ATO’s New Year’s Tax Resolutions Tips
Nothing like a fresh start to a new year to kick start a health kick or action that self help book we have just read. The ATO even have some top tips to start the year right for our super and tax. Some of their suggestions include:
Is Your Hobby a Business or Not?
- If you’re earning an increasing income from a hobby or a side hustle it might be prudent to use the ATO’s guide to check if you’re in business or not and what obligations you might have.
Keep your Business Details and Registrations Up to Date
- Director ID – if you’re a director of a business make sure to register for a Director ID to ensure you can manage and access your business info as a verified director.
- Check that your ABN details are up to date.
- If you think you’re going to earn more than $75,000 this financial year you’ll also need to register for GST.
Keeping Good Records
- Keeping accurate and complete records is important in managing our personal and business finances. the ATO have put together a guide to how to keep good records for business.
Personal Services Income (PSI) apply to you?
- PSI is income produced mainly (more than half) from your skills or efforts as an individual. If you’re earning PSI, you’ll need to work out if you’re a personal services business to determine whether the PSI rules apply to your income. The rules affect how you report your income and the deductions you can claim.
If you have any questions or queries in regards to any of these tips be sure to get in contact with us at STS Accounting.
