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Re: Total income

Newbie

Views 3176

Replies 6

Dear Officer

I have tax income from my full time employment but i have lost some money to set up the business as sole trader
For example my salary is $80000 a year but i lost $20000 from the business i own...can i report my income as $60000 to centrelink?

Looking forward to your reply
Thanks
Dean
1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Certified Response

Community Support

Replies 0

Hi @Deano,

 

Welcome to our Community!

 

Generally speaking, as a sole trader you'll be required to report all your income and deductions in your tax return and we'll use that information to calculate your taxable income.

 

We'll exchange data you report with other Australian Government agencies (such as Centrelink) and they'll use that information to help determine the eligibility for certain benefits. To find out what income you should report to Centrelink, it's best to contact them directly.

 

Thanks, JodieH.

6 REPLIES 6

Enthusiast

Replies 0

Hi Deano,

 

ATO distinguishes your income between

• Gross Income, the raw amount of money that is earned by you, and

• Taxable Income, which is is that amount minus any deductions/expenses that you claim.

It will depend what Centrelink specifically asks you to report, whether you need to provide the larger or smaller amount.

The best page on the ATO website that I found is called "What is income?" can be reached by typing QC 17709 in the homepage search bar.

 

All the best

Taxicorn

Replies 3

How did you loose $20,000?

 

Is this a business loss after expenses or just money spent trying to get a business started?

 

Newbie

Replies 2

I have spent money to set up the business but only operate the business short period of time so still remain loss

Taxicorn

Replies 0

ok thanks

 

Your Gross Income is $80,000

Your Taxable income is $80,000 - deductions that you can claim from your salary ob.

 

The $20,000 loss is a carry forward loss and doesn't come into it.

Most helpful response

ATO Certified Response

Community Support

Replies 0

Hi @Deano,

 

Welcome to our Community!

 

Generally speaking, as a sole trader you'll be required to report all your income and deductions in your tax return and we'll use that information to calculate your taxable income.

 

We'll exchange data you report with other Australian Government agencies (such as Centrelink) and they'll use that information to help determine the eligibility for certain benefits. To find out what income you should report to Centrelink, it's best to contact them directly.

 

Thanks, JodieH.

Newbie

Replies 0

For Centre link reporting, You have to indicate your estimated income for the end of year. The payment made by centrelink will eventually being reconciled with your tax return that you will lodge. Any difference in estimate may result in adjustments by centre link in subsequent payments or they may give you a refund or ask you to pay extra.

To estimate your income, Remember total net income should be reported i-e Total assessable income - total allowable expenses coming from salary, business and other sources

 

By Hiwin Accountants

Registered Tax Agent

www.fastonlinetaxreturn.com.au