A COVID-19 TIP FROM MR TAXMAN #15

Apr 23, 2020

As the first tranche of the (up to) $100k worth of Cash Flow Boost payments start coming in this week, the FAQ is where do you code the amount received into your accounts?

As the payment is tax-free (yay!) and also has no GST attached to it, I suggest that you don't merely put in your default income account of Sales or Consulting fees nor the Miscellaneous income account but rather set-up a new income account called "Government Grant".

This new account will hopefully stop you from inadvertently remitting GST back to the Australian Taxation Office in your next BAS nor pay tax on it at year end (like I know some businesses will do!)

 

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  • "I think the Tax Commissioner would unfortunately consider it to be a personal expense Anne - like the purchase of a house would be."

    By: Mr Taxman at Sep 19, 2020 12:35AM

    Post: Claiming car expenses

  • "You can claim the 68 cents per kilometre method but that effectively covers all running costs of your vehicle. If you wanted to claim a % of running costs you will need to keep a 12 week logbook. "

    By: Mr Taxman at Sep 19, 2020 12:32AM

    Post: Claiming car expenses

  • "Its ok to choose from November 2019 for the start of your logbook Liezl. You can essentially chose any 12 week period during the year so long as its representative of your travel throughout the..."

    By: Mr Taxman at Sep 19, 2020 12:29AM

    Post: Claiming car expenses

  • "Yes you will be able to claim travel from one business location to another Rebekah"

    By: Mr Taxman at Sep 19, 2020 12:26AM

    Post: Claiming car expenses

  • "You wouldn't be able to claim upright but need to depreciate it Josh over a number of years."

    By: Mr Taxman at Sep 19, 2020 12:24AM

    Post: Claiming car expenses