Loading
_sidilmas(Newbie)Newbie
1 July 2021

If an individual receives income both as an employee and a sole trader (with an ABN) in an income year, can the individual account for their employment income using the cash basis and their business income using the accruals basis in the same tax return? For example, if an individual received their employment income in cash in the 20/21 year, but their business income in cash in the 21/22 year (for work completed in the 20/21 year), can both types of income be included in the same return?

4,344 views
1 replies
4,344 views
1 replies

Most helpful response

Most helpful reply

EthanATO(Community Support)Community Support
1 July 2021

Hi @sidilmas,

As an individual, all income is accounted for on a cash basis. This means your employment income would be accounted for under this method. As for your sole trader business, you're free to choose which accounting method you would like to use. This does not need to match the cash method used for employment income.

You can read more about these accounting methods on our website.

Hope this helps.

All replies

Most helpful reply

EthanATO(Community Support)Community Support
1 July 2021

Hi @sidilmas,

As an individual, all income is accounted for on a cash basis. This means your employment income would be accounted for under this method. As for your sole trader business, you're free to choose which accounting method you would like to use. This does not need to match the cash method used for employment income.

You can read more about these accounting methods on our website.

Hope this helps.

  • Avatar of man brown hair and beard
Liked by _sidilmas

Top liked users

  1. Taxduck

    (Taxicorn)

    341 likes

  2. PayrollDeanne

    (Taxicorn)

    331 likes

  3. Bruce4Tax

    (Taxicorn)

    192 likes

  4. YellowPotato

    (Taxicorn)

    151 likes

  5. Peter_Clyne

    (Superuser)

    101 likes

Top contributors

  1. PayrollDeanne

    (Taxicorn)

    1350contributions

  2. Taxduck

    (Taxicorn)

    1333contributions

  3. YellowPotato

    (Taxicorn)

    593contributions

  4. Bruce4Tax

    (Taxicorn)

    526contributions

  5. YEP

    (Devotee)

    280contributions

Loading
Accounting basis for employee and sole trader | ATO Community