Frequently Asked Questions
Questions we get from many clients may help you.Can I claim any deductions?
You’re entitled to claim deductions for some expenses, which are directly related to earning your income and you have records to prove it.
If the expense was for both work and private purposes, you can only claim a deduction for the work-related portion.
Work expenses reimbursed to you by your employer are not deductible.
Click on this ATO link for more information on the deductions you can claim.
What tax records do I need to keep?
During the financial year, you’ll receive documents that are important for doing your taxes, such as payment summaries, receipts, invoices and contracts.
You need to keep these for five years from when you lodge your tax return in case the ATO ask you to substantiate your claims.
Click on this ATO link for details on keeping your tax records.
What do I not include as income?
You may receive amounts that are not subject to tax, for example:
✓ Exempt income
✓ Non-assessable non-exempt income
✓ Other amounts that are not taxable
Do I need to declare my Cryptocurrency trading?
Cryptocurrency tax treatment can be a little tricky, depending on your individual circumstances.
So if you have purchased, sold, swapped or mined Cryptocurrency coins, give us a call to have a chat.
Click on this ATO link for more information on Cryptocurrency.
What is the small business instant asset write-off?
An instant asset write-off allows eligible businesses to claim an immediate deduction for new or second-hand assets purchased in the year the asset is first used or installed ready for use.
The instant asset write-off eligibility criteria and threshold have changed over time. You need to check your business’s eligibility and apply the correct threshold amount depending on when the asset was purchased, first used or installed ready for use.
What type of deductions can I claim?
You may be able to claim a deduction for expenses that directly relate to your work, including:
✓ Vehicle and travel expenses
✓ Uniform, safety clothing and laundry
✓ Home office expenses
✓ Mobile phone and internet expenses
✓ Overtime meals
✓ Self-education expenses
✓ Tools and equipment
Do I need to keep records of work related travel?
There are specific record-keeping requirements for travel expenses, depending on whether your travel allowance is shown on your payment summary, whether your travel was domestic or overseas, the length of your travel and your occupation.
Click on this ATO link for more information on keeping travel expense records.
What type of income do I need to declare in my tax return?
You must declare the income you receive from all sources including:
✓ Employment income
✓ Super pensions, annuities, and government payments
✓ Investment income (e.g. interest, dividends, rent and capital gains)
✓ Business, partnership and trust income
✓ Foreign income
✓ Other income – including compensation and insurance payments, discounted shares under the Employee Share Scheme, prizes and rewards
What are the main business structures used by small businesses?
✓ Sole trader – An individual operating as sole trader is legally responsible for all aspects of the business. Like other structures, as a sole trader you can employ people to help you run your business.
✓ Company – A legal entity separate from its shareholders.
✓ Partnership – An association of people or entities running a business together, but not as a company. Like the sole trader structure, a partnership entity is not separate from its operators. All co-owners (partners) act on behalf of each other in the business.
✓ Trust – A structure where a trustee carries out the business on behalf of the beneficiaries. A trust is not a separate legal entity. A trustee may be an individual or a company. The trustee is legally liable for the debts of the trust and may use its assets to meet those debts.
Click on this ATO link for more information on choosing a business structure.
