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.
