Home – New Forums Money matters Newbie Tax Questions – deductions & losses

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  • #987698
    AudioMatt
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    I started taking paying work as a sole trader in January, but have not come close to breaking the taxable threshold. I am in fact sitting at a substantial (though less than I had expected and budgeted for) loss. I’m assuming I’ll need to do a tax return, but never having done so before I don’t know what to expect.

    What happens to my deductibles if I’m below the taxation threshold?

    The ATO website says I *can* immediately claim equipment <$6500 - does this mean I *have to*? Seems I'd be better off claiming it over a few years. Or can losses be carried over to the next year? I’ve spent solid weeks scouring the ATO website at various points over the last 12 months, and the best answer I can find is “maybe” or occasionally “sometimes.” I realise the obvious solution is to ask my accountant, but I don’t have one and realistically can’t justify the expense. Many thanks,
    Matt

    #1163968
    affgar
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    You have to have your business working in order & declared for doing a return … despite you not being required to pay tax .. if that’s the case.

    The deduction you mention is for equipment up to that value. Of course you can’t claim for stuff you didn’t even purchase.

    You need to talk to an accountant.

    #1163969
    AudioMatt
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    Thanks for the reply!

    affgar, post: 189729 wrote:
    You have to have your business working in order & declared for doing a return … despite you not being required to pay tax .. if that’s the case.

    I have my ABN and have been paid for work – is that what you mean, or is there more to being in order and declared?

    affgar, post: 189729 wrote:
    The deduction you mention is for equipment up to that value. Of course you can’t claim for stuff you didn’t even purchase.

    To clarify, it is the ‘immediate’ part of this I’m unsure of. Is it an option to use the depreciation method for items <$6500? No, I don't plan to claim things I haven't purchased. Thanks again :)

    #1163970
    Greg Mawer
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    Hi Matt,

    Please find below a link to the ATO regarding carrying forward your losses:

    https://www.ato.gov.au/Business/Non-commercial-losses/

    Please send me a PM if you have any further questions.

    Thanks.

    Regards,

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