The ATO announced that it will be focussing on the following matters for small business tax returns for the 2021/22 year:

• Deductions that are private in nature and not related to business income, as well as overclaiming of business expenses (especially for taxpayers running a home-based business).
• Omission of business income (e.g., income from the sharing economy or new business ventures).
• Record keeping – including insufficient or non-existent records that are needed to substantiate claims.

The ATO acknowledges that it has been a tough couple of years for many small business owners and encourages taxpayers to act early to find a solution if they are getting behind in their tax obligations, so please get in touch if you require any assistance.

If you have any questions please contact us.