Your 2026
company or
trust return.
A company or trust return is not simply a larger version of a personal return. The obligations are different, the timing is different, and the consequences of getting it wrong go beyond the entity itself. Director penalties, Division 7A exposure, and missed trustee resolutions are issues that compound over time.
We prepare company and trust returns alongside your personal return, reviewing the full picture: distributions, loan accounts, franking, superannuation, and your position for the year ahead. Every return is prepared under a registered tax agent supervision programme.
Email us to get startedWhat your return covers.
The annual return is one part of a broader set of obligations. We review each of these as part of preparing your return and flag anything that needs attention before it becomes a problem.
Annual tax return
The entity return is prepared and lodged under a registered tax agent supervision programme. Preparation of annual financial statements is quoted separately, confirmed before we begin.
Division 7A: loans to shareholders
Loans, payments, and forgiven debts from a private company to a shareholder or associate must be structured under a compliant loan agreement or included as an unfranked dividend. Missed obligations trigger automatic deemed dividends.
Trustee resolution by 30 June
The trustee must resolve how trust income is distributed to beneficiaries before 30 June each year. A late or absent resolution means income is taxed at the highest marginal rate. This is one of the most time-sensitive obligations in the calendar.
Franking account balance
Franking credits attach to dividends paid out of after-tax company profits. An over-franked dividend attracts a franking deficit tax. We reconcile the franking account as part of the return.
STP finalisation and super
Single Touch Payroll must be finalised by 14 July. Super guarantee contributions must be received by the fund by 30 June. Late super is not deductible and attracts the Super Guarantee Charge.
Fringe Benefits Tax return
The FBT year ends 31 March. If your entity provides cars, loans, entertainment, or other benefits to employees or directors, an FBT return is due 21 May. We assess whether your arrangements trigger FBT as part of our review.
What to have ready
Entity records
- Accounting software access (Xero, MYOB, QuickBooks) or a full-year trial balance
- Bank statements for all entity accounts
- BAS lodgments for each quarter of the year
- Prior year return and financial statements if a new client
Loans and related party transactions
- Shareholder or director loan account balances
- Details of any loans, payments, or forgiven debts to shareholders or associates
- Existing Division 7A loan agreements and minimum repayment records
- Trust distributions paid or owed to related entities (unpaid present entitlements)
Trust-specific
- Signed trustee resolution dated before 30 June 2026
- Trust deed (if a new client or recent variation)
- Beneficiary details and TFNs
Payroll and super
- STP finalisation confirmation
- Super payment receipts showing fund receipt dates
- Director remuneration details
Assets and depreciation
- Asset register or list of equipment purchased during the year
- Details of any assets sold or disposed of
- Finance or lease agreements for new equipment
What the ATO is watching.
The ATO has flagged specific areas of concern for private companies and trusts. These are the arrangements most likely to attract a review, an amended assessment, or a penalty.
Division 7A compliance
The ATO continues to identify private companies with non-compliant loan arrangements. Loans, payments, and debt forgiveness to shareholders or associates that are not properly documented or repaid are treated as unfranked dividends. There is no grace period.
Trust distributions to low-rate beneficiaries
Section 100A applies where a trust distribution is made to a beneficiary but the economic benefit flows elsewhere. The ATO is actively reviewing arrangements where adult children or related entities receive distributions in excess of their genuine entitlement.
Unpaid present entitlements
Where a trust owes a distribution to a private company beneficiary that remains unpaid, the ATO may treat it as a Division 7A loan. UPEs created after 16 December 2009 are subject to specific rules. Sub-trust arrangements are no longer available for UPEs.
Private use of business assets
Cars, boats, holiday properties, and other assets owned by the company or trust but used privately by shareholders or directors attract FBT or deemed dividends. The ATO cross-references asset registers against FBT returns and motor vehicle expenses.
Income matching and benchmarks
The ATO data-matches company and trust income against industry benchmarks and business owner personal returns. Where a business shows consistent losses or the owner's lifestyle is inconsistent with declared income, a review is likely.
Employee vs. contractor classification
Director and contractor arrangements inside closely held structures are under review. The ATO has updated its guidance following recent case law. Workers paid via ABN inside a related-party structure require careful review of super, PAYG, and entitlements.
Ready to get your 2026 company or trust return sorted?
Email us with a brief description of your entity structure and we will come back to you with next steps and pricing. No obligation.