If the ATO has queries or suspects something is not right, you need to be able to respond.
Christmas parties are considered to be “entertainment benefits”. Therefore, the expenses may be subject to fringe benefits tax (FBT).
As a general rule, smaller businesses tend to use cash accounting because it is not as complex as non-cash accounting.
From 1 July 2015, the ATO reduced your options for claiming car expenses down to two methods.