Companies have some specific rules that only apply to them – both commercially and from a tax point of view. This article focuses on changes and tips that apply only to companies. For more general commentary, have a look at:
- Our EOY article on changes and tips for businesses (regardless of what structure that business is in);
- Our EOY article on changes and tips for individuals; and
- Our EOY Tax Tips brochure.
THINGS TO DO BEFORE 30 JUNE
Thankfully there have been very few company-specific changes, so there is nothing a company needs to do to stay on the good side of the Law.
COMPANY TAX RATE
The company tax rate that applies for small businesses will remain steady at 25% for the 2024 financial year. For larger businesses (turnover above $50m), the tax rate will remain at 30%.
LOSS CARRY BACK RULES
If you are having de-ja-vu when hearing about loss carry back rules, that’s because we had these during the GFC.
Normally when a company makes a loss, it can’t get the tax benefit from that loss until the company makes a profit in the future. The loss carry back rules allow you to effectively claim this loss against income earned in a prior year.
If your company paid tax in the 2019 – 2022 tax years and makes a loss in 2023, then your company may be eligible to get refunded some or all of the tax you paid in 2019 – 2022.
The rules are a little more complicated than this, but that’s the general premise.
For our clients – you won’t need to do anything extra, we will take care of this for you when we do your tax return.
DIRECTOR ID NUMBERS
If you are a Director of a company and are yet to obtain a Director ID Number, then we can’t state strongly enough how important it is that you get one now. Fines of over $1mil can apply to people that don’t get their Director ID Number – so the Government isn’t messing around with this.
Have a look at our Insights article titled Director ID Numbers – Why, When, and How for more information and a video that goes through the process of applying for yours.
