Small business deductions: How can you save money?
Tuesday 7 August 2018
When we are preparing your small business tax returns there are a wide range of options available to help save you money.
Small business entities (companies, trusts, partnerships or sole traders with total turnover of less than $10 million) will qualify for a raft of tax concessions in the 2018 income tax year:
- the $20,000 instant asset write-off – an immediate deduction when buying and installing depreciating assets that cost less than $20,000.
- the simplified depreciation rules – accelerated depreciation rates of 15% or 30% for depreciable assets that cost $20,000 or more;
- the small business restructure rollover;
- an immediate deduction for start-up costs;
- an immediate deduction for certain prepaid expenses;
- the simplified trading stock rules – removing the need to do an end-of-year stocktake if stock value has changed by less than $5,000;
- the simplified PAYG rules – the ATO will calculate PAYG instalments for you;
- Various GST concessions including cash basis accounting for GST, paying GST by instalments and/or annual apportionment for input tax credits for acquisitions that are partly creditable;
- the FBT car parking exemption in certain circumstances (from 1 April 2017); and
- the ability for employees to salary-sacrifice two identical portable electronic devices (from 1 April 2016) with no FBT consequence provided they are primarily for work use.
These concessions are very powerful for small businesses, and can lead to substantial tax savings. Contact us for further information.