Income and deductions for business
Most income your business receives is assessable income – which means you need to declare it and it's subject to tax.
You can claim tax deductions for most costs you incur in running your business but there are exceptions. For example, you cannot claim deductions for private or domestic expenses. Entertainment, fines and some other expenses are also specifically excluded.
The rules for business income and deductions vary depending on your business structure, whether you hold and sell trading stock, and the nature of your income and expenses.
You must keep accurate and complete records of all your assessable income and deductions you claim. If you make false or misleading statements, we may:
- determine your income, based on industry benchmarks and other information, and issue an amended assessment
- apply penalties
- commence prosecution.
See also: Penalties for not keeping proper records
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Follow the links below for more information on business income:
Most income your business receives is assessable, but you can claim deductions for most costs you incur in running your business, as long as they're not private or domestic expenses, or other expenses that are specifically excluded.