Reporting income or claiming a deduction?

When you’re lodging your business tax return each year, it’s important to include all income you make through your business.

This includes income you earn from:

  • personal services you provide

  • investments

  • the sharing economy, such as ride-sourcing

  • assessable government grants and payments, such as JobKeeper and JobMaker Hiring Credits.

You might receive payment in the form of:

  • cash and digital payments

  • vouchers or coupons, such as state government stimulus vouchers.

You can claim a deduction for most of the costs of running your business.

If you’re in an industry that requires physical contact with customers, such as healthcare, retail or hospitality, you can claim deductions for expenses related to COVID-19 safety. This includes hand sanitiser, sneeze or cough guards, other personal protective equipment and cleaning supplies.

Keep in mind the three golden rules for deductions:

  • The expense must have been incurred for your business.

  • If the expense is for a mix of business and private use, only claim the portion used for your business.

  • You must have records to substantiate the expense and show how you worked out the business portion.

We can help you with your tax, call us on (03) 9379 7244. 

Source: ATO July 2021
Reproduced with the permission of the Australian Tax Office. This article was originally published on https://www.ato.gov.au/Newsroom/smallbusiness/General/Reporting-income-or-claiming-a-deduction-/
.

Important:
This provides general information and hasn’t taken your circumstances into account.  It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person. 

Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

Share this post

Share on facebook
Share on twitter
Share on linkedin
Share on print
Share on email