Which FY for tax purposes?

[Bandita]

Hi all,

Just trying to allocate income/expenses properly. I'm trying to work out which Financial Year some go into, so my question is - how does income/expense get allocated into the FY:

For expenses - which FY do you allocate the expense:

a) The date the invoice was raised?;
b) The date the invoice is due for payment?;
or
c) The date the invoice pertains to (eg. electricity bill raised on the 2nd July, for electricity usage 1 Apr through 30th June?)

For income:

a) date income received
-or-
b) date income pertains to (eg. interest payment received on 1 Sept for period of 1 July through 30th June of previous FY)

Thanks!
Jen

 

[trajik]

Hi JenD,

Expenses are deductible when incurred, ie; invoice date,

and income is not assessable until actually received.

hope this helps.

Ross

 

[buzzlightyear]

Of course some expenses can be pre-paid

 

[twodogs]

Hi JenD,


and income is not assessable until actually received.

Or by your agent, ie rent received by agent in June and given to you in July, would be in the previous FY tax return. At least that is what I know, don't know how I know so it could be completely wrong !