Do you feel like too much of your hard earned income is spent on Tax? While tax is inevitable, we can review your financial affairs to ensure you are only paying what you need to while remaining compliant.

Taxes are an inevitable part of doing business

Your reward for success is a bigger tax bill, as your income grows, so does your tax liability.

While we do not want our client to avoid paying tax or evade the tax department. We do want our client to only pay the amount of tax they are legally liable for.

Making sure you understand the tax deductions and other benefits available to you

We would like to assist you arrange your financial affairs to minimise your tax and only pay what you should. With tax legislation constantly changing, our team stays up to date with any changes and understands how these changes could affect our clients.

Changes to your personal circumstances could also affect the amount of tax you pay. There could be a better way to structure your affairs so you only pay the tax you need to.

Examples of areas where you could save tax include:

  • Vehicle ownership
  • Home office expenses
  • Entertainment
  • Employment benefits
  • Loan refinancing
  • Family income allocation

We can assess you current tax situation

Book a meeting with us today to review your financial reports and identify potential tax saving opportunities in your business to determine the most appropriate tax structure for your circumstances. We can also advise you on the financial implications of your current and planned arrangements.

We will go through your tax obligations with you to ensure you understand what is required and give you peace of mind that you are compliant with all tax legislation.

Knowing how much tax you will be required to pay means you can set aside the right amount of money on a regular basis to ensure you are prepared for the tax obligation.

Common tax deductions for small businesses

 

There are many expenses common to small businesses, ensure you are claiming all the tax deductions your business is entitled to.

  • Operating expenses: accounting, administration, advertising and marketing, office premises, office running expenses, trading stock, legal fees, insurance, vehicle expenses
  • Employment expenses: salary and wages, fringe benefits, superannuation and training costs
  • Other operating expenses: may include things specific to your business, i.e point of sale systems, freight, professional membership fees, professional education, protective equipment, tools or specialised software
  • Capital expenses: machinery and equipment, vehicles, furniture and computers. Depreciation may also be deductible for assets, if the expense was not written off immediately.
  • Repairs and maintenance to assets and business premises

The expenses must relate to the running of the business and providing goods or services offered by your business.

There are some common expenses that are not deductible, including fines and penalties, provisions for employee leave, donations to entities not registered as deductible gift recipients and entertainment.

Some expenses you may want to query with us such as private usage of business vehicles, prepaid expenses, bad debts, loss of stock and borrowing expenses.

What’s the ATO looking at?

  • Travel Expenses: travel fares, accommodation, meals. These expenses should be directly related to income producing activities.
  • Motor vehicle expenses: keep records for fuel, repairs and servicing, finance arrangements, insurance and registration. Keep a logbook to record personal travel
  • Home office expenses: check with us to find out the current home office deductions allowed
  • Fringe benefits: have you captured all benefits provided to employees? Vehicle and entertainment benefits are usually scrutinized.
  • JobKeeper- if you have claimed JobKeeper for eligible business participants and/or employees, the ATO will look closely at your payroll records.

Instant Asset Write Off

This year the instant asset write-off threshold has increased to $150,000 up from $30,000. Talk to us if you’d like advice about whether it’s a good time for your business to buy new assets and claim an immediate deduction.

Temporary full expensing

Temporary full expensing allows eligible businesses to deduct the full cost of eligible depreciating assets of any value, in the year they are first held, first used or installed ready for use for a taxable purpose.

Keep Your Records

Remember you need a valid tax invoice for any expenses over $82.50 (including GST) to prove the business expense.

Maximise Your Business Deductions

We can check your business’s eligibility for concessions, offsets, incentives and rebates and make sure your business is calculating taxable income correctly, so you don’t pay more tax than you need to!

It’s important to get the allowable tax deductions right for your business. This way you get more time to plan for payment, or if you are due a refund you will get it quickly.