Tax time for small business

The Australian Taxation Office (ATO) has released a tax time toolkit to help small businesses and their tax professionals with their income tax returns.

The ATO has also flagged that their focus for 2021-22 small business tax returns will be on:

  • Deductions that are private in nature and not related to business income, as well as overclaiming of business expenses (especially for taxpayers running a home-based business)
  • Omission of business income, for example income from the sharing economy or new business ventures
  • Record keeping – including insufficient or non-existent records that are needed to substantiate claims.

The ATO’s small business tax time toolkit includes guides on:

  • Home-based business expenses
  • Motor vehicle expenses
  • Travel expenses
  • Claiming deductions for the cost of digital expenses
  • Using business money and assets for personal use
  • Pausing or permanently closing your business.