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First time tax return!

Newbie

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Hey guys, 

 

So it's my first time doing my tax return. 

 

I have a couple of questions regarding inputting PSI income. These might be super obvious so apologies but any help would be massively appreciated! 

 

1) When it asks main business or professional activity on the 'Business/sole trader, partnership and trust income (including loss details)' do you just find the activity closest to your business? I'm a freelance marketer so the closest I could find was advertising services? 

 

2) On the same page, 'Number of business activities' does that mean clients I've worked with or individual invoices that have been sent out? 

 

3) On 'Business income statements and payment summaries' it says Payer and gross payments so would that be the total income from one client (basically all of their invoices added up)? 

 

Thanks so much again! 

 

 

 

 

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Hi @Jadeattwood

 

1. Here's a handy link to help find the closest business activity. For you it could be advertising services, or I triede "business consultant' in the search box and it returned 69629 Management Advice and Related Consulting Services n.e.c.The description includes 'marketing objectives and polices'. 

 

2. Number of business activities – This is the number of separate and distinct business activities you operated as a sole trader and in partnership during 2020–21. If you only had one main business activity just enter 1 here.

 

3. This will depend on the type of PAYG agreement you had setup with your main client(s). Scroll through this page on completing this section for more assistance.

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Hi @Jadeattwood

 

1. Here's a handy link to help find the closest business activity. For you it could be advertising services, or I triede "business consultant' in the search box and it returned 69629 Management Advice and Related Consulting Services n.e.c.The description includes 'marketing objectives and polices'. 

 

2. Number of business activities – This is the number of separate and distinct business activities you operated as a sole trader and in partnership during 2020–21. If you only had one main business activity just enter 1 here.

 

3. This will depend on the type of PAYG agreement you had setup with your main client(s). Scroll through this page on completing this section for more assistance.

Newbie

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Hi @RichATO 

 

That's all super useful thank you! 

 

Sorry if this is an obvious question but is there a definition of 'business activity' - so as a freelance marketer that's my core role and the only 'business activity' I do for clients, so would that just be 1? Or is it in relation to different business transactions (so how many different clients I've worked with this year for example?

 

And with PAYG, I am under the GST threshold so didn't have this set up with them (I am paying for all of the tax) is this something I need to set up? 

 

Thanks again 

Jade 

 

 

ATO Community Support

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Hi @Jadeattwood

 

In simple terms 'business activity' refers to a clearly defined area of business in which you provide products and/or services to clients and generate income from the activity.

Some business entities operate multiple business activities under the one ABN. A simple example is a real estate agency offering both real estate sales services and property management services to clients.

In your case it's one business activity.  It has nothing to do with the number of clients or transactions with those clients.

 

If you do not need to be registered for GST or for PAYGW then it's entirely optional to set up.

You will need to ensure that you are keeping enough money aside to pay your income tax at the end of the year. Alternately many sole traders elect to enter into voluntary PAYG instalment payments. This way they are paying their PAYG tax regularly and are not challenged by the large tax bill at the end of the year.