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  1. #31
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    Quote Originally Posted by witherwings View Post
    Generally you can claim a % of the floor space, this is the easiest way to do it because trying to calculate the wattage used by each bit of your home office equipment is practically impossible. If you wanted to use a different method to claim the % you could do that too. There is actually no set rule but it needs to be reasonable.

    There is also a home office maintenance rate (for heating, cooling and lighting) you can use, which is currently 45c per hour. So if you work full time from home for 48 weeks (a year minus a 4 week holiday), it would be 48 weeks x 40hrs x 45c = 864. You can claim this without any receipts but you need to maintain a 4-week diary to record how many hours you worked from home.
    Thank you so much I have been searching the ATO website for ages trying to figure out exactly what I can and can't claim you have been a big help.

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    witherwings  (02-09-2016)

  3. #32
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    Quote Originally Posted by witherwings View Post
    Your income is basically whatever you received into your bank account or in cash from the business, whether you issued invoices or not. Issuing invoices is just good business practice and if you are registered for GST or if you make a sale of more than $75 then you are obligated to issue an invoice (it is only a "tax invoice" if GST is included). ATO generally isn't concerned with your invoices, even when you're audited. as long as your reported income matches the funds that went through your account, but if you're a cash-in-hand business, they do scrutinise more the income-side of things. Honestly i don't think you need to worry about "proving" income. Proving deductions is what you should focus on.

    I always advise clients to try to have as much of their business transactions going through bank accounts and credit cards, as it's easier to keep track. For substantiation/proof of deductions, you could take a photo or scan each receipt and keep it in multiple places, like hard drive, USB, on the cloud.. Just so you don't lose it due to a software issue or virus. Don't bother keeping the hard copies, they fade or get lost anyway.

    ETA: re- invoices, if the sale amount is less than $75, and your customer asks for an invoice, you have to issue one.

    Invoices are really easy to make. You can find heaps of templates online.
    When you say expenses, obviously you mean internet, petrol etc, so keep receipts. But do I have to have all of my invoices of my purchases? i.e. I'll be retail, so obviously I buy then sell at a higher amount. I pay via credit card so is that enough?

    I doubt I will have many deductions as it's a WAM business so they'll like me lol

    If I apply for a sole trader ABN then decide not to do this, I don't have to do the business side every year bc I have the number right?

  4. #33
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    Quote Originally Posted by delirium View Post
    When you say expenses, obviously you mean internet, petrol etc, so keep receipts. But do I have to have all of my invoices of my purchases? i.e. I'll be retail, so obviously I buy then sell at a higher amount. I pay via credit card so is that enough?

    I doubt I will have many deductions as it's a WAM business so they'll like me lol

    If I apply for a sole trader ABN then decide not to do this, I don't have to do the business side every year bc I have the number right?
    You should try to keep invoices for all your purchases, yes. Even if they are purchased on a credit card, as that isn't enough substantiation. It's really easy if you purchase things online as they usually email the invoices to you. Then you can move all the invoices from your inbox into a receipts folder. If all your income and expenses go through your bank account and credit card then you don't need to go through the receipts to add up your expenses but you know you have them there just in case of an audit.

    You don't have to do anything in your tax return if you don't have activity. Simply having an ABN doesn't mean you need to report activity. However if your ABN is inactive for some time, ATO may cancel it.

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    A-Squared  (04-09-2016),delirium  (03-09-2016)

  6. #34
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    Expenses I would claim for a WAHM would be things like the cost of goods sold, obviously if you're in retail, and then: home office maintenance, Internet, mobile phone, stationery & office supplies, computer supplies, depreciation on office furniture & computer equipment / laptop / iPad, a % of your groceries as "staff amenities", marketing & advertising, then if you need to travel for the business to pick up supplies or for research purposes (like checking out other businesses, or meeting with potential partners), car expenses, tolls, parking, car wash, public transport..

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    delirium  (03-09-2016)


 

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