What is Tax Return?

Tax returns are the primary mechanism for reporting your tax position to the government. The specific return type depends on your business structure: sole traders report business income on their personal tax return (with a business schedule), companies lodge separate company tax returns and partnerships lodge a partnership return with income flowing through to individual partners' returns. Preparing a tax return requires accurate and complete financial records for the entire reporting period. The return calculates taxable income (assessable income minus allowable deductions), applies the appropriate tax rate and determines the tax payable or refundable. Most tax returns must be lodged annually by specific deadlines - using a registered tax agent often extends your deadline. Late lodgement attracts penalties. The quality of your bookkeeping directly determines the accuracy of your tax return and the deductions you can claim. SortBooks provides your accountant with clean, categorised financial data from Xero, making tax return preparation faster, more accurate and less expensive.