If you’re running a business, most income you receive is assessable for income tax purposes. The total amount is referred to as ‘assessable income’. At Accorti we specialise in Tax for business owners.
You need to report assessable income in your tax return. It includes:
- cash income and income from online transactions
- commissions and investment earnings
- recovered bad debts for which you’ve previously claimed a tax deduction
- most government payments
- capital gains and losses
- increases in the value of your trading stock
- stock taken for personal use
- payments from an insurance claim related to your business.
Make sure to also check what income you can exclude – for example, some (but not all) COVID-19 government payments aren’t assessable if you meet the eligibility criteria.
Remember you can reduce your business’s taxable income by claiming business tax deductions, as long as:
- the expense directly relates to earning your business’s assessable income
- you only claim the business-use portion if the expense is for a mix of business and private use
- you have records to substantiate your claims.
Expenses may include:
- motor vehicle and travel expenses
- items related to protecting staff from COVID-19
- employee super contributions
- payments you make to workers (including their wages) as long as you’ve complied with the pay as you go withholding and reporting obligations for each payment
- other business expenses.
We can help
At Accorti we are here to help you build a better future. We are experienced in assisting with all your tax needs to ensure you pay no more tax than required. If you would like to discuss further or need any assistance, please contact us now. We work with clients all over Australia and tax accountant teams in Brisbane and the Gold Coast.