Last updated: 24 October 2024
An Income Tax Account Statement is a detailed list that shows all your business’s income tax transactions with the Australian Taxation Office (ATO). It shows your income tax obligations, payments, credits and any refunds related to income tax. This statement is essential for businesses to track their income tax liabilities and demonstrate their tax compliance.
When seeking finance, lenders often request this statement as part of their due diligence to assess your business’s financial health and tax management.
Lenders use the Income Tax Account Statement to assess your business’s tax compliance and financial health.
Lenders use it to assess the following:
Tax Compliance: Lenders want to ensure that your business is current with its income tax obligations. Any unpaid taxes or outstanding issues with the ATO may be seen as a risk, as they can indicate financial mismanagement.
Financial Stability Assessment: making timely income tax payments demonstrates that your business generates enough revenue to meet its obligations, giving lenders confidence in your financial stability.
Liability Review: Unpaid taxes usually take priority over other financial obligations in the event of insolvency so lenders need to understand whether any tax liabilities could impact your ability to repay a loan.
Cash Flow Insight: Lenders look at your tax payments to understand how much of your business’s cash flow is being directed toward income tax. Consistent tax payments suggest reliable cash flow, while significant unpaid taxes may raise red flags.
Submitting a current Income Tax Account Statement demonstrates transparency and responsibility, which helps build trust with lenders and improves your chances of securing finance.
Firstly, visit the ATO's Online Services for Business Login page.
Click the Login button.
You will be directed to log in via the myGovID login screen.
If you don't have a myGovID set up, click the purple link "Set one up" to get started.
If you have a myGovID, enter your registered email address and click the Get code button.
A notification message will be sent to the myGovID app installed on your mobile phone. Click the notification message to open the mobile app, where you will be asked to approve the login by entering a four digit code.
Once you've logged in successfully, you will be asked to choose the entity whose tax records you wish to access. Select the relevant entity for you and click the Next button.
Next you will see the ATO home screen for the entity you selected. Click the Accounts and payments dropdown and select Accounts summary.
Now you will see the Accounts summary screen. It has all the tax accounts listed for your entity. Click the blue Income tax link.
On the following screen you will see a summary of all Income tax account transactions over the past 2 years.
Click the Print-friendly version button near the top left of the screen. Now print and save a PDF copy of your Income Tax Account Statement to share with your broker or lender.
You might be interested in reading these related articles:
How to Get Your ATO Integrated Client Account Statement
How to Get Your ATO Payment Plan Statement
