The Australian Taxation Office (ATO) has issued guidance on deductions for unrecoverable income (bad debts).

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Deductions for unrecoverable income (bad debts)

As a business owner, you may be able to claim a deduction for income that cannot be recovered from a customer or debtor. This unrecoverable income is also known as a 'bad debt'.

Income tax and bad debts

The accounting method you…

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