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Net income or loss from business

How to complete the business section of your return using myTax.

Last updated 25 July 2016

We have pre-filled your tax return with payment summary information provided to us. Check for business payment summaries you received that are not pre-filled and ensure you add them at the Business payment summaries section.

Complete Net income or loss from business if you derived income or incurred a loss from any business. 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 for 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 values of opening and closing stock, which are to be shown at tax values, and
  • depreciation expenses for small business entities choosing to use the simplified depreciation rules, which are to be shown at tax values.

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 complete the income and expenses sections using the STS accounting method, see Former simplified tax system (STS) taxpayers.

Depreciation and capital allowances tool

You can use the Depreciation and capital allowances tool to work out any deductible decline in value, deductible balancing adjustments and assessable balancing adjustments. The tool can be accessed when you enter your business income or loss details.

If you used depreciation worksheets in e-tax 2015, you can upload your e-tax 2015 tax file to this tool to roll over your depreciation details. You must have access to your e-tax 2015 tax file (we cannot send you a copy of it).

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 'Work it out' link.