Things you need to know
You will need to lodge a Business and professional items schedule 2023 before you can complete this question. You should lodge your supplementary tax return using myTax or a registered tax agent. If you are unable to use myTax or a registered tax agent, contact us and we will mail you a paper tax and supplementary return and a Business and professional items schedule 2023.
This question covers:
- income from being a sole trader
- income or a loss from a primary production business
- income under a pay as you go (PAYG) voluntary agreement
- income from which an amount was withheld because you did not quote your Australian business number (ABN)
- income you derived as a foreign resident from which an amount was withheld because it was subject to foreign resident withholding
- income of an independent contractor working under a labour hire arrangement
- income from the following specified payments
- payment for tutorial services provided under the Indigenous Student Success Programme (formerly known as the Indigenous Tutorial Assistance Scheme) of the Department of the Prime Minister and Cabinet
- payment for translation and interpretation services provided for the Translating and Interpreting Service National of the Department of Home Affairs
- income as a performing artist in a promotional activity
- any other business income
- the small business income tax offset (see Part D).
A specified payment is a payment specified in tax law for PAYG withholding purposes.
Did you derive income or incur a loss from any business in 2022–23?
No |
Go to question 16 Deferred non-commercial business losses 2023, or return to main menu Individual tax return instructions 2023. |
Yes |
You should lodge your tax return using myTax or a registered tax agent. |
Do not include at this question
Do not show at this question:
- personal services income included at question 14 Personal services income 2023
- foreign source business income included at question 20 Foreign source income and foreign assets or property 2023
- credit for amounts withheld from business as a result of the foreign resident capital gains withholding rules. Show the amounts of credit at question 18 Capital gains 2023.
What you need to answer this question
You will need to lodge a Business and professional items schedule 2023, see Business and professional items instructions 2023.
You must show your net income or loss (that is, gross business income less business deductions) at question 15:
- label B for primary production
- label C for non-primary production.
You carry on a primary production business if you carry on a business undertaking:
- plant or animal cultivation (or both)
- fishing or pearling (or both)
- tree farming or felling (or both).
These publications may help you to correctly complete this question:
- TR 92/18 Income tax: bad debts
- TR 93/30 Income tax: deductions for home office expenses
- TR 96/7 Income tax: record keeping – section 262A – general principles
- TR 96/11 Income tax: record keeping – taxi industry – guidelines for recording taxi takings
- TR 97/11 Income tax: am I carrying on a business of primary production?
- TR 97/23 Income tax: deductions for repairs
- TR 2018/2 Income tax: record keeping and access – electronic records
- Information for primary producers 2023
- Guide to depreciating assets 2023
- Small business entity concessions.
Completing your supplementary tax return
If lodging by paper, you can't enter amounts in the supplementary tax return for this question. You should lodge your tax return using myTax or a registered tax agent.
If you are unable to use myTax or a registered tax agent, contact us and we will mail you a paper tax and supplementary return form with fields for questions 14, 15 and 16 and Business and professional items schedule 2023.
To complete this question, answer the following parts and steps.
Part A
To complete this question, you need to read and complete the Business and professional items schedule 2023 and Individual PAYG payment summary schedule 2023. Follow the steps below.
Step 1
Complete the Business and professional items schedule, see Business and professional items 2023.
Step 2
If you received business income from which tax was withheld, complete the Individual PAYG payment summary schedule 2023.
Part B
Did you derive income or incur a loss from a primary production business?
No |
Go to Part C. |
Yes |
Follow the steps below. |
Step 1
Transfer your net income or loss from a primary production business shown at question P8 – label Y in the Business and professional items schedule to question 15 – label B. Do not show cents.
Step 2
If you made a loss, print L in the LOSS box at question 15 – label B.
Step 3
If you made a loss from one or more business activities, check that you have completed questions P3 and P9 in the Business and professional items schedule.
Part C
Did you derive income or incur a loss from any non-primary production business?
No |
Go to Part D. |
Yes |
Follow the steps below. |
Step 1
Transfer your net income or loss from a non-primary production business shown at question P8 – label Z in the Business and professional items schedule to question 15 – label C. Do not show cents.
Step 2
If you made a loss, print L in the LOSS box at question 15 – label C.
Step 3
If you made a loss from one or more business activities, check that you have completed questions P3 and P9 in the Business and professional items schedule.
If you carried on a business as an author of a literary, dramatic, musical or artistic work or as an inventor, performing artist, production associate or active sportsperson, you must also write the amount of income from these business activities at question 24 Other income 2023 – label Z. You will not be taxed twice on this income.
