Are you tax-return ready? 

Leading up to the end of financial year it’s a good idea to brush up on your tax knowledge.

Here’s a little quiz to test your knowledge to see if you’re tax ready.

The Test
Are the following statements True or False?

  1. Cash, cryptocurrency, online sales, capital gains and income from the sharing economy are all types of income you need to report as assessable income.
  2. All government grants, payments and stimulus are not taxable and you don’t need to include them in your tax return.
  3. You can’t claim an expense if a portion of it is for private use.
  4. If you rent your business premises, and your landlord allows you to pay your current rent at a later stage, you will no longer be entitled to a deduction for the rent.
  5. Regular reconciliation of banking records and records of business income improves the accuracy of record keeping.

How did you do?
Here are the answers, but remember, no cheating.

  1. True! They are all examples of assessable income.
  2. False. Government grants and support payments are taxable and should be included in your tax return. Sometimes a payment will be classed as “non-assessable, non-exempt” but generally speaking, they should be included in your tax return.
  3. False. If an item or expense is used for business as well as private you can claim the portion you used for your business, as long as they are directly related to earning your assessable income.
  4. False. You will still be entitled to a deduction for the for the deferred rent, generally when the rent is paid.
  5. True. Businesses that are operating well and meeting their obligations keep good records and have effective reconciliation methods in place.

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