The SME’s Ultimate Tax Checklist: 5 Things You Must Do Before Lodging Your Return

As the end of the financial year approaches, Australian small and medium enterprises (SMEs) must ensure they’re tax-ready. Lodging your tax return accurately and on time not only helps you avoid penalties but can also maximise deductions and improve cash flow. Here’s your ultimate tax checklist to keep your business on track.

1. Gather All Financial Records

Before you lodge your tax return, ensure you have all the necessary financial documents organised. This includes:

• Income records – invoices, sales records, and other revenue documentation.

• Expense records – receipts, supplier invoices, and utility bills.

• Payroll reports – wages paid, PAYG withholding summaries, and superannuation contributions.

• Bank statements – reconcile business accounts to ensure accurate reporting.

Proper record-keeping makes the lodgment process smoother and reduces the risk of ATO audits.

2. Claim All Eligible Deductions

To minimise your tax liability, identify all deductible expenses your business is entitled to claim. Some common deductions include:

• Operating expenses – rent, utilities, insurance, and office supplies.

• Work-related travel – fuel, tolls, and accommodation (if business-related).

• Depreciation – assets like equipment, computers, and vehicles.

• Home office expenses – if you work from home, you may be eligible for deductions on a portion of rent, electricity, and internet bills.

Keep detailed records of expenses and consult a tax professional if unsure about eligibility.

3. Review Your Business Structure

Your business structure impacts how much tax you pay and your reporting obligations. Consider whether your current setup is still the most tax-effective:

• Sole Trader – Simple structure, but you’re personally liable for debts.

• Company – Lower tax rates but more compliance requirements.

• Trust – Can distribute income to beneficiaries to reduce tax burdens.

• Partnership – Income is split among partners, affecting tax rates.

If your business has grown or changed significantly, it may be worth restructuring to optimise tax outcomes.

4. Pay Outstanding Liabilities (or Negotiate Payment Plans)

Avoid unnecessary penalties by ensuring you’ve met all ATO obligations, such as:

• PAYG withholding for employees and contractors.

• Superannuation contributions – Ensure all super payments are made on time.

• GST and BAS payments – Lodge and pay by the due date.

• Income tax liabilities – If you’re struggling to pay, consider negotiating a payment plan with the ATO.

Staying on top of tax obligations can help maintain good standing with the ATO and avoid unexpected costs.

5. Meet Deadlines and Avoid Last-Minute Rush

Missing deadlines can result in fines and unnecessary stress. Key dates to remember include:

• 30 June – End of the financial year.

• 28 July – Superannuation guarantee due date for Q4.

• 31 October – Tax return deadline (unless using a registered tax agent, which may extend your lodgment period).

Set calendar reminders and ensure your paperwork is in order well in advance to prevent last-minute issues.

Get Expert Help for a Smooth Tax Season

Tax time can be overwhelming, but you don’t have to navigate it alone. Numbers Attuned Accountants can help ensure compliance, maximise deductions, and provide strategic tax planning advice.

Download our free tax checklist or book a consultation today to make sure your business is tax-ready!