Tax Tips

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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. Your accountant can then advise you if the expense is deductible. Remember – no receipt, no claim.

Tip 2:

Temporary Full Expensing

If you are a small business, take advantage of the Temporary Full Expensing allowing you an outright deduction for eligible assets to the value of $150,000 which runs until the 30th of June 2022. So, if your budget allows for the expenditure, purchase your asset before 30th June 2022 to maximise your tax deduction. If you are thinking of buying a new work vehicle, be aware of the vehicle thresholds on certain vehicles.

Tip 3:

Defer Income

You can cut down on you tax bill by deferring taxable income to the next financial year. For example, if you delay invoicing until the 1st of July, the invoice amount will not count towards your taxable income for the previous financial year.

Tip 4:

Prepay 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 loan can all be prepaid depending on your available cash flow.

Tip 5:

Boost Your Retirement

Updated 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. So, if you have the cash to spare, make payment to your super fund before the 30th of 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 have private hospital cover, you will not incur the Medicare Levy Surcharge which can be as much as 1.5% of your assessable income.

Tip 7:

Write Off Bad Debts

You can claim a tax deduction on bad debts if you can show that the debt has been written off by 30th of June, and if the debt was originally shown as income. Put your decision in writing (such as in meeting minutes), which you can use as evidence that the debt was written of before the end of the financial year.

Tip 8:

Accept That Tax Is Here To Stay

Nobody enjoys paying tax but if your business pai paying tax, it means its making money and that you are running a successful business!!

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