Australia
Tax Compliance

01 — The shape of the year

Two tax years, running out of step

Australia’s income year ends 30 June, but the Fringe Benefits Tax year ends 31 March — so an employer is always straddling two calendars. July carries the heaviest load of the twelve months.

02 — Corporate income tax

Two rates, one turnover test

Australia charges companies either 25% or 30%. Which one applies is decided by turnover and by how much of the income is passive.

03 — Before you trade

Four registrations, four triggers

Two are needed from day one. The other two switch on the moment you cross a threshold or hire your first employee.

04 — Once you’re running

The recurring obligations

Seven filings make up almost the entire compliance load of an Australian company. Six go to the ATO; payroll tax goes to the states.

05 — Diary

Key recurring dates

Indicative dates — confirm them each year with the ATO or your registered agent, since several shift with lodgement history and state rules.

06 — 2026-27 Federal Budget

What’s changing next

One measure is already live. The rest are proposals — worth planning around, not yet worth acting on.

1. Live — 1 July 2026

   Payday Super becomes mandatory

   Super moves from a quarterly 28-day cycle to payment on every payday, received by the fund within seven business days. Payroll processes built around quarterly batches need rebuilding.

2. Proposed — 1 July 2027

   CGT discount reform

   The 50% CGT discount would be replaced by an indexing mechanism, with a minimum 30% tax on capital gains after indexation applying to individuals, trusts and partnerships.

3. Announced

   More than AUD 700 million in new ATO funding

   Extra compliance attention on the R&D Tax Incentive and on fraud, alongside wider information-sharing between the ATO and other regulators.

4. Proposed

   Foreign investment approvals streamlined

   FIRB processes would be simplified, with removal of conditions on existing foreign investments that no longer serve a purpose.

5. 2025-26 income year

   Instant asset write-off

   Businesses with turnover under AUD 10 million can immediately deduct eligible assets costing under AUD 20,000, first used between 1 July 2025 and 30 June 2026.

07 — Where this comes from

Sources and references

Each entry below names the section of this page it supports. Where a figure could not be tied to a primary source, that is stated rather than glossed over.

1. § 02 — Tax rates Australian Taxation Office Changes to company tax rates

   Confirms the 25% base rate entity rate and the 30% standard rate, the aggregated turnover threshold, and the 80% base rate entity passive income test — including that prior-year turnover is irrelevant to the current year’s status.

2. § 02 · § 03 — Rates and registrations business.gov.au Income tax for business

   Plain-language confirmation of the two company tax rates, the passive income examples used in the rate cards, and the PAYG withholding obligation that arises on hiring.

3. § 03 — Registrations Australian Taxation Office Registering for an Australian Business Number

   ABN entitlement, the link between the ABN and the entity’s own TFN, and the requirement to notify changes — including adding PAYG withholding when you start employing people.

4. § 01 · § 04 · § 06 — Super Australian Taxation Office About Payday Super

   The switch from the quarterly cycle to payment on every payday from 1 July 2026 — the continuous line running across the ribbon graphic — and the closure of the Small Business Superannuation Clearing House on 30 June 2026.

5. § 04 — Obligations Australian Taxation Office Single Touch Payroll reporting under Payday Super

   What employers must report through payroll software for paydays from 1 July 2026, including qualifying earnings and superannuation liability, and why payroll software has to be updated ahead of the change.

6. § 04 · § 05 — STP finalisation Australian Taxation Office Finalise your STP data by 14 July

   The 14 July finalisation deadline, and the point that employees should wait for their income statement to show as “Tax ready” in myGov before lodging — which is why a late finalisation blocks your staff.

7. § 04 · § 05 — FBT and key dates Australian Taxation Office Key dates for employers to remember in 2026

   The 21 May FBT lodgement and payment date, the 25 June extension where a tax agent lodges electronically, and the super guarantee charge statement deadline following a missed quarterly due date.

8. § 04 · § 05 — BAS, GST, TPAR Australian Taxation Office ato.gov.au — general guidance

   Quarterly and monthly BAS due dates, the AUD 75,000 GST registration threshold and its 21-day window, tax invoice content requirements, the five-year record retention rule, and TPAR scope and its 28 August deadline. These came from the base document and are consistent with published ATO guidance, but are linked at domain level rather than to a specific page.

9. § 04 · § 05 — Payroll tax State and territory revenue offices No single national source

   Payroll tax is levied by each state and territory, not by the ATO, so rates, thresholds, lodgement frequency and the annual reconciliation date differ by jurisdiction. Check the revenue office for each state you employ in — Revenue NSW, the Victorian SRO, Queensland Revenue Office and their equivalents.

10. § 06 — What’s changing Australian Government 2026-27 Federal Budget

    The proposed CGT discount reform and indexation mechanism, additional ATO compliance funding, FIRB streamlining, and the instant asset write-off for the 2025-26 income year. These are Budget announcements rather than enacted law unless separately confirmed.

Primary sources checked 29 July 2026