Working out your assessable income
Most income your business receives is assessable (including foreign income). However, there are some exceptions, such as amounts you earn from a hobby, or prizes that are not related to your business.
The accounting method you use may affect which amounts you need to include for a particular income year.
The following formula is used to work out your business income tax:
Assessable income – allowable deductions = taxable income (the amount you pay tax on).
You may be eligible for a range of concessions to help reduce your taxable income.
Follow the links below for more information on:
Most income your business receives is assessable, but there are some exceptions. End-of-year amounts, such as amounts owed to you, and the value of your trading stock, may also need to be considered when calculating your income.