Tax Question Relating to Government Payments

Leggboi on 12/05/2020 - 22:06

So I have an important question but can't seem to find any remotely relevant answers after a lot of googling.

Sole trader here, using cash-basis accounting (as opposed to accrual basis). I'm still yet to receive any Jobkeeper money, but it's got me thinking - if the Jobkeeper money for the June fortnights doesn't arrive until July, naturally I would need to declare that $3000 in FY20-21 instead of FY19-20. But if the amounts are pre-filled into MyTax assuming accrual accounting (so the $3000 for June fortnights is declared as FY19-20 income) can I change this pre-fill info? Will this be accepted by the ATO, or will they force me to declare it as it appears in the pre-fill?

Such a simple yet apparently unanswered question… and it makes a significant difference on one's tax return.

Financial

Comments

  • Markmathews on 12/05/2020 - 22:13
    -4

    Don't declare nothing. Covid is cover, ignorance is the defence.
    I have learnt alot from Trump. Obfuscation, idiocy and theatricality go a long way.

    Markmathews on 12/05/2020 - 22:13 (Collapsed - Offtopic. Show)
    • Mechz on 12/05/2020 - 23:17
      +2

      So, OP should declare something then?

  • AustriaBargain on 13/05/2020 - 05:52

    Those earnings were obviously from this financial year. Suppose you could call it a bad debt, but I wouldn't.

    • eggboi on 13/05/2020 - 09:17

      With accrual based accounting, yes. Cash basis, no.

  • [Deactivated] on 13/05/2020 - 06:50
    +1

    In your case income is taxable when recieved. In your example you'd add it to 20-21.
    You can change pre-fill info.

    • eggboi on 13/05/2020 - 09:15

      Cheers, I’m thinking this makes most sense. Can’t mix and match accrual and cash based accounting.

    • AustriaBargain on 13/05/2020 - 09:25

      If OP would prefer that money fell into this current financial year, could they choose to declare it for this year still? Like if they knew they were going to win the lottery next year and would face the highest tax bracket.

      • [Deactivated] on 13/05/2020 - 09:57

        No. Lottery winnings are not taxable.

        • AustriaBargain on 13/05/2020 - 10:12

          Insurance payout then. Or maybe discover a giant gold nugget.

          • [Deactivated] on 13/05/2020 - 12:02

            @AustriaBargain: Still no.

            • AustriaBargain on 13/05/2020 - 12:41

              @[Deactivated]: No tax if you discover a huge gold nugget in your garden? Or if you found the nugget after using a prospecting license that lets you keep what you find.

              • [Deactivated] on 13/05/2020 - 13:47

                @AustriaBargain: Im saying you cant choose declare income a year early for convenience. Would be some sort of capital gains tax for your nugget.

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