Part D
Are you a small business entity?
No |
Go to Part E. |
Yes |
Follow the steps below. |
You may be entitled to the small business income tax offset of up to $1,000. We will use the information you provide here to work out the amount of your tax offset. The amount you show at this question is not included in your income.
To answer Part D, you need to work out your net small business income, which is your assessable income from carrying on your business less your deductions to the extent that they are attributable to that assessable income.
Do not show at Part D:
- personal services income included at question 14 Personal services income 2023
- salary, wages or directors fees
- dividend income of directors
- dividend and interest income, unless it is derived from carrying on the business activity and you have shown an amount at question 15 Net income or loss from business 2023
- partnership share of net small business income less deductions attributable to that share shown at question 13 – label D
- trust share of net small business income less deductions attributable to that share shown at question 13 – label E.
If you have net small business income from question P8 of Business and professional items schedule you completed, go to Step 1.
If your only income or loss from carrying on a business as a small business entity is at question 20 – label M, then use our Small business income tax offset calculator to work out your net small business income.
Step 1
If you have net small business income from question P8 of Business and professional items schedule show it at question 15 Net small business income – label A then go to Part E.
Step 2
If your only income or loss from carrying on a business as a small business entity is at question 20 – label M show the result of the Small business income tax offset calculator at question 15 Net small business income – label A.
Part E
In your calculation of total business income in the Business and professional items schedule, did you include income from which an amount of tax was withheld at the INCOME quesiton P8 – labels B, C, D, E, F, N or O?
No |
|
Yes |
Follow the steps below. |
Step 1
Did you have any amounts of tax withheld under a pay as you go (PAYG) voluntary agreement?
No |
Go to Step 2. |
Yes |
Read on. |
Add up all the amounts on your Individual PAYG payment summary schedule 2023 shown in the Tax withheld boxes where you have printed V in the Type box.
These amounts must correspond with the Gross payments shown question P8 – labels E and F in the Business and professional items schedule. Show this total at question 15 Net small business income – label D. Do not show cents.
Step 2
Did you have any amounts of tax withheld because you did not quote your Australian business number (ABN)?
No |
Go to Step 3. |
Yes |
Read on. |
Add up all the amounts on your Individual PAYG payment summary schedule 2023 shown in the Tax withheld boxes where you have printed N in the Type box.
These amounts must correspond with the Gross payments shown at question P8 – labels C and D in the Business and professional items schedule. Show this total at question 15 Net small business income – label W. Show cents.
Step 3
Did you, a foreign resident, have any amounts of tax withheld because your income was subject to foreign resident withholding?
No |
Go to Step 4. |
Yes |
Read on. |
Add up all the amounts on your Individual PAYG payment summary schedule 2023 shown in the Tax withheld boxes where you have printed F in the Type box.
These amounts must correspond with the Gross payments shown at question P8 – label Bin the Business and professional items schedule. Show this amount at question 15 Net small business income – label E. Show cents.
Do not include credits for amounts withheld as a result of the foreign resident capital gains withholding rules at question 15 Net small business income – label E.
Step 4
Did you have any amounts of tax withheld because you received income:
- working under a labour hire arrangement, or
- from a specified payment?
No |
|
Yes |
Read on. |
Add up all the amounts on your Individual PAYG payment summary schedule 2023 shown in the Tax withheld boxes where you have printed S in the Type box.
These amounts must correspond with the Gross payments shown at question P8 – labels N and O in the Business and professional items schedule. Show this amount at question 15 Net small business income – label F. Do not show cents.
Checks before moving to the next question
- read Business and professional items 2023
- completed the Business and professional items schedule
- transferred the amounts from question P8 – labels Y and Z in the Business and professional items schedule to question 15 Net small business income – labels B and C respectively in your tax return (if these amounts are losses then check that you have printed L in the Loss boxes at labels B and C)
- completed question 15 – label A if you are a small business entity.
If you received business income from which tax was withheld, check that you have:
- completed the Individual PAYG payment summary schedule 2023 and attached it to page 3 of your tax return
- written amounts at question 15 – labels D, W, E and F, if required
- not included the foreign resident capital gains withholding credit at question 15 – label E.
Where to go next
- Go to question 16 Deferred non-commercial business losses 2023.
- Return to main menu Individual tax return instructions 2023.
- Go back to question 14 Personal services income 2023.