The Australian Taxation Office (ATO) has released a tax time toolkit to help small businesses and their tax professionals nail their income tax returns. It has also flagged what it will be focussing on for small business tax returns for 2021-22:

  • 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.

Download a copy of the ATOs toolkit here.