In April I started working freelance, providing professional services that I bill by the hour (using an ABN). Before that I was a salaried worker. I have only just started freelance, so have income less than $10,000 in 2024-5.
To do this freelance work I had to buy a computer ($1300).
I'm now filling out my return and am very confused by the info provided by the ATO.
My questions:
1) I think I enter my freelance income in the 'Business/sole trader' section of the return, and specifically as 'Personal services income' (ie not via 'Business income statements and payment summaries'). Is that correct?
2) The 'Personal services income' includes a field 'Total amount of other deductions against PSI - manually calculated'. Is this where I put the cost of the computer? I would of course put only a fraction as I do use it for personal reasons too.
3) As far as I can tell from the ATO info I am allowed to claim the whole cost of the computer up front - ie as an 'instant asset write-off' and not doing a depreciation. So if my income was $10,000 and the computer costs I claim as say $1,000, then my net personal services income would be $9,000. Is that correct?
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