I’ll preface with an acknowledgement: taxes are not sexy, interesting or high on anyone’s priority list. However, at tax time, having the know-how to claim back hundreds, even thousands of dollars should make every business owner sit up straight in their chair and pay attention.
Changes to the ‘Instant Tax Write Off’ – Extended dates and terms
The End Of The Financial Year is just around the corner, and for a lot of us, that means racking our brains and digging out crumpled receipts from last year. For trade businesses, Many of us fared pretty well during the pandemic in 2020, as we were considered ‘essential services’. Some trade businesses even used the time to scale up and upgrade their equipment ready for things to pick back up again.
Now that it’s almost Tax time, ask yourself the following questions:
- Have you purchased any assets for your business this year? If purchased before 31/12/2020 and you have started using them, you may be able to claim them this financial year as a part of the Instant Asset Write Off Scheme. Check if you’re eligible for this!
- Have you paid yourself Superannuation this year? Any Super you pay yourself (up to $25,000pa), whether you take with each owner draw or as a lump sum, qualifies as a deductible concession on your personal income taxes. It’s important to note that paying yourself super is a personal tax deduction!
- Are your commercial insurances up to date? These also qualify as deductible expenses so check their currency before June 30.
- How did you manage during COVID lockdowns? If you qualified for Job Keeper support be sure your books are up to date.
These questions will have a MASSIVE impact on your tax return this year. Make sure to book an appointment and discuss these points and more, with your accountant, so you have time to prepare for your tax submission deadlines.
DON’T WAIT UNTIL IT’S TOO LATE! Tax time comes around quickly, we know taxes and getting your books in order is at the bottom of your massive to-do list, but if it means more of your earnings in your pocket, the time will be well spent!