Help for small busi­ness

The Weekly Advertiser Horsham - - Understand­ing Your Tax -

The Aus­tralian Tax­a­tion Of­fice is lend­ing a help­ing hand to mil­lions of small busi­nesses to get their tax right.

As­sis­tant com­mis­sioner Peter Holt said the ATO un­der­stands that small busi­nesses have a lot on their plate with the day-to-day run­ning of their busi­ness.

“That’s why we’re fo­cus­ing on ad­dress­ing com­mon is­sues we see when small busi­nesses lodge their re­turns so that we can sup­port them to get it right,” he said.

ATO fo­cus ar­eas

Mr Holt said the top three is­sues the ATO sees when small busi­nesses lodge their tax re­turns are: • Fail­ing to re­port all of their in­come. • Not hav­ing the nec­es­sary records to prove small busi­ness ex­penses claims. • Claim­ing pri­vate ex­penses as busi­ness ex­penses.

“For ex­am­ple, you’re a sole trader land­scape gar­dener who usu­ally works in Perth but took on a job in Broome. While you’re up in Broome, you do some sight­see­ing. That’s a pri­vate ex­pense and you can’t claim the cost of that in your tax re­turn,” Mr Holt said.

He said there are three golden rules to re­mem­ber about claim­ing de­duc­tions.

“One, the ex­pense must have been for your busi­ness not your­self. Two if you use some­thing for busi­ness and pri­vate pur­poses, you can only claim the por­tion that is re­lated to your busi­ness, and three, you need a record to prove it.”

Mr Holt said the top tip for small busi­ness op­er­a­tors is to en­sure that their records are kept up-to-date.

“Good record keep­ing will help you com­plete and lodge your tax re­turns, man­age cash flow, meet your tax obli­ga­tions and un­der­stand how your busi­ness is do­ing,” he said.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.