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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  • "Assuming the app calculates the profit currently then you can use that figure in the Business Income item of your individual tax return - ideally the ATO would like a gross up of the turnover/sales..."

    By: Mr Taxman at Oct 17, 2020 2:10AM

    Post: Foreign currency trading

  • "Good evening Mr Taxman, I just would like to ask about my forex currency trading(I use MT4 app) Each time I close a trade it shows me a loss or profit and it includes the costs. At the end of..."

    By: Aggi at Oct 06, 2020 11:19AM

    Post: Foreign currency trading

  • "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