The ATO has provided new tips for avoiding common errors when reporting net small business income and claiming the small business income tax offset for unincorporated small businesses. These include tips on reporting amounts in the right sections of your tax return, providing all of the relevant information, and using net income (not gross income) in your calculations. The offset (up to $1,000) is worked out by the ATO on the proportion of income tax payable on an individual’

The ATO has released an updated version of Practice Statement PS LA 2001/6, its guidance on calculating and substantiating home office running expenses and electronic device expenses that are claimed as tax deductions. The basic principles have been amended to emphasise that you must actually incur the expenses you claim, and that there must be a real connection between your use of a home office or device and your income-producing work. On the other hand, the requirement that

It's time to get organised and plan the final stretch of 2019. We always say have all your tax minimisation strategies in place by the end of May for June 30. Some tax minimisation strategies are not available in June, i.e interest prepayments on investment interest needs finalising in May for some banks. Note the following key areas to consider as part of your June 30 tax planning Arsenal: Individuals (Employees/Sole Traders) Investment Property Selling an investment propert

Donate - If you are going to donate to charity, now is the time. Any donations you make to deductible gift recipients can be deducted this year. Remember, if you received something in return for the money, like goods purchased at a charity auction, you may not be able to claim a deduction for the full payment. There are special rules dealing with this situation that need to be taken into account. Work related deductions – you can claim a deduction for business expenses you ha