As part of our ‘Getting it right’ campaign, we have released the latest focus area for small business. Each quarter, we highlight areas where small businesses often make mistakes, due to misunderstanding, oversight, or even opportunistic or deliberate behaviour. We offer ongoing guidance to help you stay informed and on track.
This quarter our focus is on the property and construction industry. This is one of the largest sectors in the small business market and a frequent source of tip-offs.
We know most small businesses want to do the right thing. However, in this industry we continue to see recurring issues, including:
- omitting income, such as:
- not reporting all income, whether received in cash or money deposited into bank accounts
- incorrectly classifying income from property development
- contractors omitting income reported to us through the taxable payments reporting system
- overclaiming expenses and GST credits
- incorrectly reporting expenses that are private in nature as business expenses, or not apportioning an expense correctly for business and personal use
- not registering for GST when required
- using business funds and assets to support their personal lifestyle, tax-free.
If you run a business in property or construction, or otherwise operate as a builder, contractor or tradie, it is important to make sure you are reporting correctly and meeting your obligations.
By sharing this focus early, we want to help you avoid common mistakes and build strong habits to get it right from the start.
For more details, see Property and construction industry – key tax and super risks.
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