Tip 1: Preparation is the Key – Make sure to keep your receipts of work related expenses, even if you are unsure if it is claimable. The accountant can then advise you if the expense is deductible. Remember – no receipt, no claim.
Tip 2: Small businesses can make use of the small business concessions allowing an outright deduction for business assets valued at $20,000 or less. So if your budget allows for the expenditure, purchase your asset before 30th June to maximise your tax deduction.
Tip 3: Prepaying Expenses – Prepaying expenses before the end of the financial year allows your business to claim the cost in the current financial year, helping to trim your tax bill. Expenses such as employee superannuation, office consumables or interest on loans can all be prepaid depending on your available cash flow.
Tip 4: Delaying Income – If you defer issuing invoices until 1 July you can legitimately reduce the tax payable for the current year. Be sure to speak to your clients first as this can also impact on their tax position.
Tip 5: Boost your retirement – New super rules mean that now most people can claim a tax deduction for making personal super contributions (after tax) of up to $25,000 per annum to a complying super fund (changes may occur to this amount in the future.) So if you have the cash to spare, make a payment to your super fund before the 30 June and claim the expense.
Tip 6: Join a Private Health Fund – if your income is over $90,000 as an individual or $180,000 as a family and you are covered by a private health fund, you will not incur the Medicare Levy Surcharge which can be as much as 1.5% of your assessable income.
Tip 7: Accept that Tax is Here to Stay – Nobody enjoys paying tax but if your business is paying tax, it means its making money and that you are running a successful business!!