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Income P8

Find out what to include as business income at P8.

Last updated 1 July 2024

Business income

The business income to be show is divided into:

  • income from which tax has been withheld because you did not quote your ABN to one of your payers
  • gross payments subject to foreign resident withholding (excluding capital gains)
  • income that was subject to a PAYG voluntary agreement to withhold tax
  • income received under a labour-hire arrangement or from other specified payments
  • assessable government industry payments
  • other business income.

Crypto assets

Crypto assets are a digital representation of value that you can transfer, store, or trade electronically. This also includes non-fungible tokens. For tax purposes, crypto assets are not a form of money.

The way you use or transact with crypto assets will determine how you treat them for tax purposes.

For more information on the tax treatment of crypto assets used in business, see Crypto assets and business.

Sharing economy

Your business income may include amounts earned through the sharing economy or other marketplaces, such as:

  • ride-sourcing
  • accommodation
  • sharing assets like cars, caravans, tools or personal belongings
  • providing services or completing tasks through a digital platform.

Amounts you receive through the sharing economy are assessable income, even if you're not carrying on a business. Include them at:

  • question 1 in your tax return if you are an employee
  • question 24 in your supplementary tax return, if other income.

For more information, see The sharing economy and tax.

Don't show the following types of income at P8 Income:

  • Gross interest, show the amount of income at question 10 in your tax return.
  • Dividends and franking credits, show the amounts at question 11 in your tax return.
  • Distributions from partnerships and trusts, show these at question 13 in your supplementary tax return.
  • Gross rental or similar income, including renting out all or part of your home through the sharing economy, that is not derived from carrying on a business of renting property, such as agistment or hire fees. Show this amount at question 21 in your supplementary tax return.
  • Income you earned through the sharing economy or other marketplace not derived from carrying on a business. Show this amount at question 24 in your supplementary tax return or question 1 in your tax return if you're an employee of the digital platform.
  • Net capital gains, show these at question 18 in your supplementary tax return.
  • PSI shown at P1 Personal service income in your schedule.
  • Farm management repayments, show these at question 17 in your supplementary tax return.
  • Attributed foreign income, show it at question 19 in your supplementary tax return.
  • Foreign source income, show it at question 20 in your supplementary tax return.

Goods and services tax (GST)

If you are registered or required to be registered for GST, you need to:

  • Consider your assessable income, exempt income and amounts received or receivable. For tax purposes you should exclude GST from them when you calculate your income and deductions.
  • Reduce deductible losses and outgoings by the amount of input tax credit entitlement. In certain circumstances you could make an adjustment for GST purposes. This could alter your assessable income or deductibles. For example, a change in how much you use an asset for business purposes could increase or decrease your GST component.
  • Exclude GST under rules such as capital gains tax and capital allowances.

If you are not registered for GST, or not required to be registered for GST, you don't need to adjust your income and deductions for GST. You can claim the GST-inclusive amount incurred on deductible outgoings.

What you may need

Did you have amounts withheld from your business income – other than PSI included at P1?

If tax has been withheld from business income, you should have received a payment summary or an income statement.

You need to complete Individual PAYG payment summary schedule 2024 before completing P8 Business income and expenses if you received any of the following payment summaries:

The PAYG payment summary – business and personal services income allows reporting of different payment types (including voluntary agreement, labour hire or other specified payments). When completing the individual payment summary schedule, you must specify the nature of the income and the payment type made to you.

For more information, see How to complete the Individual PAYG payment summary schedule 2024.

A payer may issue a receipt, remittance or similar document in place of the PAYG payment summary – withholding where ABN not quoted containing the same information as a payment summary.

If you received income from which tax was withheld and you did not receive or have lost your payment summary, contact your payer and ask for a copy.

How to complete the Individual PAYG payment summary schedule 2024

Remember: If you have both business income (P8) and PSI (P1), you must complete an Individual PAYG payment summary schedule 2024 for each type of income. Follow the steps below.

Step 1 Write your TFN and name in the appropriate boxes at the top of the schedule.

Step 2 Nature of income, print X in the Business income box.

Step 3 For each payment summary, transfer the following information to the schedule:

  • the type of withholding; look at your payment summary carefully to determine its type and complete the Type box, using the following key  
    • V voluntary agreement
    • S labour hire or other specified payments
    • N withholding where ABN not quoted
    • F foreign resident withholding
  • the payer’s ABN or withholding payer number (WPN) and the payer’s name in the appropriate boxes
  • the total tax withheld in the Tax withheld box
  • the gross payment in the Gross payment box.

Step 4 Check that you have recorded details from all relevant payment summaries on your payment summary schedule.

You must keep your payment summaries for a period of 5 years.

Payers must report to us details of payments where amounts of tax have been withheld. This information will be cross-checked with your tax return to make sure that you have declared the correct amount of income and the correct amount of tax withheld.

