Show download pdf controls
  • myTax 2019 Net income or loss from business

    Complete Net income or loss from business if you derived income or incurred a loss from any business.

    On this page:

    Essentials

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    This section 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.

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

    Net income or loss from business consists of three sections:

    The income and expenses to be included in Net primary production and Net non-primary production are amounts derived from your accounting system or financial statements, except for the following which are to be shown at tax values:

    • the values of opening and closing stock, and
    • depreciation expenses for small business entities choosing to use the simplified depreciation rules.

    The income and expense amounts included in this section should form part of your profit and loss statement and are the basis for calculating your net profit or loss. You should deal with any adjustments to these amounts for tax purposes at Primary production – Business reconciliation items and Non-primary production – Business reconciliation items.

    Former STS taxpayers

    If you are eligible and are continuing to use the STS accounting method, you must use it to complete the income and expenses sections. See also Former simplified tax system (STS) taxpayers .

    Depreciation and capital expenses

    You generally can't deduct spending on capital assets immediately; instead you claim the cost over time, reflecting the asset's depreciation (or decline in value). For more information, see Guide to depreciating assets.

    You can use the Depreciation and capital allowances tool to work out any decline in value deduction as well as any deductible balancing adjustment when you stop holding a depreciating asset.

    The tool can be accessed when you enter your business income or loss details.

    Note: If you used the Depreciation and capital allowances tool, fields containing information from the tool cannot be directly adjusted in myTax. To make any adjustments to this information, or to add new assets to the tool, select the 'Use the depreciation and capital allowances tool' link.

    The following video shows you how to use the Depreciation and capital allowances tool.

    Media: How to use the Depreciation and capital allowance tool
    http://tv.ato.gov.au/ato-tv/media?v=bd1bdiuboi7hkiExternal Link (Duration: 03:18)

    You can watch How to use the Depreciation and capital allowance tooExternal Linkl in full screen on atoTV.

    Help tutorial

    This video shows you how to complete the business section in myTax.

    Media: How to complete the business section in myTax
    http://tv.ato.gov.au/ato-tv/media?v=bd1bdiubosijw7External Link (Duration: 02:51)

    You can watch How to complete the business section in myTaxExternal Link in full screen on atoTV.

    Net primary production

    Complete this section if you have business income and expenses from primary production activities.

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

    For further information, see Information for primary producers.

    Completing this section

    Watch our video for a demonstration on how to complete the business section in myTax.

    You will need the primary production worksheet if you are a primary producer to determine some of the amounts in this section. Complete this worksheet before proceeding.

    Note: If tax has been withheld from your business-related income you should have received a:

    • Business-related income statement
    • PAYG payment summary – business and personal services income
    • PAYG payment summary – withholding where ABN not quoted

    Enter the details in the Business income statements and payment summaries section.

    Income and tax withheld amounts shown in the Business income and payment summaries section will be transferred to this section if they relate to primary production business activities. Add, alter or delete these amounts in the Business income statements and payment summaries section.

    1. Select Net primary production to expand the section.
    2. Enter your total primary production government industry payments received at Assessable government industry payments. For more information, see Assessable government industry payments.
    3. Enter your other primary production business income or loss amounts at Other business income. For more information, see Other business income.
    4. Enter your primary production business expense amounts into the corresponding fields. For more information, see Expenses.
    5. Enter the reconciliation item amounts related to your primary production business activities into the corresponding fields. For more information, see Reconciliation items.
    6. Select Save.

    Note: If you are a small business entity, you may be entitled to the small business income tax offset. For more information, see Small business income tax offset.

      Last modified: 26 Jun 2019QC 59154