Company Interview / Always report your side hustle to the ATO!

Mark Chapman from H&R Block Australia emphasises the importance of declaring all business income to the ATO, even if it's a side hustle. Many entrepreneurs overlook this, treating their venture as a hobby. Mark points out that all income needs examining for tax implications.

Mark states that deductions for business expenses can be claimed, such as home office costs and related utilities. However, only business-related portions of shared expenses are eligible for deductions. Proper record-keeping is crucial for accurate tax declarations.

For those transitioning from employment to running a business, Mark advises awareness of the need for quarterly tax payments. To avoid cash flow issues, it's essential to set aside a percentage of earnings for taxes. Additionally, registration for GST is necessary if turnover exceeds $75,000.