This year’s tax time will be a different one for sure, but there’s plenty of opportunity to maximise savings and returns for your business.
We’ll keep it brief – listed below are the main points and some tips.
Note: This article simply offers basic and general tips. As always, it’s best to speak to your Registered Accountant or Financial Advisor for tailored, professional advice.
- Take advantage of the $17.6 billion Economic Stimulus Package before June 30 2020
- Instant asset write offs up to $150,000
- Now includes businesses with an aggregate annual turnover of up to $500 million
- The stimulus also offers other benefits for tradies and businesses including accelerated depreciation (deduct 50% of an eligible asset’s cost on installation) and wage subsidies for apprentices for up to 50%. For more info on this, visit the Treasury website: https://treasury.gov.au/coronavirus/businesses
- This year is ideal to stock up on tools because they are tax deductible (for small and medium businesses) up to $150,000, a big change from the original $30,000!
- As always, check out the ATO’s website for clear guidance on what you can claim: https://www.ato.gov.au/General/Tradies---be-certain-about-what-you-can-claim/
- If you travel from site-to-site frequently, make sure you log and claim your motor vehicle expenses. You can also claim deductions on fuel, repairs, oil, insurance, servicing and rego for your work vehicle.
- Logging your receipts throughout the year can be a bloody headache, so why not use an app?! We rate the ATO’s myDeductions app or SmartReceipts.
- If you do a lot of work outside, you can claim on protective wear and sun protection such as sunscreen, sunglasses, hats, work boots and clothes.
- And lastly, the quickest and easiest time to lodge is generally between mid-August and September because that’s when the pre-fill information is typically available.
Every bit counts when it comes to simplifying tax time.
Here’s to a successful 2020 tax return!!
