The ATO has recently reminded tax payers, both business owners and wage earners, of a number of forgotten income streams that need to be included in assessments. Otherwise be prepared to face their wrath!
Tips, compensation payouts, investment earnings, interest and commission all need to be added to the assessable income for a business. These are some of the more common ones, but a few obscure income sources also make the list.
Any rental income that comes from property that is owned by a business needs to be assessed. Hire charges, lease payments, prizes, awards, payouts, even tips and gratuities will need to be listed.
Even if an income, that isn’t a part of the main function of a business, has come your way over the past financial year, you’re going to need to include this as a business’ assessable income.
Interestingly, even barter transactions will need to have a market value placed on them. That means if you trade something with another and receive a good or service in return, you will need to determine the price of what you received as payment and include this in your income assessment.
Tips and gratuities, cash or electronic, also do not escape being listed. Basically, if you haven’t already got the point, any income at all, cash, electronic or direct goods or service trade, should be included as assessable income for a business.
There is a list of payments from the government due to the impact of the COVID-19 pandemic that will also be required to be listed under assessable income as well. The full list is available online or your team here at YBM can run through what payments are relevant to you.
There are a few grants and payments, including the cash flow boost payment, that you do not need to include, however it is best to confirm with a professional to make sure you get it right.
Tax time can be a bit daunting, especially as the ATO are cracking down on those who aren’t paying attention to the requirements, but by having meticulous records and by using the support available from our YBM team, we can make it a seamless and stress free experience.
If you’re unsure, we urge you to reach out to your YBM accountant at our Orange office on 02 6362 1533 or our Molong office on 02 6366 8049. We will happily take a look at all of your income sources to make sure that you are including everything that needs to be assessed.