Turn on tax depreciation via  4 little squares


In such a situation, ATO demand that 6X = sum of Deduction for Certain Assets & Deduction for General Small Business Pool.

a. Ensure all depreciation is classified as either General Pool and/or Immediate Write Off under 
Financials -->Accounts.

b. Add a manual positive or negative value at 6X to ensure the total equals the sum of 10A & 10B.
Using the following example, 

And assuming the depreciation in the downstream accounting software (QBO) IS 24,750, then - 


 Extract from the ATO correspondence received by LodgeIT on this matter - 


Company tax return instructions states:

The Income and Expenses amounts to be written at item 6 Calculation of total profit or loss are accounting system amounts and correspond to the amounts in the company’s financial statements for the income year, except for the depreciation expenses of small business entities using the simplified depreciation rules. These are to be written as tax values at X Depreciation expenses item 6 (see Small business entities).

 

Therefore Small Business Entities using accelerated depreciation for their tax returns will use tax value for 6X Depreciation Expenses. Only include depreciation expenses at W Non-deductible expenses item 7 if the company is not using the small business entity depreciation rules (including the circumstances where the company using the small business entity depreciation rules also has assets excluded from the application of these rules (as per instructions Note 5),  and the deduction for decline in value of these depreciating assets will be written at F Deduction for decline in value of depreciating assets item 7 (as per Instruction 7F).


Related Article:

CTR Depreciation: Small Business Entities (SBE) Tax Rates, Reconciliation and Simpler Depreciation for Company Tax Return