Business income is not always money. You may need to include these amounts in your income tax return.
Business income can be more than money
Business income can come from your everyday business activities and from other transactions connected with your business. It may be paid in money, or you may receive goods, services or another benefit instead of money.
How your income is taxed can depend on the type of income, how it was earned and the circumstances you received it in.
Preparing your financial statements
You need to include all taxable income in your income tax return.
When you prepare your financial statements, remember to include all income you receive and not just income you earn from the ordinary activities of your business.
This income may include:
- sales of goods, including cash, electronic and online sales
- fees for services, professional work, contracting or consulting
- commissions or incentive payments
- other amounts paid for goods or services your business provides.
These amounts are income under the ordinary tax rules.
Income under ordinary tax rules
Other income connected with your business
Different rules may apply to income that is not part of your everyday sales or services such as:
- licence fees, royalties and franchise income
- income from leasing
- refunds, rebates and similar credits
- trading stock adjustments
- insurance or compensation payments
- grants, subsidies and support payments
- donations or gifts
- income from portfolio investment entities
- depreciation recovery income
- investment income
- overseas income.