Gross payments where Australian business number (ABN) not quoted

Follow the instructions below to complete these labels.

Did you have amounts of tax withheld for failure to quote an ABN?

You need to know

The amounts you show at P8 Income – labels C and D are the total income you received, from which your payers have withheld tax because you did not quote your ABN. You will be able to calculate these amounts from your completed Individual PAYG payment summary schedule 2024.

Completing this question

Step 1 Add up all the Gross payment amounts on your completed payment summary schedule, derived from primary production activities that have an N in the Type box. Write the total at P8 Income – label C on your schedule. Don't show cents.

Step 2 Add up all the Gross payment amounts on your completed payment summary schedule, derived from non-primary production activities that have an N in the Type box. Show the total at P8 Income – label D. Don't show cents.

Step 3 Add up the amounts you have written at labels C and D and enter the total in the adjacent Totals box.

If you complete P8 Income – labels C and D, you must complete question 15 – label W in your supplementary tax return.

Gross payments subject to foreign resident withholding (excluding capital gains)

Follow the instructions below to complete this label.

Did you receive any payments that were subject to foreign resident withholding (excluding capital gains)?

You need to know

The amount you show at label B is the total income you received from your payers which is subject to foreign resident withholding. It includes any amounts of tax withheld. You calculate this amount from your completed Individual PAYG payment summary schedule 2024.

Don't include amounts subject to foreign resident capital gains withholding. Include these amounts at question 18 Capital gains in your supplementary tax return.

Completing this question

Step 1 Add up all the Gross payment amounts on your completed payment summary schedule derived from non-primary production activities that have an F in the Type box. Write the total at P8 Income – label B. Don't show cents.

Step 2 Transfer the amount at label B to the adjacent Totals box.

If you complete P8 Income – label B, you must complete question 15 – label E in your supplementary tax return.

Gross payments – voluntary agreement

Follow the instructions below to complete this label.

Did you receive any income that was subject to a PAYG voluntary agreement?

You need to know

The amounts you show at P8 Income – labels E and F are the total income you received that was subject to a voluntary agreement to withhold tax and include the tax withheld. You will be able to calculate this amount from your completed Individual PAYG payment summary schedule 2024.

Completing this question

Step 1 Add up all the Gross payment amounts on your completed payment summary schedule derived from primary production activities that have a V in the Type box. Write the total at P8 Income – label E in your schedule. Don't show cents.

Step 2 Add up all the Gross payment amounts on your completed payment summary schedule derived from non-primary production activities that have a V in the Type box. Write the total at P8 Income – label F. Don't show cents.

Step 3 Add up the amounts you show at P8 Income – labels E and F, and write the total in the adjacent Totals box.

If you complete P8 Income – label E or F, you must complete question 15 – label D in your supplementary tax return.

Gross payments – labour hire or other specified payments

Did you receive:

  • income under a labour-hire arrangement, or
  • a specified payment, including  
    • income from tutorial services you provided for the Indigenous Student Success Programme (formerly known as the Indigenous Tutorial Assistance Scheme) of the Department of the Prime Minister and Cabinet
    • income from translation and interpretation services for the Translating and Interpreting Service National of the Department of Home Affairs, or
    • income as a performing artist in a promotional activity?

If you answered:

You need to know

The amount you show at P8 Income – label O is the total income you received from labour hire or specified payments and includes the tax that was withheld. You can calculate this amount from your completed Individual PAYG payment summary schedule 20232024.

Don't include income you received as an employee of a labour-hire business. That income appears on your income statement or PAYG payment summary – individual non-business. Write it at question 1 in your tax return.

Completing this question

Step 1 Add up all the Gross payment amounts on your completed payment summary schedule that have an S in the Type box. These amounts are non-primary production income. Show the total at P8 Income – label O. Don't show cents.

Step 2 Transfer the amount at P8 Income – label O to the adjacent Totals box.

If you complete P8 Income – label O, you must complete question 15 – label F in your supplementary tax return.

It is expected you will not have any primary production amounts at this question. Leave P8 Income – label N blank.

Assessable government industry payments

Follow the instructions below to complete this label.

Did you receive assessable government industry assistance?

You need to know

Generally, government credits, grants, rebates, bounties and subsidies are assessable income of the recipient if they are received in, or in relation to, the carrying on of a business. This includes amounts of a capital nature. Amounts relating to the commencement or cessation of a business may give rise to a capital gain. In certain circumstances, a specific grant or payment may be exempt income or non-assessable non-exempt income.

A number of Commonwealth, State and Territory government grants and payments have been made available to businesses in response to recent natural disasters and COVID-19. Only those grants and payments that are assessable income will need to be included at this question.

