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Final lodgments and record keeping

Information on your final lodgments and record keeping requirements.

Last updated 11 July 2023

FBT return

Finalise and lodge your fringe benefits tax (FBT) return if you're registered for FBT and you are closing your business.

PAYG instalments

When you exit your business, you may still have a PAYG instalment obligation through to the date of ceasing business. You may continue to receive instalment activity statements even after cancelling your Australian business number (ABN).

You can choose to vary your PAYG instalment rate or amount if you think the amount or rate we calculated on your instalment activity statement doesn't correctly reflect your circumstances due to you ceasing business.

Paying outstanding tax liabilities

When you close your business, you need to settle any outstanding amounts owed to us, including any liabilities that arise from your final income tax return or activity statement lodgment and any liabilities which are not yet due.

We understand that occasionally it may not be possible to pay on time, and we can help you.

Lodging final activity statements

You must complete an activity statement for the tax period in which your registration cancellation 'date of effect' occurs. You must report all of the following information:

  • all the sales, purchases and importations made in your final tax period including the sale of the business
  • any adjustment for assets held after cancellation
  • any other adjustments.

Lodging final taxable payments annual report

If your business provides taxable payments annual report (TPAR) relevant services you may need to lodge a TPAR for payments to contractors up until you close or sell your business.

Shareholder loans and assets

Remember to correctly report transactions related to any shareholder loans and remaining assets. Not correctly reporting and keeping appropriate records for transactions can result in an unfranked deemed dividend being included in your assessable income.

Record keeping

Under the tax law, you must keep business records for 5 years after the records are prepared or obtained, or the transactions are completed, whichever occurs later. These include records relating to:

  • sales and purchases (including the sale of your business and assets if applicable)
  • payments to employees
  • payments to other businesses.

You must keep these records even if you sell or close your business.

QC73013