5 New Year Tax Resolutions ATO Needs You To Adopt!

5 New Year Tax Resolutions ATO Needs You To Adopt

Want an easy tax and super lodgement this year? The key to this is realizing your new year resolutions that can help you stay on top of your tax and super in 2023. The Australian Taxation Office (ATO) has come up with these five resolutions to make sure you make the most out of your taxes this year. It’s no way related to cleaning your garage or claiming a gym membership, but is all about managing your business and expenses.          

Here are the five resolutions you should follow:

Knowzif you’re in business or not

Before filing a tax, you must know under which category you need to apply. Whether you are in business because it is your passion or you are earning an income from a hobby, you will surely be considered to be operating a business. Consult a qualified tax accountant near you to help find out if you are in a business or not, so that you can meet your obligations on time.

Keep your business details and registrations up to date

If you own a company in Australia, you are required to apply for a DirectorID, as this is compulsion for all directors operating any type of company, anywhere in the country. Not only this, you are also required to the keep the details of your Australian Business Number (ABN) updated so that emergency services and government agencies can easily use this information whenever required to support your business, especially during disasters. In case, you ear an income of over $75,000 in a financial year, you’ll need to register for the GST also.

Keep accurate and complete records

When it comes to accounting and taxes, good record keeping plays a key role. Generating weekly and monthly reports of all the expenses and transactions you do helps in managing your business and its cash flow. This habit is surely going to save you lot of hours and hassles during the tax time.

Work out if Personal Services Income (PSI) rules apply to you

PSI is the income that you get primarily generate on your own, thanks to your skills, abilities, and efforts. To determine whether the PSI rules apply to your income, find out if you are earning PSI and also that you are a personal services business or not. The rules can have an impact on your ability to deduct expenses and report your income.

Look after yourself

With pandemic around the corner for last few years, many small businesses struggled to survive. If your business survived that economic crisis and is still struggling to stand up again, theNewAccess program introduced by the ATO can help. This program is specially designed for small businesses going through a tough phase and is free and confidential.

So, these were the five resolutions you need to adopt in 2023 to thrive and stay on track. The ATO is always available to support small businesses like yours. To get more information on such programs that can help your business gain control on its finances, feel free to schedule a consultation with our tax accountants at KPG Taxation.

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