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 Phone 02 9548 3703. 

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-/.

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