If you are self-employed and receive a Centrelink payment, sooner or later Services Australia will ask you for a profit and loss statement. Getting it right matters: your business figures are used to work out your payment rate, and an inaccurate statement can lead to an underpayment or a debt later. This guide explains what the Centrelink profit and loss statement is, who needs one, and how to prepare it properly.
What is the Centrelink profit and loss statement (SU580)?
The Profit and Loss Statement is a Services Australia form, numbered SU580. You use it to tell Centrelink about a new job or business, or about a change in your business activity or self-employment income. It sets out the income your business earned and the expenses it incurred, so Centrelink can work out the business income that counts under the income test.
Who needs to complete one?
Services Australia asks for the SU580 from people who are:
- sole traders, including people working on an ABN
- subcontractors, such as tradies, cleaners, rideshare and delivery drivers
- partners in a business partnership
If you have not told Centrelink about your business before, you will usually also need to complete a Business details form. Businesses run through a company or trust are assessed under different rules, so check with Services Australia or your accountant before completing an SU580 for those structures.
How Centrelink uses your business figures
For payments such as JobSeeker, business income is generally not reported through your fortnightly reporting in the same way as wages. Instead, Centrelink uses the information you give about your business to estimate an annual income figure, and works out your fortnightly rate from that. This is why the profit and loss statement needs to reflect your real trading position, and why you must tell Centrelink when your business income or expenses change significantly.
What to include
Income
- All sales and fees from the business, including cash and card payments
- Payments from platforms such as Uber, DoorDash or Airtasker
- Government grants or subsidies received by the business
- Any other business income, such as commissions
Expenses
- Cost of goods or materials
- Vehicle costs used for the business, such as fuel, servicing, registration and insurance
- Phone, internet and software used for work
- Tools, equipment and supplies
- Rent, insurance and professional fees, such as accounting
- Wages paid to employees
Only include the business portion of mixed-use costs. If your car or phone is used privately as well, work out the business-use percentage and keep a record of how you calculated it. Personal living expenses, such as groceries or private rent, are never business expenses.
How to prepare an accurate statement
- Keep business and personal money separate. A dedicated business bank account makes the statement far easier to prepare and to defend if Centrelink asks questions.
- Match figures to your records. Every income and expense figure should trace back to bank statements, invoices, receipts or platform summaries.
- Use the right period. Complete the statement for the period Centrelink asks for, and do not mix figures from different periods.
- Be consistent with your tax return. Large differences between your profit and loss statement and the business income in your tax return are a common trigger for a review.
- Update Centrelink when things change. A new contract, a lost client or a big jump in costs can all affect your payment.
Common mistakes we see
- Reporting deposits into a personal account as business income without separating out transfers and personal money
- Claiming 100% of car or phone costs that are partly private
- Leaving out platform income because it was paid into a different account
- Guessing figures instead of using records, then not updating Centrelink when actual results differ
Can an accountant prepare it for me?
Yes. Many self-employed clients ask their accountant to prepare the figures from their bookkeeping records, so the statement is accurate and matches their tax return. You remain responsible for the information you give Centrelink, so review the statement carefully before you sign and submit it.
Need help with your profit and loss statement?
Kennedy Tax & Business Services prepares profit and loss statements for sole traders, subcontractors and partnerships across Melbourne’s west. We can also keep your bookkeeping up to date so the figures are ready whenever Centrelink, a lender or the ATO asks for them. Contact our Footscray or Williams Landing office to book an appointment.
This article is general information only and does not take into account your personal circumstances. Centrelink rules differ between payments and change over time. Check the current requirements with Services Australia and speak to a registered tax agent about your situation.
