ATO releases tax time toolkit for small business

The ATO's toolkit packages up a series of easy-to-understand fact sheets on topics that small businesses need to know this tax time, especially given the tax implications of COVID-19. 

“As we all continue to navigate the COVID-19 pandemic, we completely appreciate that it’s a really tough time for many small businesses. Our job is to continue to support businesses who need help with their tax and super obligations, in partnership with the tax profession," said ATO assistant commissioner Andrew Watson. 

“Many small businesses have had a really difficult few months, and we fully acknowledge this. From bushfires to floods to COVID-19, we know times are tough. Small businesses have a long to-do list, and tax obligations are just one of many items that need to be done.”

“We also know that many small businesses rely on and trust the advice of their tax professional. Whether you use a registered tax professional, or lodge your own tax return, we hope our toolkit will be helpful when the time is right to sit down and consider lodging your income tax return.”

The toolkit includes a set of fact sheets to help businesses understand a range of tax time topics, including:

• home-based business expenses – if a business owner is claiming deductions for the costs of using their home as your main place of business;
• pausing or permanently closing a business – if a business owner has had to pause or permanently close their business due to COVID-19;
• motor vehicle expenses – if a business owner is claiming a deduction for motor vehicle expenses for their business;
• travel expenses – if they’re claiming a deduction for expense incurred when travelling for their business; and
• using company’s money or assets – if a director or shareholder of a company that operates a small business takes money out of the company or uses its assets.

“Don’t forget, it’s best to ask for help with your tax if you need it. And it’s never too late to speak with us or a registered tax professional if you aren’t sure about something or need a helping hand,” said Mr Watson. 

The tax time 2020 toolkit for small business is available at ato.gov.au/SBtaxtimetoolkit