Ticking down to tax time
Whether your business is brand new or you’re a seasoned veteran, tax time can bring new challenges – so it pays to be prepared. Peter Foster-Bunch from Legal Access Services shares his top tips to help make tax time a little easier:
- Pay superannuation early for deductions this financial year.
- Minimise tax payment by using trusts and companies to distribute funds to recipients on lower tax brackets.
- Review your business structure to see if it's as efficient as it could be.
- With the release of the 2015 Federal Budget, eligible small businesses with a turnover of less than $2 million can claim an immediate deduction on assets that cost less than $20,000 each (excluding GST), as long as they're installed for business use before the end of the financial year.
- If you’re not going to get paid, then it’s best to write bad debts off before June 30 to claim the deduction.
- Write off any lost, damaged or obsolete stock can reduce your taxable income.
A little planning can make a large difference at tax time!