YOUR MONEY MATTERS JULY 2022

ATO’s small business focus for 2022 income year

The ATO announced that it will be focusing on the following matters for small business tax returns for the 2021/22 year:

  •  Deductions that are private in nature and not related to business income, as well as over claiming of business expenses (especially for taxpayers running a home-based business).
  •  Omission of business income (e.g., 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 acknowledges that it has been a tough couple of years for many small business owners and encourages taxpayers to act early to find a solution if they are getting behind in their tax obligations, either by contacting their tax agent or the ATO.

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