Lodging a tax return every year is not always possible, or even a priority, but it is a requirement for most taxpayers in Australia. You may have missed lodging a tax return in one year and, after unforeseen circumstances occur, before you know it several years have passed and the Australian Taxation Office is demanding lodgement of all your outstanding tax returns. The Tax Office may be threatening you with interest and penalties of up to $550 if they are chasing you to lodge tax returns. As a Registered Tax Agent, we are able to work with you and, in many situations, can have these penalties reduced or even remitted.

If you have missed the deadline for an outstanding tax year then arrange a time to come in and see us. Whether you are late for one year or ten years, our office is experienced in assisting people with late returns and can get you back up to date with your Tax Office requirements.

We can also lodge overdue Business Activity Statements and look at ways to restructure some reporting fields to minimise any late lodgement fees and penalties that may apply.

The private company, or Pty Ltd, is a separate legal entity.  It has rights and obligations to much the same extent as a real person. It can sue and be sued, enter into contracts in it’s own name and borrow money in it’s own name. In practice though, the directors of the company manage the company, a company can’t manage itself, and the shareholders own the company. Generally the directors and shareholders are the same person, and so the people effectively own and control the company as if it was their own. It must be kept in mind, however, that a company is a separate entity and the assets and income of the company are it’s own until they are distributed to the shareholders by dividend. Failure to appreciate this separate existence can be expensive on the tax side as there are many tax laws that deal with keeping the company and directors/shareholders separate.

A company is an ideal structure to run a business, especially if that business is likely to be sold in the future. The basic tax benefit of a company is that tax is limited at 30%.  As a company is a separate entity it can employ the owners and there can be some substantial tax benefits of being an employee of your own company, such as a company car.

A company provides a good level of asset protection. If the company is sued, the shareholders are not liable. The company directors are also not liable unless they were acting dishonestly or incompetently. From our experience for most small businesses and investors, a company is most suitable to acting as a trustee of a trust. Tax issues are generally much simpler and asset protection is enhanced.

We are able to run through the pros and cons of a company and, if required, setup one for you and assist with the tax, accounting and compliance work.

Small businesses generally begin as a sole trader. However, as your business and income grows, you may need to consider alternative business structures.

Many businesses are also organized to include a trust. The trust is normally a discretionary, unit or hybrid trust that could either trade on a day to day a basis or purely ‘hold’ property or other investments on behalf of the beneficiaries (normally individuals). This arrangement allows for tax efficient outcomes in terms of profit distribution and should the business be sold. The use of trusts is most suitable for medium-sized businesses.

A trust is normally set-up with a company acting as trustee. This is done so that the advantages of a company are available whilst full control is maintained as the family members become directors of the company and/or beneficiaries of the trust. The main advantage of a trust structure is the ability to minimize taxation, whilst offering some flexibility in terms of privacy and limited liability.

In recent years the Federal Government has sought to remove or limit the tax advantages of trusts. Therefore, you need to consult with us to obtain the latest information. By its nature, a trust structure is a highly involved, legal process and professional advice is necessary.

The issue raised above needs to be considered before deciding on the most appropriate business structure. You need to familiarize yourself with your options and choose the best mix of features that is suitable for your circumstances.



At Rova Partners we can also provide detailed advice and assistance in setting up your Self Managed Super Fund. We can assist you in areas of superannuation and estate planning (along with our advisers), such as accounting, taxation, account based pensions and in-house asset rules and any other regulatory compliance required for the functionality of your self managed superannuation fund.

All self managed superannuation fund trustees are required to have financial statements prepared, lodge income tax & regulatory return and other relevant statements with the Australian Taxation Office each year.

The trustee must all ensure the self managed superfund is audited each year by an approved auditor. The audit covers both financial statements audit and compliance audit. The findings of the audit must be reported on the income tax & regulatory return. We can provide you with all of the above services, which include the compilation of a full set of financial statements, preparing the income tax & regulatory return, other relevant statements and audit of self managed superfund. When you use Rova Partners, you can be assured the highest level of services. Our team are qualified accountants with specialist knowledge, expertise and skill in self managed superannuation fund reporting.

Here’s what we will do:

• Prepare of annual financial statements, including operating statement, statement of financial position, notes to financial statements
• Prepare and lodge the fund’s annual return (income tax return), calculate and advise of tax liability or tax refund due
• Audit of the SMSF by an approved auditor
• Prepare member benefits statement, which contains member’s tax components
• Facilitate obtaining of an actuarial certificate where required
• Manage communications and correspondence with Australian Taxation Office

We invite you to contact us to discuss how we can managed your self managed superannuation fund’s accounting and taxation needs or our processes.

Our Self Managed Superannuation Fund auditors are qualified and experienced to manage your Self Managed Super Fund audit. We provide a high quality yet cost effective service to firms and trustees who would like to outsource their SMSF audits to a specialist auditor. As your SMSF audit expert, we can also provide technical support for your practice, ensuring that your firm has access to highly educated SMSF specialists to answer all your compliance questions.

We provide you with support to ensure any compliance issues can be accurately assessed and rectified, whether during the audit process or as they arise. If you are looking for a knowledgeable and positive approach to dealing with your compliance problems that will also help reduce your risk and liability, then book a time with one of our friendly staff members.

We also are affiliated with Registered Company Auditors if you have a public listed company or large propriety company that requires the necessary complying yearly audit for the Australian Securities and Investments Commission and other regulatory bodies.