporting (SBR) compatible software or through the ATO Tax Agent Portal.
Penalties for late lodgement
A failure to lodge (FTL) penalty applies if the return is not lodged by the due date: - Small companies: $313 per 28-day period (or part thereof) the return is overdue, up to a maximum of $1,565 - Medium entities: $1,565 per period, up to $7,824 - Large entities: $3,130 per period, up to $15,650
Additionally, interest charges apply to any unpaid tax liability from the due date. FTL penalties can sometimes be remitted by the ATO on request if the company has a reasonable excuse for the delay.
Prior year returns
If you have not lodged returns for previous years, engage a tax agent to bring your affairs up to date as soon as possible. The ATO takes non-lodgement seriously and may issue default assessments for unfiled years. Voluntary disclosure (lodging late returns proactively) is treated more favourably than ATO-initiated assessments.
Source: ATO Lodgment program
Real-World Examples
Self-lodging company approaching 31 October
A small Pty Ltd with a simple structure decides to lodge their own tax return. They have until 31 October 2025 for the 2024-25 year. They use accounting software to prepare the return and lodge through the ATO's portal. They had $8,000 in PAYG instalments during the year. Their actual liability is $11,500 at 25%, so they pay a $3,500 balance by 1 December.
Tax agent extension to March
A growing Pty Ltd engages a registered tax agent. Based on prior year history, the agent secures a 15 March extension for lodgement. This gives the company until mid-March 2026 to lodge their 2024-25 return, allowing more time for accurate preparation and reducing financial pressure around the October/November period.
Common Mistakes to Avoid
- Confusing the BAS due date (quarterly, within 28 days of quarter end) with the annual company tax return due date (31 October or later via agent).
- Not paying PAYG instalments during the year and then being surprised by a large tax bill payable on 1 December with only a short preparation window.
- Missing the 31 October self-lodgement deadline and then receiving FTL penalties that could have been avoided by simply engaging a tax agent with an extended program.
- Not varying PAYG instalments downward when the business has had a poor year, resulting in over-payment that is only recovered after the annual return is lodged.
Frequently Asked Questions
What is the difference between the tax return due date and the payment due date?
The lodgement due date is when the return document must be filed with the ATO. The payment due date is when any outstanding tax must be paid. For many companies, the payment due date is 1 December (before the 31 October return deadline if you self-lodge). PAYG instalments made throughout the year offset the final payment, so the balance payable is often modest.
Can I get an extension on my company tax return?
Yes, but only through a registered tax agent. The ATO's lodgement program grants tax agents extended due dates for their clients, typically to January or March. Engaging a tax agent and having them act for you is the standard way to access these extensions. The ATO also has a process for requesting individual extensions in genuine hardship or exceptional circumstances.
What is the franking account and why does it appear on the tax return?
The franking account tracks the corporate tax paid by your company that can be passed on to shareholders as franking credits on dividends. Each dollar of company tax paid adds a credit to the franking account. When you pay a dividend, you attach franking credits from the account. The tax return requires you to report the franking account balance to ensure that dividends do not exceed available franking credits.
What happens if I miss the company tax return deadline?
The ATO imposes a failure-to-lodge (FTL) penalty of $313 per 28-day period the return is overdue (for small companies), up to $1,565. Interest also accrues on any unpaid tax from the payment due date. If you are aware you will miss the deadline, contact the ATO or engage a tax agent proactively — the ATO may remit the FTL penalty if there is a reasonable explanation and you lodge promptly.
Practical Tips
- Engage a registered tax agent by mid-September each year to secure their lodgement program extension and avoid the pressure of the 31 October self-lodger deadline.
- Review your PAYG instalment amount each quarter and vary it downward if the business has performed below prior year levels — this improves cash flow and avoids over-paying the ATO.
- Start preparing your accounts for the year within 6-8 weeks of 30 June — collecting records, reconciling bank accounts, and finalising expenses while the financial year is fresh.
- If your company is newly incorporated, clarify with the ATO whether you need to lodge for the period up to 30 June in the first year or from your date of incorporation — new companies can have a short first income year.
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