Latest News

Hot Issues
spacer
Small businesses may ‘collapse under strain of payday super’, IPA warns
spacer
ATO’s hands tied with scrapping on-hold debts, expert says
spacer
What Drives Your Business Growth and Profits?
spacer
Australian Taxation Office (ATO) shifting to firmer debt collection activity
spacer
Why employee v contractor comes down to fine print
spacer
Sharing economy reporting regime for platform operators
spacer
Countries producing the most solar power by gigawatt hours
spacer
Illegal access nets $637 million
spacer
Accessing superannuation benefits.
spacer
Does your business have a company Power of Attorney?
spacer
Labor tweaks stage 3 tax cuts to make room for ‘middle Australia’
spacer
GrantConnect
spacer
2 in 3 SMEs benefit from instant asset write-off, survey reveals
spacer
Updated guidance on R&D claims
spacer
Do you know how to recover debts?
spacer
Wheat Production by Country
spacer
Types of small business benchmarks
spacer
What is a Commercial Lease?
spacer
ATO warns advisers against suspect R&D tax claims
spacer
The year of workplace law upheaval
spacer
How to Resolve Invoice Payment Disputes
spacer
Raft of revenue tweaks in MYEFO to raise millions
spacer
The Countries that Export the Most Wine in the World
spacer
Record low invoice values ‘reveal inflation sting’
spacer
A 2023 Advent Calendar for our clients
spacer
Average refund plummets by $580, total payout down $5.4bn
spacer
FBT – Christmas Parties and Taxi Fare/Rideshare
Article archive
spacer
Quarter 4 October - December 2023
spacer
Quarter 3 July - September 2023
spacer
Quarter 2 April - June 2023
spacer
Quarter 1 January - March 2023
spacer
Quarter 4 October - December 2022
spacer
Quarter 3 July - September 2022
spacer
Quarter 2 April - June 2022
spacer
Quarter 1 January - March 2022
spacer
Quarter 4 October - December 2021
spacer
Quarter 3 July - September 2021
spacer
Quarter 2 April - June 2021
spacer
Quarter 1 January - March 2021
spacer
Quarter 4 October - December 2020
spacer
Quarter 3 July - September 2020
spacer
Quarter 2 April - June 2020
spacer
Quarter 1 January - March 2020
spacer
Quarter 4 October - December 2019
spacer
Quarter 3 July - September 2019
spacer
Quarter 2 April - June 2019
spacer
Quarter 1 January - March 2019
spacer
Quarter 4 October - December 2018
spacer
Quarter 3 July - September 2018
spacer
Quarter 2 April - June 2018
spacer
Quarter 1 January - March 2018
spacer
Quarter 4 October - December 2017
spacer
Quarter 3 July - September 2017
spacer
Quarter 2 April - June 2017
spacer
Quarter 1 January - March 2017
spacer
Quarter 4 October - December 2016
spacer
Quarter 3 July - September 2016
spacer
Quarter 2 April - June 2016
spacer
Quarter 1 January - March 2016
spacer
Quarter 4 October - December 2015
spacer
Quarter 3 July - September 2015
spacer
Quarter 2 April - June 2015
spacer
Quarter 1 January - March 2015
spacer
Quarter 4 October - December 2014
ATO casts net wide when it comes to taxable business income

Commissions, investment earnings, gratuities and more must be included to be assessed, the office warns.

 

Frequently forgotten revenue streams such as tips and patent royalties need to be included in the assessable income of a business, the ATO warned in an update.

Commissions, investment earnings, gratuities and compensation payments are all part of assessable income this tax time as well as other more obscure income sources.

Royalties such as payments when other entities use the business’ patent as well as incentives such as cash payments to lease business premises are also included.

Interest on business investments along with interest on overpayment or early payment of tax as well as dividends and franking credits on business investments should also be on the assessable income list.

Rental income from property owned by businesses as well as lease payments and hire charges accrued by hiring out assets also need to find their way to a business’ assessable income.

According to the ATO the tip jar isn’t exempt from being listed either, with tips and gratuities – whether cash or electronic payments – also needing to be listed.

Income that is not necessarily a part of the business’ main function or everyday activities also needs to be included in a business’ assessable income.

Examples of these include disposal of non-trading stock assets, taking some trading stock for your own use and increase in trading stock value.

Businesses that undertake barter transactions such as selling goods and services to receive something other than money in return also need to include the market value of what has been received as payment under assessable income.

Prizes and awards as well as insurance payouts also don’t escape the watchful eye of the ATO with both required to be listed under assessable income.

The pandemic meant the government increased payments and support to a greater number of businesses and individuals.

The payments that are required to be listed under a business’ assessable income include:

  •         Fuel tax credits or product stewardship (oil) benefit
  •         Wine equalisation tax producer rebate
  •         JobKeeper payments (COVID-19)
  •         Supporting apprentices and trainees wage subsidy (COVID-19)
  •         Excise refund scheme for alcohol manufacturers
  •         Grants, such as an amount you receive under the Australian Apprenticeships Incentives Program
  •         Subsidies for carrying on a business
  •         Assessable payments you receive from government entities for services you provided or grants you received

However, some government grants and payments are not required to be included such as cash flow boost payments, and other grants, payments and stimulus provided during COVID-19.

 

 

 

Josh Needs

8 July 2022

accountantsdaily.com.au

Liability limited by a Scheme approved under Professional Standards Legislation.
© O'Brien and Partners 2022 - All Rights Reserved | 91 Station Street, Malvern VIC 3144 | Tel: 03 9509 3911 | Fax: 03 9509 3922. Site by Acctweb