Don't include at this question the following grants and payments:

  • Cash Flow Boost Payments (COVID-19) (non -assessable, non-exempt income). If cash flow boost payments have been included as income in the accounts, include them at P8 Income – Other business income and Income reconciliation adjustments.
  • Commonwealth and State government grants and payments that are tax free.

For more information, see:

Examples of assessable government industry assistance are:

  • bounties
  • employee subsidies
  • export incentive grants
  • fuel tax credits
  • industry restructuring and adjustment payments
  • JobMaker hiring credits
  • JobKeeper payments (COVID-19)
  • Apprentices and Trainees wage subsidy
  • producer rebate (wine equalisation tax)
  • excise refund scheme for alcohol manufacturers
  • product stewardship for oil program benefit.

JobMaker hiring credit reporting

The accounting basis you use determines the way you report JobMaker hiring credit payments.

Accruals accounting basis

JobMaker hiring credit payments are derived when the entity provides the ATO with a valid claim form after each JobMaker period.

JobMaker hiring credit payments relating to valid claim forms made in 2023–24 are assessable in 2023–24. You include them in your 2023–24 tax return.

Cash accounting basis

JobMaker hiring credit payments are derived when you receive those payments. Payments received during 2023–24 are assessable in 2023–24.

For more information, see:

Don't show ‘Medicare payments received by medical practices’ at this question. Show them at Other business income.

Completing this question

Step 1 Write your total primary production government industry payments received by each business at P8 Income – label G in your schedule. Don't show cents.

If you have completed the Gross income from primary production worksheet in Information for primary producers 2024, include at P8 Income – label G the amount at PP11 on the worksheet.

Step 2 Write your total non-primary production government industry payments received by each business at P8 Income – label H. Don't show cents.

Step 3 If your assessable government industry payments include fuel tax credits, producer rebate (wine equalisation tax), excise refund scheme for alcohol manufacturers or product stewardship for oil program benefit, print D in the Type box at the right of the amount at P8 Income – label G (for primary production government industry payments) or label H (non-primary production government industry payments).

Step 4 Add up the amounts you have written at P8 Income – labels G and H and write the total in the adjacent Totals box.

Other business income

Follow the instructions below to complete this label.

Did you receive any other business income?

You need to know

Other business income includes:

  • gross sales of trading stock
  • gross sales from produce
  • goods taken from stock for your own use
  • value of livestock killed for rations
  • value of livestock exchanged for other goods or services
  • gross earnings from services
  • rent derived from carrying on a business of renting property
  • income earned through the sharing economy, or other marketplace, where you're carrying on a business
  • taxi driver and ride-sourcing earnings (income you earned as a non-employee taxi driver if it is not shown at item P1)
  • amounts received as recoupment of expenses
  • bad debts recovered
  • profit on sale of depreciating assets
  • royalties
  • insurance recoveries
  • subsidies
  • employee contributions for fringe benefits
  • assessable non-government assistance from all sources
  • foreign exchange (forex) gains.

Your ‘other business income’ excludes amounts shown at labels C, D, B, E, F, N, O, G and H in your schedule.

If you are a primary producer, you must add the amounts shown at PP1, PP2, PP6, PP7 and PP10 on your Gross income from primary production worksheet. This worksheet is included in Information for primary producers 2024. You must add the total to any other income from a business of primary production referred to above. You show the total of all other income from the business of primary production at P8 Income – label I in your schedule.

Completing this question

Step 1 Write your total amount of ‘other’ primary production business income or loss at P8 Income – label I in your schedule. Don't show cents.

Step 2 If you made a loss, print L in the box at the right of the amount at label I.

Step 3 Write your total amount of ‘other’ non-primary production business income or loss at label J. Don't show cents.

Step 4 If you made a loss, print L in the box at the right of the amount at label J.

Step 5 Add up your ‘other’ primary production and non-primary production business income or loss and write the total in the adjacent Totals box.

Step 6 If you made a loss, print L in the box at the right of the Totals box.

Total business income

Step 1 Add up the primary production amounts shown at P8 Income – labels C, E, G and I in your schedule. Write the total at TOTAL BUSINESS INCOME in the Primary production column.

Step 2 If you made a loss, print L in the box at the right of the amount at TOTAL BUSINESS INCOME in the Primary production column.

Step 3 Add up the non-primary production amounts shown at P8 Income – labels D, B, F, O, H and J. Write the total at TOTAL BUSINESS INCOME in the Non-primary production column.

Step 4 If you made a loss, print L in the box at the right of the amount at TOTAL BUSINESS INCOME in the Non-primary production column.

Step 5 Add up the amounts at TOTAL BUSINESS INCOME in the Primary production and Non-primary production columns and write the total in the adjacent Totals box. If you made a loss, print L in the box at the right of this amount.

Continue to: Expenses – P8

Return to: Business income and expenses – P8

 

 

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