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  • 15 Net income or loss from business 2019

    Did you derive income or incur a loss from any business in 2018–19?

    No

    Go to question 16 Deferred non-commercial business losses, or return to main menu Individual tax return instructions 2019.

    Yes

    You cannot lodge a paper tax return. You must lodge your tax return using myTax or a registered tax agent.

    This question covers:

    • income from being a sole trader
    • income or a loss from a primary production business
    • income under a pay as you go (PAYG) voluntary agreement
    • income from which an amount was withheld because you did not quote your Australian business number (ABN)
    • income you derived as a foreign resident from which an amount was withheld because it was subject to foreign resident withholding
    • income of an independent contractor working under a labour hire arrangement
    • income from the following specified payments
      • payment for tutorial services provided under the Indigenous Student Success Programme (formerly known as the Indigenous Tutorial Assistance Scheme) of the Department of the Prime Minister and Cabinet
      • payment for translation and interpretation services provided for the Translating and Interpreting Service National of the Department of Home Affairs
      • income as a performing artist in a promotional activity
       
    • any other business income
    • the small business income tax offset (see Part D).

    A specified payment is a payment specified in tax law for PAYG withholding purposes.

    Do not show at this item:

    • personal services income included at item 14 Personal services income (PSI) 2019
    • foreign source business income included at item 20 Foreign source income
    • credit for amounts withheld from business as a result of the foreign resident capital gains withholding rules. Show the amounts of credit at item 18 Capital gains.

    You need to know

    Before you complete this item, see Business and professional items 2019.

    You must show your net income or loss (that is, gross business income less business deductions) at item 15, B for primary production and C for non-primary production.

    You carry on a primary production business if you carry on a business undertaking:

    See also:

    What you may need

    These publications may help you to correctly complete this item:

    Completing this item

    Part A

    Business and professional items schedule for individuals 2019 and Individual PAYG payment summary schedule 2019

    Step 1

    Complete the Business and professional items section.

    Step 2

    If you received business income from which tax was withheld, complete the Individual PAYG payment summary schedule 2019.

    Part B

    Did you derive income or incur a loss from a primary production business?

    No

    Go to Part C.

    Yes

    Read on.

    Step 1

    Transfer your net income or loss from a primary production business shown at Y item P8 in the Business and professional items section to B item 15. Do not show cents.

    Step 2

    If you made a loss, print L in the LOSS box at the right of B item 15.

    Step 3

    If you made a loss from one or more business activities, check that you have completed items P3 and P9 in the Business and professional items section.

    Part C

    Did you derive income or incur a loss from any non-primary production business?

    No

    Go to Part D.

    Yes

    Read on.

    Step 1

    Transfer your net income or loss from a non-primary production business shown at Z item P8 in the Business and professional items section to C item 15. Do not show cents.

    Step 2

    If you made a loss, print L in the LOSS box at the right of C.

    Step 3

    If you made a loss from one or more business activities, check that you have completed items P3 and P9 in the Business and professional items section.

    If you carried on a business as an author of a literary, dramatic, musical or artistic work or as an inventor, performing artist, production associate or active sportsperson, you must also write the amount of income from these business activities at Z item 24 Other income 2019. You will not be taxed twice on this income.

    Part D

    Are you a small business entity?

    No

    Go to Part E.

    Yes

    Read on.

    You may be entitled to the small business income tax offset of up to $1,000. We will use the information you provide here to work out the amount of your tax offset. The amount you show at this question is not included in your income.

    To answer Part D, you need to work out your net small business income, which is your assessable income from carrying on your business less your deductions to the extent that they are attributable to that assessable income. For more information, see Small business income tax offset.

    Do not show at Part D:

    • personal services income included at item 14 Personal services income (PSI) 2019
    • salary, wages or directors fees
    • dividend income of directors
    • dividend and interest income, unless it is derived from carrying on the business activity and you have shown an amount at 15 Net income or loss from business 2019
    • partnership share of net small business income less deductions attributable to that share shown at D item 13
    • trust share of net small business income less deductions attributable to that share shown at E item 13.

    If you have net small business income from P8 of Business and professional items section you completed, go to Step 1.

    If your only income or loss from carrying on a business as a small business entity is at M item 20, then to work out your net small business income use our Small business income tax offset calculator.

    Completing this item

    Step 1

    If you have net small business income from P8 of Business and professional items show it at A item 15 Net small business income then go to Part E. Otherwise, go to Step 2.

    Step 2

    If your only income or loss from carrying on a business as a small business entity is at M item 20 and you used our Small business income tax offset calculator to work out your net small business income, then show the result at A item 15 Net small business income.

    Part E

    In your calculation of total business income in the Business and professional items section, did you include income from which an amount of tax was withheld at the INCOME items B, C, D, E, F, N or O item P8?

    No

    Go to Check that you have...

    Yes

    Read on.

    Step 1

    Did you have any amounts of tax withheld under a pay as you go (PAYG) voluntary agreement?

    No

    Go to Step 2.

    Yes

    Read on.

    Add up all the amounts on your Individual PAYG payment summary schedule 2019 shown in the Tax withheld boxes where you have printed V in the Type box. These amounts must correspond with the Gross payments shown at E and F item P8 in the Business and professional items section. Show this total at D item 15. Do not show cents.

    Step 2

    Did you have any amounts of tax withheld because you did not quote your Australian business number (ABN)?

    No

    Go to Step 3.

    Yes

    Read on.

    Add up all the amounts on your Individual PAYG payment summary schedule 2019 shown in the Tax withheld boxes where you have printed N in the Type box. These amounts must correspond with the Gross payments shown at C and D item P8 in the Business and professional items section. Show this total at W item 15. Show cents.

    Step 3

    Did you, a foreign resident, have any amounts of tax withheld because your income was subject to foreign resident withholding?

    No

    Go to Step 4.

    Yes

    Read on.

    Add up all the amounts on your Individual PAYG payment summary schedule 2019 shown in the Tax withheld boxes where you have printed F in the Type box. These amounts must correspond with the Gross payments shown at B item P8 in the Business and professional items section. Show this amount at E item 15. Show cents.

    Do not include credits for amounts withheld as a result of the foreign resident capital gains withholding rules at E item 15.

    Step 4

    Did you have any amounts of tax withheld because you received income:

    •  working under a labour hire arrangement, or
    •  from a specified payment?

    No

    Go to Check that you have...

    Yes

    Read on.

    Add up all the amounts on your Individual PAYG payment summary schedule 2019 shown in the Tax withheld boxes where you have printed S in the Type box. These amounts must correspond with the Gross payments shown at N and O item P8 in the Business and professional items section. Show this amount at F item 15. Do not show cents.

    Check that you have...

    • read Business and professional items 2019
    • completed the Business and professional items section
    • transferred the amounts from Y and Z item P8 in the Business and professional items section to B and C item 15 respectively on your tax return (if these amounts are losses then check that you have printed L in the Loss boxes at the right of B and C)
    • completed A item 15 if you are a small business entity.

    If you received business income from which tax was withheld, check that you have:

    • completed the Individual PAYG payment summary schedule 2019 and attached it to page 3 of your tax return
    • written amounts at D, W, E and F item 15, if required
    • not included the foreign resident capital gains withholding credit at E item 15.

    Where to go next

      Last modified: 30 May 2019QC 58085