In this video, we’ll show you how to complete
the business section of myTax. Donna has a dog grooming business. She’s a sole trader and has decided to use
myTax to lodge online. myTax will personalise Donna’s return, so
she only has to answer questions relevant to her. To start with, Donna has to work out what
type of business she has. She uses the tool to help her.
She answers any questions that apply to her and enters the required information. This helps her work out that the ‘Personal
services income’ rules don’t apply to her and myTax automatically selects ‘Business
income or loss’. When Donna clicks ‘Next’, myTax tailors
her return based on her selections. She then moves on to the ‘Prepare’ screen. Donna enters her business details, working her way through the questions. You’ll notice the first two questions have
already been completed by the tool, based on the information she added earlier. Once she has finished, she clicks ‘Save’
and moves on to the next panel of questions. If Donna received a business payment summary
because she also worked as a contractor, she would enter the details in this section. If she selects the wrong section, she can
click ‘Cancel’. Next, Donna selects her business type. She then enters her business income. Donna uses some equipment in her business
and has used the ‘Depreciation and capital allowances tool’ to record them.
The tool works out her deductible decline in value. The amount is then transferred into myTax.
Donna had to repair her shears. She enters the amount in ‘Repairs and maintenance’.
She also used her phone for business calls and arranged a promotional mail-out to her
clients. Unlike ‘repairs and maintenance’ there
are no specific fields for these amounts, so she adds the total to ‘All other expenses’.
Her total business expenses will then be calculated. myTax then works out her business’s total
non-primary production net income or loss. There are three more labels for Donna to complete,
which must add up to her net income or loss. These amounts will be used to complete some
of the income test labels. Donna’s business activity doesn’t include
income from investing or a rental property, so she enters $0 in these fields. She enters all her net business income in
the final field. Once she is finished, she clicks ‘Save and
continue’. Donna is eligible for the ‘Small business income tax offset.’ If she doesn’t know her ‘Net small business
income (from sole trading activities)’, she can use the ‘small business calculator’ to work it out. As Donna already knows this information, she
enters the amount in the field. Once she is finished, she clicks ‘Save and
continue’. Donna is now ready to move onto lodgement.
For more videos on how to lodge online using myTax, head to ato.gov.au/lodgeonline